Review the 3 Companies Financial Statements Completely

1. Out of the 3 companies, which is in the strongest financial shape? (Support answer with financial information provided)
2. Which one is performing the best? And how do you know that?
3. From looking at the financial statements of each company, what can you infer about the 3 companies? (Analyze the financial statements in depth)

INCOME STATEMENT Year 2 Jan 1 - Dec 31 Year 1 Jan 1 - Dec 31 (In thousands) Net Sales Cost of Goods Sold Gross Profit Selling, General and Administrative Expenses Depreciation and Amortization Expenses Operating Income Interest Income (Expense) Other Non-Operating Income (Expense) Income Before Income Taxes Income Tax Expense Net Income After Taxes Gain (Loss) from Non-Recurring Activities Net Income $ 4,075,522 1,685,928 2,389,594 1,765,470 237,807 386,317 0 50,018 436,335 167,989 268,346 0 $ 268,346 $ 3,288,908 1,350,011 1,938,897 1,450,447 205,557 282,893 0 56,106 338,999 126,313 212,686 0 $ 212,686 PERCENTAGE OF NET SALES INCOME STATEMENT Year 2 Year 1 Jan 1 - Dec 31 Jan 1 - Dec 31 Net Sales Cost of Goods Sold Gross Profit Selling, General and Administrative Expenses Depreciation and Amortization Expenses Operating Income Interest Income (Expense) Other Non-Operating Income (Expense) Income Before Income Taxes Income Tax Expense Net Income After Taxes Gain (Loss) from Non-Recurring Activities Net Income 100.00% 41.37% 58.63% 43.32% 5.84% 9.48% 0.00% 1.23% 10.71% 4.12% 6.58% 0.00% 6.58% 100.00% 41.05% 58.95% 44.10% 6.25% 8.60% 0.00% 1.71% 10.31% 3.84% 6.47% 0.00% 6.47% INCOME STATEMENT Year 2 Jan 1 - Dec 31 Year 1 Jan 1 - Dec 31 (In thousands) Net Sales Cost of Goods Sold Gross Profit Selling, General and Administrative Expenses Depreciation and Amortization Expenses Operating Income Interest Income (Expense) Other Non-Operating Income (Expense) Income Before Income Taxes Income Tax Expense Net Income After Taxes Gain (Loss) from Non-Recurring Activities Net Income $ 116,727 67,716 49,011 31,560 4,330 13,121 56 (1,666) 11,511 5,245 6,266 0 $ 6,266 $ 100,000 57,134 42,866 28,105 4,081 10,680 (30) (542) 10,108 4,138 5,970 0 $ 5,970 PERCENTAGE OF NET SALES INCOME STATEMENT Net Sales Cost of Goods Sold Gross Profit Selling, General and Administrative Expenses Depreciation and Amortization Expenses Operating Income Interest Income (Expense) Other Non-Operating Income (Expense) Income Before Income Taxes Income Tax Expense Net Income After Taxes Gain (Loss) from Non-Recurring Activities Net Income Year 2 Jan 1 - Dec 31 Year 1 Jan 1 - Dec 31 100.0% 58.0% 42.0% 27.0% 3.7% 11.2% 0.0% -1.4% 9.9% 4.5% 5.4% 0.0% 5.4% 100.0% 57.1% 42.9% 28.1% 4.1% 10.7% 0.0% -0.5% 10.1% 4.1% 6.0% 0.0% 6.0% INCOME STATEMENT Year 2 Jan 1 - Dec 31 Year 1 Jan 1 - Dec 31 (In thousands) Net Sales Cost of Goods Sold Gross Profit Selling, General and Administrative Expenses Depreciation and Amortization Expenses Operating Income Interest Income (Expense) Other Non-Operating Income (Expense) Income Before Income Taxes Income Tax Expense Net Income After Taxes Gain (Loss) from Non-Recurring Activities Net Income $ 491,549 381,489 110,060 37,972 12,271 59,817 (749) (4,295) 54,773 21,295 33,478 0 $ 33,478 $ 394,354 316,946 77,408 27,562 7,959 41,887 2,408 (1,749) 42,546 16,168 26,378 0 $ 26,378 BALANCE SHEET Dec 31, Year 2 Dec 31, Year 1 ASSETS Current Assets: Cash and Cash Equivalents Accounts Receivable, Net Inventories Other Current Assets Total Current Assets Long-Term Assets: Property, Plant, and Equipment Less Accumulated Depreciation & Amortization Net Property, Plant, and Equipment Other Long-Term Assets Total Long-Term Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Liabilities: Long-Term Debt Deferred Income Taxes Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities Stockholders' Equity: Preferred Stock Common Stock (shares: 393,692,536 in Year 2; 388,328,592 in Year 1) Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity (In thousands) $ 200,907 114,448 342,944 265,730 924,029 $ 99,677 97,573 263,174 312,219 772,643 2,434,712 (1,049,810) 1,384,902 420,815 1,805,717 $ 2,729,746 2,077,759 (812,003) 1,265,756 175,993 1,441,749 $ 2,214,392 $ 168,984 722 438,997 608,703 $ 135,994 710 325,891 462,595 4,354 33,217 1,045 38,616 647,319 5,076 22,496 1,036 28,608 491,203 0 0 973,351 39,393 1,069,683 2,082,427 $ 2,729,746 882,459 39,393 801,337 1,723,189 $ 2,214,392 BALANCE SHEET Dec 31, Year 2 Dec 31, Year 1 ASSETS Current Assets: Cash and Cash Equivalents Accounts Receivable, Net Inventories Other Current Assets Total Current Assets Long-Term Assets: Property, Plant, and Equipment Less Accumulated Depreciation & Amortization Net Property, Plant, and Equipment Other Long-Term Assets Total Long-Term Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Liabilities: Long-Term Debt