Brunswick Distribution Inc

Option 1 - New Infrastructure

Income Statement (P&L)

Revenue
Cost of goods sold
Shipping
Materials
Direct labour
Total

$33,074

$8,931
$5,963
$6,726
$21,620

Gross Profit
Operating expenses
Selling exp
Fixed expenses
Depreciation
Total

$955
$358
$404

$36,674

$9,886
$6,321
$7,130
$23,336

$11,454

$3,820
$4,229
$1,794
$9,843

Earnings before interest and taxes

$13,338

$500

$3,820
$4,229
$2,294
$10,343

$1,611

Interest exp

$631

Earnings before taxes

Tax @ 40%

$392

Net income

Changes
$3,600

$2,995
$1,320

$1,951

$980

$1,044
$417

$588

$626

Balance Sheet
Assets
Current assets
Inventory
Accounts receivable
Other current assets
Cash
Total current assets

$6,789
$5,603
$1,381
$3,223
$16,996

$407
$1,500

$7,196
$7,103
$1,381
$3,223
$18,903

Long-term assets
Net Property Plant Eqpt
Long-term investments
Total long term assets

$12,174
$1,000
$13,174

$12,000

$24,174
$1,000
$25,174

Total assets

$30,170

$44,077

Liabilities
Current liabilities
Accounts payable
Notes payable
Short-term debt
Total current liabilities

$1,282
$1,099
$4,159
$6,540

$1,320

$2,602
$1,099
$4,159
$7,860

Long-term liabilities
Long-term loans
Total long-term liabilities

$7,523
$7,523

$12,000

$19,523
$19,523

Total liabilities
Total equity
Total debt plus equity

$14,063
$16,107
$30,170

$27,383
$16,694
$44,077

Option 1 - New Infrastructure

Current
3.7%
5.3%
1.8%
109.6%

Proposed
3.8%
6.8%
1.7%
83.2%

2.60
3.18

2.41
3.24

0.56

1.04

A/R Days
A/P days
Inventory days
AR - AP + Inv

61.8
78.5
114.6

70.7
150.3
112.6

Debt/assets
Debt/equity
Interest cover
GrossProfit Margin
Materials/COGS
Labour/COGS

38.7%
72.5%
2.55
34.6%
27.6%
31.1%

53.7%
141.9%
1.53
36.4%
27.1%
30.6%

Return on equity
ROA
Net income/sales
Asset turnover

Current ratio
Inventory turns
Working capital/sales
Fixed asset turnover

Brunswick Distribution Inc

Option 2A - Basic upgrade

Income Statement (P&L)

Revenue
Cost of goods sold
Shipping
Materials
Direct labour
Total

$33,074

$8,931
$5,963
$6,726
$21,620

Gross Profit
Operating expenses
Selling exp
Fixed expenses
Depreciation
Total

-$893
-$673

$33,074

$8,038
$5,963
$6,053
$20,054

$11,454

$3,820
$4,229
$1,794
$9,843

Earnings before interest and taxes

$13,020

$800
$1,060

$3,820
$5,029
$2,854
$11,703

$1,611

Interest exp

$631

Earnings before taxes

Tax @ 40%

$392

Net income

$0

$1,317
$530

$1,161

$980

$156
$62

$588

$93

Balance Sheet
Assets
Current assets
Inventory
Accounts receivable
Other current assets
Cash
Total current assets

$6,789
$5,603
$1,381
$3,223
$16,996

Long-term assets
Net Property Plant Eqpt
Long-term investments
Total long term assets

$12,174
$1,000
$13,174

Total assets

$30,170

$5,300

$6,789
$5,603
$1,381
$3,223
$16,996

$6,789
$5,603
$1,381
$3,223
$16,996

$17,474
$1,000
$18,474

$17,474
$1,000
$18,474

$35,470

$35,470

Liabilities
Current liabilities
Accounts payable
Notes payable
Short-term debt
Total current liabilities

$1,282
$1,099
$4,159
$6,540

$530

$1,812
$1,099
$4,159
$7,070

$1,812
$1,099
$4,159
$7,070

Long-term liabilities
Long-term loans
Total long-term liabilities

$7,523
$7,523

$5,300

$12,823
$12,823

$12,823
$12,823

$19,893
$15,577
$35,470

$19,893
$15,577
$35,470

Total liabilities
Total equity
Total debt plus equity

$14,063
$16,107
$30,170

Current
3.7%
5.3%
1.8%
109.6%

Proposed
0.6%
3.7%
0.3%
93.2%

2.60
3.18

2.40
2.95

0.56

0.87

A/R Days
A/P days
Inventory days
AR - AP + Inv

61.8
78.5
114.6

61.8
110.9
123.6

Debt/assets
Debt/equity
Interest cover
GrossProfit Margin
Materials/COGS
Labour/COGS

