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10:14 28/03/2024 GLO-BUS Decisions & Reports

H Company PERFORMANCE HIGHLIGHTS Year 6


(Industry 8) (practice)

Financial Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
EPS (earnings per share) $0.75 $1.18
ROE (return on equity) 14.0 % 18.7 %
Stock Price $12.00 $24.51
Credit Rating B A–
Image Rating 70 64
Net AC Camera 188,637 226,349
Revenues UAV Drone 145,491 156,092
($000s)
Total 334,128 382,441
AC Camera North America 285.0 267.1
Sales Market Share 10.0 % 9.1 %
(000s of units)
Europe-Africa 240.0 238.5
Market Share 10.0 % 9.5 %
Asia-Pacific 185.0 175.6
Market Share 10.0 % 8.5 %
Latin America 130.0 136.7
Market Share 10.0 % 9.3 %
Total 840.0 817.9
Market Share 10.0 % 9.2 %
UAV Drone North America 52.0 25.1
Sales Market Share 10.0 % 4.7 %
(000s of units)
Europe-Africa 43.0 21.9
Market Share 10.0 % 5.0 %
Asia-Pacific 28.0 11.1
Market Share 10.0 % 3.7 %
Latin America 17.0 7.7
Market Share 10.0 % 4.3 %
Total 140.0 65.8
Market Share 10.0 % 4.6 %

Strategic / Operating Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15
PQ Rating AC Camera 4.0★ 4.8★
UAV Drone 4.0★ 6.1★
Compensation AC Camera 25,000 25,204
($ per PAT member) UAV Drone 25,000 25,204
PAT Productivity AC Camera 3,000 3,000
(units per PAT) UAV Drone 1,500 1,494
Labor Cost AC Camera 33.67 33.98
($/unit assembled) UAV Drone 65.38 67.11
Production Cost AC Camera 156.97 179.53
($/unit assembled) UAV Drone 806.22 1,641.96
Marketing Cost AC Camera 17.73 29.39
($ per unit sold) UAV Drone 77.71 425.53
Operating Profit AC Camera 29.33 43.46
($ per unit sold) Margin 13.1 % 15.7 %
UAV Drone 65.75 175.38
Margin 6.3 % 7.4 %

Earnings Per Share (EPS)

EPS
$1.5

$1
EPS

$0.5

$0
5 6 7 8 9 10 11 12 13 14 15
Year

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10:14 28/03/2024 GLO-BUS Decisions & Reports
H Company ASSEMBLY AND FACILITY OPERATIONS Year 6
(Industry 8) (practice)

Action-Capture Cameras UAV Drones


AC Camera Production UAV Drone Production
Units Assembled (000s) Product Attributes Units Assembled (000s) Product Attributes
Regular-Time 817.9 Extra Performance Features 3 Regular-Time 65.8 Extra Performance Features 9
Overtime 0.0 Number of Models 3 Overtime 0.0 Number of Models 2
Total 817.9 P/Q Rating 4.8  Total 65.8 P/Q Rating 6.1 
Product R&D Expenditures in Year 6 ($000s) $ 20,000 Product R&D Expenditures in Year 6 ($000s) $ 27,000
Cumulative Product R&D Expenditures ($000s) $ 65,000 Cumulative Product R&D Expenditures ($000s) $ 57,000
AC Camera Assembly Facility UAV Drone Assembly Facility
Space Available for Workstations (at end of Year 5) 300 spaces Space Available for Workstations (at end of Year 5) 110 spaces
New Spaces Added (facility expansion at begin. of Y6) 0 New Spaces Added (facility expansion at begin. of Y6) 0
Space Available for ACC Workstations (in Year 6) 300 spaces Space Available for Drone Workstations (in Year 6) 110 spaces

Installed Workstations (at end of Year 5) 280 workstations Installed Workstations (at end of Year 5) 100 workstations
New workstations Added (at beginning of Y6) 0 New workstations Added (at beginning of Y6) 0
Total Installed Workstations (available for use in Y6) 280 workstations Total Installed Workstations (available for use in Y6) 100 workstations

Investment in AC Camera Facility ($000s) Investment in UAV Drone Facility ($000s)


