WEEK 5

Vospa Ltd
Balance Sheet
December 31,

Comparative Industry D

20X3
Unaudited
Assets
Cash
Accounts Receivable
Provision for Doubtful Debts

20X2
Audited

Inventory
Prepaid Expenses
Total Current Assets

$ 1,192,292
$ 6,982,923
$
(51,000)
$ 6,931,923
$ 6,753,764
$
562,824
$ 15,440,802

Property, Plant & Equipment

Accumulated Depreciation
Net Fixed Assets
Total Assets

$ 12,318,474
53.6%
$ (4,780,586) -20.8%
$ 7,537,889
32.8%
$ 22,978,691 100.0%

$
$
$
$

11,932,046
(4,334,936)
7,597,110
19,477,647

61.3%
-22.3%
39.0%
100.0%

Liabilities and Shareholders' Equity

Accounts Payables
Accrued Payroll and Payroll Taxes
Accrued Expenses
Short Term Loans
Current Portion of Long Term Debt
Total Current Liabilities

$
$
$
$
$
$

$
$
$
$
$
$

2,866,371
318,597
983,642
1,506,828
300,000
5,975,438

14.7%
1.6%
5.1%
7.7%
1.5%
30.7%

Long Term Debt

Provision for Income Taxes
Total Liabilities

$ 6,941,957
$
67,539
$ 15,113,972

30.2% $
0.3% $
65.8% $

6,220,178
53,349
12,248,964

Paid-up capital
Additional Paid-up Capital
Retained Earnings
Total Equity

$
$
$
$

1.6%
2.0%
30.6%
34.2%

4,052,336
562,824
1,350,779
1,801,038
337,500
8,104,476

375,000
450,260
7,039,460
7,864,719

5.2% $
$
$
30.2% $
29.4% $
2.4% $
67.2% $

17.6%
2.4%
5.9%
7.8%
1.5%
35.3%

$
$
$
$

1,767,692
5,380,712
(46,500)
5,334,212
4,368,626
410,009
11,880,537

20X1
Audited

262,500
348,786
6,617,397
7,228,683

9.1% $
1,171,500
$
4,928,090
$
(47,850)
27.4% $
4,880,240
22.4% $
4,091,012
2.1% $
464,786
61.0% $ 10,607,537

20X3

7.5%

5.1%

31.0%
26.0%
3.0%
67.5%

32.9%
27.6%

$
9,155,408
58.2%
$ (4,044,896) -25.7%
$
5,110,512
32.5%
$ 15,718,049 100.0%

68.4%

21.8%

$
$
$
$
$
$

2,556,827
235,725
929,570
2,014,068
225,000
5,961,189

16.3%
1.5%
5.9%
12.8%
1.4%
37.9%

17.3%

31.9% $
0.3% $
62.9% $

2,794,551
46,479
8,802,219

17.8%
0.3%
56.0%

11.8%
63.4%

1.3%
1.8%
34.0%
37.1%

225,000
40,973
6,649,857
6,915,830

1.4%
0.3%
42.3%
44.0%

36.6%

$
$
$
$

13.7%
3.1%
46.5%

WEEK 5

Total Liabilities and Shareholders' Equity

$ 22,978,691

100.0% $

19,477,647

100.0% $

15,718,049

100.0%

WEEK 5

Vospa Ltd
Income Statement & Statement of Changes in Retained Earnings
For the Year Ended December 31,
20X3
Unaudited

20X2
Audited

Net Sales
Cost of Goods Sold
Gross Profit

$ 35,274,720
$ 25,397,798
$ 9,876,922

Depreciation
Selling Expenses
General and Administrative Expenses
Other Expenses

$
$
$
$
$
$

445,650
4,232,966
3,527,472
282,198
8,488,286
1,388,635

1.3%
12.0%
10.0%
0.8%
24.1%
3.9%

$
$
$
$
$

654,398
(78,375)
23,625
599,648
788,988

1.9%
-0.2%
0.1%
1.7%
2.2%

Operating Income
Interest Expense
Interest Income
Other Expense, net
Income Before Taxes
Income Taxes
Net Income
Retained Earnings at the Beginning of the Year
Dividends
Retained Earnings at the End of the Year

