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NOTES: Ref: The du Pont system of financial analysis; Essentials of Managerial Finance; 2nd Ed.; 1971; J.

Fred Weston & Eugene F. Brigham; Holt Rinehart & Winston, Inc. The worksheet has three screens. The worksheet is "soft protected" to allow data entry without overwriting formulas by mistake. Selecting a column and using the Enter key is the easiest way to enter data for each firm. To unprotect, merely select Unprotect Document under Options on the Menu Bar. To reprotect, merely select Protect Document under Options and select OK without entering a password. The worksheet's Print Area is set to print out on one page. If an Income Statement has data for less than 12 months, adjust the number of months in the Income Statement area to acheive annualized data for comparison (note Col C & D income and ratios). Formulas are all straightforward. You can add or adjust to suit your needs. (Scroll Down) ABC

FIRM ASSETS CASH MARKETABLE SECURITIES INVENTORY ACCOUNTS RECEIVABLE OTHER, MISCELLANEOUS CURRENT ASSETS FIXED ASSETS (NET) TOTAL ASSETS EQUITIES CURRENT LIABILITIES LONG-TERM LIAB. TOTAL LIABILITIES SH's EQUITY (NET WORTH) TOTAL EQUITIES

XYZ

50,000 150,000 300,000 200,000 0 700,000 1,300,000 2,000,000

50,000 150,000 300,000 200,000 0 700,000 1,300,000 2,000,000

0 0

0 0

0 0

300,000 700,000 1,000,000 1,000,000 2,000,000

300,000 700,000 1,000,000 1,000,000 2,000,000

0 0

0 0

0 0

INCOME STATEMENT Statement, no. of months: NET SALES COST OF GOODS SOLD GROSS PROFIT OPERATING EXPENSES GROSS OPERATING INCOME DEPRECIATION NET OPERATING INCOME OTHER INCOME GROSS INCOME OTHER EXPENSES INTEREST EXPENSES NET INCOME BEFORE TAXES INCOME TAX NET INC. BEFORE DIVIDENDS

12 3,000,000 2,580,000 420,000 90,000 330,000 100,000 230,000 15,000 245,000 0 45,000 200,000 80,000 120,000

6 1,500,000 1,290,000 210,000 45,000 165,000 50,000 115,000 7,500 122,500 0 22,500 100,000 40,000 60,000

12

12

12

0 0 0 0 0 0 0

0 0 0 0 0 0 0

0 0 0 0 0 0 0

FINANCIAL RATIOS * - Annualized LIQUIDITY RATIOS Current Ratio Quick Ratio LEVERAGE RATIOS

2.3 times 1.3 times

2.3 times 1.3 times

#DIV/0! #DIV/0!

#DIV/0! #DIV/0!

#DIV/0! #DIV/0!

Debt to Total Assets Times Interest Earned ACTIVITY RATIOS Inventory Turnover * Ave. Collection Period * Fixed Assets Turnover * Total Assets Turnover * PROFITABILITY RATIOS Profit Margin on Sales Return on Total Assets * Return on Net Worth *

50.0% 5.4 times 10.0 times 24.3 days 2.3 times 1.5 times 4.0% 6.0% 12.0%

50.0% 5.4 times 10.0 times 24.3 days 2.3 times 1.5 times 4.0% 6.0% 12.0%

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

#DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!

1986-95 Baarns Publishing. All Rights Reserved. For support, call: 818 837-1443. Weekdays, 9-5, Pacific time.

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