D LEON CASE PART II
D’Leon Inc., Part II
TABLE IC4-1 Statement of Financial Positions
2009E
2008
2007
Assets
Cash
$85,632
$7,282
$57,600
Accounts receivable
878,000
632,160
351,200
Inventories
1,716,480
1,287,360
715,200
Total current assets
$2,680,112
$1,926,802
$1,124,000
Gross fixed assets
1,197,160
1,202,950
491,000
Less accumulated depreciation
380,120
263,160
146,200
Net fixed assets
$817,040
$939,790
$344,800
Total assets
$3,497,152
$2,866,592
$1,468,800
Liabilities and Equity
Accounts payable
$436,800
$524,160
$145,600
Notes payable
300,000
636,808
200,000
Accruals
408,000
489,600
136,000
Total current liabilities
$1,144,800
$1,650,568
$481,600
Long term debt
400,000
723,432
323,432
Common stock
1,721,176
460,000
460,000
Retained earnings
231,176
32,592
203,768
Total equity
$1,952,352
$492,592
$663,768
Total liabilities and equity
$3,497,152
$2,866,592
$1,468,800
Note: "E" indicates estimated. The 2009 data are forecasts.
TABLE IC4-2 INCOME STATEMENTS
2009E
2008
2007
Sales
$7,035,600
$6,034,000
$3,432,000
Cost of goods sold
5,875,992
5,528,000
2,864,000
Other expenses
550,000
519,988
358,672
Total operating costs excluding depreciation
$6,425,992
$6,047,988
$3,222,672
EBITDA
$609,608
($13,988)
$209,328
Depreciation
116,960
116,960
18,900
EBIT
$492,648
($130,948)
$190,428
Interest expense
70,008
136,012
43,828
EBT
$422,640
($266,960)
$146,600
Taxes (40%)
169,056
(106,784)a
58,640
Net income
$253,584
($160,176)
$87,960
EPS
$1.014
($1.602)
$0.880
DPS
$0.220
$0.110
$0.220
Book value per share
$7.809
$4.926
$6.638
Stock price
$12.17
$2.25
$8.50
Shares outstanding
250,000
100,000
100,000
Tax rate
40.00%
40.00%
40.00%
Lease payments
40,000
40,000
40,000
Sinking fund payments
0
0
0
Note: "E" indicates estimated. The 2009 data are forecasts.
a The firm had sufficient taxable income in 2007 and 2008 to obtain its full tax refund in 2009
TABLE IC4-1 Statement of Financial Positions
2009E
2008
2007
Assets
Cash
$85,632
$7,282
$57,600
Accounts receivable
878,000
632,160
351,200
Inventories
1,716,480
1,287,360
715,200
Total current assets
$2,680,112
$1,926,802
$1,124,000
Gross fixed assets
1,197,160
1,202,950
491,000
Less accumulated depreciation
380,120
263,160
146,200
Net fixed assets
$817,040
$939,790
$344,800
Total assets
$3,497,152
$2,866,592
$1,468,800
Liabilities and Equity
Accounts payable
$436,800
$524,160
$145,600
Notes payable
300,000
636,808
200,000
Accruals
408,000
489,600
136,000
Total current liabilities
$1,144,800
$1,650,568
$481,600
Long term debt
400,000
723,432
323,432
Common stock
1,721,176
460,000
460,000
Retained earnings
231,176
32,592
203,768
Total equity
$1,952,352
$492,592
$663,768
Total liabilities and equity
$3,497,152
$2,866,592
$1,468,800
Note: "E" indicates estimated. The 2009 data are forecasts.
TABLE IC4-2 INCOME STATEMENTS
2009E
2008
2007
Sales
$7,035,600
$6,034,000
$3,432,000
Cost of goods sold
5,875,992
5,528,000
2,864,000
Other expenses
550,000
519,988
358,672
Total operating costs excluding depreciation
$6,425,992
$6,047,988
$3,222,672
EBITDA
$609,608
($13,988)
$209,328
Depreciation
116,960
116,960
18,900
EBIT
$492,648
($130,948)
$190,428
Interest expense
70,008
136,012
43,828
EBT
$422,640
($266,960)
$146,600
Taxes (40%)
169,056
(106,784)a
58,640
Net income
$253,584
($160,176)
$87,960
EPS
$1.014
($1.602)
$0.880
DPS
$0.220
$0.110
$0.220
Book value per share
$7.809
$4.926
$6.638
Stock price
$12.17
$2.25
$8.50
Shares outstanding
250,000
100,000
100,000
Tax rate
40.00%
40.00%
40.00%
Lease payments
40,000
40,000
40,000
Sinking fund payments
0
0
0
Note: "E" indicates estimated. The 2009 data are forecasts.
a The firm had sufficient taxable income in 2007 and 2008 to obtain its full tax refund in 2009