Deferred Income Taxes Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities Stockholders' Equity: Preferred Stock Common Stock (shares: 8,156,491 in Year 2; 7,956,872 in Year 1) Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity (In thousands) $ 502 12,708 7,465 1,937 22,612 $ 800 9,132 5,876 1,863 17,671 41,768 (19,455) 22,313 15,065 37,378 $ 59,990 35,959 (15,125) 20,834 16,182 37,016 $ 54,687 $ 6,352 3,123 3,879 13,354 $ 6,271 3,193 2,302 11,766 8,908 2,460 120 11,488 24,842 15,209 647 0 15,856 27,622 0 0 816 21,589 12,743 35,148 $ 59,990 795 19,793 6,477 27,065 $ 54,687 BALANCE SHEET Dec 31, Year 2 Dec 31, Year 1 ASSETS Current Assets: Cash and Cash Equivalents Accounts Receivable, Net Inventories Other Current Assets Total Current Assets Long-Term Assets: Property, Plant, and Equipment Less Accumulated Depreciation & Amortization Net Property, Plant, and Equipment Other Long-Term Assets Total Long-Term Assets Total Assets LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts Payable Short-Term Debt Other Current Liabilities Total Current Liabilities Long-Term Liabilities: Long-Term Debt Deferred Income Taxes Other Long-Term Liabilities Total Long-Term Liabilities Total Liabilities Stockholders' Equity: Preferred Stock Common Stock (shares: 54,271 in Year 2; 56,295 in Year 1) Additional Paid-In Capital Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity (In thousands) $ 38,169 46,319 24,365 38,241 147,094 $ 21,904 38,682 16,159 25,024 101,769 252,770 (56,178) 196,592 66,801 263,393 $ 410,487 156,484 (43,907) 112,577 41,030 153,607 $ 255,376 $ 14,055 15,576 30,056 59,687 $ 12,095 4,602 35,836 52,533 57,188 9,849 10,411 77,448 137,135 3,912 3,930 7,334 15,176 67,709 0 0 173,259 0 100,093 273,352 $ 410,487 121,052 0 66,615 187,667 $ 255,376 STATEMENT OF CASH FLOWS Year 2 Jan 1 - Dec 31 (In thousands) CASH FLOW FROM OPERATING ACTIVITIES: Net Income Items not requiring cash: Depreciation and Amortization Deferred Income Taxes Changes in Assets and Liabilities: Inventories Accounts Receivable Other Current Assets Accounts Payable Short-Term Debt Other Current Liabilities Net cash provided by (used in) operating activities CASH FLOW FROM INVESTING ACTIVITIES: Net additions to property, plant, and equipment Net additions to other long-term assets Net cash provided by (used in) investing activities $ 268,346 237,807 10,721 (79,770) (16,875) 46,489 32,990 12 113,106 612,826 (356,953) (244,822) (601,775) CASH FLOW FROM FINANCING ACTIVITIES: Net proceeds from common stock transactions Net proceeds from long-term debt Net proceeds from other long-term liabilities Net cash provided by financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of period 90,892 (722) 9 90,179 101,230 99,677 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 200,907 STATEMENT OF CASH FLOWS Year 2 Jan 1 - Dec 31 (In thousands) CASH FLOW FROM OPERATING ACTIVITIES: Net Income Items not requiring cash: Depreciation and Amortization Deferred Income Taxes Changes in Assets and Liabilities: Inventories Accounts Receivable Other Current Assets Accounts Payable Short-Term Debt Other Current Liabilities Net cash provided by (used in) operating activities $ 6,266 4,330 1,813 (1,589) (3,576) (74) 81 (70) 1,577 8,758 CASH FLOW FROM INVESTING ACTIVITIES: Net additions to property, plant, and equipment Net additions to other long-term assets Net cash provided by (used in) investing activities (5,809) 1,117 (4,692) CASH FLOW FROM FINANCING ACTIVITIES: Net proceeds from common stock transactions Net proceeds from long-term debt Net proceeds from other long-term liabilities Net cash provided by financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of period 1,817 (6,301) 120 (4,364) (298) 800 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 502 STATEMENT OF CASH FLOWS Year 2 Jan 1 - Dec 31 (In thousands) CASH FLOW FROM OPERATING ACTIVITIES: Net Income Items not requiring cash: Depreciation and Amortization Deferred Income Taxes Changes in Assets and Liabilities: Inventories Accounts Receivable Other Current Assets Accounts Payable Short-Term Debt Other Current Liabilities Net cash provided by (used in) operating activities CASH FLOW FROM INVESTING ACTIVITIES: Net additions to property, plant, and equipment Net additions to other long-term assets Net cash provided by (used in) investing activities $ 33,478 12,271 5,919 (8,206) (7,637) (13,217) 1,960 10,974 (5,780) 29,762 (96,286) (25,771) (122,057) CASH FLOW FROM FINANCING ACTIVITIES: Net proceeds from common stock transactions Net proceeds from long-term debt Net proceeds from other long-term liabilities Net cash provided by financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents, beginning of period 52,207 53,276 3,077 108,560 16,265 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 38,169 21,904