Beginning New Year 6 Beginning New Year 6
Gross Year 6 Facilities Gross Year 6 Facilities
Investment Investment Investment Investment Investment Investment
Plant Facility $ 120,000 $ 0 $ 120,000 Plant Facility $ 90,000 $ 0 $ 90,000
Workstations 30,000 0 30,000 Workstations 10,000 0 10,000
Robotics Upgrade 0 0 0 Robotics Upgrade 0 0 0
Total (Gross) Investment in AC Camera Facilities $ 150,000 Total (Gross) Investment in UAV Drone Facilities $ 100,000
– Accumulated Depreciation (at the end of Year 5) 37,500 – Accumulated Depreciation (at the end of Year 5) 10,000
– Current-Year Depreciation (5% of gross investment) 7,500 – Current-Year Depreciation (5% of gross investment) 5,000
Net Investment in AC Camera Facilities $ 105,000 Net Investment in UAV Drone Facilities $ 85,000
AC Camera Work Force Statistics UAV Drone Work Force Statistics
Year 6 $ Per Year 6 $ Per
Decisions Worker Decisions Worker
Base Wage Per PAT Member +1% $ 20,604 Base Wage Per PAT Member +1% $ 20,604
Incentive Bonus (to reduce warranty claims) $2.40 / unit 1,800 Incentive Bonus (to reduce warranty claims) $4.80 / unit 1,800
Attendance Bonus (for perfect attendance) $800 / worker 800 Attendance Bonus (for perfect attendance) $800 / worker 800
Fringe Benefit Package $2,000 / worker 2,000 Fringe Benefit Package $2,000 / worker 2,000
Total Compensation (annual pay per worker) $ 25,204 Total Compensation (annual pay per worker) $ 25,204
Best Practices / Productivity Improvement Training ($/PAT) $ 1,000 Best Practices / Productivity Improvement Training ($/PAT) $ 1,000
PAT Productivity (units assembled per PAT per year) 3,000 PAT Productivity (units assembled per PAT per year) 1,494
Number of PATs Employed (for AC camera assembly) 273 Number of PATs Employed (for AC camera assembly) 45
× Number of Workers Per PATs (no robotics upgrade) × 4 × Number of Workers Per PATs (no robotics upgrade) × 4
Total Number of Workers Employed 1,092 Total Number of Workers Employed 180
AC Camera Production and Assembly Costs UAV Drone Production and Assembly Costs
$000s $ / Unit $000s $ / Unit
AC Camera Image Sensor 12,269 15.00 UAV Drone Built-In Camera 14,708 223.53
Components LCD Display Screen 12,269 15.00 Components GPS / WiFi / Bluetooth 4,935 75.00
and Features Image Quality 6,543 8.00 and Features Battery Pack 8,225 125.00
Photo Modes 7,361 9.00 Rotors / Performance / Controller 6,317 96.00
Camera Housing 11,451 14.00 Body Frame Construction 2,961 45.00
Editing / Sharing 8,179 10.00 Obstacle Sensors 6,054 92.01
Included Accessories 8,179 10.00 Camera Stabilization Device 1,184 17.99
Extra Performance Features 7,361 9.00 Extra Performance Features 15,397 234.00
Total Cost of Components and Features 73,612 90.00 Total Cost of Components and Features 59,781 908.53
Assembly Regular-Time Labor 27,521 33.65 Assembly Regular-Time Labor 4,371 66.43
Labor Overtime Labor 0 0.00 Labor Overtime Labor 0 0.00
Costs PAT Training 273 0.33 Costs PAT Training 45 0.68
Total Cost of Labor and Training 27,794 33.98 Total Cost of Labor and Training 4,416 67.11
Product R&D Expenditures 20,000 24.45 Product R&D Expenditures 27,000 410.33
Allowance for Warranty Repairs (8.9% claims) 3,645 4.46 Allowance for Warranty Repairs (9.3% claims) 1,830 27.81
Plant Operations and Maintenance 14,286 17.47 Plant Operations and Maintenance 10,014 152.19
Depreciation of Plant and Equipment 7,500 9.17 Depreciation of Plant and Equipment 5,000 75.99
Total Camera Production/Assembly Cost 146,837 179.53 Total Drone Production/Assembly Cost 108,041 1,641.96

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H Company AC CAMERAS – MARKET SEGMENT PERFORMANCE Year 6
(Industry 8) (practice)

