CASE ANAL ANALYSIS YSIS:: HAMPTON MACHINE TOOLS COMPANY GROUP 6. RAMOS.RODRIGUEZ.SHUKLA.SIBAL.TANTE NGCO.TIA.
Company Background
Founded in 1915 – Defence and Automobile Machine Tool Manufacturer Record Breaking Profits in 1960-1970 Experienced slowdown after mid-1970’s No debt for the past ten years
Balance Sheet Balance Sheets, 1978--1979 (thousands of dollars) 1978 Nov. Cash $2,520 Accounts receivable, net $1,245 Inventories $2,601 Current assets $6,366
1979 $491 $1,863 $2,478 $4,832
$505 $1,971 $3,474 $5,950
June $1,152 $1,893 $3,276 $6,321
July $1,678 $1,269 $3,624 $6,571
Aug. $1,559 $684 $4,764 $7,007
$4,010 $2,998 $1,012
$4,010 $3,010 $1,000
$4,010 $3,040 $970
$4,010 $3,070 $940
$4,010 $3,080 $930
$4,010 $3,090 $920
$62
$40
$39
$24
$24
$42
$7,440
$5,872
$6,959
$7,285
$7,525
$7,969
Notes payable, bank Accounts payable Accruals Taxes payable* Customer advances Current liabilities
$0 $348 $561 $150 $840 $1,899
$1,000 $371 $777 $74 $1,040 $3,262
$1,000 $681 $849 $373 $1,040 $3,943
$1,000 $399 $678 $354 $1,566 $3,997
$1,000 $621 $585 $407 $1,566 $4,179
$1,000 $948 $552 $479 $1,566 $4,545
Common stock ($10 par value) Surplus Net worth
$1,178 $4,363 $5,541
$428 $2,182 $2,610
$428 $2,588 $3,016
$428 $2,860 $3,288
$428 $2,918 $3,346
$428 $2,996 $3,424
Total liabilities and net worth
$7,440
$5,872
$6,959
$7,285
$7,525
$7,969
Gross fixed assets Accumulated depreciation Net fixed assets Prepaid expenses Total assets
Dec.
Mar.
*Tax payments in 1979 include $75,000 due March 15 on underpayment of 1978 taxes and four equal payments of $181,000 due on the 15th of April, June, September, and December for estimated 1979 tax liability with any underpayment of 1979 taxes due March 15, 1980.
Income Statement Income Statements, 1978--1979 (thousands of dollars)
Net sales Cost of sales* Gross profit Selling and admin expenses Interest expense Net income before taxes Income taxes Net income Dividends