Consolidated Income Statement

Mary Kay Cosmetics. Inc

For The Year Ended Dec 31

1978 1977 1976

Net Sales 53746 47856 44871

Cost of goods sold 17517 14562 14139

Gross profit 36229 33294 30732

Interest & other income 660 175 501

36889 33469 31233

Selling, general expenses 27402 21394 19192

Earnings before interest & income tax 9487 12075 12041

Interest expenses 504 212 43

Earnings before income tax 8983 11863 11998

Current income taxes state 4742 5590 5599

Deferred income taxes (632) 121 255

Total current income taxes 4110 5711 5854

Net Earnings(loss) 4873 6152 6144

 Amount in (000)

Consolidated Balance Sheet

Mary Kay Cosmetics. Inc
As on December 31

1978 1977 1976

Assets
Current Assets
Cash and cash equivalents 4048 3587 6734
Account receivable 197 117 131
Raw material 3329 2530 1896
Finished goods 3189 4551 3992
Total inventory 6518 7081 5888
Prepaid taxes and expenses 1031 280 313
Total current assets 11794 11065 13066
Property, plant & equipment 27848 25941 21810
Accumulated depreciation 4931 3752 2962
Total Fixed assets 22917 22189 18848
Other assets
Real estate not used in business 1066 1717 1295
Cash surrender value of life insurance 319 102 974
policy
Other 209 71 148
Total other assets 1594 1890 2417
Total Assets 36305 35144 34331
Liabilities
Current liabilities
Accounts payable 2069 2533 1277
Accrued liabilities 2988 2361 1521
Income taxes 515 501 1787
Dividends 498 417 486
Notes Payable _ _ 16
Total current liabilities 6070 5812 5087
Long term debt 3558 5592 _
Total liabilities 9628 11404 5087
Deferred income taxes 730 756 637
Stockholders’ Equity
Total stockholders’ equity 25947 22984 28607
Total liabilities & SE 36305 35144 34331

Vertical Analysis

Consolidated Income Statement

Mary Kay Cosmetics. Inc
For The Year Ended Dec 31

1978 1977 1976

Net Sales 100 100 100

Cost of goods sold 32.60 30.43 31.51

Gross profit 67.40 69.57 68.49

Interest & other income 1.23 0.37 1.13

68063 69.94 70.39

Selling, general expenses 51 44.70 43.25

Earnings before interest & income tax 16.727 25.23 27.04

Interest expenses 0.94 0.44 0.097

Earnings before income tax 16.71 24.79 27.04

Total current income taxes 7.56 11.94 13.19

Net Earnings(loss) 9.07 12.86 13.85

Amount in (000)
Horizontal Analysis

Consolidated Income Statement

Mary Kay Cosmetics. Inc
For The Year Ended Dec 31

1978 1977 1976

Net Sales 119.78 106.65 100

Cost of goods sold 123.89 103 100

Gross profit 117.89 108.34 100

Interest & other income 131.74 34.93 100

118.12 107.16 100

Selling, general expenses 142.78 111.47 100

Earnings before interest & income tax 78.79 100.28 100

Interest expenses 1172 493.02 100

Earnings before income tax 74.87 98.87 100

Total current income taxes 70.21 97.56 100

Net Earnings(loss) 79.3 100.13 100

Amount in (000)

Vertical Analysis

Consolidated Balance Sheet

Mary Kay Cosmetics. Inc
As on December 31
1978 1977 1976
Assets
Current Assets
Cash and cash equivalents 11.15 10.20 19.61
Account receivable 0.54 0.33 0.38
Total inventory 18 20.15 17.15
Prepaid taxes and expenses 2.8 0.80 0.92
Total current assets 32.48 31.48 38.06
Property, plant & equipment 76.7 73.81 63.53
Accumulated depreciation 13.58 10.67 8.63
Total Fixed assets 63.12 63.14 54.90
Other assets
Real estate not used in business 2.94 4.88 3.77
Cash surrender value of life insurance 0.88 0.29 2.84
policy
Other 0.57 0.20 0.43
Total other assets 4.39 5.38 7.04
Total Assets 100 100 100
Liabilities
Current liabilities
Accounts payable 5.69 7.20 3.72
Accrued liabilities 8.2 6.72 4.43
Income taxes 1.42 1.425 5.20
Dividends 1.37 1.19 1.415
Notes Payable _ _ _
Total current liabilities 16.719 16.54 14.82
Long term debt 9.8 15.912 _
Deferred income taxes 2.0 21.5 1.855
Stockholders’ Equity
Total stockholders’ equity 71.47 65.39 83.33
Total liabilities & SE 100 100 100

1978 1977 1976 197

5
Assets
Current Assets
Cash and cash equivalents 1.03.12 91.36 171.52 100
Account receivable 197 117 131 100
Total inventory 111.94 100
Prepaid taxes and expenses 340.26 90.41 103.30 100
Total current assets 122.90 115.5 136.26 100
Property, plant & equipment 151.05 140.70 118.30 100
Accumulated depreciation 240.89 183.29 144.67 100
Total Fixed assets 139.83 135.39 115.00 100
Other assets
Real estate not used in business 57.38 92.41 69.70 100
Cash surrender value of life 531.67 170 1623.33 100
insurance policy
Other 209 71 148 100
Total other assets 78 93.66 119.77 100
Total Assets 129.68 125.53 122.63 100
Liabilities
Current liabilities
Accounts payable 187.24 229.23 115.57 100
Accrued liabilities 247.76 195.77 126.12 100
Income taxes 122.91 119.57 426.49 100
Dividends 128.35 107.47 125.26 100
Notes Payable _ _ _ 100
1
Total current liabilities 162.00 185.09 193.31 100
Long term debt 8471.43 13314.28 _ 100
Deferred income taxes 177.18 183.50 154.61 100
Stockholders’ Equity 100
Total stockholders’ equity 106.33 94.19 117.23 100
Total liabilities & SE 129.68 125.53 122.63 100

Horizontal Analysis

Consolidated Balance Sheet

Mary Kay Cosmetics. Inc
As on December 31