Regular AC Camera Sales North America Europe-Africa Asia-Pacific Latin America Overall
Revenue-Cost-Profit Breakdown $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s
Revenues Gross Revenues 74,521 279.00 68,927 289.00 47,236 269.00 36,772 269.00 227,456
– Promo Discounts -72 -0.27 -66 -0.28 -545 -3.10 -424 -3.10 -1,107
± Exchange Rate Adj. 0 0.00 0 0.00 0 0.00 0 0.00 0
Net Revenues 74,449 278.73 68,861 288.73 46,691 265.89 36,348 265.90 226,349
Production Costs (components / assembly) 48,131 180.20 42,975 180.19 31,338 178.46 24,394 178.45 146,838
Delivery Shipping 1,603 6.00 1,431 6.00 1,054 6.00 820 6.00 4,908
Costs Import Duties 0 0.00 2,757 11.56 2,834 16.14 2,206 16.14 7,797
Marketing Retailer Support 1,710 6.40 1,440 6.04 1,110 6.32 780 5.71 5,040
Costs Advertising 3,000 11.23 3,000 12.58 3,000 17.08 3,000 21.95 12,000
Website Expenditures 2,000 7.49 2,000 8.39 1,500 8.54 1,500 10.97 7,000
Administrative Expenses 2,357 8.82 2,104 8.82 1,549 8.82 1,206 8.82 7,216
Operating Profit 15,648 58.58 13,154 55.15 4,306 24.52 2,442 17.86 35,550
Operating Profit Margin 21.0% 19.1% 9.2% 6.7% 16%
Unit Demand and Sales Units Market Units Market Units Market Units Market Market
(000s) Share (000s) Share (000s) Share (000s) Share Share
Projected Demand (from decision entries) 281.0 9.3% 247.5 9.8% 219.7 10.8% 163.9 11.5% 10.2%
Actual Demand (as determined by competition
among rival companies in Y6) 262.6 9.0% 234.5 9.4% 172.7 8.4% 134.4 9.1% 9.0%
Units Gained/Lost (due to stock-outs) 4.5 4.0 2.9 2.3
Total Units Assembled and Shipped 267.1 9.1% 238.5 9.5% 175.6 8.5% 136.7 9.3% 9.2%
Retail Outlets Year 6 Year 7 Year 6 Year 7 Year 6 Year 7 Year 6 Year 7
Number of Multi-Store Chains 36 36 30 34 24 32 18 25 Number of retail
outlets willing to
Outlets Online Retailers 72 72 60 66 48 67 36 52 carry the compa-
ny's brand of AC
Local Retail Shops 3,000 3,000 2,500 2,800 2,000 2,711 1,000 1,751 cameras.

Special AC Camera Contracts North America Europe-Africa Asia-Pacific Latin America Overall
Discount Offer (% off of standard price) No No No No 0
0.0% Offer 0.0% Offer 0.0% Offer 0.0% Offer
Offers
Value Index of Units Offered 0 0 0 0 Accepted
Units Assembled / Sold (000s) 0.0 units 0.0 units 0.0 units 0.0 units
0.0
units

Incremental Revenues-Costs-Margins $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s
Revenues Gross Revenues 0 0.00 0 0.00 0 0.00 0 0.00 0
± Exchange Rate Adj. 0 0.00 0 0.00 0 0.00 0 0.00 0
Net Revenues 0 0.00 0 0.00 0 0.00 0 0.00 0
Less: Cost of Components / Features 0 0.00 0 0.00 0 0.00 0 0.00 0
Assembly Labor Costs 0 0.00 0 0.00 0 0.00 0 0.00 0
Allowance for Warranty Repairs 0 0.00 0 0.00 0 0.00 0 0.00 0
Delivery (shipping and import duties) 0 0.00 0 0.00 0 0.00 0 0.00 0
Contribution Margin 0 0.00 0 0.00 0 0.00 0 0.00 0

