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(10) $211,667. in 7.6 The income statement and balance sheet of Superior Technologies are exhibited nduct a ratio analysis and observe major trends and devia- tions from the available historical company information and industry data. (See also Table 7.A3.) TABLE 7.A1 Income Statement of Superior Technologies (thousands of dollars) Year 2001 Year 2002 91,954 60,776 193,213 128,434 Net sales Cost of goods and services 31,178 13,844 4,167 64,779 26,369 9,831 Gross profit Selling. general, and administrative expenses Employee profit sharing and retirement Total overhead Operating profit before interest and tax Other income 36,200 28,579 956 18,011 13,167 273 EBIT 29,535 680 13,440 505 12,935 6,934 Interest paid Taxable income 28,855 14,712 Income tax Net income 14,143 6,001 CE) TABLE 7.A2 Balance Sheet of Superior Technologies (thousands of Year 2002Year 200 17.856 29,053 23,282 664 10,841 19350 6,869 Cash Receivables (net) Inventories Prepaid expenses Payments received on government contracts 315 -6,013 -405 64,842 36,970 Total Current Assets 60,806 20,083 26,773 10,281 Property,plant, and equipment Accumulated depreciation 40,723 17,492 249 Net property account Patents, etc. (net) Other assets 429 80 105,994 53,791 Total Assets 5,337 10,696 2.867 10,368 21,309 5,589 Accounts payable Accrued wages, pensions, taxes, etc Other current liabilities Total Current Liabilities 37.266 18,900 Long-term debt Preferred stock 9,250 29,935 3,265 3,915 8,205 23,408 3,257 6,228 16,156 Common stock Paid in surplus Retained earnings Total Liabilities and Net Worth 53,791 105,994 TARLE 7AZ aiance Sheet of Superio Past Ratior 2002 2001 2000 1999 01 0A 11 663 822.9655 Receivabies(nec) Prepaid expeess 16 11 received on goversment contracts 1.7 44 112 10.0 234 19 1 64,842 18 17 1514 1 Properts plasr, and equipmeat 147 5.6 51 55 Net property c 40,723 34.0 36 4 Other asset Industry Information 1.2 Accoues payable 10,368 21,309 Otber ourreat liabilities 123 167 17 144 1131 1 42 9 33 08 11 07 11 37,266 Long term debt Paelerend sock Common stock Paid is sarpl Retaised earsiags 62 33 34 29,935 3.265 3,915 9250 4 8 4244 3 87 30.1 1.1 84 9112 19 17 13 4 16,156 102 2 102 110 90 061 11 3.1 2.7 2829 23 3 44 6152 etal Lisites and Net Worth 105,994 22.8 21.7 20.5 116153 6042556573 TALE7A3 Selected Information of Superior Technologles terature sourees In fiscal year 2002, the products of the company are priced at $10,000 esch.The company president predicts that, because of the generally anticipated recovery of theUs economy, there will be a 4 percent-per-year increase in each of the next four years 2003 to 2006) in (a) price of the company's products and (b) number of products soid However, the company's per unit.are projected to increase by 7 percent per year. Other expenses, tuch RAD- erests, depreciation, and corporate tax rate, will remain unchanged. The soticipsted trease in product cost is primarily due to an increase in materials costs and a decrease wboer productivity because of high turnover rate, poor employe superviais, adleqasns releed dividends 102 183 Past Ratios trative and selling expenses, an m2 2001 1999 1998 1997 25 2 16 1.2 1.3 1.7131 23 49 412 304 460 workforce training, If nothing 0 percent around 2005 to 2006 At a management meeting on February 12,2002,the vice president ot engetninp proposed to hire a consulting firm in the second hait of 2002 to develop s 265 263 168 8832 215 Net property Patents, ete.