Bekaert

Balance Sheet

2010

2011

2012

2013

ASSETS
Cash and Equivalents
Accounts Receivable, Net
Inventory
Other Current Assets
Total Current Assets
Gross PP&E
Accumulated Depreciation
Net PP&E
Intangible Assets
Other Long Term Asset
Total Assets

2010
443
774
508
182
1907
206
-1628
1295
73
399
3674

2011
676
828
578
186
2268
3208
-1775
1434
83
385
4170

2012
457
589
568
307
1921
3355
-1978
1378
99
271
3669

2013
402
583
539
247
1771
3283
-2044
1239
87
284
3381

LIABILITIES & EQUITY

Accounts Payable
Taxes Payable
Other Current Liabilities
Total Current Liabilities
Long-term Debt
Other Liabilities
Total Liabilities
Total Stockholder's Equity
Total Liabilities and Equity

2010
342
95
603
1040
700
323
2063
1611
3674

2011
291
76
898
1265
908
303
2476
1694
4170

2012
322
67
566
955
850
442
2247
1422
3669

2013
339
83
550
972
688
375
2035
1346
3381

Income Statement

2010
3262
2358
904
265
93
734
187
547
59
15
502
139
36
399

2011
3340
2689
651
283
114
323
69
254
73
69
250
68
26
207

2012
3461
2982
479
292
254
(43)
25
(68)
88
24
-131
68
-6
-195

2013
3186
2703
482
253
104
124
-1
125
70
-1
54
48
-11
25

Sales
Cost of Goods Sold
Gross Profit
Selling, General, and Admin Exp
Other Expense
Operating Income before Depr
Depreciation and Amortization
Operating Profit
Interest Expense
Other Gains and Losses
Pretax Income
Income Tax Expense
Other Income from Discontinued Operation
Net Income

2014
2014
473
708
641
286
2108
3626
-2193
1433
117
298
3956
2014
391
97
698
1186
909
494
2589
1367
3956

2014
3216
2730
486
265
71
173
24
149
68
24
105
42
25
87

Ratios

Ratio Analysis

Woof Junction
2013
2014

2015

Avg

Return on Equity

12.5%

-12.5%

1.8%

6.4%

2.1%

Return on Equity = Net Income / Avg. Stockholders' Equity

Return on Assets
Financial Leverage
Correction Factor

6.5%
2.37
0.81

-3.5%
2.52
1.43

2.0%
2.55
0.35

3.6%
2.70
0.66

2.2%
2.54
0.81

Return on Assets = De-levered Net Income / Avg. Total Assets

Financial Leverage = Avg. Total Assets / Avg. Stockholders Equity
Correction Factor = Net Income / De-levered Net Income

Return on Assets
Return on Sales
Asset turnover

7.6%
0.85

-4.0%
0.88

2.2%
0.90

4.1%
0.88

2.5%
0.88

Return on Sales = De-levered Net Income / Sales

Asset turnover = Sales / Avg. Total Assets

19.5%
8.5%
7.6%
2.2%
27.2%

13.8%
8.4%
-2.0%
2.5%
-51.9%

15.1%
7.9%
3.9%
2.2%
88.9%

15.1%
8.2%
4.6%
2.1%
40.0%

15.9%
8.3%
3.5%
2.3%
26.0%

4.2
5.0
8.7
2.4

4.9
5.2
9.7
2.5

5.4
4.9
8.1
2.4

5.0
4.6
7.8
2.4

4.9
4.9
8.6
2.4

87.5
73.7
41.9
119.4

74.7
70.1
37.6
107.2

67.1
74.7
45.1
96.8

73.3
78.9
47.0
105.1

75.7
74.4
42.9
107.1

1.79
1.19
0.09

2.01
1.10
0.40

1.82
1.01
0.32

1.78
1.00
0.17

1.85
1.07
0.24

Current Ratio = Current Assets / Current Liabilities

Quick Ratio = (Cash + Accts Rec) / Current Liabilities
CFO-to-Current Liabilities = Cash from Operations / Avg. Current Laibilities

