Annual Financial Statements

| September 29, 2018

Chapter 2 Problem 12

a.
Use the spreadsheet to calculate as many of the company’s Profitability,
Turnover-Control, and Leverage and

Liquidity ratios as you can for
these years (see Table 2.5 in text for a list of possible ratios).

b.
What do these ratios suggest about the company’s performance over this
period?

ANNUAL
BALANCE SHEET

($ MILLIONS)

MENS WEARHOUSE INC

Jan10
Jan09
Jan08
Jan07
Jan06

ASSETS

Cash & Short-Term
Investments
186.018
104.533
99.367
179.694
263.001

Net Receivables

16.745
40.662
24.872
17.018
19.276

Inventories

431.492
440.099
492.423
448.586
416.603

Prepaid Expenses

26.603
27.179
0.000
0.000

Other Current Assets
74.075
19.718
27.154
35.531
30.732

——————
——————
——————
——————
————–

Total Current Assets

708.330
631.615
670.995
680.829
729.612

Gross Plant, Property
& Equipment

885.981
865.084
669.340
611.957

Accumulated Depreciation

498.509
454.917
379.700
342.371

——————
——————
——————
——————
————–

Net Plant, Property &
Equipment
344.746
387.472
410.167
289.640
269.586

Intangibles

59.414
65.268
75.609
61.765
63.073

Other Assets

119.616
103.375
99.696
64.718
61.003

——————
——————
——————
——————
————–

TOTAL ASSETS

1,232.106
1,187.730
1,256.467
1,096.952
1,123.274

LIABILITIES

Long Term Debt Due In One
Year
0.000
0.000
0.000
0.000
0.000

Accounts Payable

83.052
108.800
146.713
111.213
125.064

Taxes Payable

23.936
0.019
5.590
19.676
21.086

Accrued Expenses

66.542
70.222
75.458
72.531

Other Current Liabilities
117.047
44.862
54.730
19.791
19.404

——————
——————
——————
——————
————–

Total Current Liabilities
224.035
220.223
277.255
226.138
238.085

Long Term Debt

43.491
62.916
92.399
72.967
207.750

Deferred Taxes

2.700
4.000
12.200
24.400

Other Liabilities

62.236
59.743
66.876
31.875
25.506

——————
——————
——————
——————
————–

TOTAL LIABILITIES
329.762
345.582
440.530
343.180
495.741

EQUITY

Common Stock

0.705
0.700
0.696
0.691
0.671

Capital Surplus

327.742
315.404
305.209
286.120
255.214

Retained Earnings

986.523
938.580
923.713
775.857
641.558

Less: Treasury Stock

412.626
412.536
413.681
308.896
269.910

——————
——————
——————
——————
————–

TOTAL EQUITY

902.344
842.148
815.937
753.772
627.533

——————
——————
——————
——————
————–

TOTAL LIABILITIES &
EQUITY
1,232.106
1,187.730
1,256.467
1,096.952
1,123.274

Common Shares Outstanding
52.288
51.918
51.479
53.919
53.069

ANNUAL INCOME STATEMENT

(MILLIONS, EXCEPT PER SHARE)

Jan10
Jan09
Jan08
Jan07
Jan06

Sales

1,909.575
1,972.418
2,112.558
1,882.064
1,724.898

Cost of Goods Sold

1,025.759
1,031.241
1,062.205
1,004.972
965.889

——————-
——————
——————
——————
—————

Gross Profit

883.816
941.177
1,050.353
877.092
759.009

Selling, General, &
Administrative Exp.
732.722
757.073
741.405
591.767
531.839

——————-
——————
——————
——————
—————

Operating Income Before
Deprec.
151.094
184.104
308.948
285.325
227.170

Depreciation,Depletion,&Amortization
86.090
90.665
80.296
61.387
61.874

——————-
——————
——————
——————
—————

Operating Profit

65.004
93.439
228.652
223.938
165.296

Interest Expense

0.332
4.300
5.046
9.216
5.888

Non-Operating
Income/Expense
0.000
2.592
5.987
9.786
3.280

Special Items

3.200
(2.968)
0.000
0.000
0.000

——————-
——————
——————
——————
—————

Pretax Income

67.872
88.763
229.593
224.508
162.688

Total Income Taxes

22.364
29.919
82.552
75.933
58.785

——————-
——————
——————
——————
—————

Income Before
Extraordinary

Items & Discontinued
Operations
45.508
58.844
147.041
148.575
103.903

——————-
——————
——————
——————
—————

Savings Due to Common
Stock Equiv.
(0.834)
0.000
0.000
0.000
0.000

——————-
——————
——————
——————
—————

Adjusted Net Income
44.674
58.844
147.041
148.575
103.903

EPS Basic from Operations
0.820
1.180
2.760
2.710
2.010

EPS Diluted from
Operations
0.820
1.170
2.730
2.620
1.950

Dividends Per Share

0.280
0.280
0.230
0.200
0.000

Com Shares for Basic EPS
52.280
51.645
53.258
53.111
53.753

Com Shares for Diluted
EPS
52.280
51.944
53.890
54.749
55.365

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