BSA/500 Week 4 Individual Assignment: Balance Sheet and Income Statement

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Week 4 Individual Assignment: Balance Sheet and Income StatementBSA/500Week 4 Individual Assignment: Balance Sheet and Income StatementShort CommentariesBased on your analysis of the balance sheets and financial statements of Kroger Co. andSimon Transportation, evaluate the financial health of both companies. Discuss theimpact of liabilities, equity, and cash flow management on the overall stability andpotential for growth of each company. Provide a comparison of their strategies inmanaging debt and assets. (Word count: 800-1000 words)

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Company one (in the same industry as Kudler Fine Foods):Kroger Co. is a very large organization and knows how to watch their bottom lineand stay ahead of the competitors. The organization keeps a very steady bottom line afterlooking at their balance sheet. Kroger’s keeps their assets above the liability bottom lineso the company makes a profit overall. The stock options are very good in the companyso this will keep the shareholders happy. Understanding the things that can make thecompany grow is the overall goal of the management team and Kroger’s understands this.Company two (in the same industry as Riordan Manufacturing):Company three (in the same industry as Huffman Trucking):Simon Transportation had to file Chapter 11 bankruptcy after showing a couple ofyears of hardship in their agency. This company was known for transporting temperature-controlled products for major companies like Kraft, M&M Mars, and Wal-Mart.Reviewing their balance sheet was a way to see how problems can be caught and maybeworked on if it is not too late. If you look at the cash flow of the company you can seethat they were using borrowed money to operate and a business cannot grow in this state.Their records show a sign ofthe customers not paying their taps on time so the companyas all of its assets tied up in accounts receivables.Simon was booked up with about 44% of debt after you divide the shareholderequity and the long term debt. This would not have been that bad if the company was able

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to have a high return on equity, but they did not. With the short term loans taking over thecompany it was possible now for the banks to come in and take over the company,because they are not able to pay the bills. Simon Transportation took a major hit andcould not recover from the drastic financial situation they had gotten into.Company four (in the same industry as McBride Financial Services):AppendixCompanyone(in the same industry as Kudler Fine Foods):Insert should insert a Balance Sheet here:You should insert an Income Statement here:•KROGER CO Balance Sheet•View:Annual Data|Quarterly DataPeriod EndingQ4 FY10Q3 FY10Q2 FY10Q1 FY10Q4 FY09AssetsCash and Short Term Investments1.49 B1.51 B1.78 B1.28 B1.08 BNet Receivables845.00 M847.00 M805.00 M828.00 M909.00 MTotal Inventories4.97 B5.26 B4.65 B4.77 B4.94 BProgress Payments & Others—————Prepaid Expenses300.00 M282.00 M338.00 M300.00 M301.00 MOther Current Assets319.00 M291.00 M306.00 M305.00 M261.00 MCurrent Assets Total7.62 B7.91 B7.55 B7.18 B7.48 BLong Term Receivables—————Investment in Unconsolidated Subsidiaries0.000.000.000.000.00Other Investments—————Property, Plant & Equipment Net14.15 B14.11 B14.00 B13.98 B13.93 BProperty, Plant & Equipment Gross26.72 B25.67 B23.90 B22.44 B20.98 BAccumulated Depreciation12.57 B11.74 B10.74 B9.94 B9.20 BOther Assets1.74 B1.74 B1.73 B1.72 B1.71 BDeferred Charges—————Tangible Other Assets—————Intangible Other Assets1.14 B1.16 B1.16 B1.16 B1.16 B