Effective Tax Rate

Comparative Industry D
20X3

27,558,375
20,117,614
7,440,761

100.0% $
73.0% $
27.0% $

21,198,750
15,263,100
5,935,650

100.0%
72.0%
28.0%

100.0%
72.3%
27.7%

$
$
$
$
$
$

290,040
3,582,589
3,031,421
220,467
7,124,517
316,244

1.1%
13.0%
11.0%
0.8%
25.9%
1.1%

$
$
$
$
$
$

201,389
2,713,440
2,247,068
169,590
5,331,486
604,164

1.0%
12.8%
10.6%
0.8%
25.2%
2.8%

24.2%
3.5%

$
$
$
$
$

329,700
(64,013)
26,981
292,668
23,576

1.2%
-0.2%
0.1%
1.1%
0.1%

$
$
$
$
$

133,572
(53,031)
24,795
105,336
498,828

0.6%
-0.3%
0.1%
0.5%
2.4%

2.9%

291,926

0.8% $

3,536

0.0% $

179,578

0.8%

497,062

1.4% $

20,040

0.1% $

319,250

1.5%

$
$
$

6,617,397
(75,000)
7,039,460

$
$
$

6,649,857
(52,500)
6,617,397

$
$
$

6,375,608
(45,000)
6,649,857

37%

100.0% $
72.0% $
28.0% $

20X1
Audited

15%

36%

(Please disregard the incorrect tax

WEEK 5

Vospa Ltd
Statement of Cash Flows
For the Year Ended December 31,

Comparative Industry D

20X3
Unaudited
Cash Flow From Operations
Net Income
Depreciation
Income Taxes
Change in Operating Assets and Liabilities
Accounts Receivable
Inventory
Prepaid Expenses
Accounts Payable
Accrued Payroll and Payroll Taxes
Accrued Expenses

20X2
Audited

20X1
Audited

$
$
$

497,062
445,650
14,190

$
$
$

20,040
290,040
6,870

$
$
$

319,250
201,389
357

$
$
$
$
$
$

(1,597,712)
(2,385,138)
(152,816)
1,185,965
244,227
367,137

$
$
$
$
$
$

(453,972)
(277,614)
54,777
309,545
82,872
54,072

$
$
$
$
$
$

116,319
(370,497)
(264,923)
327,593
81,984
(346,475)

(1,381,434)

86,629

64,997

Cash Flow from Investing Activities

Acquisition of Property, Plant and Equipment
$
Proceeds from the Sale of Property Plant and Equipmen $
Net Cash Used in Investing Activities
$

(386,429)
(386,429)

$
$
$

(2,915,313)
138,675
(2,776,638)

$
$
$

(238,473)
(238,473)

Cash Flow Provided by Operations

Cash Flow from Financing Activities

Long Term Borrowing
Retirement of Long Term Debt
Changes in Notes Payable to Banks
Cash Dividends Paid
Issuance of Common Stock
Cash Flow Provided by Financing Activities

$
$
$
$
$
$

1,059,279
(300,000)
294,210
(75,000)
213,974
1,192,463

$
$
$
$
$
$

3,725,627
(225,000)
(507,240)
(52,500)
345,314
3,286,200

$
$
$
$
$
$

(716,337)
722,651
(45,000)
(38,687)

Net Increase in Cash

(575,400)

596,191

(212,163)

20X3

WEEK 5
Cash at the Beginning of the Year

1,767,692

1,171,500

1,383,663

Cash at the End of the Year

1,192,292

1,767,692

1,171,500

WEEK 5
Vospa Ltd
Supplemental Information on Debt Maturities
December 31,
Debt maturities for each of the next 5 years as of De

20X3
Unaudited

Comparative Industry D

20X2
Audited

20X1
Audited

Maturities Next Year

Maturities 2 years out
Maturities 3 years out
Maturities 4 years out
Maturities 5 years out

$
$
$
$
$

337,500
375,000
375,000
525,000
750,000

$
$
$
$
$

300,000
300,000
337,500
337,500
450,000

$
$
$
$
$

225,000
262,500
262,500
300,000
300,000

Purchases

$ 27,782,936

20,395,228

19,354,111

(0.20)

Sales Growth
Asset Growth
Dividend Per Share

28%
18%
$

(0.20)

20X3

30%
24%
$

(0.20)

