Tuck Industries, Inc.

TUCK INDUSTRIES, Inc.

President

Financial President

Consumer Products Industrial Products Professional

Oldest Dept.  “Job Order “  Engineering

Design,  Renovate in services
Produced and 1968 Acquired in
Sell Kitchen 1967
wares Bid basis
 Margin * Asset turnover

• = Margin * Sales
• Sales Avg. total asset
• ASSETS
• Specific
• Net Gross
• Sales EBIT Current Fixed Allocated Total ROA

• Consumer $24.8 $3.6 $20.3 $11.5 $1.6 $33.4 10.8%

• Industrial 24.7 2.4 14.8 18.2 1.5 34.5 7.0%

• Professional 24.7 1.1 6.0 ------ 1.5 7.5 14.7%

• Total $74.2 $7.1 $41.1 29.7 4.6 $75.4 9.4%

 Balance Sheet
Tuck Industries, Inc. Period-end
31 December 1968

(in million Baht) Change

1967 % 1968 % MB %
Current assets
Cash and cash equivalents 1.40 2% 1.40 2% - 0.00%
Accounts receivable - trade and others 13.70 21% 15.60 21% 1.90 13.87%
Inventories 22.20 35% 25.50 34% 3.30 14.86%

Total current assets 37.30 58% 42.50 56% 5.20 13.94%

Non-current assets
Original cost 37.30 58% 45.70 61% 8.40 22.52%
Accumulate depreciation 12.70 20% 16.00 21% 3.30 25.98%
Property, plant and equipment-net 24.60 38% 29.70 39% 5.10 20.73%
Investments in corporate securities 2.10 3% 3.20 4% 1.10 52.38%
Total non-current assets 26.70 42% 32.90 44% 6.20 23.22%
Total assets 64.00 100% 75.40 100% 11.40 17.81%
 Balance Sheet
Tuck Industries, Inc. Period-end
31 December 1968

(in million Baht) Change

1967 % 1968 % MB %
Current liabilities
Accounts payable - trade and others 10.90 17% 13.40 18% 2.50 22.94%
Deferred Income tax 0.60 1% 1.00 1% 0.40 66.67%

Total current liabilities 11.50 18% 14.40 19% 2.90 25.22%

Non-current liabilities
Long-term debts 12.60 20% 17.00 23% 4.40 34.92%
Total non-current liabilities 12.60 20% 17.00 23% 4.40 34.92%
Total liabilities 24.10 38% 31.40 42% 7.30 30.29%

Equity
Issued and paid-up share capital 17.40 27% 19.50 26% 2.10 12.07%
Retained earnings 22.50 35% 24.50 32% 2.00 8.89%
Total equity 39.90 62% 44.00 58% 4.10 10.28%
Total liabilities and equity 64.00 100% 75.40 100% 11.40 17.81%
 Income Statement
Statements of income
Tuck Industries, Inc. Period-end
31 December 1968

(in million Baht) Change

1967 % 1968 % MB %
Revenues
Revenue from sale of goods 70.70 100.00% 74.20 100.00% 3.50 4.95%
Cost of sale of goods 54.10 76.52% 56.30 75.88% 2.20 4.07%
Gross margin 16.60 23.48% 17.90 24.12% 1.30 7.83%
Expenses
Selling expenses 8.50 12.02% 9.00 12.13% 0.50 5.88%
Administrative expenses 2.00 2.83% 1.80 2.43% (0.20) -10.00%
Interest 0.60 0.85% 1.00 1.35% 0.40 66.67%

Total expense 11.10 15.70% 11.80 15.90% 0.70 6.31%

Profit before income tax (revenue)

expense 5.50 7.78% 6.10 8.22% 0.60 10.91%

Income tax (revenue) expense 2.90 4.10% 3.20 4.31% 0.30 10.34%

Profit for the period 2.60 3.68% 2.90 3.91% 0.30 11.54%
 Financial Data For the New Product Proposal
in the Consumer Products Division
Financial Data For the New Product Proposal in the Consumer Products Division
Projected Investment(1)
Account Receivable (Base on current credit policy for the division)…………… 150,000
Inventories (variable cost only)……………………………………………………… 300,000
Plant and equipment(2)……………………………………………………………….. 550,000
Total……………………………………………………………………………………. $1,000,000
Cost Data:
Variable cost per unit……………………………………………………………….... $3.00
Incremental division fixed costs (per year)(3)……………………………………… $170,000

1) Assumes a sales level of 100,000 units.

2) Annual capacity of 120,000 units.
3) Includes straight-line depreciation over a 10 year life on new plant and
4) Equipment, with a $50,000 salvage value.
 Financial Data For the New Product Proposal
in the Consumer Products Division
Price/Market Estimates (per year):
Unit Price Unit Sales $Sales Profit Profit Break-even
Before taxes Margin Volume (units)
$6.00 100,000 600,000 $130,000 22% 56,667
$8.00 60,000 480,000 $130,000 27% 34,000
Projected Return:
EPS Gross Return
PAT $62,400 EBIT/Sales = 130,000/1,000,000
Shares Outstanding 550,000 = 13%
Increase in EPS $62,400/550,000=11 cent
 NPV For the New Product Proposal in the
Consumer Products Division
Annual Cash flow = Profit Before Taxes + Depreciation expense
= 130,000 + (550,000-50,000)/10
= 130,000+50,000 = 180,000

Year Cash flow Discount Factor(12%) Present value

0 (1,000,000) (1,000,000.00)

1-9 180,000 5.65022 1,017,039.6

10 180,000 0.32197 57,954.6
10 50,000 0.32197 16,098.5

Net Present Value 91,092.7

 IRR For the New Product Proposal in the
Consumer Products Division
Discount factor = 1,000,000/180,000
= 5.55

IRR ≈ 13%
 Corporate Raider
Tuck Industries, Inc. Period-end
31 December 1968

(in million Baht) Change

1967 % 1968 % MB %
Non-current assets
Original cost 37.30 58% 45.70 61% 8.40 22.52%
Accumulate depreciation 12.70 20% 16.00 21% 3.30 25.98%
Property, plant and equipment-net 24.60 38% 29.70 39% 5.10 20.73%
Investments in corporate securities 2.10 3% 3.20 4% 1.10 52.38%
Total non-current assets 26.70 42% 32.90 44% 6.20 23.22%
Total assets 64.00 100% 75.40 100% 11.40 17.81%

Earnings per share (500,000 and 550,000 shares 1967 1968

Outstanding, respectively) $5.27 $5.36
 ROA Calculation

ASSETS
Specific
Gross Net Gross
Sales EBIT Current Fixed . - Deprec. = Fixed Allocated Total ROA
Consumer $ 24.8 $ 3.6 $ 20.3 $ 21.2 $ (9.7) $ 11.5 $ 1.6 $ 33.4 10.80%
Industrial 24.7 2.4 14.8 24.5 (6.3) 18.2 1.5 34.5 7.00%
Professional Services 24.7 1.1 6.0 ------ ------ ------ 1.5 7.5 14.70%
Total $ 74.2 $ 7.1 $ 41.1 $ 45.7 $ (16.0) $ 29.7 $ 4.6 $ 75.4 9.40%
Cashflow