THE SEABRIGHT MANUFACTURING COMPANY, INC.

BALANCE SHEET
Desember 31, 1972

ASSETS
Current assets:
Cash $
Marketable securities
Accounts receivable (net)
Inventories (materials, work in process, finished goods)
Prepaid insurances, taxes and mescellaneous expenses
Total current assets $

Property, plant, and equipment:

Land $ 2,890,000
Buildings $ 34,061,000
Machinery and equipment 125,290,000
$ 159,351,000
Less accumulated depreciation 81,180,000 78,171,000
Total property, plant, and equipment
Total Assets $

LIABILITIES
Current liabilities:
Accounts payable $
Accrued payroll, taxes, interst, etc.
Estimated income taxes
Due on lang-term debt
Total current liabilities $

Long-term debt
Total liabilities $

STOCKHOLDERS' EQUITY
Commen stock $ 42,580,000
Retained earnings 79,969,000
Total stockholders' equity
Total liabilities and stockholders' equity $
NG COMPANY, INC.
T

23,200,000
8,200,000
26,610,000
32,318,000
2,200,000
92,528,000

81,061,000
173,589,000

9,908,000
10,450,000
1,907,000
2,000,000
24,265,000

26,775,000
51,040,000

UITY

122,549,000
173,589,000
 THE SEABRIGHT MANUFACTURING COMPANY, INC.
INCOME STATEMENT
For Year Ended Desember 31, 1972

Sales (4,500,000 units) $ 247,500,000

Less cost of goods sold (see Schedule 1) 212,850,000
Gross profit on sales $ 34,650,000
Less operating expenses:
Marketing expenses (see Schedule 2) $ 5,800,000
Administrative expenses (see Schedule 3) 5,337,500 11,137,500
Net income from operations $ 23,512,500
Other income and expense items:
Royalties and dividends $ 1,670,000
Gain from sales of fixed assets 120,000
$ 1,790,000
Interest and debt expenses 1,295,000
Net addition 495,000
Net income before estimated income tax $ 24,007,500
Less estimated income tax 10,642,500
Net income after estimated income tax $ 13,365,000
PANY, INC.

%
100.0
86.0
14.0

4.5
9.5

0.2
9.7
4.3
5.4
 THE SEABRIGHT MANUFACTURING COMPANY, INC.
SCHEDULE 1
STATEMENT OF COST OF GOODS SOLD
For Year Ended Desember 31, 1972

Direct materials:
Materials inventory, January 1, 1972 $ 15,724,000
Purchases $ 84,200,000
Less puchases returns and allowances 420,000 83,780,000
Materials available for use $ 99,504,000
Less materials inventory, December 31, 1972 12,706,000
Direct materials consumed $

Direct labor

Factory overhead:
Indirect labor $ 13,293,000
Salaries 9,720,000
Payroll taxes 4,890,000
Power 1,120,000
Heat 692,000
Light 443,000
Factory supplies 500,000
Depreciation - factory building 683,000
Depreciation - machinery 4,030,000
Repairs and maintenance 1,458,000
Patent expenses 332,000
Tools and dies expenses 1,786,000
Insurance on building and machinery 212,000
Total factory overhead
Total manufacturing costs $
Add work in process inventory, January 1, 1972
$
Less work in process inventory, December 31, 1972
Cost of goods manufactured (4,430,000 units) $
Add inventory finished goods, January1, 1972 (210,000 units)
$
Less inventory finished goods, December 31, 1972 (140,000 units)
Cost of goods sold (4,500,000 units) $
G COMPANY, INC.

ODS SOLD
972

86,798,000

73,464,000

39,159,000
199,421,000
23,380,000
222,801,000
13,032,000
209,769,000
9,661,000
219,430,000
6,580,000
212,850,000
 THE SEABRIGHT MANUFACTURING COMPANY, INC.
SCHEDULE 2
MARKETING EXPENSES
For Year Ended Desember 31, 1972

Sales salaries and commissions $ 3,305,000

Travels expenses 430,000
Payroll taxes 168,500
Advertising 1,250,000
Telecommunication 118,000
Entertainment 210,000
Donations and dues 40,000
Depreciation - furniture and fixtures 75,000
Stationery and office supplies 135,000
Postage 68,500
Total $ 5,800,000

THE SEABRIGHT MANUFACTURING COMPANY, INC.

SCHEDULE 3
ADMINISTRATIVE EXPENSES
For Year Ended Desember 31, 20XY

Salaries - officers and executives $ 3,362,000

Salaries - general office employees 772,500
Travel expenses 224,500
Payroll taxes 175,000
Depreciation - furniture and fixtures 62,000
Stationery and office supplies 54,500
Telecommunication 78,000
Postage 36,500
Subscriptions, dues, and association activities 47,500
Donations 525,000
Total $ 5,337,500
The more prevalent ratios are:

Current Assets 92,528,000

1. Current Ratio = = = 3.813
Current Liabilities 24,265,000

Current Assets - Inventories - Prepaid Items 58,010,000

2. Acid-Test ratio = = = 2.391
Current Liabilities 24,265,000

Net Income (before estimated income tax)

3.a. Net Income (before estimated income tax) as a Percentage of Sales =
Sales

Net Income (after estimated income tax)

3.b. Net Income (after estimated income tax) as a Percentage of Sales =
Sales

Gross Profit 34,650,000

4. Ratio of Gross Profit to Sales = = = 0.140
4. Ratio of Gross Profit to Sales = = = 0.140
Sales 247,500,000

Net income (after estimated income tax) 13,365,000

5. Rate of Return on Capital Employed = =
Capital Employed (Total Assets) 173,589,000
 Net Income (before estimated income tax) 24,007,500
= = 0.097
Sales 247,500,000

t Income (after estimated income tax) 13,365,000

= = 0.054
Sales 247,500,000
 13,365,000
= 0.077
173,589,000