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    Jones Electrical Distribution Case Exhibits

    Uploaded by

    Justin Ho
    The document contains financial statements for Jones Electrical Distribution for years 2004-2006 and the first quarter of 2007. It shows steady growth in net sales, gross profit, and net income over this period. Key figures include net sales growing from $1.6 million in 2004 to $2.2 million in 2006, and gross profit increasing from $320,000 to $424,000 over the same period. Expenses have also risen in line with sales growth. The balance sheet reveals increases in assets such as inventory and property/equipment to support the larger business.

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    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd

    Jones Electrical Distribution Case Exhibits

    Uploaded by

    Justin Ho
    2K views7 pages
    The document contains financial statements for Jones Electrical Distribution for years 2004-2006 and the first quarter of 2007. It shows steady growth in net sales, gross profit, and net income over this period. Key figures include net sales growing from $1.6 million in 2004 to $2.2 million in 2006, and gross profit increasing from $320,000 to $424,000 over the same period. Expenses have also risen in line with sales growth. The balance sheet reveals increases in assets such as inventory and property/equipment to support the larger business.

    Original Description:

    Jones Finance 450 Case Exhibits

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    © © All Rights Reserved

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    The document contains financial statements for Jones Electrical Distribution for years 2004-2006 and the first quarter of 2007. It shows steady growth in net sales, gross profit, and net income over this period. Key figures include net sales growing from $1.6 million in 2004 to $2.2 million in 2006, and gross profit increasing from $320,000 to $424,000 over the same period. Expenses have also risen in line with sales growth. The balance sheet reveals increases in assets such as inventory and property/equipment to support the larger business.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    2K views7 pages

    Jones Electrical Distribution Case Exhibits

    Uploaded by

    Justin Ho
    The document contains financial statements for Jones Electrical Distribution for years 2004-2006 and the first quarter of 2007. It shows steady growth in net sales, gross profit, and net income over this period. Key figures include net sales growing from $1.6 million in 2004 to $2.2 million in 2006, and gross profit increasing from $320,000 to $424,000 over the same period. Expenses have also risen in line with sales growth. The balance sheet reveals increases in assets such as inventory and property/equipment to support the larger business.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 7
    At a glance
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    The document contains financial statements and common size analyses for Jones Electrical for the years 2004-2006 and first quarter of 2007, as well as pro forma forecasts for 2007.

    Over 2004-2006, Jones Electrical saw steady growth in net sales and net income. Gross profit as a percentage of sales declined slightly while operating expenses remained fairly consistent.

    In the first quarter of 2007, Jones Electrical's sales and net income were lower than the same period in 2006 - sales were $608k versus $514k and net income was $5k versus $4k.

    Jones Electrical Distribution

    Harvard Business School


    Case No. 4179-PDF-ENG
    6-Apr-10
    Exh 1

    EXHIBIT 1 Operating Statements for Years Ending


    December 31, 2004-2006, and for First
    Quarter 2007 (thousands of dollars)

    1st Qtr.
    2004 2005 2006 2007a
    Net sales $1,624 $1,916 $2,242 $608
    Total cost of goods sold 1,304 1,535 1,818 499

    GROSS PROFIT 320 381 424 109

    Operating expenseb 272 307 347 94


    Interest expense 27 30 31 8
    Net income before taxes 21 44 46 7
    Provision for income taxes 7 15 16 2
    Net income $14 $29 $30 $5

    (a) In the first quarter of 2006 sales were $514,000 and net income
    was $4,000.
    (b) Operating expenses include a normal level of cash salary for Mr. Jones
    in all periods. Mr. Jones also received some of the perquisites
    commonly taken by owners of privately held businesses.

    Page 2
    Exh 2

    EXHIBIT 2 Balance Sheets at December 31, 2004-2006,


    and March 31, 2007 (thousands of dollars)

    1st Qtr.
    2004 2005 2006 2007
    Cash $45 $53 $23 $32
    Accounts receivable, net 187 231 264 290
    Inventory 243 278 379 433
    Current assets 475 562 666 755

    Property & equipment 187 202 252 252


    Accumulated depreciation 74 99 134 142
    Total PP&E, net 113 103 118 110

    Total assets $588 $665 $784 $865

    Accounts payable $36 $42 $120 $203


    Line of credit payable 149 214 249 250
    Accrued expenses 13 14 14 12
    Long-term debt, current portion 24 24 24 24
    Current liabilities 222 294 407 489

    Long-term debt 182 158 134 128


    Total liabilities 404 452 541 617
    Net worth 184 213 243 248
    Total liabilities and net worth $588 $665 $784 $865

    Page 3
    Financial Statements for Jones Electrical ($ 000s)
    Common Size Statements (fractions of sales, except taxes and dividends)

    Forecasts
    For years ending 12/31 2004 2005 2006 Average 2007

    Income Statement

    Net sales 1.000 1.000 1.000


    Total cost of goods sold 0.803 0.801 0.811 0.805 0.805

    GROSS PROFIT 0.197 0.199 0.189

    Operating expenseb 0.167 0.160 0.155 0.161 0.161


    Interest expense
    Net income before taxes
    Provision for income taxes 0.004 0.008 0.007 0.006 0.006
    Net income

    Financial Statements for Jones Electrical ($ 000s)


    Common Size Statements (fractions of sales, except taxes and dividends)

    Forecasts
    For years ending 12/31 2004 2005 2006 Average 2007

    Balance Sheet

    Cash 0.028 0.028 0.010 0.022 0.022


    Accounts receivable, net 0.115 0.121 0.118 0.118 0.118
    Inventory 0.150 0.145 0.169 0.155 0.155
    Current assets 0.292 0.293 0.297 0.294

    Property & equipment


    Accumulated depreciation
    Total PP&E, net 0.070 0.054 0.053 0.059

    Total assets

    Accounts payable 0.022 0.022 0.054 0.033 0.033


    Line of credit payable 0.092 0.112 0.111 0.105 0.105
    Accrued expenses 0.008 0.007 0.006 0.007 0.007
    Long-term debt, current portion
    Current liabilities

    Long-term debt
    Total liabilities
    Net worth
    Total liabilities and net worth
    Pro Forma Income Statement 1/1/2007 through 12/31/2007
    ($ 1000's)

    2007

    Net sales 2,700

    Cost of goods sold 2,173

    GROSS PROFIT 527

    Operating expense 434

    Interest expense 41

    Net income before taxes 52

    Provision for income taxes 17

    Net income 34

    Dividends 0

    Addition to retained earnings 34


    ough 12/31/2007

    Comments

    given

    0.805 x sales

    .161 x sales

    average of beginning/end of year + owed to partner

    .066 x sales
    Pro Forma Balance Sheet 12/31/2007

    2007 Comments
    Cash 59 .022 x net sales

    Accounts receivable, net 318 .118 x net sales

    Inventory 417 .155 x net sales


    Current assets 795

    Property, net 111 average of 2004, 5, 6


    Total assets 906

    Line of Credit Payable 387 plug

    Accounts payable 88 .033 x net sales

    Accrued expenses 19 .007 x net sales

    Long-term debt, current portion 24 24,000/year to Verden


    Current liabilities 518

    Long-term debt 110 2006 amount -24,000


    Total liabilities 628

    Net worth 277 2006 + net income


    Total liabilities and Net Worth 906

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