(net) Other assets 429 105,994 53,791 Total Assets 10,368 21,309 5 337 10,696 2.867 Accounts payable Accrued wages pensions, taxes, etc. Other current liabilities 5,589 37.266 18,900 Total Current Liabilities 29,935 3,265 3,915 8,205 9,250 Long-term debt Preferred stock Common stock Paid in surplus Retained earnings 3,257 6,228 16,156 23,408 105,994 53,791 Total Liabilities and Net Worth Selected Information of Superior Technologies TABLE 7.A3 2002 2001 Deprediation and amtization:58,135 $4924 102 (Preferred dividends Other dividends 185 Past Ratios Fill in 2002 2001 2000 1999 1998 1997 1996 Current ratio (ratio) Acid test Total debt to total 2.2 2.52 1.7 1.3 1.9 1.6 1.2 13 assets (percent) Long-term debt as percentage of capitalization 52.3 47.9 41.2 30.4 46.0 533 26.5 26.3 16.8 84 83 25,4 (Continued) 215 unting and Analysis for Engineering Managers a (Continued) Past Ratios Fill in 2002 2001 2000 1999 1998 19 1996 1.1 0.9 75.7 66.3 82.2 96.7 81.9 655 13.4 7.8 7 o set worth (ratio) (days) 04 0.8 11 7.6 8.1 nveatory turnover (sales) ing inventocy turnover of sales) 5.7 8.8 5.7 41 5.6 4.8 4 1.8 1.7 15 1.6 1.8 11.2 10.0 8.6 8.1 7.9 85 19.2 14.6 11.6 14.7 183 6.5 5.6 5.1 55 49 47 4.4 properity turmover asets tamover e proli to total assets (percent) e rodit to net worth (percent) e profit to net sales (percent) 6.5 192 86 56 34.0 29.5 26.5 274 293 292 1.744 S1 Industry Information 2.3 2 1.2 40.0 52.8 46.1 472 42.656.1 ent ratio (ratio) Adld test /ebe to total assets (percent) Longterm debt as percentage of capitalization tal debt to net worth (ratio) Dys' receivables (days) ding inventory turnover (sales) Ending inventory turnover or of sales) et property turnover |assets turnover 2.1 2.1 2.2 1.6 1.1 0.6 12.3 16.7 17.1 14.4 11.3 7.8- 0.7 1.1 08 1.1 0.7 13 45 42 42 39 33 6.2 5.3 48 55 54 4.7 4.8 4.1 3.8 4.2 44 3.8 8.7 10.1 7.1 84 912.2 19 17 19 2 22 Net profit to total assets Net prodit to net worth (percent) Ne prolit to net sales (percent) Grss prolit (percent) Siumber of companies reported: 5.2 102 110 9.0 10.6 77 11.4 3.1 2.7 2.8 2.9 23 23 22.8 21.7 20.6 23.2 18.6 19.9 55 65 73 60 42 Dxta derived from several litcrature sources, 1 Congpay presidear 202, the products of the company are priced at $10,00 each, The economy, there mill increase in each of the next four years (i.e nf nroducts sold cts that, because of the generally anticipated recovery of the U.S h (10) $211,667. in 7.6 The income statement and balance sheet of Superior Technologies are exhibited nduct a ratio analysis and observe major trends and devia- tions from the available historical company information and industry data. (See also Table 7.A3.) TABLE 7.A1 Income Statement of Superior Technologies (thousands of dollars) Year 2001 Year 2002 91,954 60,776 193,213 128,434 Net sales Cost of goods and services 31,178 13,844 4,167 64,779 26,369 9,831 Gross profit Selling. general, and administrative expenses Employee profit sharing and retirement Total overhead Operating profit before interest and tax Other income 36,200 28,579 956 18,011 13,167 273 EBIT 29,535 680 13,440 505 12,935 6,934 Interest paid Taxable income 28,855 14,712 Income tax Net income 14,143 6,001 CE) TABLE 7.A2 Balance Sheet of Superior Technologies (thousands of Year 2002Year 200 17.856 29,053 23,282 664 10,841 19350 6,869 Cash Receivables (net) Inventories Prepaid expenses Payments received on government contracts 315 -6,013 -405 64,842 36,970 Total Current Assets 60,806 20,083 26,773 10,281 Property,plant, and equipment Accumulated depreciation 40,723 17,492 249 Net property account Patents, etc. (net) Other assets 429 80 105,994 53,791 Total Assets 5,337 10,696 2.867 10,368 21,309 5,589 Accounts payable Accrued wages, pensions, taxes, etc Other current liabilities Total Current Liabilities 37.266 18,900 Long-term debt Preferred stock 9,250 29,935 3,265 3,915 8,205 23,408 3,257 6,228 16,156 Common stock Paid in surplus Retained earnings Total Liabilities and Net Worth 53,791 105,994 TARLE 7AZ aiance Sheet of Superio Past Ratior 2002 2001 2000 1999 01 0A 11 663 822.9655 Receivabies(nec) Prepaid expeess 16 11 received on goversment contracts 1.7 44 112 10.0 234 19 1 64,842 18 17 1514 1 Properts plasr, and equipmeat 147 5.6 51 55 Net property c 40,723 34.0 36 4 Other asset Industry Information 1.2 Accoues payable 10,368 21,309 Otber ourreat liabilities 123 167 