Elvis Products International

Income Statement
For the Year Ended Dec. 31, 2016 Note: The year in cell B4 is the one whic
2016 2015 all of years in this workbook depend on.
To change all dates, change B4 to anothe
Sales 3,850,000 3,432,000
year. This will also be reflected in the tex
Cost of Goods Sold 3,250,000 2,864,000 in these workbooks.
Gross Profit 600,000 568,000
Selling and G&A Expenses 330,300 240,000
Fixed Expenses 100,000 100,000
Depreciation Expense 20,000 18,900
EBIT 149,700 209,100
Interest Expense 76,000 62,500
Earnings Before Taxes 73,700 146,600
Taxes 29,480 58,640
Net Income 44,220 87,960

Notes:
Tax Rate 40%
 the one which
k depend on.
B4 to another
cted in the text
 Elvis Products International
Income Statement
For the Year Ended Dec. 31, 2016 ($ in 000's)
2016 2015 Note: All of the values on this sheet
Sales 3,850.00 3,432.00 reference the original values from the
Income Statement. The only purpose of
Cost of Goods Sold 3,250.00 2,864.00 this sheet is to show the effect of the
Gross Profit 600.00 568.00 custom number format.
Selling and G&A Expenses 330.30 240.00
Fixed Expenses 100.00 100.00
Depreciation Expense 20.00 18.90
EBIT 149.70 209.10
Interest Expense 76.00 62.50
Earnings Before Taxes 73.70 146.60
Taxes 29.48 58.64
Net Income 44.22 87.96

Notes:
Tax Rate 40%
his sheet
s from the
y purpose of
ect of the
 Elvis Products International
Common-size Income Statement
For the Year Ended Dec. 31, 2016
2016 2015 Contribution
Sales 100.00% 100.00%
Cost of Goods Sold 84.42% 83.45% -0.97%
Gross Profit 15.58% 16.55%
Selling and G&A Expenses 8.58% 6.99% -1.59%
Fixed Expenses 2.60% 2.91% 0.32%
Depreciation Expense 0.52% 0.55% 0.03%
EBIT 3.89% 6.09%
Interest Expense 1.97% 1.82% -0.15%
Earnings Before Taxes 1.91% 4.27%
Taxes 0.77% 1.71% 0.94%
Net Income 1.15% 2.56% -1.41%

Notes:
Tax Rate 40%
 Elvis Products International
Pro-forma Income Statement
For the Year Ended Dec. 31, 2016
2017* 2016 2015
Sales 4,300.00 3,850.00 3,432.00
Cost of Goods Sold 3,609.11 3,250.00 2,864.00
Gross Profit 690.89 600.00 568.00
Selling and G&A Expenses 334.80 330.30 240.00 Note that firm's capital expenditures
Fixed Expenses 100.00 100.00 100.00 are expected to rise by $50,000 in the
new year. This will lead to an increase
Depreciation Expense 25.00 20.00 18.90 of $5,000 in accumulated
EBIT 231.09 149.70 209.10 depreciation.
Interest Expense 76.00 76.00 62.50
Earnings Before Taxes 155.09 73.70 146.60
Taxes 62.04 29.48 58.64
Net Income 93.05 44.22 87.96
* Forecast

