B1. Historical Analysis The following analysis of Customer Snowboard’s horizontal analysis will provide an overview of the company’s stability over the past 3 years; year 12, 13 and 14. Net Sales: Year 12 finished with Net Sales of $6,601,000. In year 13, Net Sales increased slightly by 0.5% to $6,633,200 from year 12. In year 14, Net Sales declined by -3.4% to 6,407,800 from year 13. Year 14 also reflects a decline in Net Sales from year 12 by -2.93%. Total Operating Expenses: In year 12, total operating expenses were $1,739,500. Year 13 increased by 4.21% over year 12 to $1,812,800. Year 14 increased over year 13 by 2.23% to $1,853,200. Year over year increases were attributed to increases in Administrative Salaries, Executive Compensation, Utilities and Other General and Admin Expenses. Administrative Salaries increased 4.6% in year 13 from year 12 to $220,000. Year 14 had another annual increase of 13.64% to $250,000. Executive Compensation was $190,000 in year 12 and increased in year 13 by 2.63% to $195,000. Year 14 increased another 10.26% to $215,000. Utilities increased by 7.14%, or $17,000, in year 13 to $255,000 over year 12 and increased again in year 14 to $260,000, or 1.96%. Other General and Admin Expenses (G&AE) increased in year 13 by 31.12%, or $37,500, to $158,000 from year 12. Other G&AE increased an additional 7.59% in year 14 over year 13 to $170,000. Net Earnings Net Earnings decreased year over year. Net Earnings in year 12 was $140,250. Year 13
Cost of Goods Sold – totaled $3,294,000.00 for year 6, and from years 6 to 7 grew +32.8% or $1,048,000.00.
As previously mentioned, net sales will be estimated beginning with the $61 million in net sales projected for 1991, then relying on Goldman Sach’s projected growth rate for 1992 and 1993, and using a 5% growth rate from that point forward. Net income is estimated for 1992 and 1993 using Goldman Sach’s estimate of the margin.
Total profit show a positive increase from 18% in 2013 to 31% in 2015, far reaching the brothers’ preference of $1.1 M in 2015, Appendix 3 showed $1.4 M net profit
The second is listed at 150000 in the Selling, General & Administrative Budget within the Facility & General Operations Level Expenses. The last of the three line item that references to Utilities shows up in the same exact section and has the amount of 54000. This was extremely convoluted and seems redundant for the Utility costs. Beyond the confusion, the totals of the three Utility costs came out to 259747 for the year 9 Utilities expenses. These totals in cost for the utility related expenses seems very high compare to the year 8 utility expense of 150,000. With this said CB should consider a revised budget that is more detailed and gives a clearer explanation for the line items pertaining to the utility expenses.
In the financial year that ended June 2013, the total revenue was lower than that of 2014. The breakdown of
Actual sales = 1859 (in million €) and Break even sales = 1240.64 (in million €)
From the point of view of the income statement, the current year earnings would decrease by $2.24 million ($11.54million - $9.3 million).
OPERATING EXPENSES 57500 Freight 4,302,951.46 1.79% 4,236,263.09 1.84% (66,688.37) -1.55% 60000 Advertising Expense 897,140.01 0.37% 986,854.01 0.43% 89,714.00 10.00% 61000 Auto Expenses 208,974.39 0.09% 214,502.80 0.09% 5,528.41 2.65% 62000 Research & Development 31,212,334.17 12.97% 543,870.44 0.09% (30,668,463.73) -98.26% 64000 Depreciation Expense 133,000.00 0.06% 446,000.00 0.19% 313,000.00 235.34% 64500 Warehouse Salaries
A horizontal analysis can be defined as “the study of percentage changes in comparative statements” (Charles T. Horngren, 2008, p. 746). It is useful in determining a company’s financial stability. This section will analyze Competition Bikes Incorporated’s (CBI) percentage changes from years 6 to 7 and then 7 to 8. The report will include an analysis of CBI’s comparative income statement and balance sheet.
$59k, compared to a budget of $83k. YTD non-operating revenue was $693k compared to a budget of $751k.
In this table, it reflects the changes in fixed plant overhead from $420,000 to $378,000. The company still has the fixed selling and administrative expense per quarter of $118,000. The new company fixed overhead is now at $496,000 from the past $538,000 ($42,000) change from past to
From 1976 to 1982 the compound annual growth in net sales was 18.5% and the compound annual growth of after tax profit was 25.9%. Therefore, a 10% net sales growth shown in the proforma financial data seems reasonable.
The top four expenses of Blackmores in the three years were the cost of raw materials and consumables used, employee benefits expense, selling and marketing expenses and promotional and other rebates. All the four expenses increased gradually in the three years. The cost of raw materials and consumables used raise from $ 65,748 to $ 76,551 while employee benefits expense increased from $ 48,179 to $ 54,910. The costs of selling and marketing expenses and promotional and other rebates increased to$ 24,462 and $ 32,478 respectively from both around $ 19,000.
In review of the operating costs, overhead and administration have increased by 8% from 2008-2011 or $116,870. In addition salary dollars continue to increase from 2008-2011 by $111,150 with no efforts to flex. The other expenses are staying steady in proportion to gross revenues. There may be opportunities in these areas however salaries and overhead is the greatest opportunity to scale back costs and contribute to increased net income and ultimately positive cash flows. Flexing salaries and benefit to 44% of gross revenue and reducing overhead and expenses to 10% of gross revenue is recommended for Ms. Ringer to increase net income to $152,956 and equity to $240,214 (exhibit Operating Statements-2012 proforma).
Net sales decreased 9.9% to $525k compared with net sales of $583 for January 2015. Bimba sales comprised 62.6% of total sales for the current month. Sales to S&S rose e of 17.4% from January 2015. Other business rose 39.3% in January 2016.