Introduction to Corporate Finance

Ross et al.: Fundamentals

of Corporate Finance, Sixth

Edition, Alternate Edition

II. Financial Statements

and Long−Term Financial

Planning

3. Working with Financial
   Statements

(^110) © The McGraw−Hill
Companies, 2002
78 PART TWO Financial Statements and Long-Term Financial Planning

TABLE 3.10

Retail—Furniture Stores SIC# 5712 (NAICS 33711, 337121, 337122)

Comparative

Historical Data Current Data Sorted By Sales

Type of Statement

68 50 58 Unqualified 13131238

131 147 131 Reviewed 1 23 15 32 42 18

198 205 177 Compiled 23 67 40 25 19 3

72 72 82 Tax Returns 21 37 12 8 3 1

127 153 134 Other 9 40 13 23 20 29

188 394

(4/1- (10/1/99-

4/1/97- 4/1/98- 4/1/99- 9/30/99) 3/31/00)

3/31/98 3/31/99 3/31/00 0-1 1-3 3-5 5-10 10-25 25MM

ALL ALL ALL NUMBER OF MM MM MM MM MM & OVER

596 627 582 STATEMENTS 55 170 81 91 96 89

%%% ASSETS %%%%%%

6.6 8.2 8.4 Cash & Equivalents 8.4 9.8 8.1 6.4 8.7 7.5

17.4 16.6 15.8 Trade Receivables
 (net) 16.3 15.2 12.3 12.6 20.0 18.4

49.8 48.4 49.0 Inventory 49.5 49.7 52.2 55.5 46.7 40.2

1.3 1.7 1.6 All Other Current .3 .8 1.8 2.3 1.7 2.7

75.2 74.9 74.7 Total Current 74.5 75.5 74.3 76.9 77.1 68.8

16.9 16.6 17.8 Fixed Assets (net) 19.1 17.8 18.3 16.7 15.3 20.4

2.0 2.3 2.1 Intangibles (net) 2.6 1.8 1.0 .9 1.7 5.0

6.0 6.1 5.4 All Other Non-Current 3.8 4.9 6.3 5.6 5.9 5.9

100.0 100.0 100.0 Total 100.0 100.0 100.0 100.0 100.0 100.0

LIABILITIES

9.9 10.5 9.0 Notes Payable-Short Term 7.8 9.1 11.2 8.9 8.0 9.0

3.4 2.8 2.2 Cur. Mat.-L/T/D 3.6 2.9 1.7 1.7 1.3 1.6

18.1 18.3 18.9 Trade Payables 12.6 17.7 17.4 20.9 20.9 22.0

.3 .4 .4 Income Taxes Payable .4 .4 .3 .8 .5 .3

14.7 17.2 18.0 All Other Current 11.5 17.7 20.3 19.1 20.4 17.0

46.4 49.2 48.5 Total Current 36.0 27.8 50.8 51.5 51.1 49.7

12.7 12.5 12.5 Long Term Debt 18.6 13.5 9.3 15.4 8.1 11.5

.2 .2 .1 Deferred Taxes .0 .1 .1 .1 .2 .2

3.9 5.5 5.4 All Other Non-Current 10.7 5.6 5.1 5.7 4.2 2.6

36.8 32.6 33.5 Net Worth 34.7 33.0 34.6 27.2 36.4 35.9

Total Liabilities

100.0 100.0 100.0 & Net Worth 100.0 100.0 100.0 100.0 100.0 100.0

INCOME DATA

100.0 100.0 100.0 Net Sales 100.0 100.0 100.0 100.0 100.0 100.0

39.2 38.7 40.0 Gross Profit 43.2 39.7 40.2 40.0 38.8 39.6

36.4 36.1 37.5 Operating Expenses 41.4 37.7 37.0 37.9 36.2 36.0

2.8 2.5 2.5 Operating Profit 1.7 2.0 3.2 2.1 2.5 3.7

.5 .0 
.3 All Other Expenses (net) 
1.0.1.4.6
.7 
1.7

2.3 2.5 2.8 Profit Before Taxes 2.7 2.0 2.8 1.5 3.2 5.3

M $ thousand; MM $ million.

Interpretation of Statement Studies Figures:RMA cautions that the studies be regarded only as a general guideline and not as an absolute

industry norm. This is due to limited samples within categories, the categorization of companies by their primary Standard Industrial

Classification (SIC) number only, and different methods of operations by companies within the same industry. For these reasons, RMA

recommends that the figures be used only as general guidelines in addition to other methods of financial analysis.

© 2000 by RMA. All rights reserved. No part of this table may be reproduced or utilized in any form or by any means, electronic or

mechanical, including photocopying, recording, or by any information storage and retrieval system, without permission in writing from RMA.

Selected Financial Statement Information