Analytical Procedures
Asset Turnover (Sales / Total Assets)

1.54

1.41

1.35

3.5
2.5
1.7

Profit Margin (% profit before taxes / sales)

2.2%

0.1%

2.4%

2.9%

ROA (% profit before taxes / total assets)

3.4%

0.1%

3.2%

14.0
8.2
2.5

Capital Structure Leverage (Total Assets / Total Equity)

2.92

2.69

2.27

1.7
2.6
7.4
43.3

WEEK 5
Return on Equity (% profit before taxes / tangible net wo

Sales / Net Fixed Assets

10.0%

0.3%

7.2%

25.1
6.3

4.68

3.63

4.15

32.8
13.0
6.1

AR Turnover in Days

72

71

85

31.0
45.0
59.0

Inventory Turnover in Days

97

79

98

34.0
50.0
91.0

Comparative Industry Da
20X3
Unaudited
Gross Operating Cycle

AP Turnover in Days

Net Operating Cycle

Current Ratio

Quick Ratio

20X2
Audited

20X1
Audited

20X3

169

151

183

58

52

61

111

99

122

1.91

1.99

1.78

1.00

1.19

1.02

19.0
30.0
47.0

2.3
1.5
1.0
1.4
0.8

WEEK 5

0.5
Free Cash Flow
Cash Flow from Operations to Current Debt + Dividends

Debt / Worth

(1,767,863)
(3.35)

1.92

(2,828,684)
0.25

1.69

(173,476)
0.24

1.27

0.7
1.6
6.4

WEEK 5

Comparative Industry Data

20X2

Industry Data

20X1

9.3%

9.5% Median

32.6%
24.2%

28.6% Median
21.0% Median

67.4%

61.7% Median

25.1%

27.4% Median

14.5%

10.2% Median

8.4%
6.5%
38.7%

10.8% Median
3.4% Median
35.2% Median

13.5%

19.3% Median

56.8%

59.1% Median

43.2%

40.9% Median

Workpaper
CrossReference

to GF - 5

WEEK 5

WEEK 5

Comparative Industry Data

20X2

Industry Data

20X1

100.0%
67.9%
32.1%

100.0% Median
67.6% Median
32.4% Median

26.1%
6.0%

26.7% Median
5.7% Median

5.2%

4.8% Median

sregard the incorrect tax rates)

Workpaper
CrossReference

to GF - 5

WEEK 5

Comparative Industry Data

20X2

20X1

Industry Data

Workpaper
CrossReference

to GF - 5

WEEK 5

WEEK 5

Comparative Industry Data

20X2

Industry Data

20X1

Workpaper
CrossReference

to GF - 5
to GF - 5
to GF - 5
to GF - 5
to GF - 5

3.0
2.4
1.7

3.0 Upper Quartile

2.2 Median
1.4 Lower Quartile

to GF - 5

5.2%

4.8% Median

to GF - 5

18.5
8.8
1.6

19.7 Upper Quartile

3.9 Median
0.3 Lower Quartile

to GF - 5

1.6
2.3
5.3

1.5 Upper Quartile

2.9 Median
9.5 Lower Quartile

to GF - 5

44.6

45.8 Upper Quartile

WEEK 5
24.1
5.7

19.7 Median
2.0 Lower Quartile

37.6
10.9
4.7

14.6 Upper Quartile

7.4 Median
4.3 Lower Quartile

to GF - 5

35.0
46.0
68.0

37.0 Upper Quartile

51.0 Median
62.0 Lower Quartile

to GF - 5

24.0
50.0
89.0

37.0 Upper Quartile

54.0 Median
85.0 Lower Quartile

to GF - 5

Comparative Industry Data

20X2

to GF - 5

Workpaper
CrossReference

20X1

12.0
25.0
42.0

12.0 Upper Quartile

26.0 Median
42.0 Lower Quartile

to GF - 5

2.7
1.8
1.2

3.5 Upper Quartile

1.7 Median
1.1 Lower Quartile

to GF - 5

1.9
1.1

1.8 Upper Quartile

1.0 Median

to GF - 5

WEEK 5

0.7

0.7 Lower Quartile

to GF - 5
to GF - 5

0.6
1.3
4.3

0.5 Upper Quartile

1.9 Median
8.5 Lower Quartile

to GF - 5