All AC Camera Operations North America Europe-Africa Asia-Pacific Latin America Overall
Revenue-Cost-Profit Breakdown $000s $000s $000s $000s $000s
Net Revenues 74,449 68,861 46,691 36,348 226,349
Operating Production Costs 48,131 42,975 31,338 24,394 146,838
Costs Delivery (shipping / duties) 1,603 4,188 3,888 3,026 12,705
Marketing Costs 6,710 6,440 5,610 5,280 24,040
Administrative Costs 2,357 2,104 1,549 1,206 7,216
Operating Profit 15,648 13,154 4,306 2,442 35,550
Operating Profit Margin 21.0% 19.1% 9.2% 6.7% 15.7%
Warranty Period / Claims / Costs
Warranty Period Offered in Year 6 90 days 90 days 60 days 60 days
Anticipated Warranty Claim Rate 10.3% 10.3% 6.8% 6.8% 8.9%
Allowance for Warranty Repairs ($000s) 1,370 1,220 595 460 3,645
Warranty Repair Cost ($ per unit sold) 5.13 5.12 3.39 3.37 4.46

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H Company UAV DRONES – MARKET SEGMENT PERFORMANCE Year 6
(Industry 8) (practice)

Direct Online Sales North America Europe-Africa Asia-Pacific Latin America Overall
Revenue-Cost-Profit Breakdown $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s
Revenues Gross Revenues 40,878 2,539.01 36,816 2,539.03 15,807 2,509.05 10,538 2,509.05 104,039
± Exchange Rate Adj. 0 0.00 0 0.00 0 0.00 0 0.00 0
Net Revenues 40,878 2,539.01 36,816 2,539.03 15,807 2,509.05 10,538 2,509.05 104,039
Production Costs (components / assembly) 26,462 1,643.60 23,828 1,643.31 10,268 1,629.84 6,888 1,640.00 67,446
Delivery Shipping 1,006 62.48 906 62.48 394 62.54 263 62.62 2,569
Costs Import Duties 0 0.00 1,473 101.59 948 150.48 632 150.48 3,053
Marketing Website Expenditures 2,000 124.22 2,000 137.93 1,500 238.10 1,500 357.14 7,000
Costs Search Engine Advertising 4,000 248.45 4,000 275.86 2,000 317.46 2,000 476.19 12,000
Administrative Expenses 229 14.22 206 14.21 90 14.29 60 14.29 585
Operating Profit 7,181 446.02 4,403 303.66 607 96.35 -805 -191.67 11,386
Operating Profit Margin 17.6% 12.0% 3.8% -7.6% 10.9%
Direct Online Sales (000s of units) 16 units 15 units 6 units 4 units 41.1 units
% of Total UAV Drone Unit Sales 64.0% 66.0% 56.5% 55.0% 62.5%

3rd-Party Online Retailers North America Europe-Africa Asia-Pacific Latin America Overall
Revenue-Cost-Profit Breakdown $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s $ / Unit $000s
Revenues Gross Revenues 19,423 2,158.11 15,970 2,158.11 9,635 2,007.29 7,025 2,007.14 52,053
± Exchange Rate Adj. 0 0.00 0 0.00 0 0.00 0 0.00 0
Net Revenues 19,423 2,158.11 15,970 2,158.11 9,635 2,007.29 7,025 2,007.14 52,053
Production Costs (components / assembly) 14,834 1,648.22 12,212 1,650.27 7,859 1,637.29 5,692 1,626.29 40,597
Delivery Shipping 113 12.56 93 12.57 60 12.50 44 12.57 310
Costs Import Duties 0 0.00 639 86.35 578 120.42 422 120.57 1,639
Retailer Recruitment / Support 3,000 333.33 2,000 270.27 2,000 416.67 2,000 571.43 9,000
Administrative Expenses 129 14.33 106 14.32 69 14.38 49 14.00 353
Operating Profit 1,347 149.67 920 124.32 -931 -193.96 -1,182 -337.71 154
Operating Profit Margin 6.9% 5.8% -9.7% -16.8% 0.3%
3rd-Party Sales (000s of units) 9.0 units 7.4 units 4.8 units 3.5 units 24.7 units
% of Total UAV Drone Unit Sales 36.0% 34.0% 43.5% 45.0% 37.5%
Number of online
Retail Outlets Year 6 Year 7 Year 6 Year 7 Year 6 Year 7 Year 6 Year 7 retailers willing to
carry the compa-
Number of 3rd-Party Online Retailers 36 48 30 34 24 36 18 32 ny's brand of UAV
drones.

