Income Statement (Industrial)
All figures in millions of U.S. Dollar, except per share items
	Jun '18	Jun '17	Jun '16	Jun '15	Jun '14
Sales	794.202	754.600	746.659	729.083	729.373
Cost of Goods Sold (COGS) incl. D&A	351.966	343.437	340.163	330.734	339.085
Gross Income	442.236	411.163	406.496	398.349	390.288
SG&A Expense	353.057	345.229	336.860	337.912	340.676
EBIT (Operating Income)	89.179	65.934	69.636	60.437	49.612
Interest Expense	1.618	5.957	7.540	8.778	9.020
Other Income - Net	0.395	1.206	0.306	-1.485	0.562
Unusual Expense - Net	0.000	4.500	0.000	0.000	-0.085
Pretax Income	87.956	56.683	62.402	50.174	41.239
Income Taxes	31.319	19.541	19.471	17.696	-8.455
Net Income	56.637	37.142	42.931	32.478	49.694
EPS (recurring)	2.00	1.38	1.47	1.11	1.71
EPS (diluted)	2.00	1.27	1.47	1.11	1.71
Diluted Shares Outstanding	28.32	29.18	29.28	29.24	29.11
Total Shares Outstanding	27.75	28.41	28.93	28.91	28.84
Dividends per Share	0.62	0.50	0.40	0.36	0.30
Payout Ratio	31.00	39.37	27.21	32.43	17.54
EBITDA	108.53	85.08	87.57	78.45	68.19
EBIT	89.18	65.93	69.64	60.44	49.61
Depreciation & Amortization Expense	19.35	19.14	17.93	18.01	18.58

1. Using the data in the student spreadsheet file Ethan Allen Financials.xlsx forecast the June 30, 2019 income statement and balance sheet for Ethan Allen. Use the percent of sales method and the following assumptions: (1) sales in FY 2019 will be $797.3359; (2) the tax rate will be 35%; (3) each item that changes with sales will be the five-year average percentage of sales; (4) net fixed assets will increase to $300; and (5) the common dividend will be $0.75 per share. Use your judgment on all other items. + + a. What is the discretionary financing needed in 2019? Is this a surplus or deficit? + b. Assume that the DFN will be absorbed by long-term debt and that the interest rate is 4% of LTD. Set up an iterative worksheet to eliminate it. Ethan Allen Interiors Inc. Balance Sheet (Industrial) All figures in millions of U.S. Dollar, except per share items Jun '18 Jun '17 Jun '16 Jun '15 Jun '14 Assets Cash Only 52.659 76.182 109.176 72.601 79.721 Total Short Term Investments 0.000 2.198 18.153 15.529 9.005 Short-Term Receivables 9.467 12.547 12.426 12.277 14.919 Inventories 162.323 151.916 146.275 137.256 155.739 Other Current Assets 23.755 27.831 19.599 22.907 23.408 Total Current Assets 248.204 270.674 305.629 260.570 282.792 Property, Plant & Equipment - Gross 598.264 594.912 601.709 594.385 587.368 Accumulated Depreciation 324.649 317.877 313.553 302.713 291.673 Net Property, Plant & Equipment 273.615 277.035 288.156 291.672 295.695 Other Long-Term Assets 55.590 59.599 60.649 65.043 66.301 Total Assets 577.409 607.308 654.434 617.285 644.788 Liabilities & Shareholders' Equity ST Debt & Curr. Portion LT Debt Accounts Payable Other Current Liabilities Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Common Stock Par/Carry Value Additional Paid-In Capital Capital Surplus Retained Earnings Treasury Stock and Other Deductions from Equity Total Shareholders' Equity Total Liabilities & Shareholders' Equity 3.001 3.341 0.501 0.480 0.250 15.437 18.946 24.320 22.995 27.315 104.909 118.682 111.226 109.464 123.512 123.347 140.969 136.047 132.939 151.077 38.837 74.227 130.411 130.809 154.250 23.023 21.577 20.509 19.180 17.593 185.207 236.773 286.967 282.928 322.920 0.489 0.489 0.486 0.486 0.485 374.972 370.914 365.733 363.938 361.165 646.315 607.079 584.395 553.083 542.918 629.574 607.947 583.147 583.150 582.700 392.202 370.535 367.467 334.357 321.868 577.409 607.308 654.434 617.285 644.788 1. Using the data in the student spreadsheet file Ethan Allen Financials.xlsx forecast the June 30, 2019 income statement and balance sheet for Ethan Allen. Use the percent of sales method and the following assumptions: (1) sales in FY 2019 will be $797.3359; (2) the tax rate will be 35%; (3) each item that changes with sales will be the five-year average percentage of sales; (4) net fixed assets will increase to $300; and (5) the common dividend will be $0.75 per share. Use your judgment on all other items. + + a. What is the discretionary financing needed in 2019? Is this a surplus or deficit? + b. Assume that the DFN will be absorbed by long-term debt and that the interest rate is 4% of LTD. Set up an iterative worksheet to eliminate it. Ethan Allen Interiors Inc. Balance Sheet (Industrial) All figures in millions of U.S. Dollar, except per share items Jun '18 Jun '17 Jun '16 Jun '15 Jun '14 Assets Cash Only 52.659 76.182 109.176 72.601 79.721 Total Short Term Investments 0.000 2.198 18.153 15.529 9.005 Short-Term Receivables 9.467 12.547 12.426 12.277 14.919 Inventories 162.323 151.916 146.275 137.256 155.739 Other Current Assets 23.755 27.831 19.599 22.907 23.408 Total Current Assets 248.204 270.674 305.629 260.570 282.792 Property, Plant & Equipment - Gross 598.264 594.912 601.709 594.385 587.368 Accumulated Depreciation 324.649 317.877 313.553 302.713 291.673 Net Property, Plant & Equipment 273.615 277.035 288.156 291.672 295.695 Other Long-Term Assets 55.590 59.599 60.649 65.043 66.301 Total Assets 577.409 607.308 654.434 617.285 644.788 Liabilities & Shareholders' Equity ST Debt & Curr. Portion LT Debt Accounts Payable Other Current Liabilities Total Current Liabilities Long-Term Debt Other Liabilities Total Liabilities Common Stock Par/Carry Value Additional Paid-In Capital Capital Surplus Retained Earnings Treasury Stock and Other Deductions from Equity Total Shareholders' Equity Total Liabilities & Shareholders' Equity 3.001 3.341 0.501 0.480 0.250 15.437 18.946 24.320 22.995 27.315 104.909 118.682 111.226 109.464 123.512 123.347 140.969 136.047 132.939 151.077 38.837 74.227 130.411 130.809 154.250 23.023 21.577 20.509 19.180 17.593 185.207 236.773 286.967 282.928 322.920 0.489 0.489 0.486 0.486 0.485 374.972 370.914 365.733 363.938 361.165 646.315 607.079 584.395 553.083 542.918 629.574 607.947 583.147 583.150 582.700 392.202 370.535 367.467 334.357 321.868 577.409 607.308 654.434 617.285 644.788