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    Tire City Inc. saw steady growth in net sales and net income from 1993 to 1997. Net sales increased from $16.23 million in 1993 to $33.85 million in 1997, while net income grew from $780,000 to $1.69 million over the same period. Total assets also increased consistently, rising from $6.58 million in 1993 to $13.7 million in 1997, as current and long-term assets expanded. Shareholders' equity grew from $3.27 million to $7.51 million during this time period due to increased retained earnings.

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    Tire City Inc. saw steady growth in net sales and net income from 1993 to 1997. Net sales increased from $16.23 million in 1993 to $33.85 million in 1997, while net income grew from $780,000 to $1.69 million over the same period. Total assets also increased consistently, rising from $6.58 million in 1993 to $13.7 million in 1997, as current and long-term assets expanded. Shareholders' equity grew from $3.27 million to $7.51 million during this time period due to increased retained earnings.

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    28 views1 page

    Tire City Company Case Study

    Uploaded by

    So good
    Tire City Inc. saw steady growth in net sales and net income from 1993 to 1997. Net sales increased from $16.23 million in 1993 to $33.85 million in 1997, while net income grew from $780,000 to $1.69 million over the same period. Total assets also increased consistently, rising from $6.58 million in 1993 to $13.7 million in 1997, as current and long-term assets expanded. Shareholders' equity grew from $3.27 million to $7.51 million during this time period due to increased retained earnings.

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    of 1

    Exhibit 1 งบการเ'น Tire City, Inc.

    Tire City Inc.


    For years ending 12/31
    INCOME STATEMENT
    Net sales
    1993

    $ 16,230
    1994

    $ 20,355
    1995

    $ 23,505
    Assumption 1996 1997

    33,849
    Boripat Boonyang
    28,206
    Cost of sales
    Gross Profit
    9,430
    6,800
    11,898
    8,457
    4€ 9,89313,612 758% 16,401
    71,805
    19,681
    14,166
    6448063329

    Selling, general, and administrative expenses 5,195 6,352 7,471 31% 8,929 10,712
    Depreciation 160 180 213 213 փ 333
    Net interest expense 119 106 94 63 50
    -9%
    Pre-tax income 1,326 1,819 2,115 2,603 3,091
    Income taxes 546 822
    145.1897% 925 743.93% 45T
    1,171 1,382 .

    Net income $ 780 $ 997 $ 1,190 1,432 1,689

    Dividends $ 155 $ 200 $ 240


    120% 287 339

    BALANCE SHEET
    Assets
    Cash balances $ 508 $ 609 $ 706 846.18 1,015.41
    Accounts receivable 2,545 3,095 3,652 -15.5T .
    4,362 5,234
    Inventories 1,630 1,838 2,190 1625.00
    3,153.58
    Total current assets 4,683 5,542 6,548 6,842 9,414

    _
    +40°
    Gross plant & equipment 3,232 3,795 4,163 +2,000 → 6,163 → 6563

    2%94
    ,

    Accumulated depreciation 1,335 1,515 1,728 1,941


    Net plant & equipment 1,897 2,280 2,435 4,222 4,289

    Total assets $ 6,580 $ 7,822 $ 8,983 11,064 73,703

    Liabilities and Equity


    Current maturities of LT Debt $ 125 $ 125 $ 125 125 125

    Bank Loan 403 1,069


    Accounts payable 1,042 1,325 1,440 1,979 2,132
    Accrued expenses 1,145 1,432 1,653 1,994 2,369
    Total current liabilities 2,312 2,882 3,218 4,280 5,694

    Long-term debt 1,000 875 → 750 625 500


    -

    1251g
    Common stock 1,135 1,135 1,135 1,135 1,135
    Retained earnings 2,133 2,930 3,880 5,024 6,395
    Total shareholders' equity 3,268 4,065 5,015 6,159 7,510

    Total liabilities and Equity $ 6,580 $ 7,822 $ 8,983 11,064 13,703

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