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calculate common size INCOME STATEMENT 2021 2022 Total sales Cost of goods sold Administrative expense $70,911,420 $48,113,332 $13,785,239 $85,218,840 57,181,806 16,873,362 Earnings before interest, taxes, depreciation & amortization (EBITDA) 9,012,849 11,163,672 Depreciation Earnings before interest & taxes.(EBIT) Interest expense Earnings Before Taxes (EBT) 1,700,510 2,027,160 9,136,512 1,603,312 7,533,200 1,581,972 5,951,228 1,487,807 4,463,421 7,312,339 1,390,284 5,922,055 Taxes 1,243,632 4,678,423 1,169,606 3,508,818 Net Income Dividends Additions to Reta!ned Earnings Global Manufacturing, Inc. BALANCE SHEET 2021 2022 ASSETS Cash $1,851,754 $10,262,510 $23,144,820 35,259,084 $27,826,540 $2,836,450 Accounts recelvable Inventory Total Current Assets Net Fixed Assets 8,509,350 20,351,550 31,697,350 22,975,245 TOTAL ASSETS $54,672,595 $63,085,624 LIABILITIES & STOCKHOLDER'S EQUITY $7,151,072 10,094,260 17,245,332 12,783,245 30,028,577 2,040,000 31,017,047 33.057.047 Accounts payable Notes payable Total current liabilities $5,758,070 7,961,031 13,719,101 12,359,868 26,078,969 Long-term debt TOTAL UABIUTIES 2,040,000 Common Retained earnings 26,553,626 28.593 626 TOTAL STOCKHOLDERS' EQUITY TOTAL UABILUTIES & STOCKHOLDER'S EQUITY $54,672,595 $63,085,624 TABLE #1 TABLE #2

calculate common size INCOME STATEMENT 2021 2022 Total sales Cost of goods sold Administrative expense $70,911,420 $48,113,332 $13,785,239 $85,218,840 57,181,806 16,873,362 Earnings before interest, taxes, depreciation & amortization (EBITDA) 9,012,849 11,163,672 Depreciation Earnings before interest & taxes.(EBIT) Interest expense Earnings Before Taxes (EBT) 1,700,510 2,027,160 9,136,512 1,603,312 7,533,200 1,581,972 5,951,228 1,487,807 4,463,421 7,312,339 1,390,284 5,922,055 Taxes 1,243,632 4,678,423 1,169,606 3,508,818 Net Income Dividends Additions to Reta!ned Earnings Global Manufacturing, Inc. BALANCE SHEET 2021 2022 ASSETS Cash $1,851,754 $10,262,510 $23,144,820 35,259,084 $27,826,540 $2,836,450 Accounts recelvable Inventory Total Current Assets Net Fixed Assets 8,509,350 20,351,550 31,697,350 22,975,245 TOTAL ASSETS $54,672,595 $63,085,624 LIABILITIES & STOCKHOLDER'S EQUITY $7,151,072 10,094,260 17,245,332 12,783,245 30,028,577 2,040,000 31,017,047 33.057.047 Accounts payable Notes payable Total current liabilities $5,758,070 7,961,031 13,719,101 12,359,868 26,078,969 Long-term debt TOTAL UABIUTIES 2,040,000 Common Retained earnings 26,553,626 28.593 626 TOTAL STOCKHOLDERS' EQUITY TOTAL UABILUTIES & STOCKHOLDER'S EQUITY $54,672,595 $63,085,624 TABLE #1 TABLE #2

