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Running head: [SHORTENED TITLE UP TO 50 CHARACTERS] 1[Title Here, up to 12 Words, on One to Two Lines][Author Name(s), First M. Last, Omit Titles and Degrees][Institutional Affiliation(s)]Author Note[Include any grant/funding information and a complete correspondence address.]
[SHORTENED TITLE UP TO 50 CHARACTERS] 2The Florida Tech Company is a large manufacturer and distributor of electronic components. Because of some successful new products marketed to manufacturers of computes and mobile electronic devises, the firm has recently undergone a period of explosive growth, more than doubling its revenues during the last two years. However, the growth has been accompanied by a marked decline in profitability and a precipitous drop in the company’s stock price. Analyze the company’s performance and find out what is going wrong. Begin by analyzing the firm’s financial statements over the last three years, which are shown below.FLORIDA TECH COMPANYINCOME STATEMENTSFor The Periods ended 12/31(000,000)201120122013Sales$1,578$2,106$3,265COGS6319061,502Gross Margin$ 947$1,200$1,763ExpensesMarketing$316$495$882R & D158211327Admin.126179294Total Expenses$ 600$ 885$1,503EBIT$347$315$260Interest6395143EBT$284$220$117Tax977540EAT$187$145$ 77FLORIDA TECH COMPANY BALANCE SHEETS
[SHORTENED TITLE UP TO 50 CHARACTERS] 312/31($000,000)201120122013ASSETSCash$ 30$ 40$ 62Accounts Receivable175351590Inventory90151300Current Assets$295$542$ 952Fixed Assets Gross$1,565$2,373$2,718Accum. Depreciation(610)(860)(1,135)Net$ 955$1,513$1,583Total Assets$1,250$2,055$2,535LIABILITIESAccounts Payable$56$81$134Accruals152030Current Liabilities$71$101$164CapitalLong-Term Debt$630$1,260$1,600Equity549694771Total Liab. & Equity$1,250$2,055$2,535The following additional information is provided with the financial statements. Depreciation for 2011, 2012, and 2013 was $200, $250, and $275 million respectively. No stock was sold or repurchased, and like many fast growing companies, Florida Tech paid no dividends.