Answer the case questions using the template provided below.
2020 IS Breed Airport Services 2020 Preliminary Financials December12 mos. Net Sales22,154310,156 - Cost of Goods Sold (COGS)28,989536,297 = Gross Profit(6,835)(226,141) - S,G & A Expenses58,032574,517 = EBITDA(64,867)(800,657) - Interest2,00027,400 - Depreciation/Amortization15,344184,128 = EBT(82,211)(1,012,185) - Taxes(17,264)(212,559) = Net Income(64,947)(799,626) Balance Sheet Breed Airport Services Balance Sheet (in '000 $)12/31/20Building Sale & Leaseback1/1/21Receivables Collection1/31/21 Cash & Securities25142167234401 Receivables250250(237)13 Inventory182182182 Other525252 Current Assets509651651 Fixed Assets884(566)318318 Total Assets1,393969969 Payables747474 Accruals484848 Other Current414141 Current Liabilities163163163 Long Term Debt890(550)340340 Equity340126466(2)464 Total Liabilities and Equity1,393969969 Debt to Equity3.101.081.09 Note: 1/31/21 balance sheet does not reflect January 2021 financial results. Receivables Breed Airport Services Accounts Receivable (in '000 $) (A)(B)(A)/(B) MonthReceivablesMonth's SalesDays Receivables December250.022.0340.9 Historical13.222.018.0 Must collect236.8 2021 Jan Feb financials Breed Airport Services 2021 Financials January%February% Net Sales55,982100%58,221100% - Cost of Goods Sold (COGS)24,31143%25,16243% = Gross Profit31,67157%33,05957% - S,G & A Expenses18,44833%18,63232% = EBITDA13,22324%14,42725% - Interest2,0004%2,0003% - Depreciation/Amortization1,3442%1,3442% = EBT9,87918%11,08319% - Taxes2,0754%2,3274% = Net Income7,80414%8,75615% Jan Feb BS Breed Airport Services Balance Sheet (in '000 $)1/31/21%2/28/21% Cash & Securities40141%41241% Receivables131%353% Inventory18219%18719% Other525%545% Current Assets65167%68769% Fixed Assets31833%31131% Total Assets969100%998100% Payables748%848% Accruals485%556% Other Current414%475% Current Liabilities16317%18619% Long Term Debt34035%34034% Equity46448%47247% Total Liabilities and Equity969100%998100% 2019 actuals Breed Airport Services 2019 Actuals JanuaryFebruaryMarchAprilMayJuneJulyAugustSeptemberOctoberNovemberDecemberTotal Net Sales68,92258,22161,71566,03570,65776,31081,65186,55090,87887,24383,75374,540906,474 - Cost of Goods Sold30,32625,16226,91328,79730,81333,27835,60737,74439,63138,00336,51932,501395,292 = Gross Profit38,59633,05934,80237,23839,84443,03246,04448,80751,24749,24047,23442,039511,182 - S,G & A Expenses20,67718,63219,13220,47221,90523,65725,31326,83228,17327,15625,97823,122281,048 = EBITDA17,92014,42715,66916,76617,94019,37520,73121,97523,07422,08421,25718,918230,134 - Interest2,5002,0002,1792,1792,1792,1792,1792,1792,1792,1792,1792,17926,293 - Depreciation/Amort.1,4551,4551,4551,4551,4551,4551,4551,4551,4551,4551,4551,45517,460 = EBT13,96511,08312,03513,13214,30515,74117,09718,34119,43918,45017,62215,283186,492 - Taxes2,9332,3272,5272,7583,0043,3063,5903,8524,0823,8743,7013,20939,163 = Net Income11,0328,7569,50810,37411,30112,43513,50614,48915,35714,57513,92212,074147,329 Sales growth rate4.0%6.0%7.0%7.0%8.0%7.0%6.0%5.0%-4.0%-4.0%-11.0% Net Sales100%100%100%100%100%100%100%100%100%100%100%100%100% - Cost of Goods Sold44%43%44%44%44%44%44%44%44%44%44%44%44% = Gross Profit56%57%56%56%56%56%56%56%56%56%56%56%56% - S,G & A Expenses30%32%31%31%31%31%31%31%31%31%31%31%31% = EBITDA26%25%25%25%25%25%25%25%25%25%25%25%25% - Interest4%3%4%3%3%3%3%3%2%2%3%3%3% - Depreciation/Amort.2%2%2%2%2%2%2%2%2%2%2%2%2% = EBT20%19%20%20%20%21%21%21%21%21%21%21%21% - Taxes4%4%4%4%4%4%4%4%4%4%4%4%4% = Net Income16%15%15%16%16%16%17%17%17%17%17%16%16% Jan Feb BS recalc Breed Airport Services Balance Sheet (in '000 $)1/31/21%2/28/21%Explanation of methodology Cash & Securities40141% Receivables131%Assume days receivable of 4.5 Inventory18219% Other525% Current Assets65167% Fixed Assets31833% Total Assets969100% Payables748% Accruals485% Other Current414% Current Liabilities16317% Long Term Debt34035%No change Equity46448% Total Liabilities and Equity969100% 2021 budgets Breed Airport Services 2021 Budgets ActualsBudgets January%February%March%April%May%June%July%August%Sept.%Oct.%Nov.%Dec.%Total% Net Sales55,982100%58,221100% - Cost of Goods Sold24,31143%25,16243% = Gross Profit31,67157%33,05957% - S,G & A Expenses18,44833%18,63232% = EBITDA13,22324%14,42725% - Interest2,0004%2,0003% - Depreciation/Amort.1,3442%1,3442% = EBT9,87918%11,08319% - Taxes2,0754%2,3274% = Net Income7,80414%8,75615% Variance Analysis MRO Department - 2020 Results Revenues (billed out):BudgetActualFav./(Unfav.)Change in Gross Margin - Labor (hrs.)3,4563,64819245,868 - Labor rate ($/hr.)120120- 0 - Parts ($/hr.)345320(25)Labor VarianceParts Variance Costs:Revenue (hrs.)Revenue (hrs.) - Labor (hrs.)3,8403,87737Rate ($/hr.)Revenue ($/hr.) - Labor ($/hr.)42442Costs (hrs.)Costs (hrs.) - Parts (% of revenue)80%77%-3%Labor ($/hr.)Costs ($/hr.) TotalMark-up Revenues:$ Fav./(Unfav.)Other - Labor414,720437,76023,040Total - Parts1,192,3201,168,092(24,228) Total Revenues1,607,0401,605,852(1,188)Insert your text explanation of the variances here. Costs: - Labor161,280168,6507,370 - Parts953,856899,431(54,425) Total Costs1,115,1361,068,080(47,056) Gross Margin491,904537,77245,868 Overhead: - Space75,00075,000- 0 - General & Admin.35,00035,000- 0 - Depreciation68,50068,500- 0 - Legal & Regulatory18,00018,000- 0 Total Overhead196,500196,500- 0 Net before Taxes295,404341,27245,868 Taxes62,03571,6679,632 Net after Taxes233,369269,60536,235 alfonso canella: For unexplained variance v. MAR 22 No Content. Intentionally left blank.