Question

Data Table Barron Pizza, Inc. Abbreviated Income Statements for the Years Ending 2012-2014 ($ in thousands, except earnings per share) Year Ending Year Ending Year Ending Account 2014 2013 2012 Revenue $ 917,227 $ 946,228 Cost of goods sold $ -669,249 $ -656,300 Gross profit $ 169,391 314,926 Selling, general, and administrative expenses -70,527 -193,048 Research and development $ 5,379 S -7,021 S -3,518 Depreciation $ -34,475 $ -35,760 Operating income 60,493 81,404 Other income $ 2,002 EBIT 82,411 $ 84,602 Interest expense -6,824 -8,764 Income before tax 74,813 $ 75,838 Taxes $ -20,331 $ -28,055 Net income $ 46,758 $ 47,399 Shares outstanding 16,740,000 16,740,000 Earnings per share 2.02 $ 2.79 Print Done
Please show me the excel work if possible. thank you

Answer 1

Ans : The Missing Numbers have been highlighted in Bold and Underlined. Please find the detailed working notes below

Barron Pizza, Inc. Abbreviated Income Statements for the year ending 2012-2014 ($ in Thousands, except earnings per share)
Account	Year Ending 2014	Year Ending 2013	Year Ending 2014
Revenue Cost of Goods Sold	$ 917,227 $ -747,836	$ 946,228 $ -669,249	$ 971,226 $ -656,300
Gross Profit Selling, General and Administrative Exps Research and Development Depreciation	$169,391 $ -70,527 $ -5,379 $ -32,992	$ 276,979 $ -1,54,079 $ -7,021 $ -34,475	$314,926 $ -193,048 $ -3,518 $ - 35,760
Operating Income Other Income	$ 60,493 $ 546	$ 81,404 $ 1,007	$ 82,600 $ 2,002
EBIT Interest Expenses	$ 61,039 $ -6,824	$ 82,411 $ -7,598	$ 84,602 $ -8,764
Income before Tax Taxes	$ 54,215 $ -20,331	$ 74,813 $ -28,055	$ 75,838 $ 28,439
Net Income	$ 33,884	$ 46,758	$ 47,399
Shares Outstanding	16,740,000	16,740,000	16,740,000
Earnings Per Share	$ 2.02	$ 2.79	$ 2.83

WORKING NOTES :

YEAR 2014

1. Cost of Goods Sold = Revenue - Gross Profit = $ 917,227 - $ 169,391 = $ 747,836

2.Depreciation = Gross Profit - (Selling,general & Administration Exps + Research & Development + Operating Inc)
= $169.391 - ($70,527 + $ 5,379 + $ 60,493)
= $32,992
3.EBIT = Operating Income + Other Income = $ 60,493 + $ 546 = $ 61,039

4.Income Before Tax = EBIT - Interest = $ 61,039 - $ 6,824 = $ 54,215

5.Net Income = Income Before Taxes - Taxes = $ 54,215 - $ 20,331 = $33,884

YEAR 2013

1. Gross Profit = Revenue - Cost of Goods Sold = $ 946,228 - $ 669,249 = $ 276,979

2.Selling,general & Administrative Exp = Gross Profit - (Research & Development + Depreciation + Operating Inc)
= $ 276,979 - ($ 7,021 + $ 34,475 + $ 81,404)
= $ 154,079

3.Other Income = EBIT - Operating Income = $ 82,411 - $ 81,404 = $ 1,007

4.Interest Expenses = EBIT - Income before Taxes = $ 82,411 - $ 74,813 = $ 7,598

5.Shares Outstanding = Will remain the same i.e. 16,740,000

YEAR 2012

1. Revenue = Gross Profit + Cost of Goods sold = $ 314,926 + $ 656,300 = $ 971,226

2.Operating Income = Gross Profit - (Selling,general & Administration Exps + Research & Development + Depreciation)
= $ 314,926 - ( $ 193,048 + $ 3,518 + $ 35,760)
= $ 82,600
3.Taxes = Income before taxes - Net Income = $ 75,838 - $ 47,399 = $ 28,439

OR

3.Taxes = Income before Taxes * Tax Rate = $ 75,838 * 37.5% =  $ 28,439

4.Earnings Per Share = Net Income / Shares Outstanding = $ 47,399 / 16,740,000 = $ 2.83