Consecutive five year balance sheets and income statements of Anne Gibson Corporation follow:
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ANNE GIBSON CORPORATION |
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|
(Dollars in thousands) |
2009 |
2008 |
2007 |
2006 |
2005 |
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Assets: |
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|
Current assets |
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|
Cash |
$47,200 |
$46,000 |
$45,000 |
$44,000 |
$43,000 |
|
Marketable securities |
2,000 |
2,500 |
3,000 |
3,000 |
3,000 |
|
Accounts receivable, |
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|
less allowance of |
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|
$1,000, December 31, 2009; |
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$900, December 31, 2008; |
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$900, December 31, 2007; |
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$800, December 31, 2006; |
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|
$1,200, December 31, 2005 |
131,000 |
128,000 |
127,000 |
126,000 |
125,000 |
|
Inventories |
122,000 |
124,000 |
126,000 |
127,000 |
125,000 |
|
Prepaid expenses |
3,000 |
2,500 |
2,000 |
1,000 |
1,000 |
|
Total current assets |
305,200 |
303,000 |
303,000 |
301,000 |
297,000 |
|
Property, plant and equipment, net |
240,000 |
239,000 |
238,000 |
237,500 |
234,000 |
|
Other assets |
10,000 |
8,000 |
7,000 |
6,500 |
7,000 |
|
Total assets |
$555,200 |
$550,000 |
$548,000 |
$545,000 |
$538,000 |
|
Liabilities and stockholders’ equity: |
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|
Current liabilities |
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|
Accounts payable |
$72,000 |
$73,000 |
$75,000 |
$76,000 |
$78,500 |
|
Accrued compensation |
26,000 |
25,000 |
25,500 |
26,000 |
26,000 |
|
Income taxes |
11,500 |
12,000 |
13,000 |
12,500 |
11,000 |
|
Total current liabilities |
109,500 |
110,000 |
113,500 |
114,500 |
115,500 |
|
Long term debt |
68,000 |
60,000 |
58,000 |
60,000 |
62,000 |
|
Deferred income taxes |
25,000 |
24,000 |
23,000 |
22,000 |
21,000 |
|
Stockholders’ equity |
352,700 |
356,000 |
353,500 |
348,500 |
339,500 |
|
Total liabilities and stockholders’ equity |
$555,200 |
$550,000 |
$548,000 |
$545,000 |
$538,000 |
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ANNE GIBSON CORPORATION |
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|
(In thousands, except per share) |
2009 |
2008 |
2007 |
2006 |
2005 |
|
Net sales |
$880,000 |
$910,000 |
$840,000 |
$825,000 |
$820,000 |
|
Cost of goods sold |
740,000 |
760,000 |
704,000 |
695,000 |
692,000 |
|
Gross profit |
140,000 |
150,000 |
136,000 |
130,000 |
128,000 |
|
Selling and administrative expense |
53,000 |
52,000 |
50,000 |
49,800 |
49,000 |
|
Interest expense |
6,700 |
5,900 |
5,800 |
5,900 |
6,000 |
|
Earnings from continuing operations before income taxes |
80,300 |
92,100 |
80,200 |
74,300 |
73,000 |
|
Income taxes |
26,000 |
27,500 |
28,000 |
23,000 |
22,500 |
|
Net earnings |
$54,300 |
$64,600 |
$52,200 |
$51,300 |
$50,500 |
|
Earnings per share |
$1.40 |
$1.65 |
$1.38 |
$1.36 |
$1.33 |
Required
a. Using year end balance sheet figures, compute the following for the maximum number of years, based on the available data:
1. Days’ sales in receivables
2. Accounts receivable turnover
3. Accounts receivable turnover in days
4. Days’ sales in inventory
5. Inventory turnover
6. Inventory turnover in days
7. Operating cycle
8. Working capital
9. Current ratio
10. Acid test ratio
11. Cash ratio
12. Sales to working capital
b. Using average balance sheet figures, as suggested in the chapter, compute the following for the maximum number of years, based on the available data:
1. Days’ sales in receivables
2. Accounts receivable turnover
3. Accounts receivable turnover in days
4. Days’ sales in inventory
5. Inventory turnover
6. Inventory turnover in days
7. Operating cycle
8. Working capital
9. Current ratio
10. Acid test ratio
11. Cash ratio
12. Sales to working capital
c. Comment on trends indicated in short term liquidity.