Assignment: Performance Evaluation in Organizations

Scenario

Information from Halloran Company's Income Statement and Balance Sheets for the years 2013-2017 is presented.

Questions

1.Use these statements to calculate trend percentages for all components of both statements using 2013 as the base year.

2.Prepare memo to the CEO of Halloran company summarizing your findings about the financial health of the company, using your calculations from above as evidence to support your conclusions.

HALLORAN COMPANY Comparative Income Statements For Years Ended December 31, 2017-2013 ($ thousands) 2017 2016 2015 2014 2013 Sales $ 1,271 $ 1,122 $ 1,028 S 948 S 890 Cost of goods sold $ 935 774 S 677 $ 602 S 564 Gross profit 336 348 351 347 326 Operating expenses S 248 S 192 S 176 S 128 S 110 Net income 89 S 156 S 176 S 219 $ 216 HALLORAN COMPANY Comparative Balance Sheets December 31, 2017-2013 ($ thousands) 2017 2016 2015 2014 2013 Assets Cash 58 $ 59 S 62 S 63 S 66 Accounts receivable, net S 368 386 350 S 270 S 239 Merchandise inventory $ 1,379 $ 1,023 S 903 774 S 702 Other current assets $ 27 24 S 11 S 26 21 Long-term investments S S 110 S 110 Plant assets, net $ 1,515 $ 1,511 $ 1,314 S 708 $ 734 Total assets $ 3,346 $ 3,002 $ 2,639 $ 1,950 $ 1,871 Liabilities and Equity Current liabilities S 915 $ 782 $ 539 $ 461 $ 410 Long-term liabilities S 971 855 S 834 S 428 435 Common stock S 750 S 750 S 750 S 638 S 638 Other paid-in capital 202 S 188 S 188 128 128 Retained earnings 509 S 428 S 329 S 297 S 261 Total liabilities and equity $ 3,346 $ 3,002 $ 2,639 $ 1,950 $ 1,871