Answer the case questions using the template provided below.

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Answer the case questions using the template provided below.






2020 IS Breed Airport Services 2020 Preliminary Financials December12 mos. Net Sales22,154310,156 - Cost of Goods Sold (COGS)28,989536,297 = Gross Profit(6,835)(226,141) - S,G & A Expenses58,032574,517 = EBITDA(64,867)(800,657) - Interest2,00027,400 - Depreciation/Amortization15,344184,128 = EBT(82,211)(1,012,185) - Taxes(17,264)(212,559) = Net Income(64,947)(799,626) Balance Sheet Breed Airport Services Balance Sheet (in '000 $)12/31/20Building Sale & Leaseback1/1/21Receivables Collection1/31/21 Cash & Securities25142167234401 Receivables250250(237)13 Inventory182182182 Other525252 Current Assets509651651 Fixed Assets884(566)318318 Total Assets1,393969969 Payables747474 Accruals484848 Other Current414141 Current Liabilities163163163 Long Term Debt890(550)340340 Equity340126466(2)464 Total Liabilities and Equity1,393969969 Debt to Equity3.101.081.09 Note: 1/31/21 balance sheet does not reflect January 2021 financial results. Receivables Breed Airport Services Accounts Receivable (in '000 $) (A)(B)(A)/(B) MonthReceivablesMonth's SalesDays Receivables December250.022.0340.9 Historical13.222.018.0 Must collect236.8 2021 Jan Feb financials Breed Airport Services 2021 Financials January%February% Net Sales55,982100%58,221100% - Cost of Goods Sold (COGS)24,31143%25,16243% = Gross Profit31,67157%33,05957% - S,G & A Expenses18,44833%18,63232% = EBITDA13,22324%14,42725% - Interest2,0004%2,0003% - Depreciation/Amortization1,3442%1,3442% = EBT9,87918%11,08319% - Taxes2,0754%2,3274% = Net Income7,80414%8,75615% Jan Feb BS Breed Airport Services Balance Sheet (in '000 $)1/31/21%2/28/21% Cash & Securities40141%41241% Receivables131%353% Inventory18219%18719% Other525%545% Current Assets65167%68769% Fixed Assets31833%31131% Total Assets969100%998100% Payables748%848% Accruals485%556% Other Current414%475% Current Liabilities16317%18619% Long Term Debt34035%34034% Equity46448%47247% Total Liabilities and Equity969100%998100% 2019 actuals Breed Airport Services 2019 Actuals JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotal Net Sales68,92258,22161,71566,03570,65776,31081,65186,55090,87887,24383,75374,540906,474 - Cost of Goods Sold30,32625,16226,91328,79730,81333,27835,60737,74439,63138,00336,51932,501395,292 = Gross Profit38,59633,05934,80237,23839,84443,03246,04448,80751,24749,24047,23442,039511,182 - S,G & A Expenses20,67718,63219,13220,47221,90523,65725,31326,83228,17327,15625,97823,122281,048 = EBITDA17,92014,42715,66916,76617,94019,37520,73121,97523,07422,08421,25718,918230,134 - Interest2,5002,0002,1792,1792,1792,1792,1792,1792,1792,1792,1792,17926,293 - Depreciation/Amort.1,4551,4551,4551,4551,4551,4551,4551,4551,4551,4551,4551,45517,460 = EBT13,96511,08312,03513,13214,30515,74117,09718,34119,43918,45017,62215,283186,492 - Taxes2,9332,3272,5272,7583,0043,3063,5903,8524,0823,8743,7013,20939,163 = Net Income11,0328,7569,50810,37411,30112,43513,50614,48915,35714,57513,92212,074147,329 Sales growth rate4.0%6.0%7.0%7.0%8.0%7.0%6.0%5.0%-4.0%-4.0%-11.0% Net Sales100%100%100%100%100%100%100%100%100%100%100%100%100% - Cost of Goods Sold44%43%44%44%44%44%44%44%44%44%44%44%44% = Gross Profit56%57%56%56%56%56%56%56%56%56%56%56%56% - S,G & A Expenses30%32%31%31%31%31%31%31%31%31%31%31%31% = EBITDA26%25%25%25%25%25%25%25%25%25%25%25%25% - Interest4%3%4%3%3%3%3%3%2%2%3%3%3% - Depreciation/Amort.2%2%2%2%2%2%2%2%2%2%2%2%2% = EBT20%19%20%20%20%21%21%21%21%21%21%21%21% - Taxes4%4%4%4%4%4%4%4%4%4%4%4%4% = Net Income16%15%15%16%16%16%17%17%17%17%17%16%16% Jan Feb BS recalc Breed Airport Services Balance Sheet (in '000 $)1/31/21%2/28/21%Explanation of methodology Cash & Securities40141% Receivables131%Assume days receivable of 4.5 Inventory18219% Other525% Current Assets65167% Fixed Assets31833% Total Assets969100% Payables748% Accruals485% Other Current414% Current Liabilities16317% Long Term Debt34035%No change Equity46448% Total Liabilities and Equity969100% 2021 budgets Breed Airport Services 2021 Budgets ActualsBudgets January%February%March%April%May%June%July%August%Sept.%Oct.%Nov.%Dec.%Total% Net Sales55,982100%58,221100% - Cost of Goods Sold24,31143%25,16243% = Gross Profit31,67157%33,05957% - S,G & A Expenses18,44833%18,63232% = EBITDA13,22324%14,42725% - Interest2,0004%2,0003% - Depreciation/Amort.1,3442%1,3442% = EBT9,87918%11,08319% - Taxes2,0754%2,3274% = Net Income7,80414%8,75615% Variance Analysis MRO Department - 2020 Results Revenues (billed out):BudgetActualFav./(Unfav.)Change in Gross Margin - Labor (hrs.)3,4563,64819245,868 - Labor rate ($/hr.)120120- 0 - Parts ($/hr.)345320(25)Labor VarianceParts Variance Costs:Revenue (hrs.)Revenue (hrs.) - Labor (hrs.)3,8403,87737Rate ($/hr.)Revenue ($/hr.) - Labor ($/hr.)42442Costs (hrs.)Costs (hrs.) - Parts (% of revenue)80%77%-3%Labor ($/hr.)Costs ($/hr.) TotalMark-up Revenues:$ Fav./(Unfav.)Other - Labor414,720437,76023,040Total - Parts1,192,3201,168,092(24,228) Total Revenues1,607,0401,605,852(1,188)Insert your text explanation of the variances here. Costs: - Labor161,280168,6507,370 - Parts953,856899,431(54,425) Total Costs1,115,1361,068,080(47,056) Gross Margin491,904537,77245,868 Overhead: - Space75,00075,000- 0 - General & Admin.35,00035,000- 0 - Depreciation68,50068,500- 0 - Legal & Regulatory18,00018,000- 0 Total Overhead196,500196,500- 0 Net before Taxes295,404341,27245,868 Taxes62,03571,6679,632 Net after Taxes233,369269,60536,235 alfonso canella: For unexplained variance v. MAR 22 No Content. Intentionally left blank.
Answered Same DayMay 04, 2022

