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Butler Case

The document summarizes financial information for a company from 1988-1991. Net sales and costs of goods sold increased from 1988 to 1990. Gross profit and net income also increased over this period. Current assets grew significantly from 1988 to 1991. Debt ratios and times interest earned decreased slightly from 1988 to 1990, indicating more debt but still manageable interest coverage. Suggestions were made to cooperate with a bank and strengthen internal management.

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Amit Admune
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44 views

Butler Case

The document summarizes financial information for a company from 1988-1991. Net sales and costs of goods sold increased from 1988 to 1990. Gross profit and net income also increased over this period. Current assets grew significantly from 1988 to 1991. Debt ratios and times interest earned decreased slightly from 1988 to 1990, indicating more debt but still manageable interest coverage. Suggestions were made to cooperate with a bank and strengthen internal management.

Uploaded by

Amit Admune
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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1988 1989

Net Sales 1697 2013


COGS
Beginning Inventory 183 239
Purchases 1278 1524
1461 1763
Ending Inventoey 239 326
Total COGS 1222 1437
Gross Profit 475 576
Operating expense 425 515
Interest expense 13 20
Net income before tax 37 41
Provision of income taxes 6 7
Net income 31 34
0.753093694755 0.757078986587
0.163586584531 0.184912081679
0.720094284031 0.713859910581

Current Assets 468 596 776


Cuurent Liabilities 260 375 535
Net working capital 208 221 241
Total assets 594 736 933
Common size analysis 0.35016835016835 0.30027173913 0.258306538049

Funds flow statements


Cash 58 48
Acc recievables 171 222
Inventory 239 326
Current assets 468 596
Property 126 140
Total assets 594 736

Debt ratio long term debt/long term debt+net worth


0.19 0.16

Times Interest Earned 3.85 3.05

Suggestions Give up to cooperatae with Northtop national bank, strenghthe


Accept george dodge's proposal
1990 1991 (FQ) 1991
2694 718 3600 698 0.0286532951

326 418
2042 660 2721.78405503 2736.28
2368 3139.78405503
418 556
1950 2589.34191549
744 1010.65808451
658 0.24424647 879.287305122
33 0.01224944 44.0979955457
53 87.2727838377
9 0.00334076 12.0267260579
44 75.2460577798
0.757980697847 0.75605113
0.17652027027 0.17500631
0.723830734967 0.71926164

932
690
242
1094
0.221206581353

Diff (1988 and 1990)


41 31 -17 Negative sign for company
317 345 146 Relies more on credit sales
418 556 179 It is huge, growing consistently
776 932 308
157 162 31
933 1094 339

Long term debt


0.13 0.12 Low, safe to borrow Net worth

2.61 2.98 Bad cash mgmt EBIT


Interst

h Northtop national bank, strenghthen internal mgmt rather than enlarge the loan
1.0286533

1 1222
2 1437
3 1950
4 2264.33333

tive sign for company


s more on credit sales
huge, growing consistently and fast and not in problem in finance but in operations

64 57 50 47
270 304 348 357

50 61 86 131.370779
13 20 33 44.0979955

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