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In this part of the course project, you will analyze a balance sheet and income statement for some basic insights about company performance.

BALANCE SHEET:

Year 2 Year 1

Jan. 1 - Dec. 31 Jan. 1 - Dec. 31

(in thousands)

ASSETS

Current Assets

Cash and Cash Equivalents $200,907 $99,677

Accounts Receivable, Net 114,448 97,573

Inventories 342,942 263,174

Other Current Assets 265,730 312,219

Total Current Assets 924,029 772,643

Long Term Assets

Property, Plant, and Equipment 2,434,712 2,077,759

Less Accumulated Depreciation and Amortization (1,049,810) (812,003)

Net Property, Plant, and Equipment 1,384,902 1,265,756

Other Long-Term Assets 420,815 175,993

Total Long-Term Assets 1,805,717 1,441,749

LIABILITIES AND STOCKHOLDERS' EQUITY

Current Liabilities

Accounts Payable 168,984 135,994

Short-Term Debt 722 710

Other Current Liabilities 438,997 325,891

Total Current Liabilities 608,703 462,595

Long-Term Liabilities

Long-Term Debt 4,354 5,076

Deferred Income Taxes 33,217 22,496

Other Long-Term Liabilities 1,045 1,036

Total Long-Term Liabilities 38,616 28,608

Total Liabilities 647,319 491,203

Shareholders Equity

Preferred Stock 0 0

Common Stock (393,692,536 in Year 2;

388,328,592 in Year 1) 973,351 882,459

Additional Paid-in Capital 39,393 39,393

Retained Earnings 1,069,683 801,337

Total Stockholder's Equity 2,082,427 1,723,189

INCOME STATEMENT:

Year 2 Year 1

Jan. 1 - Dec. 31 Jan. 1 - Dec. 31

(in thousands)

Net Sales $4,075,522 $3,288,908

Cost of Goods Sold 1,685,928 1,350,011

Gross Profit 2,389,594 1,938,897

Selling, General & Administrative Expenses 1,765,470 1,450,447

Depreciation & Amortization Expenses 237,807 205,557

Operating Income 386,317 282,893

Interest Income (Expense) 0 0

Other Non-Operating Income (Expense) 50,018 56,106

Income before Income Taxes 436,335 338,999

Income Tax Expense 167,989 126,313

Net Income after Taxes 268,346 212,686

Gain (Loss) from Non-Recurring Activities 0 0

Net Income 268,346 212,686

Question -

How much cash does this company have on hand?

Did this company turn a profit during the first year of the period you are examining? How can you tell?

What kind of inventory might this company carry?

What do you notice about their current and non-current assets?

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