Financial Case Study Part 2

Financial Case Study Part 2 - Income Sheet (Numbers in...

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Income Sheet (Numbers in Millions of Dollars) Financial Data Oct. '07 Oct. '06 % Change  Observations Sales 2426 2362.3 2.70% $63.70  Profit Margin Net Income Cost of Sales 1303.8 1280.7 1.80% $23.10  Cost of sales is up 1.8% not good Sales Gross Profit 1122.3 1081.6 3.76% $40.70  Observation Advertising Expense 1070.9 832 28.71% $238.90  Return on Assets Net Income -74.4 131.3 -156.66% ($205.70) Earnings are down over 150% very bad Assets Income Tax Expense 24.2 38.3 -36.81% ($14.10) Observation Net Income -121.1 93 -230.22% ($214.10) Return on Equity Net Income Cash 74.3 36.8 101.90% $37.50  Stockholder Equit Inventory 521 425.9 22.33% $95.10  Observation Accounts Recievables 892.7 841.6 6.07% $51.10  Current Assets 1513.3 1333.2 13.51% $180.10  Total Assets 2641.5 2447.2 7.94% $194.30  Current Liabilities 881.4 764.6 15.28% $116.80  Liablities are up 15.28% - bad Receivable TurnoverSales Long Term Debt 772.1 689.7 11.95% $82.40  Receivables Total Equity 886.6 881.1 0.62% $5.50  Observation A receivable turnov Inventory Turnover Sales Profitability Ratios - How profitab Actual  Change Sales are up 2.7% due to increases in  advertising and the addition of new markets Profits are up because Quiksilver has added  companies such as Rossignol In 2007 for every do company made it m Advertising expenses are up which is not  good but necessary to the vitality of the  business Earnings Before Income  Taxes Income taxes are down due to lowered  earnings and Net Income In 2007 for each do almost 4 cents - bad Net Income is down very sharply - extremely  bad caused by the purchase of new  companies Cash is up over 100% good for use on Short  term debt Inventory is up 22.33% thanks to the new  markets allowing for more sales For every dollar inve earned 10 cents thi Accounts Recievable is up meaning money is 
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Financial Case Study Part 2 - Income Sheet (Numbers in...

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