Assignment:
SUPER DOT COM, INC.
Income Statements
(in 000's, except EPS)
2003 2004 2005
Net Sales $2100 3051 3814
Cost of Goods Sold 681 995 1040
Gross Profit 1419 2056 2774
Selling & Admin Expenses 610 705 964
Operating profit 809 1351 1810
Interest Expense 11 75 94
Income before tax 798 1276 1716
Income Tax @ 33% 263 421 566
Net Income 535 855 1150
Dividends paid 0 0 0
Increase in Retained Earnings 535 855 1150
Avg #of Common Shares 2326 2326 2326
EPS 0.005 0.367 0.494
Balance Sheets
2003 2004 2005
Assets:
Cash & Equivalents $224 103 167
Accounts Receivable 381 409 564
Inventories 307 302 960
Other Current Assets 69 59 29
Total Current Assets 981 873 1720
Prop. Plant & Equip. gross 1901 3023 3742
Less Accum Depreciaation (81) (82) (346)
Prop. Plant & Equip. Net 1820 3915 5316
Other Fixed Assets 58 101 200
Total Assets 2859 3915 5316
Liabilities & Equity;
Accounts Payable $210 405 551
Short Term debt 35 39 72
Total Current Liabilities 245 444 623
Long Term Debt 17 19 91
Total Liabilities 262 463 714
Common Stock 2062 2062 2062
Retained Earnings 535 1390 2540
Total Equity 2597 3452 4602
Total Liabilities & Equity 2859 3915 5316
Q1. What is the company's average annual rate of sales growth from 2003 through 2005?
Q2. How long, on average, was Super Dot Com taking to collect on it's receivables accounts in 2005? (Assume all of the company's sales were on credit)
Q3. Was Super Dot Com more or less profitable in 2005 than it was in 2003? (Justify answer using at least 2 ratios)
Q4. Was Super Dot Com more or less liquid at the end of 2005 than it was at the end of 2003? (Justify answer using at least two ratios)