Interest Coverage
Cash Interest Coverage

4.42

-0.49

1.77

2.54

2.06

Interest Coverage = Operating Income before Depreciation / Interest Expense

Cash Interest Coverage = (Cash from Operations + Cash Interest + Cash Taxes) / Cash Interest Paid

Debt to Equity
Long-Term-Debt to Equity
Long-Term Debt to Tangible Assets

1.46
0.54
0.22

1.58
0.60
0.24

1.51
0.51
0.21

1.89
0.66
0.24

1.61
0.58
0.23

Debt to Equity = Total Liabilities / Total Stockholders Equity

Long-Term-Debt to Equity = Total Long-Term Debt / Total Stockholders Equity
Long-Term Debt to Tangible Assets = Total Long-Term Debt / (Total Assets - Intangible Assets)

2.4%
33.9%
255.3
2759
3.9%
9.1%

3.6%
33.9%
-136.8
2972
0.7%
10.0%

-7.9%
33.9%
71.3
2674
0.0%
9.1%

0.9%
33.9%
131.9
2832
0.7%
8.5%

-0.2%
33.9%

0.17891 0.26757 0.21865 0.30248

389
438
481

0.2419
436

Profitability
Gross margin
SG&A as % of Sales
Operating Margin
Interest Expense as % of Sales
Effective Tax Rate
Asset Turnover Ratios
Accounts Receivable Turnover
Inventory Turnover
Accounts Payable Turnover
Fixed Asset Turnover
Days Turnover Ratios
Days Receivables
Days Inventory
Days Payables
Net Trade Cycle
Liquidity Analysis
Current Ratio
Quick Ratio
CFO-to-Current Liabilities

Other Information
Sales Growth
Statutory Tax Rate
De-levered Net Income
Purchases
Weighted Avg Depreciation Rate
Weighted Avg Interest Rate

Other Ratios
Sales Growth
Sales per Square Foot

2012

1.3%
9.2%

Gross Margin = (Sales - Cost of Goods Sold) / Sales

SG&A as a % of Sales = SG&A Expense / Sales
Operating Margin = Operating Income / Sales
Interest Expense as % of Sales = Interest Expense / Sales
Effective Tax Rate = Income Taxes / Pre-tax Income

Accounts Receivables Turnover = Sales / Avg. Accounts Receivable

Inventory Turnover = Cost of Goods Sold / Avg. Inventory
Accounts Payable Turnover = Purchases / Avg. Accounts Payable
Fixed Asset Turnover = Sales / Avg. Net Property, Plant and Equipment

Days Receivables = 365 * (Avg. Accounts Receivable / Sales)

Days Inventory = 365 * (Avg. Inventory / Cost of Goods Sold)
Days Payable = 365 * (Avg. Accounts Payable / Purchases)
Net Trade Cycle = Days Receivable + Days Inventory - Days Payable

Sales Growth = Change in Sales / Prior Year Sales

Federal Statutory Rate + State and Foreign Statutory Rates (excludes permanent differences)
De-levered Net Income = Net Income + (Interest Exp. * (1 - Statutory Tax Rate))
Purchases = Ending Inventory + COGS Beginning Inventory
Weighted Avg Depreciation Rate = Depreciation & Amortization / (Avg. Gross PP&E + Avg. Intangible Assets)
Weighted Avg Interest Rate = Interest Expense / Avg. Long-Term Debt

Page 3

Woof Junction Inc.

Balance Sheet

2011

2012

2013

2014

2015

ASSETS
Cash and Equivalents
Accounts Receivable, Net
Inventory
Other Current Assets
Total Current Assets
Gross PP&E
Accumulated Depreciation
Net PP&E
Intangible Assets
Total Assets

2011
0.12
0.21
0.14
0.05
0.52
0.06
-0.44
0.35
0.02
1.00

2012
0.16
0.20
0.14
0.04
0.54
0.77
-0.43
0.34
0.02
1.00

2013
0.12
0.16
0.15
0.08
0.52
0.91
-0.54
0.38
0.03
1.00

2014
0.12
0.17
0.16
0.07
0.52
0.97
-0.60
0.37
0.03
1.00

2015
0.12
0.18
0.16
0.07
0.53
0.92
-0.55
0.36
0.03
1.00

LIABILITIES & EQUITY

Accounts Payable
Taxes Payable
Other Current Liabilities
Total Current Liabilities
Long-term Debt
Other Liabilities
Total Liabilities
Total Stockholder's Equity
Total Liabilities and Equity