17 144 1131 1 42 9 33 08 11 07 11 37,266 Long term debt Paelerend sock Common stock Paid is sarpl Retaised earsiags 62 33 34 29,935 3.265 3,915 9250 4 8 4244 3 87 30.1 1.1 84 9112 19 17 13 4 16,156 102 2 102 110 90 061 11 3.1 2.7 2829 23 3 44 6152 etal Lisites and Net Worth 105,994 22.8 21.7 20.5 116153 6042556573 TALE7A3 Selected Information of Superior Technologles terature sourees In fiscal year 2002, the products of the company are priced at $10,000 esch.The company president predicts that, because of the generally anticipated recovery of theUs economy, there will be a 4 percent-per-year increase in each of the next four years 2003 to 2006) in (a) price of the company's products and (b) number of products soid However, the company's per unit.are projected to increase by 7 percent per year. Other expenses, tuch RAD- erests, depreciation, and corporate tax rate, will remain unchanged. The soticipsted trease in product cost is primarily due to an increase in materials costs and a decrease wboer productivity because of high turnover rate, poor employe superviais, adleqasns releed dividends 102 183 Past Ratios trative and selling expenses, an m2 2001 1999 1998 1997 25 2 16 1.2 1.3 1.7131 23 49 412 304 460 workforce training, If nothing 0 percent around 2005 to 2006 At a management meeting on February 12,2002,the vice president ot engetninp proposed to hire a consulting firm in the second hait of 2002 to develop s 265 263 168 8832 215 Net property Patents, ete.(net) Other assets 429 105,994 53,791 Total Assets 10,368 21,309 5 337 10,696 2.867 Accounts payable Accrued wages pensions, taxes, etc. Other current liabilities 5,589 37.266 18,900 Total Current Liabilities 29,935 3,265 3,915 8,205 9,250 Long-term debt Preferred stock Common stock Paid in surplus Retained earnings 3,257 6,228 16,156 23,408 105,994 53,791 Total Liabilities and Net Worth Selected Information of Superior Technologies TABLE 7.A3 2002 2001 Deprediation and amtization:58,135 $4924 102 (Preferred dividends Other dividends 185 Past Ratios Fill in 2002 2001 2000 1999 1998 1997 1996 Current ratio (ratio) Acid test Total debt to total 2.2 2.52 1.7 1.3 1.9 1.6 1.2 13 assets (percent) Long-term debt as percentage of capitalization 52.3 47.9 41.2 30.4 46.0 533 26.5 26.3 16.8 84 83 25,4 (Continued) 215 unting and Analysis for Engineering Managers a (Continued) Past Ratios Fill in 2002 2001 2000 1999 1998 19 1996 1.1 0.9 75.7 66.3 82.2 96.7 81.9 655 13.4 7.8 7 o set worth (ratio) (days) 04 0.8 11 7.6 8.1 nveatory turnover (sales) ing inventocy turnover of sales) 5.7 8.8 5.7 41 5.6 4.8 4 1.8 1.7 15 1.6 1.8 11.2 10.0 8.6 8.1 7.9 85 19.2 14.6 11.6 14.7 183 6.5 5.6 5.1 55 49 47 4.4 properity turmover asets tamover e proli to total assets (percent) e rodit to net worth (percent) e profit to net sales (percent) 6.5 192 86 56 34.0 29.5 26.5 274 293 292 1.744 S1 Industry Information 2.3 2 1.2 40.0 52.8 46.1 472 42.656.1 ent ratio (ratio) Adld test /ebe to total assets (percent) Longterm debt as percentage of capitalization tal debt to net worth (ratio) Dys' receivables (days) ding inventory turnover (sales) Ending inventory turnover or of sales) et property turnover |assets turnover 2.1 2.1 2.2 1.6 1.1 0.6 12.3 16.7 17.1 14.4 11.3 7.8- 0.7 1.1 08 1.1 0.7 13 45 42 42 39 33 6.2 5.3 48 55 54 4.7 4.8 4.1 3.8 4.2 44 3.8 8.7 10.1 7.1 84 912.2 19 17 19 2 22 Net profit to total assets Net prodit to net worth (percent) Ne prolit to net sales (percent) Grss prolit (percent) Siumber of companies reported: 5.2 102 110 9.0 10.6 77 11.4 3.1 2.7 2.8 2.9 23 23 22.8 21.7 20.6 23.2 18.6 19.9 55 65 73 60 42 Dxta derived from several litcrature sources, 1 Congpay presidear 202, the products of the company are priced at $10,00 each, The economy, there mill increase in each of the next four years (i.e nf nroducts sold cts that, because of the generally anticipated recovery of the U.S h

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