Case 1.3 Just for Feet, Inc.
CASE 1.3 Just for FEET, Inc.
1. (1) Common-sized Balance Sheet 01/01/1999 01/01/1998 01/01/1997
Current assets: Cash and cash equivalents 2% 18% 37% Marketable securities available for sale - - 9% Accounts receivable 3% 4% 2% Inventory 58% 46% 35% Other current assets 3% 1% 1% Total current assets 65% 69% 84% Property and equipment, net 23% 21% 15% Goodwill, net 10% 8% - Other 1% 1% 2% Total assets 100% 100% 100%
Current liabilities: Short-term borrowings - Accounts payable 28% 28% 25% Accrued expenses 7% 5% 3% Income taxes payable 0% 1% 0% Current maturities of long-term debt 2% 2% 1% Total current liabilities 36% 86% 93% Long-term debt and obligations 64% 16% 7% Total liabilities 100% 100% 100%
Shareholders' equity Common stock 0% 0% 0% Paid-in capital 77% 82% 87% Retained earnings 23% 18% 13% Total shareholders' equity 100% 100% 100% Total liabilities and shareholders' equity
(2) Common-sized Statements of Earnings 1999 1998 1997
Net sales 100.00% 100.00% 100.00%
Cost of sales 58.38% 58.46% 57.54% Gross profit 41.62% 41.54% 42.46%
Other revenues 0.17% 0.23% 0.23%
Operating expenses Store operating 30.01% 29.18% 27.04% Store opening costs 1.76% 1.41% 4.38% Amortization of intangibles 0.27% 0.25% 0.07% General and administrative 3.14% 3.77% 3.07% Total operating expenses 35.18% 34.60% 34.57%
Operating income 6.61% 7.17% 8.12%
Interest expense -1.04% -0.30% -0.32%
Interest income 0.02% 0.29% 1.85%
Earnings before income taxes and cumulative effect of change in accounting principle 5.59% 7.15% 9.65%
Provision for income taxes 2.15% 2.68% 3.43%
Earnings before cumulative effect of a change in accounting principle 3.44% 4.47% 6.22%
Cumulative effect on prior years of change in accounting principle - - -0.80% Net earnings 3.44% 4.47% 5.43%
(3) Key ratios:
1. (1) Common-sized Balance Sheet 01/01/1999 01/01/1998 01/01/1997
Current assets: Cash and cash equivalents 2% 18% 37% Marketable securities available for sale - - 9% Accounts receivable 3% 4% 2% Inventory 58% 46% 35% Other current assets 3% 1% 1% Total current assets 65% 69% 84% Property and equipment, net 23% 21% 15% Goodwill, net 10% 8% - Other 1% 1% 2% Total assets 100% 100% 100%
Current liabilities: Short-term borrowings - Accounts payable 28% 28% 25% Accrued expenses 7% 5% 3% Income taxes payable 0% 1% 0% Current maturities of long-term debt 2% 2% 1% Total current liabilities 36% 86% 93% Long-term debt and obligations 64% 16% 7% Total liabilities 100% 100% 100%
Shareholders' equity Common stock 0% 0% 0% Paid-in capital 77% 82% 87% Retained earnings 23% 18% 13% Total shareholders' equity 100% 100% 100% Total liabilities and shareholders' equity
(2) Common-sized Statements of Earnings 1999 1998 1997
Net sales 100.00% 100.00% 100.00%
Cost of sales 58.38% 58.46% 57.54% Gross profit 41.62% 41.54% 42.46%
Other revenues 0.17% 0.23% 0.23%
Operating expenses Store operating 30.01% 29.18% 27.04% Store opening costs 1.76% 1.41% 4.38% Amortization of intangibles 0.27% 0.25% 0.07% General and administrative 3.14% 3.77% 3.07% Total operating expenses 35.18% 34.60% 34.57%
Operating income 6.61% 7.17% 8.12%
Interest expense -1.04% -0.30% -0.32%
Interest income 0.02% 0.29% 1.85%
Earnings before income taxes and cumulative effect of change in accounting principle 5.59% 7.15% 9.65%
Provision for income taxes 2.15% 2.68% 3.43%
Earnings before cumulative effect of a change in accounting principle 3.44% 4.47% 6.22%
Cumulative effect on prior years of change in accounting principle - - -0.80% Net earnings 3.44% 4.47% 5.43%
(3) Key ratios: