Spreadsheet problem

The income statement and balance sheet are the basic reports that a firm constructs for use by management and for distr
regulatory bodies, and the general public. They are the primary sources of historical financial information about the firm.
Dayton Products, Inc., is a moderate-sized manufacturer. The company’s management has asked you to perform a detaile

The income statements for the years ending December 31, 2015 and 2014, respectively, are presented in the table below.

Annual Income Statements (values in millions)

For the year ended
31-Dec-15 31-Dec-14
Sales 178,909 187,510
Cost of goods sold ? 111,631
Selling, general, and administrative expenses 12,356 12,900
Other tax expense 33,572 33,377
Depreciation and amortization 12,103 7,944
Other income (add to EBIT to arrive at EBT) 3,147 3,323
Interest expense 398 293
Income tax rate (average) 35.32% 37.95%
Dividends paid per share 1.47 0.91
Basic EPS from total operations 1.71 2.25

You also have the following balance sheet information as of December 31, 2015 and 2014, respectively.
Annual Balance Sheets (values in millions)

Cash and equivalents 7,229 6,547

Receivables 21,163 19,549
Inventories 8,068 7,904
Other current assets 1,831 1,681
Property, plant, and equipment, gross 204,960 187,519
Accumulated depreciation and depletion 110,020 97,917
Other noncurrent assets 19,413 17,891
Accounts payable 13,792 22,862
Short-term debt payable 4,093 3,703
Other current liabilities 15,290 3,549
Long-term debt payable 6,655 7,099
Deferred income taxes 16,484 16,359
Other noncurrent liabilities 21,733 16,441
Retained earnings 74,597 73,161
Total common shares outstanding 6.7 billion 6.8 billion

a. Create a spreadsheet similar to Table 3.1 to model the following:

1 A multiple-step comparative income statement for Dayton, Inc., for the periods ending December 31, 2015 and 2014
 2 A common-size income statement for Dayton, Inc., covering the years 2015 and 2014.

b. Create a spreadsheet similar to Table 3.2 to model the following:

1 A detailed, comparative balance sheet for Dayton, Inc., for the years ended December 31, 2015 and 2014.
2 A common-size balance sheet for Dayton, Inc., covering the years 2015 and 2014.

c. Create a spreadsheet similar to Table3.8 to perform the following analysis:

1 Create a table that reflects both 2015 and 2014 operating ratios for Dayton, Inc., segmented into (a) liquidity, (b) acti
2 Compare the 2015 ratios to the 2014 ratios. Indicate whether the results “outperformed the prior year” or “underper

Solution
Dayton, Inc.
Annual Income Statement (Values in Millions)

a. 2015 2014
Sales
Less: Cost of sales
Gross profit $ - $ -
Selling, general & admin. Expenses
Other taxes
EBITDA $ - $ -
Depreciation & amortization
EBIT $ - $ -
Other income, net
Interest expense
EBT $ - $ -
Income taxes
Net income $ - $ -

Number of shares (in billions) 6.70 6.80

Dividends per share $ - $ 0.91

EPS $ - $ -

Computation of cost of sales for 2015:

Beginning inventory
Purchases
Goods available for sale $ -
Cost of sales 0
Ending inventory

b. Dayton, Inc.
Annual Balance Sheet (Values in Millions)
 2015 2014
Assets
Current assets
Cash and equivalents
Receivables
Inventories
Other current assets
Total current assets $ - $ -

Non-current assets
Property, plant & equipment, gross
Accum. depreciation & depletion
Property, plant & equipment, net $ - $ -
Other non-current assets
Total non-current assets $ - $ -

Total assets $ - $ -

Liabilities & shareholder's equity

Current liabilities
Accounts payable
Short term debt
Other current liabilities
Total current liabilities $ - $ -

Non-current liabilites
Long term debt
Deferred income taxes
Other non-current liabilities
Total non-current liabilities $ - $ -
Total liabilities $ - $ -

Retained earnings
Total equity $ - $ -

Total liabilities & stock equity $ - $ -

Total Common Shares Outstanding 6,700 6,800

Treasury shares 1,300 1,200

c. Dayton, Inc.
 Operating Ratios

2015 2014
Liquidity
Current Ratio #DIV/0! #DIV/0!
Quick Ratio #DIV/0! #DIV/0!