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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calculate common size INCOME STATEMENT 2021 2022 Total sales Cost of goods sold Administrative expense $70,911,420 $48,113,332 $13,785,239 $85,218,840 57,181,806 16,873,362 Earnings before interest, taxes, depreciation & amortization (EBITDA) Depreciation Earnings before interest & taxes.(EBIT) Interest expense Earnings Before Taxes (EBT) 9,012,849 11,163,672 2,027,160 9,136,512 1,700,510 7,312,339 1,390,284 1,603,312 5,922,055 7,533,200 Taxes Net Income Dividends Additions to Reta!ned Earnings 1,243,632 4,678,423 1,169,606 1,581,972 5,951,228 1,487,807 4,463,421 3,508,818 Global Manufacturing, Inc. BALANCE SHEET 2021 2022 ASSETS Cash Accounts recelvable Inventory Total Current Assets Net Fixed Assets $2,836,450 8,509,350 20,351,550 $1,851,754 $10,262,510 $23,144,820 35,259,084 $27,826,540 $63,085,624 31,697,350 22,975,245 $54,672,595 TOTAL ASSETS LIABILITIES & STOCKHOLDER'S EQUITY $7,151,072 10,094,260 17,245,332 12,783,245 30,028,577 2,040,000 31,017,047 33,057.047 Accounts payable Notes payable $5,758,070 7,961,031 Total current liabilities 13,719,101 12,359,868 26,078,969 2,040,000 Long-term debt TOTAL UABIITIES Common stock Retained earnings 26,553,626 TOTAL STOCKHOLDERS' EQUITY 28.593.626 TOTAL UABILÍTIES & STOCKHOLDER'S EQUITY $63,085,624 $54,672,595 Global Manufacturing, Inc. ADDITIONAL INFORMATION Information 2021 2022 8.82% 7.68% 6.72% 6.92% 21.00% 25.00% Depreciation as a % of net fixed assets Short-term interest expense 7.12% Long-term Intarest expense 6.92% Income tax rate 21.00% Dividend payout ratio 25.00% Fixed assets as a percent of total capacity. 84.00% 91.00% End of year stock price $67.13 $69.21 Number of common shares outstanding 1,750,000 1,750,000 common size 2021 TABLE #2 TABLE #1
Transcribed Image Text:calculate common size INCOME STATEMENT 2021 2022 Total sales Cost of goods sold Administrative expense $70,911,420 $48,113,332 $13,785,239 $85,218,840 57,181,806 16,873,362 Earnings before interest, taxes, depreciation & amortization (EBITDA) Depreciation Earnings before interest & taxes.(EBIT) Interest expense Earnings Before Taxes (EBT) 9,012,849 11,163,672 2,027,160 9,136,512 1,700,510 7,312,339 1,390,284 1,603,312 5,922,055 7,533,200 Taxes Net Income Dividends Additions to Reta!ned Earnings 1,243,632 4,678,423 1,169,606 1,581,972 5,951,228 1,487,807 4,463,421 3,508,818 Global Manufacturing, Inc. BALANCE SHEET 2021 2022 ASSETS Cash Accounts recelvable Inventory Total Current Assets Net Fixed Assets $2,836,450 8,509,350 20,351,550 $1,851,754 $10,262,510 $23,144,820 35,259,084 $27,826,540 $63,085,624 31,697,350 22,975,245 $54,672,595 TOTAL ASSETS LIABILITIES & STOCKHOLDER'S EQUITY $7,151,072 10,094,260 17,245,332 12,783,245 30,028,577 2,040,000 31,017,047 33,057.047 Accounts payable Notes payable $5,758,070 7,961,031 Total current liabilities 13,719,101 12,359,868 26,078,969 2,040,000 Long-term debt TOTAL UABIITIES Common stock Retained earnings 26,553,626 TOTAL STOCKHOLDERS' EQUITY 28.593.626 TOTAL UABILÍTIES & STOCKHOLDER'S EQUITY $63,085,624 $54,672,595 Global Manufacturing, Inc. ADDITIONAL INFORMATION Information 2021 2022 8.82% 7.68% 6.72% 6.92% 21.00% 25.00% Depreciation as a % of net fixed assets Short-term interest expense 7.12% Long-term Intarest expense 6.92% Income tax rate 21.00% Dividend payout ratio 25.00% Fixed assets as a percent of total capacity. 84.00% 91.00% End of year stock price $67.13 $69.21 Number of common shares outstanding 1,750,000 1,750,000 common size 2021 TABLE #2 TABLE #1