2011
0.09
0.03
0.16
0.28
0.19
0.09
0.56
0.44
1.00

2012
0.07
0.02
0.22
0.30
0.22
0.07
0.59
0.41
1.00

2013
0.09
0.02
0.15
0.26
0.23
0.12
0.61
0.39
1.00

2014
0.10
0.02
0.16
0.29
0.20
0.11
0.60
0.40
1.00

2015
0.10
0.02
0.18
0.30
0.23
0.12
0.65
0.35
1.00

Income Statement

2011
1.00
0.72
0.28
0.08
0.23
0.06
0.17
0.02
0.00
0.15
0.04
0.12

2012
1.00
0.81
0.19
0.08
0.10
0.02
0.08
0.02
0.02
0.07
0.02
0.06

2013
1.00
0.86
0.14
0.08
-0.01
0.01
-0.02
0.03
0.01
-0.04
0.02
-0.06

2014
1.00
0.85
0.15
0.08
0.04
0.00
0.04
0.02
0.00
0.02
0.02
0.01

2015
1.00
0.85
0.15
0.08
0.05
0.01
0.05
0.02
0.01
0.03
0.01
0.03

Sales
Cost of Goods Sold
Gross Profit
Selling, General, and Admin Exp
Operating Income before Depr
Depreciation and Amortization
Operating Profit
Interest Expense
Other Gains and Losses
Pretax Income
Income Tax Expense
Net Income

Avg
Avg
0.13
0.18
0.15
0.06
0.53
0.73
-0.51
0.36
0.02
1.00
Avg
0.09
0.02
0.17
0.29
0.21
0.10
0.60
0.40
1.00
Avg
1.00
0.82
0.18
0.08
0.08
0.02
0.06
0.02
0.01
0.05
0.02
0.03

Assumptions Underlying The Forecasting Analysis

Woof Junction Inc.
Assumptions for Projected Fin Stmts

2011

2012

2013

1
2016

2
2017

3
2018

4
2019

5
2020

6
2021

7
2022

8
2023

9
2024

10
2025

-0.002
0.817
0.082
0.013
0.085
0.008
0.339

-0.002
0.817
0.082
0.013
0.085
0.008
0.339

-0.002
0.817
0.082
0.013
0.085
0.008
0.339

-0.002
0.817
0.082
0.013
0.085
0.008
0.339

-0.002
0.817
0.082
0.013
0.085
0.008
0.339

0.050
0.817
0.082
0.013
0.085
0.008
0.339

0.050
0.817
0.082
0.013
0.085
0.008
0.339

0.050
0.817
0.082
0.013
0.085
0.008
0.339

0.050
0.817
0.082
0.013
0.085
0.008
0.339

0.050
0.817
0.082
0.013
0.085
0.008
0.339

BS)
BS)
BS)
BS)
BS)
BS)
BS)

0.129
0.184
0.151
0.065
0.725
-0.513
0.024
0.879

0.129
0.184
0.151
0.065
0.725
-0.513
0.024
0.879

0.129
0.184
0.151
0.065
0.725
-0.513
0.024
0.879

0.129
0.184
0.151
0.065
0.725
-0.513
0.024
0.879

0.129
0.184
0.151
0.065
0.725
-0.513
0.024
0.879

0.129
0.184
0.151
0.065
0.725
-0.513
0.024
0.879

0.129
0.184
0.151
0.065
0.725
-0.513
0.024
0.879

0.129
0.184
0.151
0.065
0.725
-0.513
0.024
0.879

0.129
0.184
0.151
0.065
0.725
-0.513
0.024
0.879

0.129
0.184
0.151
0.065
0.725
-0.513
0.024
0.879

size BS)
size BS)
size BS)

0.090
0.022
0.175
0.230
0.103

0.090
0.022
0.175
0.230
0.103

0.090
0.022
0.175
0.230
0.103

0.090
0.022
0.175
0.230
0.103

0.090
0.022
0.175
0.230
0.103

0.090
0.022
0.175
0.230
0.103

0.090
0.022
0.175
0.230
0.103

0.090
0.022
0.175
0.230
0.103

0.090
0.022
0.175
0.230
0.103

0.090
0.022
0.175
0.230
0.103

2014

2015

I/S Projection Assumptions

Sales growth
Cost of goods sold
Selling, General, and Admin Exp
Depreciation and Amortization
Interest Expense
Other Gains and Losses
Income Tax Expense

Historical avg. growth for 5 years, then industry avg.

