Chapter 2 Problem 13 a Use the spreadsheet to calculate as many of the companys Profitability, Turnover Control, and Leverage and Liquidity ratios as you can for these years (see Table 2 5 in text for a list of possible ratios) b What do these ratios suggest about the companys performance over this period ANNUAL BALANCE SHEET ($ MILLIONS) MENS WEARHOUSE INC Jan10 Jan09 Jan08 Jan07 Jan06 ASSETS Cash Short Term Investments 186 018 104 533 99 367 179 694 263 001 Net Receivables 16 745 40 662 24 872 17 018 19 276 Inventories 431 492 440 099 492 423 448 586 416 603 Prepaid Expenses 26 603 27 179 0 000 0 000 Other Current Assets 74 075 19 718 27 154 35 531 30 732 Total Current Assets 708 330 631 615 670 995 680 829 729 612 Gross Plant, Property Equipment 885 981 865 084 669 340 611 957 Accumulated Depreciation 498 509 454 917 379 700 342 371 Net Plant, Property Equipment 344 746 387 472 410 167 289 640 269 586 Intangibles 59 414 65 268 75 609 61 765 63 073 Other Assets 119 616 103 375 99 696 64 718 61 003 TOTAL ASSETS 1,232 106 1,187 730 1,256 467 1,096 952 1,123 274 LIABILITIES Long Term Debt Due In One Year 0 000 0 000 0 000 0 000 0 000 Accounts Payable 83 052 108 800 146 713 111 213 125 064 Taxes Payable 23 936 0 019 5 590 19 676 21 086 Accrued Expenses 66 542 70 222 75 458 72 531 Other Current Liabilities 117 047 44 862 54 730 19 791 19 404 Total Current Liabilities 224 035 220 223 277 255 226 138 238 085 Long Term Debt 43 491 62 916 92 399 72 967 207 750 Deferred Taxes 2 700 4 000 12 200 24 400 Other Liabilities 62 236 59 743 66 876 31 875 25 506 TOTAL LIABILITIES 329 762 345 582 440 530 343 180 495 741 EQUITY Common Stock 0 705 0 700 0 696 0 691 0 671 Capital Surplus 327 742 315 404 305 209 286 120 255 214 Retained Earnings 986 523 938 580 923 713 775 857 641 558 Less Treasury Stock 412 626 412 536 413 681 308 896 269 910 TOTAL EQUITY 902 344 842 148 815 937 753 772 627 533 TOTAL LIABILITIES EQUITY 1,232 106 1,187 730 1,256 467 1,096 952 1,123 274 Common Shares Outstanding 52 288 51 918 51 479 53 919 53 069 ANNUAL INCOME STATEMENT (MILLIONS, EXCEPT PER SHARE) Jan10 Jan09 Jan08 Jan07 Jan06 Sales 1,909 575 1,972 418 2,112 558 1,882 064 1,724 898 Cost of Goods Sold 1,025 759 1,031 241 1,062 205 1,004 972 965 889 Gross Profit 883 816 941 177 1,050 353 877 092 759 009 Selling, General, Administrative Exp 732 722 757 073 741 405 591 767 531 839 Operating Income Before Deprec 151 094 184 104 308 948 285 325 227 170 Depreciation,Depletion, Amortization 86 090 90 665 80 296 61 387 61 874 Operating Profit 65 004 93 439 228 652 223 938 165 296 Interest Expense 0 332 4 300 5 046 9 216 5 888 Non Operating Income Expense 0 000 2 592 5 987 9 786 3 280 Special Items 3 200 (2 968) 0 000 0 000 0 000 Pretax Income 67 872 88 763 229 593 224 508 162 688 Total Income Taxes 22 364 29 919 82 552 75 933 58 785 Income Before Extraordinary Items Discontinued Operations 45 508 58 844 147 041 148 575 103 903 Savings Due to Common Stock Equiv (0 834) 0 000 0 000 0 000 0 000 Adjusted Net Income 44 674 58 844 147 041 148 575 103 903 EPS Basic from Operations 0 820 1 180 2 760 2 710 2 010 EPS Diluted from Operations 0 820 1 170 2 730 2 620 1 950 Dividends Per Share 0 280 0 280 0 230 0 200 0 000 Com Shares for Basic EPS 52 280 51 645 53 258 53 111 53 753 Com Shares for Diluted EPS 52 280 51 944 53 890 54 749 55 365

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Question: Chapter 2 Problem 13 a. Use the spreadsheet to calculate as many of the companys Profitability, Turnover-Control, and Leverage and Liquidity ratios as you can

Chapter 2 Problem 13
a. Use the spreadsheet to calculate as many of the companys Profitability, Turnover-Control, and Leverage and
Liquidity ratios as you can for these years (see Table 2.5 in text for a list of possible ratios).
b. What do these ratios suggest about the companys performance over this period?

