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What can the historical income statements (exhibit 1) and balance sheet (exhibit 2) tell you about the health and current condition of Oracle Systems? Do not use ratios yet.

Income Statement abd Baalance sheet are provided in the photos.

UVA-F-1031 Exhibiti MBA Finance ORACLE SYSTEMS CORPORATION Income Statements, 1984-1990 (in thousands, except per-share amounts) Fiscal Year Ende: May 3 90 Oir Ende 1984 1985 1986 1987 1988 1990 Ecb28 Revenues License Services Total revenues $12,22 433 12,715 $21,902 1.252 23.159 $44,657 10.720 55,383 S101.264 20.002 131.271 5205,435 76.678 282,113 $417.825 165848 583,673 $69.98 280.946 970,844 $214,799 $245,561 6,431 14,542 27.171 5,644 7.478 2.009 1673 10,11 65,651 18.661 9.9.19 8.603 102,864 272,812 100,987 52.570 3.886 1.989 20,417 124,148 51,241 25,708 17.121 218.218 465,074 160,426 88.291 67.25% 781,049 20,615 230,187 21.685 174.673 44,541 460,713 Operating expenses Sales and marketing Cost of services Research and development General and admin, Total operating expenses Operating income Other income (expense) Income before taxes Taxes Net income 2,602 (305) 2,742 (157) 10,842 (367) 28,407 (509) 63,895 1.084 122.960 (2,715) 189,795 (17,135) (36,003) 7,516 49,203 5,342 2.297 90 1,389 2,585 1004 1,551 10,475 4.579 5.896 27,898 12.275 15,623 64,979 22.093 42,886 120,245 38.479 81.766 172,660 55.250 117410 (14.296) S(28,723) 14,035 $29,826 Earnings per share S0.11 $0.12 $0.11 $0.12 $0.32 $0.61 $0.86 Number of shares outstanding 12,340 12,770 54,864 125,028 132,950 135,066 136,826 Source: Company was reports. Exhibit 2 ORACLE SYSTEMS CORPORATION Balance Sheets, 1985-1990 (in thousands) Fiscal Year Ended May 31 1985 1986 1987 1988 1989 199 Owarter de 31.1990 Assets Current assets: Cash and cash equivalents Trade receivables Other current assets Total current assets $ 599 9.032 $12,524 26,554 2.393 41,471 $ 37,557 65.205 6,376 109,138 $ 48,610 129,999 13.218 191,827 $ 49,393 261,989 25.551 336,933 $ 49,828 468,071 51.358 569,257 S 50,198 394,648 76,428 521,274 9.962 Property, net Computer software develop. Other assets 4,491 0 1,010 14,152 0 1.805 26,896 4,818 2,9-10 47,554 6,920 3.267 94,455 13.942 14,879 171.945 33,396 12,649 203,887 41,707 12,245 Total assets $15.463 $57,428 $143.792 $249.568 5460.209 $787,247 5779,113 $ 3,164 Liabilities and stockholders' equity Current liabilities: Notes payable Accounts payable Accrued expenses Customer advances Total current liabilities 4.835 S 694 1.432 3,360 897 6,383 11.301 2.993 22.293 $ 5,196 10,645 28,737 3.847 48,425 $ 6,507 23,502 62.627 9.547 102,183 $ 23,334 51,582 88,014 15.403 178,333 $ 42,501 64,922 134,028 42.121 283.572 $ 34,970 57,281 82,135 70.011 244,397 5.641 843 Long-term debt Deferred income taxes Stockholders' equity Total liabilities and stockholders' equity 1,373 340 7.367 $15.463 9,025 3,686 82.656 $143.792 5,363 7,379 134.643 $249.568 39,208 12,114 230,554 $460.209 94,065 22,025 387.585 $787.247 165,643 10,397 358,676 $779,113 28.651 557.428 UVA-F-1031 Exhibit 1 ORACLE SYSTEMS CORPORATION Income Statements, 1984-1990 (in thousands, except per-share amounts) Fiscal Year Ended My 3/ 90 del 1984 1986 1987 1988 1989 1990 Eeb 28 $12,282 Revenues: Licenses Services Total revenues $21,902 1.252 23,159 $44,657 10.226 55,383 S101.264 20.007 131.271 $205,435 76,678 282,113 $417,825 165,848 583,673 5689.898 280.9.16 970,844 12,715 $214,799 $245,561 6,431 14,542 Operating expenses Sales and marketing Cost of services Research and development General and admin. Total operating expenses 3,886 2,009 1.673 10,113 27,171 5,614 7.478 4.248 44,541 65,651 18.661 9.949 8.603 102,864 124,148 51,241 25,708 17.121 218,218 272,812 100,987 52,570 34.144 460,713 465,074 160,426 88,291 67.258 781,049 20,615 230,187 21.685 174,673 1.989 20,417 Operating income Other income (expense) 2,602 (305) 2,742 (157) 10,842 (367) 28,407 (509) 63,895 1,084 122.960 (2,715) 189,795 (17.135) (36,003) 7,516 49,203 5,342 Income before taxes Taxes Net income 2,297 908 1,389 2,585 1.034 1,551 10,475 4579 5.896 27,898 12.275 15,623 64.979 22.093 42,886 120.245 38479 81,766 172,660 55,250 117,410 (14.296) S(28,723) 14.035 $29,826 $0.11 Earnings per share $0.12 $0.11 $0.12 $0.32 $0.86 $0.61 Number of shares outstanding 12,340 12,770 54,864 125,028 132,950 135,066 136,826 UVA-F-1031 -7- Exhibit 2 ORACLE SYSTEMS CORPORATION Balance Sheets, 1985-1990 (in thousands) Fiscal Year Ended May 3/ Quarter Aue 31 1990 1985 1987 1986 1990 1988 1989 Assets Current assets Cash and cash equivalents Trade receivables Other current assets Total current assets $ 599 9,032 $12.524 26,554 2.393 41,471 $ 37,557 65.205 6.376 109,138 $ 48,610 129,999 13.218 191.827 $ 49,393 261,989 25,551 336,933 $ 49,828 468,071 51,358 569.257 $ 50,198 394,648 76,428 521,274 9,962 Property, net Computer software develop Other assets 4,491 0 1,010 14.152 0 1,805 26,896 4,818 2,940 47,554 6,920 3.267 94,455 13,942 14,879 171.945 33,396 12,649 203,887 41,707 12,245 $779,113 $249,568 $143.792 $57.428 $787.247 $15.463 $460,209 Total assets Liabilities and stockholders' equity Current liabilities: Notes payable Accounts payable Accrued expenses Customer advances Total current liabilities $ 694 1,432 3,360 $ 3,164 4,835 11,301 2.993 22,293 $ 5,196 10,645 28,737 3.847 48,425 $ 6,507 23,502 62,627 9.547 102,183 $ 23,334 51,582 88,014 15,403 178,333 $ 42,501 64.922 134,028 42,121 283,572 $ 34,970 57,281 82,135 70,011 244,397 897 6,383 5,363 7,379 Long-term debt Deferred income taxes Stockholders' equity Total liabilities and stockholders' equity 1,373 340 7.367 $15.463 5,641 843 28.651 $57.428 9,025 3,686 82.656 $143.792 39,208 12.114 230,554 S460.209 94,065 22,025 387,585 $787,247 165,643 10,397 358.676 S779.113 134.643 $249,568

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