Historical average ratio of cgs / sales (common size IS)
Historical avg. ratio of sg&a / sales (common size IS)
Historical avg. depreciation rate of avg. gross pp&e
Forecasted interest rate (2015)
Historical avg. ratio of G&L / sales (common size IS)
Historical statutory income tax rate

B/S Projection Assumptions

Cash and Equivalents
Accounts Receivable, Net
Inventory
Other Current Assets
Gross PP&E
Accumulated Depreciation
Intangible Assets
Total asset turnover

Historical
Historical
Historical
Historical
Historical
Historical
Historical
Historical

Accounts Payable
Taxes Payable
Other Current Liabilities
Long-term Debt
Other Liabilities
Total equities

Historical average
Historical average
Historical average
2015 ratio of debt
Historical average
Plug (TA - TL)

average
average
average
average
average
average
average
average

ratio
ratio
ratio
ratio
ratio
ratio
ratio

of
of
of
of
of
of
of

account
account
account
account
account
account
account

/
/
/
/
/
/
/

TA
TA
TA
TA
TA
TA
TA

(common
(common
(common
(common
(common
(common
(common

ratio of account / TA (common

ratio of account / TA (common
ratio of account / TA (common
/ TA (common size BS)
ratio of account / TA (common

size
size
size
size
size
size
size

size BS)

Supplemental Calculations
Calculation of smoothed total assets
Average total assets (initial est)
Ending total assets (initial est)
Annual compound growth rate
Growth rate in total assets
Ending total assets (final est)
Average total assets (final est)

Accumulated depreciation
Beginning balance
+ Depreciation expense
- Ending balance
Retirements (plug)
Gross PP&E
Ending balance
+ Retirements
- Beginning balance
Net Purchases (plug)
Dividends and Repurchases (net of stock issues)
Beginning balance Stockholders' Equity
+ Net Income
- Ending balance Stockholders' Equity
Dividends and net share repurchases (plug)

3,956

3,956

$
$

3,651
3,345

$
$

$
$

(0.02)
3,885 $
3,921 $

3,642
3,938

$
$

(0.02)
3,816 $
3,850 $

3,633
3,327

$
$

(0.02)
3,747 $
3,782 $

3,624
3,920

$
$

(0.02)
3,680 $
3,714 $

3,615
3,309
(0.02)
(0.02)
3,615
3,647

$
$

3,795
4,281

$
$

3,985
3,689

$
$

4,184
4,680

$
$

4,394
4,107

$
$

$
$

0.05
3,795
3,705

$
$

0.05
3,985
3,890

$
$

0.05
4,184
4,085

$
$

0.05
4,394
4,289

$
$

4,613
5,119
0.05
0.05
4,613
4,503

(1,628)
69
1,775
216

(1,775)
25
1,978
228

(1,978)
(1)
2,044
65

(2,044)
24
2,193
173

(2,193)
42
1,995
(156)

(1,995)
37
1,959
1

(1,959)
36
1,924
1

(1,924)
35
1,889
1

(1,889)
35
1,856
1

(1,856)
35
1,948
128

(1,948)
37
2,046
134

(2,046)
39
2,148
141

(2,148)
41
2,255
148

(2,255)
43
2,368
156

3,208
216
(206)
3,218

3,355
228
(3,208)
375

3,283
65
(3,355)
(7)

3,626
173
(3,283)
516

2,819
(156)
(3,626)
(964)

2,768
1
(2,819)
(49)

2,719
1
(2,768)
(49)

2,670
1
(2,719)
(48)

2,622
1
(2,670)
(47)

