Standard Balance Sheet Trend Analysis

Cash $ 75 Profit Margin 5.91%

Account Receivable $ 125 Capital Turnover 4.44
Inventories $ 250 ROIC 26.25%
Fixed Assets $ 1,000
Accumulated Depreciation $ 400 Working Capital Turnover 18
NFA $ 600 Receivable Turnover 32
Total Assets $ 1,050 Inventory Turnover 16
Account Payables $ 150 Payable Turnover 27
Short term Debt $ 150 $ 175
Long term debt $ 200 $ 225 Equity Multiplier 1.64
Common Stock $ 300 $ 800 ROE 42.95%
Retained earning $ 250
Total liabilities and equity $ 1,050

Managerial Balance Sheet

Capital Structure
Cash $ 75
WCN $ 225 14.58% kd
NFA $ 600 18.75% kd
Invested CAPITAL $ 900 66.67% ke
Short term debt $ 150 $ 175 100.00% ko
Long term debt $ 200 $ 225
Equity $ 550 $ 800 Market Risk 14%
Capital Employed $ 900 $ 1,200 Risk Free 6%
Beta 1.5
EBIAT Calculation Cost of Equity (ke) 18%
Income Statement Cost of Debt 10%
Sales $ 4,000
Cost of Sales $ 2,600 ROIC 26.25%
General Expenses $ 1,000 WACC 14.50%
Depreciation $ 50 CAPITAL $ 900
EBIT $ 350 EVA $ 105.75
Interest Expense $ 35
EBT $ 315 ROE 42.95%
Income Tax $ 79 Retention Ratio 50%
EAT $ 236 SGR 27.35%
Dividend $ 118
Add to Retaines Earning $ 118 EVA $ 105.75
SGR 27.35%
WACC 14.50%
MVA $ (822.85)
 Cost of Capital
Before After Tax
Tax (25%) WACC
10% 7.50% 1.09%
10% 7.50% 1.41%
18% 12.00%
14.50%
Standard Balance Sheet Trend Analysis
Cash $ 75 Profit Margin
Account Receivable $ 125 Capital Turnover
Inventories $ 250 ROIC
Fixed Assets $ 1,000
Accumulated Depreciation $ 400 Working Capital Turnover
NFA $ 600 Receivable Turnover
Total Assets $ 1,050 Inventory Turnover
Account Payables $ 150 Payable Turnover
Short term Debt $ 150 $ 175
Long term debt $ - $ - Equity Multiplier
Common Stock $ 500 $ 800 ROE
Retained earning $ 250 $ 126
Total liabilities and equity $ 1,050

Managerial Balance Sheet

Capital Structure
Cash $ 75
WCN $ 225 14.58%
NFA $ 600 85.42%
Invested CAPITAL $ 900 100.00%
Short term debt $ 150 $ 175
Long term debt $ - $ -
Equity $ 750 $ 800 Market Risk
Capital Employed $ 900 $ 975 Risk Free
Beta
EBIAT Calculation Cost of Equity (ke)
Income Statement Cost of Debt
Sales $ 4,000
Cost of Sales $ 2,600 ROIC
General Expenses $ 1,000 WACC
Depreciation $ 50 CAPITAL
EBIT $ 350 EVA
Interest Expense $ 15
EBT $ 335 ROE
Income Tax $ 83.75 Retention Ratio
EAT $ 251 SGR
Dividend $ 126
Add to Retaines Earning $ 126 EVA
SGR
WACC
MVA
 6.28%
4.44
27.92%

18
32
16
27

1.20
33.50%

Cost of Capital
Before After Tax WACC
Tax (25%)
kd 10% 7.50% 1.09%
ke 18.00% 15.38%
16.47%

14%
6%
1.5
18%
10%

28%
16.4691%
$ 900
$ 103.03

33.50%
50%
20.12%

$ 103.03
20%
16.47%
$ (2,821.90)