Professional Documents
Culture Documents
Copyright 2001 by the Trustees of the University of Virginia Darden School Foundation.
Revised, March 7, 2006.
Page 1
Introduction
This spreadsheet supports STUDENT analysis of the case, "The Body Shop International Plc
2001" (Case 8)
Please note:
results.
2) This spreadsheet incorporates circular logical reference. To resolve this circularity, please
instruct Excel to "iterate" several times in calculating the results. This is accomplished by
clicking on Tools/Options/Calculation, and then checking the iteration box.
3) As long as default spreadsheet calculation is set as "automatic" impact of changing
assumptions will be computed in real time. Alternatively the F9 function key may need to be
invoked to recalculate results. To set the numerical calculation settings to automatic, please
click on Tools/Options/Calculations menu, and check the automatic calculation option.
Copyright 2001 by the Trustees of the University of Virginia Darden School Foundation.
Revised, March 7, 2006.
Page 2
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Exhibit 1
Input Data
The Body Shop Plc 2001: Format for Developing a Spreadsheet Model
SALES
422,733
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
INCOME STATEMENT
2002
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
2002
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Exhibit 2
The Body Shop Plc 2001:
Spreadsheet Formulas to Forecast 2002 Financials:
Input Data
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
2002
+B3
+B4*B16
+B5*B16
+B6*B33
+B16-B17-B18-B19
+B7*B20
+B20-B21
+B8
+B22-B23
BALANCE SHEET
2002
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
+B9*B16
+B11
+B28+B29
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
+B10*B16
+B30-B32-B34
+B12+B24
+B32+B33+B34
1
2
Exhibit 3
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10
11
12
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15
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21
22
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25
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27
28
29
30
31
32
33
34
35
36
37
38
39
40
Input Data
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
(1,171)
51,899
15,570
36,329
10,900
25,429
2002
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
135,275
110,600
245,875
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
118,365
(19,520)
147,029
245,875
A
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Exhibit4
TheBodyShopPlc2001:
AdjustingtoReflectExcessCash
InputData
SALES
COGS/SALES
OPERATINGEXPENSES/SALES
INTERESTRATE
TAXRATE
DIVIDENDS(Thousandpounds)
CURR.ASSETS/SALES
CURR.LIABS./SALES
FIXEDASSETS
STARTINGEQUITY
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
INCOMESTATEMENT
SALES
COGS
OPERATINGEXPENSES
INTERESTEXPENSE(INCOME)
PROFITBEFORETAX
TAX
PROFITAFTERTAX
DIVIDENDS
EARNINGSRETAINED
2002
422,733
160,639
211,367
+(B6*B34)(B6*B28)
40,706
14,247
26,459
10,900
15,559
BALANCESHEET
2002
EXCESSCASH
CURRENTASSETS
FIXEDASSETS
TOTALASSETS
=IF(B40<0,B40,0)
135,275
110,600
+B29+B30+B28
CURRENTLIABILITIES
DEBT
EQUITY
TOTALLIAB.&NETWORTH
118,365
=IF(B40>0,+B40,0)
137,159
+B33+B34+B35
TRIALASSETS
TRIALLIABILITIESANDEQUITY
PLUG:DEBT(EXCESSCASH)
+B29+B30
+B33+B35
+B38B39
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2
3
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Exhibit 5
The Body Shop Plc 2001:
Finished Results for 2002, Reflecting Excess Cash
5
6
2003
2004
453,570
0.38
0.50
0.06
0.30
10,900
0.33
0.11
132,783
161,471
499,428
###
###
###
###
10,900
###
###
146,208
177,796
453,570
172,357
226,785
2,749
51,679
15,504
36,175
10,900
25,275
499,428
189,783
249,714
2,958
56,973
17,092
39,881
10,900
28,981
Input Data
7
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9
10
11
12
13
14
15
16
17
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
411,923
0.38
0.50
0.06
0.30
10,900
0.33
0.11
110,600
121,600
18
19
INCOME STATEMENT
2002
20
21
22
23
24
25
26
27
28
29
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
411,923
156,531
205,962
3,502
45,928
13,779
32,150
10,900
21,250
30
31
BALANCE SHEET
2002
32
33
34
35
36
EXCESS CASH
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
0
135,935
110,600
246,535
0
149,678
132,783
282,461
0
164,811
146,208
311,019
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