All UAV Drone Operations North America Europe-Africa Asia-Pacific Latin America Overall
Revenue-Cost-Profit Breakdown $000s $000s $000s $000s $000s
Net Revenues 60,301 52,786 25,442 17,563 156,092
Operating Production Costs 41,296 36,040 18,127 12,580 108,043
Costs Delivery (shipping / duties) 1,119 3,111 1,980 1,361 7,571
Marketing Costs 9,000 8,000 5,500 5,500 28,000
Administrative Costs 358 312 159 109 938
Operating Profit 8,528 5,323 -324 -1,987 11,540
Operating Profit Margin 14.1% 10.1% -1.3% -11.3% 7.4%
Unit Demand and Sales Units Market Units Market Units Market Units Market Market
(000s) Share (000s) Share (000s) Share (000s) Share Share
Projected Demand (from decision entries) 25.6 4.3% 22.0 4.4% 13.1 4.0% 9.0 4.5% 4.3%
Actual Demand (as determined by competition
among rival companies in Y6) 24.0 4.5% 21.0 4.8% 10.6 3.5% 7.4 4.1% 4.4%
Units Gained/Lost (due to stock-outs) 1.1 0.9 0.5 0.3
Total Units Assembled and Shipped 25.1 4.7% 21.9 5.0% 11.1 3.7% 7.7 4.3% 4.6%
Warranty Period / Claims / Costs
Warranty Period Offered in Year 6 90 days 90 days 60 days 60 days
Anticipated Warranty Claim Rate 10.3% 10.3% 6.3% 6.3% 9.3%
Allowance for Warranty Repairs ($000s) 780 690 210 151 1,831
Warranty Repair Cost ($ per unit sold) 31.08 31.51 18.92 19.61 27.83

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H Company FINANCIAL STATEMENTS Year 6
(Industry 8) (practice)

Income Statement ($000) North Europe Asia Latin Company Notes to Income Statement
America Africa Pacific America Total
AC Camera Revenues 74,449 68,861 46,691 36,348 226,349 ¹ Revenues listed here have been ad-
UAV Drone Revenues 60,301 52,786 25,442 17,563 156,092 justed for promotional discounts and
exchange rates. See the Market Seg-
Total Revenues¹ 134,750 121,647 72,133 53,911 382,441 ment Performance reports for details
Cost of Goods Sold 89,427 79,015 49,465 36,974 254,881 on promotional discount and ex-
change rate adjustments to revenues.
Delivery Costs 2,722 7,299 5,868 4,387 20,276
Marketing Costs 15,710 14,440 11,110 10,780 52,040 ² Other Income (Expense) will include
charitable contributions, instructor-
Administrative Expenses 2,715 2,416 1,708 1,315 8,154 imposed fines (appearing as nega-
Operating Profit (Loss) 24,176 18,477 3,982 455 47,090 tive), and instructor-awarded refunds
(appearing as positive).
Interest Income (Expense) -10,300 ³ The income tax rate is 30%. If a net
Profitability and Payout Year 5 Year 6 Other Income (Expense)² -3,000 loss was recorded in Year 5, the loss
Pre-Tax Profit (Loss) 33,790 is carried forward and may offset
Earnings Per Share $0.75 $1.18 some or all taxable Year 6 profit and
Dividends Per Share $0.00 $0.00 Income Taxes³ 10,137 reduce the company's tax liability in
Net Profit (Loss) 23,653 Year 6.

