ACC 499 Final Paper

ACC 499 Final Paper - A letter from the president Dear...

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A letter from the president Dear Shareholders, It is a great pleasure for me to address to you that last year was a big year for our company. Sales increased by 57.32% and net sales increased by 56.25%. Net income increased by 16%. After paying out preferred dividends and interest expenses a substantial amount was available for the common stockholders. But keeping in view of the company’s growth prospect not all available earnings is paid as dividend rather a lion’s share of the earnings are retained. No additional share were issued but a 3 years, 10% mortgage notes payable was used for financing purpose, to meet the growth financing of the company. An increase in long-term investment was also seen. Due to increases in the sales level, a large quantity of inventories is now held. This can’t be attributed as a nondiscretionary inventory management rather it provided as an insurance against lost sales. Our company managed to have maintained sufficient liquid assets and the working capital was $750,000! I am very glad with the overall performance of our company in 2006 and hope to maintain the growth in the following years too. Our focus from now on will be to sustain the level of growth attained in year 2006 and don’t let the growth drop by. But this is not in our hands only, there may be recessionary periods in the economy and due to the very
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  • Fall '09
  • Balance Sheet, Net Income, Generally Accepted Accounting Principles

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