	ANNUAL BALANCE SHEET
	($ MILLIONS)

	MENS WEARHOUSE INC
		Jan10	Jan09	Jan08	Jan07	Jan06
	ASSETS
	Cash & Short-Term Investments	186.018	104.533	99.367	179.694	263.001
	Net Receivables	16.745	40.662	24.872	17.018	19.276
	Inventories	431.492	440.099	492.423	448.586	416.603
	Prepaid Expenses		26.603	27.179	0.000	0.000
	Other Current Assets	74.075	19.718	27.154	35.531	30.732
		------------------	------------------	------------------	------------------	--------------
	Total Current Assets	708.330	631.615	670.995	680.829	729.612

	Gross Plant, Property & Equipment		885.981	865.084	669.340	611.957
	Accumulated Depreciation		498.509	454.917	379.700	342.371
		------------------	------------------	------------------	------------------	--------------
	Net Plant, Property & Equipment	344.746	387.472	410.167	289.640	269.586
	Intangibles	59.414	65.268	75.609	61.765	63.073
	Other Assets	119.616	103.375	99.696	64.718	61.003
		------------------	------------------	------------------	------------------	--------------
	TOTAL ASSETS	1,232.106	1,187.730	1,256.467	1,096.952	1,123.274

	LIABILITIES
	Long Term Debt Due In One Year	0.000	0.000	0.000	0.000	0.000
	Accounts Payable	83.052	108.800	146.713	111.213	125.064
	Taxes Payable	23.936	0.019	5.590	19.676	21.086
	Accrued Expenses		66.542	70.222	75.458	72.531
	Other Current Liabilities	117.047	44.862	54.730	19.791	19.404
		------------------	------------------	------------------	------------------	--------------
	Total Current Liabilities	224.035	220.223	277.255	226.138	238.085

	Long Term Debt	43.491	62.916	92.399	72.967	207.750
	Deferred Taxes		2.700	4.000	12.200	24.400
	Other Liabilities	62.236	59.743	66.876	31.875	25.506
		------------------	------------------	------------------	------------------	--------------
	TOTAL LIABILITIES	329.762	345.582	440.530	343.180	495.741

	EQUITY
	Common Stock	0.705	0.700	0.696	0.691	0.671
	Capital Surplus	327.742	315.404	305.209	286.120	255.214
	Retained Earnings	986.523	938.580	923.713	775.857	641.558
	Less: Treasury Stock	412.626	412.536	413.681	308.896	269.910
		------------------	------------------	------------------	------------------	--------------
	TOTAL EQUITY	902.344	842.148	815.937	753.772	627.533
		------------------	------------------	------------------	------------------	--------------
	TOTAL LIABILITIES & EQUITY	1,232.106	1,187.730	1,256.467	1,096.952	1,123.274

	Common Shares Outstanding	52.288	51.918	51.479	53.919	53.069


			ANNUAL INCOME STATEMENT
			(MILLIONS, EXCEPT PER SHARE)

		Jan10	Jan09	Jan08	Jan07	Jan06

	Sales	1,909.575	1,972.418	2,112.558	1,882.064	1,724.898
	Cost of Goods Sold	1,025.759	1,031.241	1,062.205	1,004.972	965.889
		-------------------	------------------	------------------	------------------	---------------
	Gross Profit	883.816	941.177	1,050.353	877.092	759.009
	Selling, General, & Administrative Exp.	732.722	757.073	741.405	591.767	531.839
		-------------------	------------------	------------------	------------------	---------------
	Operating Income Before Deprec.	151.094	184.104	308.948	285.325	227.170
	Depreciation,Depletion,&Amortization	86.090	90.665	80.296	61.387	61.874
		-------------------	------------------	------------------	------------------	---------------
	Operating Profit	65.004	93.439	228.652	223.938	165.296

	Interest Expense	0.332	4.300	5.046	9.216	5.888
	Non-Operating Income/Expense	0.000	2.592	5.987	9.786	3.280
	Special Items	3.200	(2.968)	0.000	0.000	0.000
		-------------------	------------------	------------------	------------------	---------------
	Pretax Income	67.872	88.763	229.593	224.508	162.688
	Total Income Taxes	22.364	29.919	82.552	75.933	58.785
		-------------------	------------------	------------------	------------------	---------------
	Income Before Extraordinary
	Items & Discontinued Operations	45.508	58.844	147.041	148.575	103.903
		-------------------	------------------	------------------	------------------	---------------
	Savings Due to Common Stock Equiv.	(0.834)	0.000	0.000	0.000	0.000
		-------------------	------------------	------------------	------------------	---------------
	Adjusted Net Income	44.674	58.844	147.041	148.575	103.903

	EPS Basic from Operations	0.820	1.180	2.760	2.710	2.010
	EPS Diluted from Operations	0.820	1.170	2.730	2.620	1.950

	Dividends Per Share	0.280	0.280	0.230	0.200	0.000

	Com Shares for Basic EPS	52.280	51.645	53.258	53.111	53.753
	Com Shares for Diluted EPS	52.280	51.944	53.890	54.749	55.365

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