Balance Sheet Cash Flow Statement


Assets $000s Cash Available in Year 6 $000s
Cash on Hand 11,938 Beginning Cash Balance (carried over from Year 5) 5,000
Accounts Receivable (see Note 1) 69,601 Cash Receipts from Sales (see Note 1) 368,868
Component Inventories (see Note 2) 13,339 Inflows Bank Loan 1-Year 0
Total Current Assets 94,878 5-Year 0
Gross Investment in Plant and Equipment 250,000 10-Year 0
Less Accumulated Depreciation 60,000 Stock Issue (0 shares isued @$12.00) 0
Total Fixed Asset Investment (see Note 3) 190,000 Loan to Cover Overdraft 0
Interest on Year 5 Cash Balance 50
Total Assets 284,878 Cash Refund (awarded by instructor) 0
Liabilities $000s Total Cash Available (from all sources) 373,918
Accounts Payable (see Note 4) 36,683 Cash Outlays in Year 6 $000s
Overdraft Loan Payable (see Note 5) 0
1-Year Bank Loan Payable (see Note 6) 0 Payments to Component Suppliers (see Note 2) 133,038
Current Portion of Long-Term Loans (see Note 7) 16,000 Production and Assembly Expenses (see Note 3) 108,985
Delivery, Marketing, and Administrative Expenses 80,470
Total Current Liabilities 52,683 Capital Outlays New Workstations 0
Long-Term Bank Loans (see Note 8) 94,000 Robotics Upgrades 0
Total Liabilities 146,683 Facilities Expansion 0
Beginning Change Facilities Improvements (CSRC) 0
Shareholder Equity Balance in Year 6 $000s Repayment of Overdraft Loan 0
Common Stock (see Note 9) 10,000 0 10,000 Bank Loan 1-Year Loan 0
Additional Capital (see Note 10) 80,000 0 80,004 Principal 5-Year Loan 0
(see Note 4)
Retained Earnings 24,538 +23,653 48,191 10-Year Loan 16,000
Total Shareholder Equity 114,538 +23,657 138,195 Interest Payments Year 6 Overdraft Loan 0
Bank Loans (1-year, 5-year, 10-year) 10,350
Return on Average Equity (see Note 11) 18.7% Stock Repurchases (0 shares repurchased @ $12.00) 0
Notes to Balance Sheet (all dollar and share figures in thousands) Income Tax Payments 10,137
Note 1: Accounts receivable equals 25% of the camera revenues and 3rd-party drone
Dividend Payments to Shareholders 0
revenues generated in Year 6 (to be collected in Year 7). Charitable Contributions 3,000
Note 2: A 10% reserve of camera and drone components is kept at all times. Cash Fines (assessed by instructor) 0
Note 3: For more details, see the Assembly and Facility Operations report. Total Cash Outlays 361,980
Note 4: Accounts payable equals 25% of the cost of camera and drone components
used in Year 6 (to be paid in Year 7). Net Cash Balance ($000s at the end of Year 6) 11,938
Note 5: Loans for overdrafts carry an interest rate 2% above the 1-year loan rate. Notes to Cash Flow Statement
Note 6: The company's 1-year bank loan interest rate in Year 6 was 5.5%.
Note 1: Receipts from sales equals all direct-sale drone revenues plus 75% of camera
Note 7: Principal amount of 5-year and 10-year bank loans due to be paid in Year 7. and 3rd-party drone revenues generated in Year 6.
Note 8: Long-term bank loans outstanding: Note 2: Payments to component suppliers equals 75% of the cost of components used
Out- Annual Year 7 in Year 6 and 25% of the cost of components used in Year 5.
Loan Initial Original Interest standing Principal Interest
No. Year Principal Rate Term Principal Payment Payable Note 3: Production and assembly expenses include all Year 6 production-related ex-
penses except for depreciation (which is a non-cash accounting charge).
1 Y1 60,000 7.5 % 10-Yr 30,000 6,000 2,250 Note 4: Overdraft and 1-year loans received in Year 5 were repaid in full in Year 6.
2 Y4 20,000 8.5 % 10-Yr 16,000 2,000 1,360 Interest on overdraft and 1-year loans received in Y5 was also paid in Y6.
3 Y4 80,000 8.5 % 10-Yr 64,000 8,000 5,440
4
5
6 Selected Financial Statistics
7
8 Credit Debt / Equity Percentage (Debt : Equity) 51:49
9 Rating Interest Coverage Ratio (oper. prof. ÷ int. exp.) 4.57
10 Measures Current Ratio (current assets ÷ current liabilities) 1.80
11
12 Credit Rating (at the end of Year 6) A–
Note 9: There are 20,000 shares of stock outstanding at a par value of $0.50 per share. Operating Profit Margin (operating profit ÷ net sales revenues) 12.3 %
Note 10: Total $ amount above par value that shareholders paid to purchase stock. Net Profit Margin (net profit ÷ net sales revenues) 6.2 %
Note 11: The formula for Return After-Tax Profit Dividend Payout (dividend per share ÷ earnings per share) 0.0 %
on Average Equity is: (Beginning Equity + Ending Equity) ÷ 2 Market Capitalization ($24.51 stock price × 20,000 shares ) $490,200
Note: Because unit demand and unit sales figures are rounded to the nearest 100 units, minor anomalies in the company's financial statements may occasionally occur. Any rounding
inconsistencies that do appear will be smaller than ±$10 and will likely average-out over time. Such rounding anomalies have no significant impact on company performance.

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