2,753
128
(2,622)
259

2,891
134
(2,753)
272

3,036
141
(2,891)
286

3,187
148
(3,036)
300

3,347
156
(3,187)
315

1,611
89
(1,694)
6

1,694
(18)
(1,422)
254

1,422
114
(1,346)
190

1,346
63
(1,367)
42

1,367
117
(1,477)
8

1,477
121
(1,450)
148

1,450
122
(1,424)
148

1,424
123
(1,399)
148

1,399
124
(1,374)
149

1,374
132
(1,442)
64

1,442
139
(1,515)
67

1,515
146
(1,590)
70

1,590
153
(1,670)
74

1,670
161
(1,753)
77

Page 6

Woof Junction Inc.

Projected Fin Stmts
ASSETS
Cash and Equivalents
Accounts Receivable, Net
Inventory
Other Current Assets
Total Current Assets
Gross PP&E
Accumulated Depreciation
Net PP&E
Intangible Assets
Other Long Term Asset
Total Assets
LIABILITIES & EQUITY
Accounts Payable
Taxes Payable
Other Current Liabilities
Total Current Liabilities
Long-term Debt
Other Liabilities
Total Liabilities
Total Stockholder's Equity
Total Liabilities and Equity
INCOME STATEMENT
Sales
Cost of Goods Sold
Gross Profit
Selling, General, and Admin Exp
Operating Income before Depr
Depreciation and Amortization
Operating Profit
Interest Expense
Other Gains and Losses
Pretax Income
Income Tax Expense
Net Income

2010

2011

2012

2013

1
2015

2014

2
2016

3
2017

4
2018

443 $ 676 $ 457 $ 402 $

473 $
502 $
493 $
484 $
475
774
828
589
583
708
716
703
690
678
508
578
568
539
641
585
575
564
554
182
186
307
247
286
251
247
242
238
1,907
2,268
1,921
1,771
2,108
2,054
2,017
1,981
1,946
206
3,208
3,355
3,283
3,626
2,819
2,768
2,719
2,670
(1,628) (1,775) (1,978) (2,044)
(2,193)
(1,995)
(1,959)
(1,924)
(1,889)
1295
1434
1378
1239
1433
4,813
4,727
4,642
4,559
73
83
99
87
117
95
93
91
90
399
385
271
284
298
$ 3,674 $ 4,170 $ 3,669 $ 3,381 $ 3,956 $ 3,885 $ 3,816 $ 3,747 $ 3,680

342
95
603
1,040
700
323
2,063
1,611
$ 3,674

291
76
898
1,265
908
303
2,476
1,694
$ 4,170

322
67
566
955
850
442
2,247
1,422
$ 3,669

339
83
550
972
688
375
2,035
1,346
$ 3,381

391
97
698
1,186
909
494
2,589
1,367
$ 3,956

349
87
678
1,114
893
402
2,409
1,477
$ 3,885

343
85
666
1,094
877
394
2,366
1,450
$ 3,816

337
84
654
1,075
861
387
2,323
1,424
$ 3,747

331
82
642
1,056
846
380
2,282
1,399
$ 3,680

2010
2011
2012
2013
2014
2015
2016
2017
2018
$ 3,262 $ 3,340 $ 3,461 $ 3,186 $ 3,216 $ 3,208 $ 3,200 $ 3,192 $ 3,184
2,358
2,689
2,982
2,703
2,730
2,622
2,616
2,609
2,603
904
651
479
483
486
586
584
583
582
265
283
292
253
265
264
264
263
262
639
368
187
230
221
321
321
320
319
187
69
25
(1)
24
42
37
36
35
452
299
162
231
197
279
284
284
284
59
73
88
70
68
77
75
74
73
15
69
24
(1)
24
25
25
25
25
378
157
50
162
105
177
183
185
186
139
68
68
48
42
60
62
63
63
$ 239 $
89 $
(18) $ 114 $
63 $
117 $
121 $
122 $
123

STATEMENT OF CASH FLOWS

Operations
Net Income
Depreciation and Amortization
Other Gains and Losses
Chg. in Accounts Receivable, Net
Chg. in Inventory
Chg. in Other Current Assets
Chg. in Accounts Payable
Chg. in Taxes Payable
Chg. in Other Current Liabilities
Chg. in Other Liabilities
Net Cash from Operations