B D LINE BY LINE ANALYSIS OF 2021 BALANCE SHEET COMPARED TO Global BENCHMARK Manufacturing FIRM THE BENCHMARK FIRM (BETTER, SAME AS, WORSE than the Benchmark firm) 14 2021 COMMON SIZE BALANCE SHEET 2021 2021 s ASSETS 26 Cash 0.0% 6.7% 7 Accounts receivable 0.0% 16.4% 28 Inventory 0.0% 30.6% 29 Total Curren! Assets 0.0% 53.7% 30 Net fixed assets 0.0% 46.3% 31 TOTAL ASSETS 0.0% 100.0% 32 LIABILITIES & STOCKHOLDERS' EQUITY 33 Accounts payable 0.0% 12.1% 34 Notes payable 0.0% 15.4% 35 Total Current Liabilities 0.0% 27.5% 36 Long-term debt 0.0% 15.8% 37 TOTAL LIABILITIES 0.0% 43.3% 38 Common stock 0.0% 4.5% 39 Retained earnings 0.0% 52.2% 40 TOTAL STOCKHOLDERS' EQUITY 0.0% 56.7% 41 TOTAL LIABILITIES & STOČKHOLDERS' EQUITY 0.0% 100.0% D 2021 COMMON SIZE STATEMENT CALCULATIONS AND ANALYSIS LINE BY LINE ANALYSIS OF 2021 INCOME STATEMENT Global BENCHMARK Manufacturing COMPARED TO THE BENCHMARK FIRM FIRM 2021 COMMON SIZE INCOME STATEMENT (BETTER, SAME AS, WORSE than the Benchmark firm) 2021 2021 Total sales 0.0% 100.0% Cost of goods sold 0.0% 69.2% Administrative expense 0.0% 9.6% Eamings before interest, taxes, depreciation & amortization (EBITDA) 0.0% 21.2% Depreciation 0.0% 2.2% Earnings before interest & taxes.(EBIT) 0.0% 19.0% Interest expense 0.0% 2.2% Earnings Before Taxes (EBT) 0.0% 16.8% Taxes 0.0% Net income 0.0% 13.7% Dividends 0.0% 1.4% Additions to Retained Earnings 0.0% 12.3% calculate common size
Transcribed Image Text:B D LINE BY LINE ANALYSIS OF 2021 BALANCE SHEET COMPARED TO Global BENCHMARK Manufacturing FIRM THE BENCHMARK FIRM (BETTER, SAME AS, WORSE than the Benchmark firm) 14 2021 COMMON SIZE BALANCE SHEET 2021 2021 s ASSETS 26 Cash 0.0% 6.7% 7 Accounts receivable 0.0% 16.4% 28 Inventory 0.0% 30.6% 29 Total Curren! Assets 0.0% 53.7% 30 Net fixed assets 0.0% 46.3% 31 TOTAL ASSETS 0.0% 100.0% 32 LIABILITIES & STOCKHOLDERS' EQUITY 33 Accounts payable 0.0% 12.1% 34 Notes payable 0.0% 15.4% 35 Total Current Liabilities 0.0% 27.5% 36 Long-term debt 0.0% 15.8% 37 TOTAL LIABILITIES 0.0% 43.3% 38 Common stock 0.0% 4.5% 39 Retained earnings 0.0% 52.2% 40 TOTAL STOCKHOLDERS' EQUITY 0.0% 56.7% 41 TOTAL LIABILITIES & STOČKHOLDERS' EQUITY 0.0% 100.0% D 2021 COMMON SIZE STATEMENT CALCULATIONS AND ANALYSIS LINE BY LINE ANALYSIS OF 2021 INCOME STATEMENT Global BENCHMARK Manufacturing COMPARED TO THE BENCHMARK FIRM FIRM 2021 COMMON SIZE INCOME STATEMENT (BETTER, SAME AS, WORSE than the Benchmark firm) 2021 2021 Total sales 0.0% 100.0% Cost of goods sold 0.0% 69.2% Administrative expense 0.0% 9.6% Eamings before interest, taxes, depreciation & amortization (EBITDA) 0.0% 21.2% Depreciation 0.0% 2.2% Earnings before interest & taxes.(EBIT) 0.0% 19.0% Interest expense 0.0% 2.2% Earnings Before Taxes (EBT) 0.0% 16.8% Taxes 0.0% Net income 0.0% 13.7% Dividends 0.0% 1.4% Additions to Retained Earnings 0.0% 12.3% calculate common size
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