38.7%
72.5%
2.55
34.6%
27.6%
31.1%

47.9%
109.0%
1.13
39.4%
29.7%
30.2%

Return on equity
ROA
Net income/sales
Asset turnover

Current ratio
Inventory turns
Working capital/sales
Fixed asset turnover

Brunswick Distribution Inc

Option 2B - Fully integrated upgrade

Income Statement (P&L)

Revenue
Cost of goods sold
Shipping
Materials
Direct labour
Total

$33,074

$8,931
$5,963
$6,726
$21,620

Gross Profit
Operating expenses
Selling exp
Fixed expenses
Depreciation
Total

-$1,429
-$1,076

$33,074

$7,502
$5,963
$5,650
$19,115

$11,454

$3,820
$4,229
$1,794
$9,843

Earnings before interest and taxes

$13,959

$800
$1,600

$3,820
$5,029
$3,394
$12,243

$1,611

Interest exp

$631

Earnings before taxes

Tax @ 40%

$392

Net income

$0

$1,716
$800

$1,431

$980

$285
$114

$588

$171

Balance Sheet
Assets
Current assets
Inventory
Accounts receivable
Other current assets
Cash
Total current assets

$6,789
$5,603
$1,381
$3,223
$16,996

Long-term assets
Net Property Plant Eqpt
Long-term investments
Total long term assets

$12,174
$1,000
$13,174

Total assets

$30,170

$8,000

$6,789
$5,603
$1,381
$3,223
$16,996

$6,789
$5,603
$1,381
$3,223
$16,996

$20,174
$1,000
$21,174

$20,174
$1,000
$21,174

$38,170

$38,170

Liabilities
Current liabilities
Accounts payable
Notes payable
Short-term debt
Total current liabilities

$1,282
$1,099
$4,159
$6,540

$800

$2,082
$1,099
$4,159
$7,340

$2,082
$1,099
$4,159
$7,340

Long-term liabilities
Long-term loans
Total long-term liabilities

$7,523
$7,523

$8,000

$15,523
$15,523

$15,523
$15,523

$22,863
$15,307
$38,170

$22,863
$15,307
$38,170

Total liabilities
Total equity
Total debt plus equity

$14,063
$16,107
$30,170

Option 2B - Fully integrated upgrade

Return on equity
ROA
Net income/sales
Asset turnover

Current ratio
Inventory turns
Working capital/sales
Fixed asset turnover

A/R Days
A/P days
Inventory days
AR - AP + Inv
Debt/assets
Debt/equity
Interest cover
GrossProfit Margin
Materials/COGS
Labour/COGS

Current
3.7%
5.3%
1.8%
109.6%

Proposed
1.1%
4.5%
0.5%
86.6%

2.60
3.18

2.32
2.82

0.56

1.06

61.8
78.5
114.6

61.8
127.4
129.6

38.7%
72.5%
2.55
34.6%
27.6%
31.1%

51.6%
128.6%
1.20
42.2%
31.2%
29.6%

Ratio comparisons
Option 1 - New Infrastructure

Current
3.7%
5.3%
1.8%
109.6%

Option 1
3.8%
6.8%
1.7%
83.2%

2.60
3.18

2.41
3.24

0.56

1.04

A/R Days
A/P days
Inventory days
AR - AP + Inv

61.8
78.5
114.6

70.7
150.3
112.6

Debt/assets
Debt/equity
Interest cover
GrossProfit Margin
Materials/COGS
Labour/COGS

38.7%
72.5%
2.55
34.6%
27.6%
31.1%

53.7%
141.9%
1.53
36.4%
27.1%
30.6%

Return on equity
ROA
Net income/sales
Asset turnover

Current ratio
Inventory turns
Working capital/sales
Fixed asset turnover

Opt 2A
0.6%
3.7%
0.3%
93.2%

Opt 2B
1.1%
4.5%
0.5%
86.6%

2.40
2.95

2.32
2.82

0.87

1.06

61.8
110.9
123.6

61.8
127.4
129.6

47.9%
109.0%
1.13
39.4%
29.7%
30.2%

51.6%
128.6%
1.20
42.2%
31.2%
29.6%