Activity
Inventory Turnover #DIV/0! #DIV/0!
Average Days of Inventory #DIV/0! #DIV/0!
A/R Turnover #DIV/0! #DIV/0!
Average Collection Period #DIV/0! #DIV/0!
Fixed Asset Turnover #DIV/0! #DIV/0!
Total Asset Turnover #DIV/0! #DIV/0!

Debt
Debt-to-Asset Ratio #DIV/0! #DIV/0!
Times Interest Earned #DIV/0! #DIV/0!

Profitability
Gross Profit Margin #DIV/0! #DIV/0!
Operating Profit Margin #DIV/0! #DIV/0!
Net Profit Margin #DIV/0! #DIV/0!
Return on Assets #DIV/0! #DIV/0!
Return on Equity #DIV/0! #DIV/0!

Market Ratios
Outstanding stock 6.7 billion 6.8 billion
Earnings Per Share $ - $ -
Price $ 90 NA
P/E ratio #DIV/0! NA
cts for use by management and for distribution to stockholders,
al financial information about the firm.
ment has asked you to perform a detailed financial statement analysis ofthe firm.

tively, are presented in the table below. ( Note:< Purchases of inventory during 2015 amounted to $109,865.)

15 and 2014, respectively.

ds ending December 31, 2015 and 2014. You must calculate the cost of goods sold for the year 2015.
ecember 31, 2015 and 2014.

nc., segmented into (a) liquidity, (b) activity, (c) debt, (d) profitability, and (e) market. Assume that the current market price for the stock is
tperformed the prior year” or “underperformed relative to the prior year.”

ons)
Common size
2015 2014
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!

ns)
Common size
2015 2014

#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!

#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!

#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!
#DIV/0! #DIV/0!

#DIV/0! #DIV/0!
#DIV/0! #DIV/0!

#DIV/0! #DIV/0!
Analysis: Compare 2015 to 2014
If 2015 is better than 2014 escriba Better; de lo contrario ponga Worst
rent market price for the stock is $90.</para></listitem>
El estado de pérdidas y ganancias y el balance general son los informes básicos que una
empresa elabora para que la administración los utilice y se distribuyan entre los
accionistas, los organismos reguladores y el público en general. Estos informes son las
fuentes principales de la información financiera histórica sobre la empresa. Dayton
Products, Inc., es una compañía manufacturera mediana. La administración le ha pedido
que realice un análisis detallado de los estados financieros de Dayton Products.
Los datos del estado de pérdidas y ganancias correspondientes a los años 2011 y 2012
que finalizan el 31 de diciembre se presentan en la tabla de abajo. (Nota: Las compras del
inventario de 2012 sumaron $109,865).

Usted también cuenta con la siguiente información de los balances generales con fecha
del 31 de diciembre de 2012 y 2011.
RESOLVER
a) Elabore una hoja de cálculo similar a la de la tabla 3.1 para modelar lo siguiente:
1. Un estado de pérdidas y ganancias comparativo, de varios pasos, para Dayton,
Inc., correspondiente a los periodos que finalizan el 31 de diciembre de 2012 y
2011. Debe calcular el costo de los bienes vendidos en 2012.
2. Un estado de pérdidas y ganancias de tamaño común para Dayton, Inc., que
abarque los años 2011 y 2012.
b) Elabore una hoja de cálculo similar a la de la tabla 3.2 para modelar lo siguiente:
1. Un balance general comparativo y detallado para Dayton, Inc., correspondiente a
los años de 2011 y 2012 que finalizan el 31 de diciembre.
2. Un balance general de tamaño común para Dayton, Inc., que abarque los años
2012 y 2011.
c) Elabore una hoja de cálculo similar a la de la tabla 3.8 para realizar el siguiente
análisis:
1. Una tabla que refleje las razones operativas de 2011 y 2012 para Dayton, Inc.,
segmentada en: a) liquidez, b) actividad, c) endeudamiento, d) rentabilidad y
e) mercado. Suponga que el precio corriente de mercado de las acciones es
de $90.
2. Compare las razones de 2012 con las de 2011. Indique si los resultados “superaron
a los del año anterior” o “se quedaron por debajo de los del año anterior”.