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Period EndingQ4 FY10Q3 FY10Q2 FY10Q1 FY10Q4 FY09Total Assets23.50 B23.76 B23.28 B22.88 B23.13 BLiabilitiesShort Term Debt & Current Portion of Long TermDebt1.29 B547.00 M539.00 M528.20 M1.26 BAccrued Payroll—————Income Taxes Payable220.00 M354.00 M354.00 M354.00 M354.00 MDividends Payable—————Other Current Liabilities3.04 B3.26 B3.18 B2.96 B2.90 BCurrent Liabilities Total8.07 B8.34 B7.92 B7.80 B7.73 BLong Term Debt7.25 B7.42 B7.24 B6.94 B7.42 BProvision for Risks & Charges—————Deferred Taxes750.00 M577.00 M555.00 M560.00 M722.00 MDeferred Income—————Deferred Tax Liability in Untaxed Reserves—————Other Liabilities2.14 B2.39 B2.39 B2.48 B2.48 BTotal Liabilities18.21 B18.49 B18.11 B17.38 B18.20 BShareholders EquityNon-Equity Reserves0.000.000.000.000.00Minority Interest2.00 M-3.00 M4.00 M-2.00 M74.00 MPreferred Stock0.000.000.000.000.00Common Equity5.30 B5.26 B5.16 B5.11 B4.85 BCommon Stock959.00 M959.00 M959.00 M959.00 M958.00 MCapital Surplus3.39 B3.34 B3.33 B3.36 B3.36 BRevaluation Reserves—————Other Appropriated Reserves—-593.00M———Unappropriated (Free) Reserves—————Retained Earnings8.22 B8.01 B7.88 B7.68 B7.36 BEquity in Untaxed Reserves—————ESOP Guarantees—————Unrealized Foreign Exchange Gain (Loss)0.00————Unrealized Gain (Loss) on Marketable Securities-247.00M-238.00M-228.00M-225.00M0.00Treasury Stock6.73 B6.49 B6.43 B6.31 B6.24 BTotal Liabilities & Shareholders Equity23.50 B23.75 B23.28 B22.88 B23.13 BCommon Shares Outstanding620.00 M632.00 M634.00 M640.00 M642.00 MPeriod EndingFY2010FY2009FY2008FY2007FY2006AssetsCash and Short Term Investments1.49 B1.08 B894.00 M918.00 M803.00 M

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Period EndingQ4 FY10Q3 FY10Q2 FY10Q1 FY10Q4 FY09Net Receivables845.00 M909.00 M944.00 M786.00 M778.00 MTotal Inventories4.97 B4.94 B4.86 B4.86 B4.61 BProgress Payments & Others-827.00M-770.00M-800.00M-604.00M-450.00MPrepaid Expenses300.00 M300.00 M———Other Current Assets319.00 M261.00 M209.00 M555.00 M565.00 MCurrent Assets Total7.62 B7.48 B7.21 B7.11 B6.76 BLong Term Receivables0.000.000.000.000.00Investment in Unconsolidated Subsidiaries0.000.000.000.000.00Other Investments45.00 M26.00 M0.000.000.00Property, Plant & Equipment Net14.15 B13.93 B13.16 B12.50 B11.78 BProperty, Plant & Equipment Gross26.72 B25.67 B23.90 B22.44 B20.98 BAccumulated Depreciation12.57 B11.74 B10.74 B9.94 B9.20 BOther Assets1.69 B1.69 B2.84 B2.69 B2.68 BDeferred Charges—————Tangible Other Assets552.00 M530.00 M573.00 M543.00 M489.00 MIntangible Other Assets1.14 B1.16 B2.27 B2.14 B2.19 BTotal Assets23.50 B23.13 B23.21 B22.30 B21.22 BLiabilitiesShort Term Debt & Current Portion of Long TermDebt1.29 B1.26 B1.22 B2.25 B1.51 BAccrued Payroll888.00 M786.00 M828.00 M815.00 M796.00 MIncome Taxes Payable220.00 M354.00 M344.00 M239.00 M268.00 MDividends Payable—————Other Current Liabilities2.15 B2.12 B2.08 B1.99 B1.81 BCurrent Liabilities Total8.07 B7.73 B7.63 B8.69 B7.58 BLong Term Debt7.25 B7.42 B7.50 B6.53 B6.15 BProvision for Risks & Charges946.00 M1.08 B1.17 B——Deferred Taxes750.00 M568.00 M384.00 M367.00 M722.00 MDeferred Income—————Deferred Tax Liability in Untaxed Reserves—————Other Liabilities1.19 B1.40 B1.25 B1.80 B1.84 BTotal Liabilities18.21 B18.20 B17.94 B17.38 B16.29 BShareholders EquityNon-Equity Reserves0.000.000.000.000.00Minority Interest2.00 M74.00 M95.00 M0.000.00Preferred Stock0.000.000.000.000.00Common Equity5.30 B4.85 B5.18 B4.91 B4.92 BCommon Stock959.00 M958.00 M955.00 M947.00 M937.00 M

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