1.Perform horizontal analysis for net sales comparing sales for 2011 and 2012:
1. What was the difference in net sales (net income) between the two years?
2. Answer is stated in dollars and as a percentage from the prior year.
3. Was the difference positive or negative?
4. What caused the change and was it good or bad?
2. Performs at least two ratio analyzes for
1. liquidity,
2. solvency,
3. profitability and shares interpretation of the results
--------------------------------------------
Income Statement
Period Ending Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Total Revenue 32,974,000 30,303,000 20,583,000
Cost of Revenue 29,002,000 27,007,000 18,251,000
Gross Profit 3,972,000 3,296,000 2,332,000
Operating Expenses
Research Development - - -
Selling General and Administrative 1,854,000 1,732,000 1,716,000
Non Recurring - - -
Others 445,000 417,000 422,000
Total Operating Expenses - - -
Operating Income or Loss 1,402,000 1,080,000 140,000
Income from Continuing Operations
Total Other Income/Expenses Net (295,000) (63,000) (64,000)
Earnings Before Interest And Taxes 1,378,000 1,084,000 130,000
Interest Expense 166,000 179,000 155,000
Income Before Tax 1,212,000 905,000 (25,000)
Income Tax Expense 442,000 342,000 4,000
Minority Interest (27,000) (17,000) -
Net Income From Continuing Ops 743,000 546,000 (29,000)
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 743,000 546,000 (29,000)
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares 743,000 546,000 (29,000)
-------------------------------
Balance Sheet
Period Ending Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Assets
Current Assets
Cash And Cash Equivalents 1,639,000 900,000 648,000
Short Term Investments - - -
Net Receivables 1,221,000 1,272,000 908,000
Inventory 1,578,000 1,763,000 1,257,000
Other Current Assets 198,000 216,000 115,000
Total Current Assets 4,636,000 4,151,000 2,928,000
Long Term Investments - - -
Property Plant and Equipment 5,245,000 5,148,000 5,170,000
Goodwill - - -
Intangible Assets 214,000 226,000 246,000
Accumulated Amortization - - -
Other Assets 607,000 367,000 388,000
Deferred Long Term Asset Charges - - -
Total Assets 10,702,000 9,892,000 8,732,000
Liabilities
Current Liabilities
Accounts Payable 2,878,000 2,831,000 2,344,000
Short/Current Long Term Debt 3,000 418,000 152,000
Other Current Liabilities - - -
Total Current Liabilities 2,881,000 3,249,000 2,496,000
Long Term Debt 1,587,000 1,283,000 1,843,000
Other Liabilities 647,000 567,000 562,000
Deferred Long Term Liability Charges 850,000 815,000 616,000
Minority Interest 486,000 310,000 -
Negative Goodwill - - -
Total Liabilities 6,451,000 6,224,000 5,517,000
Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 25,000 25,000 25,000
Retained Earnings 3,649,000 2,944,000 2,398,000
Treasury Stock (356,000) (226,000) (128,000)
Capital Surplus 1,070,000 1,000,000 970,000
Other Stockholder Equity (137,000) (75,000) (50,000)
Total Stockholder Equity 4,251,000 3,668,000 3,215,000
Net Tangible Assets 4,037,000 3,442,000 2,969,000
Cash Flow
Period Ending Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Net Income 743,000 546,000 (29,000)
Operating Activities, Cash Flows Provided By or Used In
Depreciation 457,000 434,000 440,000
Adjustments To Net Income 85,000 186,000 (17,000)
Changes In Accounts Receivables 48,000 (365,000) 208,000
Changes In Liabilities (61,000) 448,000 452,000
Changes In Inventories 192,000 (506,000) (635,000)
Changes In Other Operating Activities 94,000 (71,000) (34,000)
Total Cash Flow From Operating Activities 1,585,000 689,000 385,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures (529,000) (298,000) (297,000)
Investments (170,000) - -
Other Cash flows from Investing Activities 3,000 7,000 2,000
Total Cash Flows From Investing Activities (696,000) (291,000) (295,000)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid (38,000) - -
