Palmer Limited Case Study
Autor: Rachel • October 25, 2018 • 1,620 Words (7 Pages) • 626 Views
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Balance Sheet as at Dec 31, 1999
Palmer Limited
Pro Forma Balance Sheet As of Dec. 31, 1999
Assets:
Cash $ 176.7
Accounts Receivable (net) 149.5
Inventory 87.8
Prepaid Expenses _ 55.0 Total Current Assets 469.0
Investments 22.1
Fixed Assets 189.0
Other Assets _ 1.6
Total Assets $ 681.7
[pic 9]
Liabilities and Equity:
Bank Loan $ 168.6
Accounts Payable 86.3
Other Current Liabilities 89.1
Total Current Liabilities 344.0
Long Term Debt Due to Officers _ 87.1 Total Liabilities 431.1
Preferred Stock 39.0
Common Stock 8.1
Retained Earnings 203.5
Total Equity _ 250.6
Total Liabilities and Equity $ 681.7[pic 10]
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For comparison, the previous four years of actual results compared to the estimated results in 1999.
Income Statements for Years Ended Dec. 31
1999
1998
1997
1996
1995
Sales
Cost of Goods Sold:
$ 2,057.4
$ 2,427.1
$ 1,822.6
$ 1,735.2
$ 1,404.4
Materials
778.4
1,043.0
770.0
522.3
351.0
Labor
777.8
987.0
759.0
806.9
666.9
Depreciation
22.1
24.1
27.6
24.4
12.4
Overhead 110.3 32.5 39.0 35.8 118.3
Total Cost of Goods Sold _ 1,688.7 2,086.6 1,595.6 1,389.4 1,148.6
Gross Margin
368.7
340.5
227.0
345.8
255.8
Selling & Admin. Expenses
Management Compensation
144.0
153.4
164.1
134.9
102.4
Other 79.1 132.0 118.3 105.6 84.9
Total Selling and Admin Expenses 223.1 285.4 282.4 240.5 187.3
Net Operating Income
145.6
55.1
(55.4)
105.3
68.5
Plus: Other Income
1.6
-
- 5.2
1.7
Less: Other Expenses 10.3 164.2 11.1 - -
Net Income Before Taxes 136.9 (109.1) (66.5) 110.5 70.2
Taxes _ - - (15.6) 26.0 16.3
Net Income After Taxes $ 136.9 $ (109.1) $ (50.9) $ 84.5 $ 53.9
[pic 12]
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Balance Sheets for Years Ended Dec. 31
Assets:
1999
1998
1997
1996
1995
Cash
$ 176.7
$ -
$ -
$ 106.3
$ -
Accounts Receivable (net)
149.5
544.7
349.7
715
314.3
Inventory
87.8
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