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Magnetronics Income and Balance Sheets Analysis

The documents show the financial statements of Magnetronics, Inc. for 1995 and 1999. Between those years, net sales increased over 50% to $48.8 million while costs and expenses also rose significantly. This led to a smaller increase in net income, from $1.2 million to $1.3 million. On the balance sheet, assets and liabilities both doubled from $14.9 million to $22.8 million, with stockholders' equity increasing over 60%. The company saw substantial growth between 1995 and 1999 but net profits did not increase at the same rate as net sales.

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62 views3 pages

Magnetronics Income and Balance Sheets Analysis

The documents show the financial statements of Magnetronics, Inc. for 1995 and 1999. Between those years, net sales increased over 50% to $48.8 million while costs and expenses also rose significantly. This led to a smaller increase in net income, from $1.2 million to $1.3 million. On the balance sheet, assets and liabilities both doubled from $14.9 million to $22.8 million, with stockholders' equity increasing over 60%. The company saw substantial growth between 1995 and 1999 but net profits did not increase at the same rate as net sales.

Uploaded by

Abdulsalam91
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLS, PDF, TXT or read online on Scribd

Exhibit 1

Magnetronics, Inc., Consolidated Income Statements


for Years Ending December 31, 1995 and 1999 (thousands of dollars)

1995

1999

Net sales
Cost of goods sold

$32,513
19,183

$48,769
29,700

Gross profit
Operating expenses
Interest expenses

$13,330
10,758
361

$19,069
16,541
517

Income before taxes


Federal income taxes

$2,211
1,040

$2,011
704

Net income

$1,171

$1,307

Exhibit 2
Magnetronics, Inc., Consolidated Balance Sheets at
December 31, 1995 and 1999 (thousands of dollars)

1995

1999

$1,617
5,227
4,032

$2,020
7,380
8,220

Current assets
Net fixed assets

$10,876
4,073

$17,620
5,160

Total assets

$14,949

$22,780

$864
1,615
2,028

$1,213
2,820
3,498

$4,507
2,750
7,692

$7,531
3,056
12,193

$14,949

$22,780

Cash
Accounts receivable
Inventories

Notes payable, banks


Accounts payable
Accrued expenses and taxes
Current liabilities
Long-term debt
Stockholders equity
Total liabilities and stockholders' equity

Exhibit 3

Unidentified Balance Sheet

7.60%
31.7
5.3
1.2
30.2
24.0

2.70%
4.7
2.0
3.0
66.6
21.0

1.40%
2.9
23.0
1.8
49.9
21.0

7.20%
60.3
8.7
7.3
4.3
12.2

12.70%
11.5
48.1
0.0
25.0
2.7

Total assets

100.00%

100.00%

100.00%

100.00%

100.00%

Notes payable
Accounts payable
Other current liabilities
Long-term debt
Other liabilities
Owners equity
Total liabilities and equity

38.40%
5.5
1.5
17.4
26.5
10.7
100.00%

4.20%
3.0
4.7
30.0
22.9
35.2
100.00%

4.60%
20.0
12.7
37.5
9.8
15.4
100.00%

50.80%
15.2
5.7
22.7
1.3
4.3
100.00%

0.90%
21.5
27.4
8.1
8.1
34.0
100.00%

.04
.03
.29
.78
149
11
.89
1.6
1.0
.9

.14
.05
.14
.36
48
10
.65
.85
1.0
.9

.02
.06
.41
3.2
3
10
.85
2.4
0.8
.2

.01
.01
.13
2.1
106
23
.96
5.3
1.0
.9

.05
.03
.10
.67
63
1.1
.66
.24
1.4
.5

Balance Sheet Percentages


Cash
Receivables
Inventories
Other current assets
Property and equipment (net)
Other assets

Selected Ratios
Net profits/net sales
Net profits/total assets
Net profits/owners equity
Net sales/total assets
Collection period (days)
Inventory turnover
Total liabilities/total assets
Long-term debt/owners equity
Current assets/current liabilities
Quick ratio

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