Sale Purchase of Stock 48,000 190,000 3,000
Net Borrowings (168,000) (349,000) 139,000
Other Cash Flows from Financing Activities 8,000 13,000 3,000
Total Cash Flows From Financing Activities (150,000) (146,000) 145,000
Effect Of Exchange Rate Changes - - -
Change In Cash and Cash Equivalents 739,000 252,000 235,000
1. What was the difference in net sales (net income) between the two years?
2. Answer is stated in dollars and as a percentage from the prior year.
3. Was the difference positive or negative?
4. What caused the change and was it good or bad?
2. Performs at least two ratio analyzes for
1. liquidity,
2. solvency,
3. profitability and shares interpretation of the results
--------------------------------------------
Income Statement
Period Ending Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Total Revenue 32,974,000 30,303,000 20,583,000
Cost of Revenue 29,002,000 27,007,000 18,251,000
Gross Profit 3,972,000 3,296,000 2,332,000
Operating Expenses
Research Development - - -
Selling General and Administrative 1,854,000 1,732,000 1,716,000
Non Recurring - - -
Others 445,000 417,000 422,000
Total Operating Expenses - - -
Operating Income or Loss 1,402,000 1,080,000 140,000
Income from Continuing Operations
Total Other Income/Expenses Net (295,000) (63,000) (64,000)
Earnings Before Interest And Taxes 1,378,000 1,084,000 130,000
Interest Expense 166,000 179,000 155,000
Income Before Tax 1,212,000 905,000 (25,000)
Income Tax Expense 442,000 342,000 4,000
Minority Interest (27,000) (17,000) -
Net Income From Continuing Ops 743,000 546,000 (29,000)
Non-recurring Events
Discontinued Operations - - -
Extraordinary Items - - -
Effect Of Accounting Changes - - -
Other Items - - -
Net Income 743,000 546,000 (29,000)
Preferred Stock And Other Adjustments - - -
Net Income Applicable To Common Shares 743,000 546,000 (29,000)
-------------------------------
Balance Sheet
Period Ending Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Assets
Current Assets
Cash And Cash Equivalents 1,639,000 900,000 648,000
Short Term Investments - - -
Net Receivables 1,221,000 1,272,000 908,000
Inventory 1,578,000 1,763,000 1,257,000
Other Current Assets 198,000 216,000 115,000
Total Current Assets 4,636,000 4,151,000 2,928,000
Long Term Investments - - -
Property Plant and Equipment 5,245,000 5,148,000 5,170,000
Goodwill - - -
Intangible Assets 214,000 226,000 246,000
Accumulated Amortization - - -
Other Assets 607,000 367,000 388,000
Deferred Long Term Asset Charges - - -
Total Assets 10,702,000 9,892,000 8,732,000
Liabilities
Current Liabilities
Accounts Payable 2,878,000 2,831,000 2,344,000
Short/Current Long Term Debt 3,000 418,000 152,000
Other Current Liabilities - - -
Total Current Liabilities 2,881,000 3,249,000 2,496,000
Long Term Debt 1,587,000 1,283,000 1,843,000
Other Liabilities 647,000 567,000 562,000
Deferred Long Term Liability Charges 850,000 815,000 616,000
Minority Interest 486,000 310,000 -
Negative Goodwill - - -
Total Liabilities 6,451,000 6,224,000 5,517,000
Stockholders' Equity
Misc Stocks Options Warrants - - -
Redeemable Preferred Stock - - -
Preferred Stock - - -
Common Stock 25,000 25,000 25,000
Retained Earnings 3,649,000 2,944,000 2,398,000
Treasury Stock (356,000) (226,000) (128,000)
Capital Surplus 1,070,000 1,000,000 970,000
Other Stockholder Equity (137,000) (75,000) (50,000)
Total Stockholder Equity 4,251,000 3,668,000 3,215,000
Net Tangible Assets 4,037,000 3,442,000 2,969,000
Cash Flow
Period Ending Dec 31, 2012 Dec 31, 2011 Dec 31, 2010
Net Income 743,000 546,000 (29,000)
Operating Activities, Cash Flows Provided By or Used In
Depreciation 457,000 434,000 440,000
Adjustments To Net Income 85,000 186,000 (17,000)
Changes In Accounts Receivables 48,000 (365,000) 208,000
Changes In Liabilities (61,000) 448,000 452,000
Changes In Inventories 192,000 (506,000) (635,000)
Changes In Other Operating Activities 94,000 (71,000) (34,000)
Total Cash Flow From Operating Activities 1,585,000 689,000 385,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures (529,000) (298,000) (297,000)
Investments (170,000) - -
Other Cash flows from Investing Activities 3,000 7,000 2,000
Total Cash Flows From Investing Activities (696,000) (291,000) (295,000)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid (38,000) - -
Sale Purchase of Stock 48,000 190,000 3,000
Net Borrowings (168,000) (349,000) 139,000
Other Cash Flows from Financing Activities 8,000 13,000 3,000
Total Cash Flows From Financing Activities (150,000) (146,000) 145,000
Effect Of Exchange Rate Changes - - -
Change In Cash and Cash Equivalents 739,000 252,000 235,000
