business finanace presentation
DESCRIPTION
Project for MBATRANSCRIPT
Company
LOGO Business Finance Project
Submitted by:Mrs. Fatma HelalyMr. Ashraf GhazyMr. Mohamed El KholyOsama Fawzy
Agenda
1. Common Size Comparative Income Statement 1. Common Size Comparative Income Statement
2. Common Size Comparative Balance Sheet 2. Common Size Comparative Balance Sheet
3. Important Financial Indicators3. Important Financial Indicators
4. Recommendations 4. Recommendations
Cycle Diagram
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Cycle Name
Progress Diagram
Phase 1Phase 1 Phase 2Phase 2 Phase 3Phase 3
Block Diagram
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Common Size Comparative Income Statement
Last Year Ratio Prior Year Ratio
Sales, net of returns and allowances 600,000 100% 500,000 100%
Subtract: COGS 330,000 55 280,000 56
Gross profit 270,000 45 220,000 44
Expenses:
Selling Expenses 50,000 8.33 40,000 8.00
General Expenses 165,000 27.50 150,000 30.00
Total Selling & General Expenses 215,000 35.83 190,000 38.00
Net Operating income 55,000 9.17 30,000 6.00
Interest Expense 10,000 1.67 13,000 2.60
Net Income Before Income Tax 45,000 7.50 17,000 3.40
Income Tax 11,000 1.83 4,000 0.80
Net Income 34,000 5.67 13,000 2.60
Common Size Comparative Balance Sheet Last Year Ratio Prior Year Ratio
Assets
Current Assets
Cash 10,000 3 12,000 4
Accounts Receivable, net of Bad Debt allowance 45,000 15 40,000 14
Inventory 160,000 53 130,000 46
Prepaid Expenses 10,000 3 8,000 3
Total Current Assets 225,000 75 190,000 68
Fixtures & Equipment, net of depreciation allowance 75,000 25 90,000 32
Total Assets 300,000 100 280,000 100
Liabilities
Current Liabilities:
Current Portion, loans Payable 25,000 8 25,000 9
Accounts Payable 50,000 17 35,000 13
Taxes payable 20,000 7 20,000 7
Accrued Expenses 10,000 3 8,000 3
Total Current Liabilities 105,000 35 88,000 31
Long-Term Liabilities:
Notes Payable to bank 75,000 25 100,000 36
Total Liabilities 180,000 60 188,000 67
Stockholders' Equity
Common Stock, 5,000 Shares
$10 par value authorized
1,000 issued and outstanding 10,000 3 10,000 4
Retained Earnings 110,000 37 82,000 29
Total Stockholders' Equity 120,000 40 92,000 33
Total Liabilities & Equity 300,000 100 280,000 100
Important Financial Indicators
Last Year
Prior Year
Current Ratio = Ending Current Assets = 225,000 2.14 190,000 2.16
Ending Current Liabilities 105,000 88,000
Quick Ratio = Ending Current Assets - Ending Inventory = 225,000 160,000 0.62 190,000 130,000 0.68
Ending Current Liabilities 105,000 88,000
Inventory Turnover = COGS 330,000 2.06 280,000 2.15
Inventory 160,000 130,000
Accounts Receivable Turnover = Net Sales 600,000 13.33 500,000 12.50
Accounts Receivable 45,000 40,000
Day of Receivable = 365 365 27.38 365 29.20
Accounts Receivable Turnover 13 13
Interest Coverage = EBIT 55,000 5.50 30,000 2.31
Interest Expense 10,000 13,000
Important Financial Indicators
Debt to Equity Ratio = Debt = Ending Total Debt 75,000 0.63 100,000 1.09
Equity = Ending Total Equity 120,000 92,000
Return on Assets = Annual Net Income 34,000 11.33 13,000 4.64
Ending Total Assets 300,000 280,000
Return on Equity = Annual Net Income 34,000 28.33 13,000 14.13
Ending Total Equity 120,000 92,000
Profit Margin = Annual Earnings before Interest & Taxes 55,000 9.17 30,000 6.00
Annual Net Sales 600,000 500,000
Earnings per Share EPS = Net Income 34,000 3.40 13,000 1.30
Issued Capital 10,000 10,000
Recommendations
1. Very Healthy Company 1. Very Healthy Company
2. Substantial Sales Base 2. Substantial Sales Base
3. 3.
4. 4.
3-D Pie Chart
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Marketing Diagram
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