Professional Documents
Culture Documents
Copyright 2001 by the Trustees of the University of Virginia Darden School Foundation.
Revised, March 7, 2006.
Page 1
Model Facts
This spreadsheet supports student analysis of the case, "The Body Shop International Plc
2001" (Case 9)
Please note:
1) This is a working model. Assumptions / Inputs presented can be changed to vary the results.
2) This spreadsheet incorporates circular logical reference. To resolve this circularity, please
instruct Excel to "iterate" several times in calculating the results. This is accomplished by
clicking on Tools/Options/Calculation, and then checking the iteration box.
Copyright 2001 by the Trustees of the University of Virginia Darden School Foundation.
Revised, March 7, 2006.
Page 2
A
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Exhibit 1
Input Data
The Body Shop Plc 2001: Format for Developing a Spreadsheet Model
SALES
422,733
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
INCOME STATEMENT
2002
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
2002
1
2
Exhibit 2
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40
Input Data
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
2002
+B3
+B4*B16
+B5*B16
+B6*B33
+B16-B17-B18-B19
+B7*B20
+B20-B21
+B8
+B22-B23
BALANCE SHEET
2002
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
+B9*B16
+B11
+B28+B29
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
+B10*B16
+B30-B32-B34
+B12+B24
+B32+B33+B34
1
2
Exhibit 3
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38
39
40
Input Data
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
(1,171)
51,899
15,570
36,329
10,900
25,429
2002
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
135,275
110,600
245,875
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
118,365
(19,520)
147,029
245,875
1
2
Exhibit4
TheBodyShopPlc2001:
AdjustingtoReflectExcessCash
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42
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InputData
SALES
COGS/SALES
OPERATINGEXPENSES/SALES
INTERESTRATE
TAXRATE
DIVIDENDS(Thousandpounds)
CURR.ASSETS/SALES
CURR.LIABS./SALES
FIXEDASSETS
STARTINGEQUITY
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
INCOMESTATEMENT
SALES
COGS
OPERATINGEXPENSES
INTERESTEXPENSE(INCOME)
PROFITBEFORETAX
TAX
PROFITAFTERTAX
DIVIDENDS
EARNINGSRETAINED
2002
422,733
160,639
211,367
+(B6*B34)(B6*B28)
40,706
14,247
26,459
10,900
15,559
BALANCESHEET
2002
EXCESSCASH
CURRENTASSETS
FIXEDASSETS
TOTALASSETS
=IF(B40<0,B40,0)
135,275
110,600
+B29+B30+B28
CURRENTLIABILITIES
DEBT
EQUITY
TOTALLIAB.&NETWORTH
118,365
=IF(B40>0,+B40,0)
137,159
+B33+B34+B35
TRIALASSETS
TRIALLIABILITIESANDEQUITY
PLUG:DEBT(EXCESSCASH)
+B29+B30
+B33+B35
+B38B39
1
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Exhibit 5
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5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
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29
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31
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35
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38
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40
41
42
43
44
45
Input Data
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
(1,171)
51,899
15,570
36,329
10,900
25,429
2002
EXCESS CASH
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
19,520
135,275
110,600
265,395
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
118,365
0
147,029
265,395
TRIAL ASSETS
TRIAL LIABILITIES AND EQUITY
PLUG: DEBT (EXCESS CASH)
245,875
265,395
(19,520)
1
2
Exhibit 6