Answer To: Answer the case questions using the template provided below.

Preeta answered on May 05 2022
84 Votes
2020 IS
    Breed Airport Services
    2020 Preliminary Financials
        December    12 mos.
    Net Sales    22,154    310,156
    - Cost of Goods Sold (COGS)    28,989    536,297
    = Gross Profit    (6,835)    (226,141)
    - S,G & A Expenses    58,032    574,517
    = EBITDA    
(64,867)    (800,657)
    - Interest    2,000    27,400
    - Depreciation/Amortization    15,344    184,128
    = EBT    (82,211)    (1,012,185)
    - Taxes    (17,264)    (212,559)
    = Net Income    (64,947)    (799,626)
Balance Sheet
    Breed Airport Services
    Balance Sheet
    (in '000 $)    12/31/20    Building Sale & Leaseback    1/1/21    Receivables Collection    1/31/21
    Cash & Securities    25    142    167    234    401
    Receivables    250        250    (237)    13
    Inventory    182        182        182
    Other    52        52        52
    Current Assets    509        651        651
    Fixed Assets    884    (566)    318        318
    Total Assets    1,393        969        969
    Payables    74        74        74
    Accruals    48        48        48
    Other Current    41        41        41
    Current Liabilities    163        163        163
    Long Term Debt    890    (550)    340        340
    Equity    340    126    466    (2)    464
    Total Liabilities and Equity    1,393        969        969
    Debt to Equity    3.10        1.08        1.09
    Note: 1/31/21 balance sheet does not reflect January 2021 financial results.
Receivables
    Breed Airport Services
    Accounts Receivable
    (in '000 $)
        (A)        (B)        (A)/(B)
    Month    Receivables        Month's Sales        Days Receivables
    December    250.0        22.0        340.9
    Historical    13.2        22.0        18.0
    Must collect    236.8        -0        322.9
2021 Jan Feb financials
    Breed Airport Services
    2021 Financials
        January    %    February    %
    Net Sales    55,982    100%    58,221    100%
    - Cost of Goods Sold (COGS)    24,311    43%    25,162    43%
    = Gross Profit    31,671    57%    33,059    57%
    - S,G & A Expenses    18,448    33%    18,632    32%
    = EBITDA    13,223    24%    14,427    25%
    - Interest    2,000    4%    2,000    3%
    - Depreciation/Amortization    1,344    2%    1,344    2%
    = EBT    9,879    18%    11,083    19%
    - Taxes    2,075    4%    2,327    4%
    = Net Income    7,804    14%    8,756    15%
Jan Feb BS
    Breed Airport Services
    Balance Sheet
    (in '000 $)    1/31/21    %    2/28/21    %
    Cash & Securities    401    41%    412    41%
    Receivables    13    1%    35    3%
    Inventory    182    19%    187    19%
    Other    52    5%    54    5%
    Current Assets    651    67%    687    69%
    Fixed Assets    318    33%    311    31%
    Total Assets    969    100%    998    100%
    Payables    74    8%    84    8%
    Accruals    48    5%    55    6%
    Other Current    41    4%    47    5%
    Current Liabilities    163    17%    186    19%
    Long Term Debt    340    35%    340    34%
    Equity    464    48%    472    47%
    Total Liabilities and Equity    969    100%    998    100%
2019 actuals
    Breed Airport Services
    2019...
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