45,312
58,373
142,850
246,535
49,893
45,822
186,746
282,461
54,937
49,304
206,778
311,019
TRIAL ASSETS
TRIAL LIABILITIES AND EQUITY
PLUG: DEBT (EXCESS CASH)
246,535
188,161
58,373
282,461
236,639
45,822
311,019
261,715
49,304
37
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40
41
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Exhibit 6
The Body Shop Plc 2001:
Set up for a Forecast with Data Table
Input Data
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET
422,733
0.38
0.50
0.06
0.30
10,900
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
(1,171)
51,899
15,570
36,329
10,900
25,429
2002
EXCESS CASH
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
19,520
135,275
110,600
265,395
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
118,365
147,029
265,395
TRIAL ASSETS
TRIAL LIABILITIES AND EQUITY
PLUG: DEBT (EXCESS CASH)
245,875
265,395
(19,520)
Sensitivity Analysis
Of Debt and Excess Cash
To COGS/SALES Ratio
COGS/SALES
0.35
0.38
0.40
0.42
0.44
0.45
0.48
DEBT
=B34
Ex. CASH
=B28
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Exhibit 7
The Body Shop Plc 2001:
Finished Forecast with Data Table
Input Data
SALES
COGS/SALES
OPERATING EXPENSES/SALES
INTEREST RATE
TAX RATE
DIVIDENDS (Thousand pounds)
CURR. ASSETS/SALES
CURR. LIABS./SALES
FIXED ASSETS
STARTING EQUITY
INCOME STATEMENT
SALES
COGS
OPERATING EXPENSES
INTEREST EXPENSE (INCOME)
PROFIT BEFORE TAX
TAX
PROFIT AFTER TAX
DIVIDENDS
EARNINGS RETAINED
BALANCE SHEET
422,733
0.38
0.50
0.06
0.30
10,900.00
0.32
0.28
110,600
121,600
2002
422,733
160,639
211,367
(1,171)
51,899
15,570
36,329
10,900
25,429
2002
EXCESS CASH
CURRENT ASSETS
FIXED ASSETS
TOTAL ASSETS
19,520
135,275
110,600
265,395
CURRENT LIABILITIES
DEBT
EQUITY
TOTAL LIAB. & NET WORTH
118,365
0
147,029
265,395
TRIAL ASSETS
TRIAL LIABILITIES AND EQUITY
PLUG: DEBT (EXCESS CASH)
245,875
265,395
(19,520)
Sensitivity Analysis
Debt and Excess Cash
By COGS/SALES
COGS/SALES
0.35
0.38
0.40
0.42
0.44
0.45
0.48
DEBT
+B34
0
0
0
0
0
2,102
11,369
Ex. CASH
+B28
28,787
19,520
13,342
7,165
987
0
0
Exhibit 8
The Body Shop Plc 2001:
Historical Financial Statements ( in GBP millions)
Fiscal Year Ended February 28
1999
(GBP)
1999
(% sales)
2000
(GBP)
2000
(% sales)
2001
(GBP)
2001
(% sales)
Turnover
Cost of sales
Gross profit
303.7
127.7
176.0
100.0
42.0
58.0
330.1
130.9
199.2
100.0
39.7
60.3
374.1
149.0
225.1
100.0
39.8
60.2
Operating expenses:
excluding exceptional costs
exceptional costs1
Restructuring costs2
Net interest expense
Profit before tax
Tax expense
Profit (loss) after tax
151.4
4.5
16.6
0.1
3.4
8.0
(4.6)
49.9
1.5
5.5
0.0
1.1
2.6
(1.5)
166.2
0.0
2.7
1.5
28.8
10.4
18.4
50.3
0.0
0.8
0.5
8.7
3.2
5.6
195.7
11.2
1.0
4.4
12.8
3.5
9.3
52.3
3.0
0.3
1.2
3.4
0.9
2.5
Ordinary dividends
Profit (loss) retained
10.9
(15.5)
3.6
(5.1)
10.9
7.5
3.3
2.3
10.9
(1.6)
2.9
(0.4)
Income Statement
Balance Sheet
1999
(GBP)
1999
(% sales)
2000
(GBP)
2000
(% sales)
2001
(GBP)
2001
(% sales)
Assets
Cash
Accounts receivable
Inventories
Other current assets
Net fixed assets
Other assets3
Total assets
34.0
27.8
38.6
12.5
87.8
0.0
200.7
37.2
11.2
9.2
12.7
4.1
28.9
0.0
66.1
19.2
30.3
44.7
15.6
104.7
6.0
220.5
33.3
5.8
9.2
13.5
4.7
31.7
1.8
66.8
13.7
30.3
51.3
17.5
110.6
6.7
230.1
30.2
3.7
8.1
13.7
4.7
29.6
1.8
61.5
13.0
11.3
10.8
0.0
21.6
28.0
1.7
114.3
200.7
11.6
4.3
3.7
3.6
0.0
7.1
9.2
0.6
37.6
66.1
20.5
11.7
15.6
0.3
13.3
36.7
1.0
121.4
220.5
14.6
6.2
3.5
4.7
0.1
4.0
11.1
0.3
36.8
66.8
10.7
7.1
11.5
0.7
16.9
61.2
0.4
121.6
230.1
8.0
2.9
1.9
3.1
0.2
4.5
16.4
0.1
32.5
61.5
Exceptional costs in 2001 included redundancy costs (4.6 million), costs of supply chain development (2.4 million) and impairment of fixed assets and goodwill (4.2 million). The
exceptional costs of 4.5 million in 1999 were associated with closing unprofitable shops and an impairment review of the remaining shops in the USA.
1
Restructuring costs in 2001 and 2000 relate to the sale of manufacturing plants in Littlehampton, England, and to associated reorganization costs. Restructuring costs in 1999 arose
from the realignment of the management structure of the business in the US and the UK.
2
Other assets in 2001 and 2000 represented receivables relating to the sale of the company's Littlehampton manufacturing plant.
1999
303.7
2000
330.1
8.7%
2001
374.1
13.3%
11.0%
2002
411.923
2003
453.570
2004
499.428