2. Use the same data as in Problem 1. a. Recalculate the percentage of sales income statement, but this time use the TREND function to forecast other income and interest expense. b. Recalculate the percentage of sales balance sheet, but this time use the TREND function to forecast Cash, Other Long-term Assets, and Other Liabilities. C. Do these new values appear to be more realistic than the original values? Does this make sense for each of these items? Might other income statement or balance sheet items be forecasted in this way? Sales Ethan Allen Interiors Inc. 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 Cost of Goods Sold (COGS) incl. D&A Gross Income SG&A Expense EBIT (Operating Income) Interest Expense Other Income - Net Unusual Expense - Net Pretax Income Income Taxes Net Income 766.784 763.385 794.202 754.600 746.659 350.820 343.662 351.966 343.437 340.163 415.964 419.723 442.236 411.163 406.496 367.097 361.773 353.057 345.229 336.860 48.867 57.950 89.179 65.934 69.636 0.325 1.223 1.618 0.525 0.268 0.000 0.000 0.000 4.500 49.067 56.995 87.956 56.683 12.696 20.801 31.319 19.541 19.471 36.371 36.194 56.637 37.142 42.931 Actual Jun '19 746.684 337.193 409.491 357.164 52.327 5.957 7.540 0.087 0.395 1.206 0.306 0.000 0.000 18.380 62.402 33.860 8.162 25.698 EPS (recurring) 1.32 1.29 2.00 1.38 1.47 EPS (diluted) 1.32 1.29 2.00 1.27 1.47 0.96 Diluted Shares Outstanding 27.63 27.96 28.32 29.18 29.28 26.75 Total Shares Outstanding 26.53 27.45 27.75 28.41 28.93 Dividends per Share 0.76 0.74 0.62 0.50 0.40 0.76 Payout Ratio EBITDA 57.72 57.36 31.00 39.37 27.21 68.70 78.07 108.53 85.08 87.57 71.93 EPS (recurring) 1.32 1.29 2.00 1.38 1.47 EPS (diluted) 1.32 1.29 2.00 1.27 1.47 0.96 Diluted Shares Outstanding 27.63 27.96 28.32 29.18 29.28 26.75 Total Shares Outstanding 26.53 27.45 27.75 28.41 28.93 Dividends per Share 0.76 0.74 0.62 0.50 0.40 0.76 Payout Ratio 57.72 57.36 31.00 39.37 27.21 EBITDA 68.70 78.07 108.53 85.08 87.57 71.93 EBIT 48.87 57.95 Depreciation & Amortization Expense 19.83 20.12 89.18 19.35 19.14 65.93 69.64 33.95 17.93 19.60 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 Actual Jun '19 Assets Cash Only Total Short Term Investments Inventories Short-Term Receivables Other Current Assets 22.363 57.701 52.659 0.000 0.000 0.000 12.364 12.293 9.467 163.012 149.483 162.323 76.182 109.176 2.198 18.153 12.547 12.426 151.916 146.275 20.824 0.000 14.247 162.389 Total Current Assets Property, Plant & Equipment - Gross Accumulated Depreciation Net Property, Plant & Equipment Other Long-Term Assets Total Assets 16.686 23.621 23.755 27.831 19.599 214.425 243.098 248.204 270.674 305.629 611.027 605.219 598.264 594.912 601.709 343.124 335.021 324.649 317.877 313.553 267.903 270.198 273.615 277.035 288.156 48.105 54.926 55.590 59.599 60.649 530.433 568.222 577.409 607.308 654.434 18.830 216.290 245.246 510.351 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 0.501 0.550 35.485 86.791 122.826 0.516 23.080 0.584 2.731 3.001 3.341 18.768 16.961 15.437 18.946 24.320 101.908 106.753 104.909 118.682 111.226 121.260 126.445 123.347 140.969 136.047 1.096 11.608 38.837 74.227 130.411 24.207 29.273 23.023 21.577 20.509 146.563 167.326 185.207 236.773 286.967 146.422 0.490 0.490 0.489 376.950 377.550 374.972 0.489 370.914 365.733 0.486 669.013 661.976 646.315 607.079 584.395 Treasury Stock and Other Deductions from Equity 662.722 639.310 629.574 607.947 583.147 Total Shareholders' Equity Total Liabilities & Shareholders' Equity 383.731 400.706 392.202 370.535 367.467 530.433 568.222 577.409 607.308 654.434 363.866 510.351 Source: FactSet Fundamentals