Page 76 - Financial Statement Analysis

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Chapter One | Overview of Financial Statement Analysis 53

COHORN COMPANY
Comparative Balance Sheet ($000)
December 31, 2000–2006
2006 2005 2004 2003 2002 2001 2000
Assets
Cash . . . . . . . . . . . . . . . . . . . . $ 68 $ 88 $ 92 $ 94 $ 98 $ 96 $ 99
Accounts receivable, net . . . . . 480 504 456 350 308 292 206
Merchandise inventory . . . . . . 1,738 1,264 1,104 932 836 710 515
Other current assets . . . . . . . . 46 42 24 44 38 38 19
Long-term investments . . . . . . 0 0 0 136 136 136 136
Plant and equipment, net . . . . 2,120 2,114 1,852 1,044 1,078 960 825
Total assets . . . . . . . . . . . . . . . $4,452 $4,012 $3,528 $2,600 $2,494 $2,232 $1,800

Liabilities and Equity
Current liabilities . . . . . . . . . . $1,120 $ 942 $ 618 $ 514 $ 446 $ 422 $ 272
Long-term liabilities . . . . . . . . 1,194 1,040 1,012 470 480 520 390
Common stock . . . . . . . . . . . . 1,000 1,000 1,000 840 840 640 640
Other contributed capital . . . . 250 250 250 180 180 160 160
Retained earnings . . . . . . . . . . 888 780 648 596 548 490 338
Total liabilities and equ . . . . . $4,452 $4,012 $3,528 $2,600 $2,494 $2,232 $1,800

Required:
CHECK
a. Compute trend percents for the individual items of both statements using 2000 as the base year.
2006, total assets
b. Analyze and comment on the financial statements and trend percents from part a. trend, 247.3%

Perform a comparative analysis of Eastman Corporation by completing the analysis below. PROBLEM 1–3
Describe and comment on any significant findings in your comparative analysis. Comparative Income
Statement Analysis
EASTMAN CORPORATION
Income Statement ($ millions)
For Years Ended December 31
Average
Cumulative Annual
Year 6 Year 5 Year 4 Amount Amount
Net sales . . . . . . . . . . . . . . . $ $3,490 $2,860 $ $
Cost of goods sold . . . . . . . . 3,210 2,610
Gross profit . . . . . . . . . . . . . 3,670 680 1,050 1,800
Operating expenses . . . . . . .
Income before taxes . . . . . . 2,740 215 105
Net income . . . . . . . . . . . . . $1,485 $ 145 $ 58
CHECK
Average net income, $563

Compute increases (decreases) in percents for both Years 6 and 7 by entering all the missing PROBLEM 1–4
data in the table below. Analyze and interpret any significant results revealed from this trend Index-Number
analysis. Trend Analysis