2010

2011
$

2012

89 $
(18) $
69
25
69
24
(54)
239
(70)
10
(4)
(121)
(51)
31
(19)
(9)
295
(332)
(89)
115
235
(36)

Investing
Acquisition of PP&E
Change in Other Assets
Net Cash from Investing Activities

(3,218)
(10)
(3,228)

(375)
(16)
(391)

Financing
Net Proceeds from Issuing Debt
Dividends
Net Cash from Financing Activities

208
(6)
202

(58)
(254)
(312)

(2,791)

Change in cash
Change in cash (BS)

233

2013
114 $
(1)
(1)
6
29
60
17
16
(16)
(66)
158

7
12
19

2014

2015

63 $
24
24
(125)
(102)
(39)
52
14
148
95
154

117 $
42
25
(8)
56
35
(42)
(10)
(20)
(118)
78

(516)
(30)
(546)

964
22
986

(162)
(190)
(352)

221
(42)
179

(16)
(8)
(24)

(739)

(175)

(213)

(219)

(55)

71

1,040
29

2016
121 $
37
25
13
10
4
(6)
(2)
(12)
(32)
159

49
2
51

(16)
(148)
(164)

2017
122 $
36
25
13
10
4
(6)
(2)
(12)
(32)
159

49
2
50

(16)
(148)
(164)

2018
123
35
25
12
10
4
(6)
(1)
(12)
(32)
159

48
2
49

(15)
(148)
(164)

46

45

44

(9)

(9)

(9)

5
2019

6
2020

7
2021

8
2022

9
2023

10
2024

467 $
490 $
515 $
540 $
567 $
596
666
699
734
771
809
850
544
572
600
630
662
695
234
245
258
270
284
298
1,911
2,006
2,107
2,212
2,323
2,439
2,622
2,753
2,891
3,036
3,187
3,347
(1,856)
(1,948)
(2,046)
(2,148)
(2,255)
(2,368)
4,478
4,702
4,937
5,184
5,443
5,715
88
93
97
102
107
113

$ 3,615

$ 3,795

$ 3,985

$ 4,184

$ 4,394

$ 4,613

325
81
631
1,037
831
374
2,241
1,374
$ 3,615

341
85
663
1,088
872
392
2,353
1,442
$ 3,795

358
89
696
1,143
916
412
2,471
1,515
$ 3,985

376
93
730
1,200
961
433
2,594
1,590
$ 4,184

395
98
767
1,260
1,010
454
2,724
1,670
$ 4,394

415
103
805
1,323
1,060
477
2,860
1,753
$ 4,613

2019
2020
2021
2022
2023
2024
$ 3,176 $ 3,335 $ 3,502 $ 3,677 $ 3,861 $ 4,054
2,596
2,726
2,862
3,006
3,156
3,314
580
609
640
672
705
740
262
275
289
303
318
334
318
334
351
368
387
406
35
35
37
39
41
43
284
299
314
330
346
363
71
72
76
80
84
88
25
26
28
29
30
32
187
200
210
221
232
243
63
68
71
75
79
82
$
124 $
132 $
139 $
146 $
153 $
161

2019
$

124 $
35
25
12
10
4
(6)
(1)
(11)
(32)
159

47
2
48

(15)
(149)
(164)
44
(9)

2020
132 $
35
26
(33)
(27)
(12)
16
4
32
(8)
166

2021
139 $
37
28
(35)
(29)
(12)
17
4
33
(8)
174

2022
146 $
39
29
(37)
(30)
(13)
18
4
35
(8)
183

2023
153 $
41
30
(39)
(32)
(14)
19
5
37
(9)
192

2024
161
43
32
(40)
(33)
(14)
20
5
38
(9)
202

(259)
(4)
(264)

(272)
(5)
(277)

(286)
(5)
(291)

(300)
(5)
(305)

(315)
(5)
(320)

42
(64)
(22)

44
(67)
(23)

46
(70)
(24)

48
(74)
(26)

50
(77)
(27)

(120)

(126)

(132)

(139)

(146)

23

25

26

27

28