Notes:
Tax Rate 40% 40%
Additional Depreciation 5.00
enditures
000 in the
an increase
 Elvis Products International
Balance Sheet
As of Dec. 31, 2016
Assets 2016 2015
Cash and Equivalents 52,000 57,600
Accounts Receivable 402,000 351,200
Inventory 836,000 715,200
Total Current Assets 1,290,000 1,124,000
Plant & Equipment 527,000 491,000
Accumulated Depreciation 166,200 146,200
Net Fixed Assets 360,800 344,800
Total Assets 1,650,800 1,468,800
Liabilities and Owner's Equity
Accounts Payable 175,200 145,600
Short-term Notes Payable 225,000 200,000
Other Current Liabilities 140,000 136,000
Total Current Liabilities 540,200 481,600
Long-term Debt 424,612 323,432
Total Liabilities 964,812 805,032
Common Stock 460,000 460,000
Retained Earnings 225,988 203,768
Total Shareholder's Equity 685,988 663,768
Total Liabilities and Owner's Equity 1,650,800 1,468,800
 Elvis Products International
Balance Sheet
As of Dec. 31, 2016 ($ in 000's)
Assets 2016 2015 Note: All of the values o
Cash and Equivalents 52.00 57.60 reference the original va
Accounts Receivable 402.00 351.20 Balance Sheet. The only
sheet is to show the effe
Inventory 836.00 715.20 number format.
Total Current Assets 1,290.00 1,124.00
Plant & Equipment 527.00 491.00
Accumulated Depreciation 166.20 146.20
Net Fixed Assets 360.80 344.80
Total Assets 1,650.80 1,468.80
Liabilities and Owner's Equity
Accounts Payable 175.20 145.60
Short-term Notes Payable 225.00 200.00
Other Current Liabilities 140.00 136.00
Total Current Liabilities 540.20 481.60
Long-term Debt 424.61 323.43
Total Liabilities 964.81 805.03
Common Stock 460.00 460.00
Retained Earnings 225.99 203.77
Total Shareholder's Equity 685.99 663.77
Total Liabilities and Owner's Equity 1,650.80 1,468.80
All of the values on this sheet
nce the original values from the
ce Sheet. The only purpose of this
is to show the effect of the custom
er format.
 Elvis Products International
Common-size Balance Sheet
As of Dec. 31, 2016
Assets 2016 2015
Cash and Equivalents 3.15% 3.92%
Accounts Receivable 24.35% 23.91%
Inventory 50.64% 48.69%
Total Current Assets 78.14% 76.53%
Plant & Equipment 31.92% 33.43%
Accumulated Depreciation 10.07% 9.95%
Net Fixed Assets 21.86% 23.47%
Total Assets 100.00% 100.00%
Liabilities and Owner's Equity
Accounts Payable 10.61% 9.91%
Short-term Notes Payable 13.63% 13.62%
Other Current Liabilities 8.48% 9.26%
Total Current Liabilities 32.72% 32.79%
Long-term Debt 25.72% 22.02%
Total Liabilities 58.45% 54.81%
Common Stock 27.87% 31.32%
Retained Earnings 13.69% 13.87%
Total Shareholder's Equity 41.55% 45.19%
Total Liabilities and Owner's Equity 100.00% 100.00%
 Elvis Products International
Pro-forma Balance Sheet
As of Dec. 31, 2016
Assets 2017* 2016 2015
Cash and Equivalents 52.00 52.00 57.60
Accounts Receivable 444.51 402.00 351.20
Inventory 914.90 836.00 715.20
Total Current Assets 1,411.40 1,290.00 1,124.00 Note that firm's capital expend
Plant & Equipment 577.00 527.00 491.00 are expected to rise by $50,000
new year. This will lead to an i
Accumulated Depreciation 191.20 166.20 146.20
of $5,000 in accumulated
Net Fixed Assets 385.80 360.80 344.80 depreciation.
Total Assets 1,797.20 1,650.80 1,468.80
Liabilities and Owner's Equity
Accounts Payable 189.05 175.20 145.60
Short-term Notes Payable 225.00 225.00 200.00
Other Current Liabilities 163.38 140.00 136.00
Total Current Liabilities 577.43 540.20 481.60
Long-term Debt 424.61 424.61 323.43
Total Liabilities 1,002.04 964.81 805.03
Common Stock 460.00 460.00 460.00
Retained Earnings 297.04 225.99 203.77
Total Shareholder's Equity 757.04 685.99 663.77
Total Liabilities and Owner's Equity 1,759.08 1,650.80 1,468.80
*Forecast
Discretionary Financing Needed 38.12 Deficit

Notes:
Net Addition to Plant & Equipment 50.00
Life of New Equipment in Years 10
New Depreciation (Straight Line) 5.00
 capital expenditures
ise by $50,000 in the
will lead to an increase
umulated
 Elvis Products International
Statement of Cash Flows
For the Year Ended Dec. 31, 2016 ($ in 000's)
Cash Flows from Operations
Net Income 44.22
Depreciation Expense 20.00
Change in Accounts Receivable -50.80
Change in Inventories -120.80
Change in Accounts Payable 29.60
Change in Other Current Liabilities 4.00
Total Cash Flows from Operations -73.78
Cash Flows from Investing
Change in Plant & Equipment -36.00
Total Cash Flows from Investing -36.00
Cash Flows from Financing
Change in Short-term Notes Payable 25.00
Change in Long-term Debt 101.18
Change in Common Stock 0.00
Cash Dividends Paid to Shareholders -22.00
Total Cash Flows from Financing 104.18
Net Change in Cash Balance -5.60
 Elvis Products International Denominator 1
Common-size Statement of Cash Flows
For the Year Ended Dec. 31, 2016
Cash Flows from Operations % of Sales Alternative Method Using the Swit
Net Income 1.15% 1.15%
Depreciation Expense 0.52% 0.52%
Change in Accounts Receivable -1.32% -1.32%
Change in Inventories -3.14% -3.14%
Change in Accounts Payable 0.77% 0.77%
Change in Other Current Liabilities 0.10% 0.10%
Total Cash Flows from Operations -1.92% -1.92%
Cash Flows from Investing
Change in Plant & Equipment -0.94% -0.94%
Total Cash Flows from Investing -0.94% -0.94%
Cash Flows from Financing
Change in Short-term Notes Payable 0.65% 0.65%
Change in Long-term Debt 2.63% 2.63%
Change in Common Stock 0.00% 0.00%
Cash Dividends Paid to Shareholders -0.57% -0.57%
Total Cash Flows from Financing 2.71% 2.71%
Net Change in Cash Balance -0.15% -0.15%
d Using the Switch Function
 Elvis Products International
Ratio Analysis for 2015 and 2016
Industry
Ratio 2016 2015 2016 Analysis
Liquidity Ratios
Current Ratio 2.39x 2.33x 2.70x Ok
Quick Ratio 0.84x 0.85x 1.00x Bad
Efficiency Ratios
Inventory Turnover 3.89x 4.00x 7.00x Bad
A/R Turnover 9.58x 9.77x 10.70x Bad
Average Collection Period 37.59 days 36.84 days 33.64 days Bad
Fixed Asset Turnover 10.67x 9.95x 11.20x Ok
Total Asset Turnover 2.33x 2.34x 2.60x Bad
Leverage Ratios
Total Debt Ratio 58.45% 54.81% 50.00% Bad
Long-term Debt Ratio 25.72% 22.02% 20.00% Bad
LTD to Total Capitalization 38.23% 32.76% 28.57% Bad
Debt to Equity 1.41x 1.21x 1.00x Bad
LTD to Equity 61.90% 48.73% 40.00% Bad
Coverage Ratios
Times Interest Earned 1.97x 3.35x 2.50x Bad
Cash Coverage Ratio 2.23x 3.65x 2.80x Bad
Profitability Ratios
Gross Profit Margin 15.58% 16.55% 17.50% Bad
Operating Profit Margin 3.89% 6.09% 6.25% Bad
Net Profit Margin 1.15% 2.56% 3.50% Bad
Return on Total Assets 2.68% 5.99% 9.10% Bad
Return on Equity 6.45% 13.25% 18.20% Bad
Return on Common Equity 6.45% 13.25% 18.20% Bad

DuPont ROE 6.45% 13.25% 18.20%

Market Value of Equity 884,400 1,759,200
Z-Score - Publicly Traded 3.92 4.84
Z-Score - Privately Held 3.35 3.55

Stock Valuation Notes:

Number of Shares 100,000 100,000
Assumed P/E Ratio 20 20
Stock Price $8.84 $17.59
 Elvis Products International
Economic Profit Calculations
2016 2015
Tax Rate 40% 40%
NOPAT 89,820 125,460
Total Operating Capital 1,335,600 1,187,200
After-tax Cost of Capital 13% 13%
Dollar Cost of Capital 173,628 154,336
Economic Profit (83,808) (28,876)
Year Sales Chart Title
EPI Sales from 2012 to 2016
2012 1,890,532 5,000,000
2013 2,098,490 4,000,000
2014 2,350,308 3,000,000
2015 3,432,000 Sales 2,000,000
2016 3,850,000 1,000,000
0
2011 2012 2013 2014 2015 2016 2017
Year
EPI Sales from 2012 to 2016
Year Sales
EPI Sales from 2012 to 2016 with Trend
2012 1,890,532 5,000,000
2013 2,098,490 4,000,000 f(x) = 525244.6 x − 1055118358.4
2014 2,350,308 R² = 0.921228575518315
3,000,000
2015 3,432,000 Sales
2,000,000
2016 3,850,000 1,000,000
2017 4,300,000 0
2018 4,825,244 2012 2013 2014 2015 2016 2017 2018 2019
2019 5,350,489 Year

Chart Title
Actual Equation Using LinEst
4,500,000
Slope Intercept
### ### 4,000,000
This is an example using LinEst as an array-entered function.
3,500,000 f(x) = 525244.6 x − 105
### ### This is an example of pulling out just the specific parameter that you wa
3,000,000

Year Sales 2,500,000

2017 4,300,000 These are forecasts using the LinEst() and Index() functions.
2,000,000
2018 4,825,244 1,500,000
2019 5,350,489
1,000,000

500,000

0
2011.5 2012 2012.5 2013 2013.5 2014 2014
 Chart Title EPI Sales from 2012 to 2016 with Trend

Chart Title

unction.
244.6 x − 1055118358.4
ameter that you want using the Index() function.

nctions.

2013.5 2014 2014.5 2015 2015.5 2016 2016.5

 4,000,000
Cost of Goods vs Sales
2012 to 2016

3,000,000
Cost of Goods

2,000,000

1,000,000
1,000,000 2,000,000 3,000,000 4,000,000
Sales
 Year Sales Cost of Goods
2012 1,890,532 1,570,200
2013 2,098,490 1,695,694
2014 2,350,308 1,992,400
2015 3,432,000 2,864,000
2016 3,850,000 3,250,000

Cost of Goods vs Sales

2012 to 2016
4,000,000
Cost of Goods

3,000,000

2,000,000

1,000,000
1,000,000 2,000,000 3,000,000 4,000,000
Sales
 Cost of Goods vs Sales
Chart Title 2012 to 2016

45-degree line data for chart

1,000,000 1,000,000
4,000,000 4,000,000
SUMMARY OUTPUT

Regression Statistics
Multiple R 99.91%
R Square 99.83%
Adjusted R Square 99.77%
Standard Error 35,523.08
Observations 5

ANOVA
df SS MS F Significance F
Regression 1 2,205,960,110,240 2,205,960,110,240 1,748.1412 0.0000
Residual 3 3,785,666,909 1,261,888,970
Total 4 2,209,745,777,149

Coefficients Standard Error t Stat P-value Lower 95%

Intercept -63,680.8247 58,134.6760 -1.0954 0.3534 -248,691.3096
Sales 0.8583 0.0205 41.8108 0.0000 0.7929
 Upper 95%
121,329.6601
0.9236
 Cost of Goods vs Sales
Year Sales Cost of Goods Chart Title 2012 to 2016
2012 1,890,532 1,570,200 Intercept (63,680.8247)
2013 2,098,490 1,695,694 Slope 0.8583
2014 2,350,308 1,992,400
2015 3,432,000 2,864,000
2016 3,850,000 3,250,000
2017* 4,300,000 3,626,855

Cost of Goods vs Sales

2012 to 2016
4,000,000
Cost of Goods

f(x) = 0.858264069920177 x − 63680.8247051616

3,000,000
R² = 0.998286831477114

2,000,000

1,000,000
1,000,000 2,000,000 3,000,000 4,000,000
Sales
*Forecast
ods vs Sales
16