Following are the financial statements of Snap-On Inc. for the year ended January 3, 2012. Prepare a forecasted income statement and balance sheet for the company for the next year.

Following are the financial statements of Snap-On Inc. for the year ended January 3, 2012. Prepare a forecasted income statement and balance sheet for the company for the next year.

ATTACHMENT PREVIEW

Download attachment

Following are the financial statements of Snap-On Inc. for the year ended January 3, 2012.
Prepare
a forecasted income statement and balance sheet for the company for the next year.
Snap-On Incorporated
Consolidated Balance Sheets
2011
2010
(in millions)
Cash and cash equivalents
$ 185.6
$ 572.2
Trade and other accounts receivable-net
463.5
443.3
Finance receivables-net
277.2
215.3
Contract receivables-net
49.7
45.6
Inventories, net
386.4
329.4
Deferred income tax assets
92.6
87.0
Prepaid expenses and other assets
75.7
72.7
Total current assets
1,530.7
1,765.5
Property and equipment, net
352.9
344.0
Deferred income tax assets
125.2
91.5
Long-term finance receivables-net
431.8
345.7
Long-term contract receivables-net
165.1
119.3
Goodwill
795.8
798.4
Other intangibles, net
188.3
192.8
Other assets
83.1
72.2
Total assets
$3,672.9
$3,729.4
Notes payable and current maturities of LT debt
$ 16.2
$ 216.0
Accounts payable
124.6
146.1
Accrued benefits
48.8
45.0
Accrued compensation
91.0
86.7
Franchise deposits
47.3
40.4
Other accrued liabilities
255.9
346.9
Total current liabilities
583.8
881.1
Long-term debt
967.9
954.8
Deferred income tax liabilities
108.1
94.4
Retiree health care benefits
52.8
59.6
Pension liabilities
317.7
246.1
Other long-term liabilities
95.3
89.0
Total liabilities
2,125.6
2,325.0
Shareholders’ equity attributable to Snap-on Inc.
Common stock
67.3
67.3
Additional paid-in capital
181.4
169.2
Retained earnings
1,843.7
1,644.1
Accumulated other comprehensive loss
(174.6)
(104.8)
Treasury stock at cost
(386.9)
(387.3)
Total shareholders’ equity attributable to Snap-on Inc.
1,530.9
1,388.5
Noncontrolling interests
16.4
15.9
Total shareholders’ equity
1,547.3
1,404.4
Total liabilities and shareholders’ equity
$3,672.9
$3,729.4

Unlock Solution Unlocking…

Snap-On Incorporated
Consolidated Statements of Earnings
For the Fiscal Year
(in millions)
2011
2010
Net sales
$ 2,854.2
$ 2,619.2
Cost of goods sold
(1,516.3)
(1,408.1)
Gross profit
1,337.9
1,211.1
Operating expenses, net
(953.7)
(894.1)
Operating earnings before financial services
384.2
317.0
Financial services revenue
124.3
62.3
Financial services expenses
(51.4)
(47.9)
Operating earnings from financial services before
arbitration settlement
72.9
14.4
Arbitration settlement
18.0

Operating earning from financial services
90.9
14.4
Operating earnings
475.1
331.4
Interest expense
(61.2)
(54.8)
Other income (expense)-net
(1.0)
0.8
Earnings before income taxes and equity earnings
412.9
277.4
Income tax expense
(133.7)
(87.6)
Earnings before equity earnings
279.2
189.8
Equity earnings, net of tax
4.6
3.2
Net earnings
283.8
193.0
Net earnings attributable to noncontrolling interests
(7.5)
(6.5)
Net earnings attributable to Snap-on Incorporated
$
276.3
$
186.5
To forecast the financial statements, make the following assumptions. For accounts that are not
included in the list below, assume that the amount will not change for the forecasted year.
Net sales growth
2.0%
Cost of goods sold margin
53.1%
Operating expenses to net sales
33.4%
Financial services revenue growth
90.0%
Financial services expenses to financial services revenue
41.4%
Arbitration settlement
$0
Income taxes to income before tax
32.9%
Noncontrolling interest net earnings to net earnings
2.6%
Cash and cash equivalents to net sales
6.5%
Trade A/R to net sales
16.2%
Inventory to net sales
13.5%
CAPEX to net sales
2.1%
Depreciation to start of year PPE, net
14.3%
Amortization expense to start of year intangibles, net
13.1%
A/P to net sales
4.4%
Other accrued liabilities to net sales
9.0%
Snap-on dividends to net earnings
27.0%
Noncontrolling interest dividends to net earnings
2.5%
Notes payable and current maturities of long-term debt
$0

Leave a Comment