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28
29
30
31
32
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35
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37
38
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40
41
42
43
44
45
Input Data
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
(1,171)
51,899
15,570
36,329
10,900
25,429
2002
EXCESS CASH
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
19,520
135,275
110,600
265,395
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
118,365
147,029
265,395
TRIAL ASSETS
TRIAL LIABILITIES AND EQUITY
PLUG: DEBT (EXCESS CASH)
245,875
265,395
(19,520)
Sensitivity Analysis
Of Debt and Excess Cash
To COGS/SALES Ratio
COGS/SALES
0.35
0.38
0.40
0.42
0.44
0.45
0.48
DEBT
=B34
Ex. CASH
=B28
1
2
Exhibit 7
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44
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Input Data
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET
422,733
0.38
0.50
0.06
0.30
10,900.00
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
(1,171)
51,899
15,570
36,329
10,900
25,429
2002
EXCESS CASH
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
19,520
135,275
110,600
265,395
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
118,365
0
147,029
265,395
TRIAL ASSETS
TRIAL LIABILITIES AND EQUITY
PLUG: DEBT (EXCESS CASH)
245,875
265,395
(19,520)
Sensitivity Analysis
Debt and Excess Cash
By COGS/SALES
COGS/SALES
0.35
0.38
0.40
0.42
0.44
0.45
0.48
DEBT
+B34
0
0
0
0
0
2,102
11,369
Ex. CASH
+B28
28,787
19,520
13,342
7,165
987
0
0
Exhibit 8
The Body Shop Plc 2001:
Historical Financial Statements ( in GBP millions)
Fiscal Year Ended February 28
1999
(GBP)
1999
(% sales)
2000
(GBP)
2000
(% sales)
2001
(GBP)
2001
(% sales)
Turnover
Cost of sales
Gross profit
303.7
127.7
176.0
100.0
42.0
58.0
330.1
130.9
199.2
100.0
39.7
60.3
374.1
149.0
225.1
100.0
39.8
60.2
Operating expenses:
excluding exceptional costs
151.4
49.9
166.2
50.3
195.7
52.3
4.5
1.5
0.0
0.0
11.2
3.0
Restructuring costs2
Net interest expense
Profit before tax
Tax expense
Profit (loss) after tax
16.6
0.1
3.4
8.0
(4.6)
5.5
0.0
1.1
2.6
(1.5)
2.7
1.5
28.8
10.4
18.4
0.8
0.5
8.7
3.2
5.6
1.0
4.4
12.8
3.5
9.3
0.3
1.2
3.4
0.9
2.5
Ordinary dividends
Profit (loss) retained
10.9
(15.5)
3.6
(5.1)
10.9
7.5
3.3
2.3
10.9
(1.6)
2.9
(0.4)
Income Statement
exceptional costs1
Balance Sheet
Assets
Cash
Accounts receivable
Inventories
Other current assets
Net fixed assets
Other assets3
Total assets
Liabilities and equity
Accounts payable
Taxes payable
Accruals
Overdrafts
Other current liabilities
Long-term liabilities
Other liabilities4
Shareholders' equity
Total liabilities and equity
1999
(GBP)
1999
(% sales)
2000
(GBP)
2000
(% sales)
2001
(GBP)
2001
(% sales)
34.0
27.8
38.6
12.5
87.8
11.2
9.2
12.7
4.1
28.9
19.2
30.3
44.7
15.6
104.7
5.8
9.2
13.5
4.7
31.7
13.7
30.3
51.3
17.5
110.6
3.7
8.1
13.7
4.7
29.6
0.0
200.7
0.0
66.1
6.0
220.5
1.8
66.8
6.7
230.1
1.8
61.5
13.0
11.3
10.8
0.0
21.6
28.0
4.3
3.7
3.6
0.0
7.1
9.2
20.5
11.7
15.6
0.3
13.3
36.7
6.2
3.5
4.7
0.1
4.0
11.1
10.7
7.1
11.5
0.7
16.9
61.2
2.9
1.9
3.1
0.2
4.5
16.4
1.7
114.3
200.7
0.6
37.6
66.1
1.0
121.4
220.5
0.3
36.8
66.8
0.4
121.6
230.1
0.1
32.5
61.5
Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and goodwill (4.2 million). The
exceptional costs of 4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA.
1
Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs. Restructuring costs in 1999 arose
from the realignment of the management structure of the business in the US and the UK.
2
Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant.