Statement of Owner's Equity:
What caused the balance in retained earnings to increase or decrease?
Financial Analysis:
Using vertical analysis (show your calculations), present the following values for this year and last year in a table:
- gross profit margin
- net profit margin (use the last "net income" line on the statement)
- Comment on changes:
- Are sales increasingly profitable?
- How are gross profit and net income changing, as dollar values?
Current assets Cash and cash equivalents $ Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property and equipment, net 557,403 652,546 1,019,496 364,183 2,593,628 826,868 546,494 41,793 112,420 123,819 4,245,022 312,483 609,670 1,158,548 256,978 2,337,679 885,774 555,674 46,995 82,801 97,444 Goodwill Intangible assets, net Deferred income taxes Other long term assets Total assets Liabilities and Stockholders' Equity Current liabilities Revolving credit facility, current $ 4,006,367 $ Accounts payable 125,000 561,108 296,841 Accrued expenses Customer refund liability Current maturities of long term debt Other current liabilities = 560,884 340,415 301,421 25,000 88,257 1,315,977 703,834 208,340 2,228,151 Total current liabilities 27,000 50,426 1,060,375 765,046 162,304 1,987,725 Long term debt, net of current maturities Other long term liabilities Total liabilities Commitments and contingencies (see Note 7) Stockholders' equity Class A Common Stock, 50.0003 1/3 par value; 400,000,000 shares authorized as of December 31, 2018, and 2017; 187,710,319 shares issued and outstanding as of December 31, 2018, and 185,257,423 shares issued and outstanding as of December 31, 2017. Class B Convertible Common Stock, $0.0003 1/3 par value; 34,450,000 shares authorized, issued and outstanding as of December 31, 2018 and 2017. Class C Common Stock, 50.0003 1/3 par value; 400,000,000 shares authorized as of December 31, 2018 and 2017; 226,421,963 shares issued and outstanding as of December 31, 2018, and 222,375,079 shares issued and outstanding as of December 31, 2017. Additional paid-in capital Retained earnings Accumulated other comprehensive loss El 1931 916,628 1,139,082 (38,987) 872.266 1,184,441 (38,211) 2018 $ $ $ S 5.193,185 2.852.714 2.340,471 2,182,339 2016 4,833,338 2,584,724 2,248,614 1,831,143 2015 3,963,313 2,057,766 1,905,547 1,497,000 2014 3,084,370 1,572,164 1,512,206 1.158.251 183.149 2017 4.989,244 2,737,830 2,251,414 2,099,522 124,049 27,843 (34,538) (3,614) (10.309) 37,951 417,471 (26,434) (2.755) (in thousands, except per share amounts) Net revenues Cost of goods sold Gross profit Selling, general and administrative expenses Restructuring and impairment charges Income (loss) from operations Interest expense, net Other expense, net Income (loss) before income taxes Income tax expense (benefit) Income from equity method investment Net income (loss) Adjustment payment to Class C capital stockholders Net income (loss) available to all stockholders Net income available per common share Basic net income (loss) per share of Class A and B common stock Basic net income (loss) per share of Class C common stock Diluted net income (loss) per share of Class A and B common stock Diluted net income (loss) per share of Class C common stock 353,955 (5,335) (6,410) (25,017) (33,568) (9.203) (67,788) (20,552) 934 (46,302) 408,547 (14,628) (7.234) 386,685 154.112 388,282 131,303 342,210 134,168 (48,260) 256,979 232,573 208,042 59,000 197,979 (46,302) $ (48,260) $ $ 232,573 $ 208,042 (0.10) $ (0.10) $ (0.10) $ (0.10) $ (0.11) $ (0.11) $ (0.11) $ (0.11) $ 0.45 $ 0.72 $ 0.45 $ 0.71 $ 0.54 $ 0.54 $ 0.53 $ 0.53 $ 0.49 0.49 0.47 0.47 Weighted average common shares outstanding Class A and B common stock 215,498 Basic Diluted 221,001 221,001 219.254 219,254 217,707 221,944 213,227 219,380 220.868 Weighted average common shares outstanding Class C common stock Basic Diluted 224.814 224,814 221,475 221,475 218.623 222,904 215,498 220.868 213,227 219,380 Dividends declared - s - $ 59,000 $ - $ Common Stock Common Stock Common Stock Retained Total Shares Amount Shares Amount Shares Amount Earnings Equity Balance as of December 31, 2015 Accumulated Other Comprehensive Income 5 45,013) 181,630 lo 218,080 s Additional Paid-in-Capital 638,558S 8.203 1.076,533 S FIL 1.888.222 8.203 Exercise of stock options I Shares withheld in consideration of employee tax obligations relative to stock-based - (15.098 (15,098) compensation arrangements I Issuance of Class A Common Stock, net of forfeitures 7.884 7.884 25,834 Issuance of Class C Common Stock, net of forfeitures 25,835 Issuance of Class C dividend 58,073 50,000 1 2.927 Stock-based compensation expense 46,149 I 48,149 44,783 Net excess tax benefits from stock-based compensation arrangements 44,783 1 Comprehensive income (loss) 258.979 7.130 249.849 1 1 Balance as of 12/31/2016 1 1 1 1 1 ELI I I II I 220.174 1.259,414 52.143) 183.815 809 2.030,900 823,484 3,884 Exercise of stock options 558 3,884 1 Shares withheld in consideration of employee tax obligations relative to stock-based - 2,781) compensation arrangements Issuance of Class A Common Stock, net of forfeitures NI I II II III I II II 131 - - Issuance of Class C Common Stock, net of forfeitures 1 7,853 Impact of adoption of accounting standard updates 7,852 2.866 39.932 (23,932 (26,598) 39,932 Stock-based compensation expense 1 Comprehensive income (loss) 48,260) (34,328) 1 13,932 38,211 Balance as of December 31, 2017 1,184,441 2.018,842 185,257 2,034 222.375 2,127 872.288 8,747 Exercise of stock options and warrants 6.748 1 Shares withheld in consideration of employee tax obligations relative to stock-based 2,584 2.564 compensation arrangements Issuance of Class A Common Stock, net of forfeitures - Issuance of Class C Common Stock, net of forfeitures II III111||| 4,168 4.167) 1 Impact of adoption of accounting standard updates 3.507 3,507 Stock-based compensation expense 1 41.783 41,783 Comprehensive income (loss) 47,078 1 (46,302 1,139,082 Balance as of December 31, 2018 187.710 34.450 S 228,422 916.8285 $ 38,987) S 2.016,871 1 Current assets Cash and cash equivalents $ Accounts receivable, net Inventories Prepaid expenses and other current assets Total current assets Property and equipment, net 557,403 652,546 1,019,496 364,183 2,593,628 826,868 546,494 41,793 112,420 123,819 4,245,022 312,483 609,670 1,158,548 256,978 2,337,679 885,774 555,674 46,995 82,801 97,444 Goodwill Intangible assets, net Deferred income taxes Other long term assets Total assets Liabilities and Stockholders' Equity Current liabilities Revolving credit facility, current $ 4,006,367 $ Accounts payable 125,000 561,108 296,841 Accrued expenses Customer refund liability Current maturities of long term debt Other current liabilities = 560,884 340,415 301,421 25,000 88,257 1,315,977 703,834 208,340 2,228,151 Total current liabilities 27,000 50,426 1,060,375 765,046 162,304 1,987,725 Long term debt, net of current maturities Other long term liabilities Total liabilities Commitments and contingencies (see Note 7) Stockholders' equity Class A Common Stock, 50.0003 1/3 par value; 400,000,000 shares authorized as of December 31, 2018, and 2017; 187,710,319 shares issued and outstanding as of December 31, 2018, and 185,257,423 shares issued and outstanding as of December 31, 2017. Class B Convertible Common Stock, $0.0003 1/3 par value; 34,450,000 shares authorized, issued and outstanding as of December 31, 2018 and 2017. Class C Common Stock, 50.0003 1/3 par value; 400,000,000 shares authorized as of December 31, 2018 and 2017; 226,421,963 shares issued and outstanding as of December 31, 2018, and 222,375,079 shares issued and outstanding as of December 31, 2017. Additional paid-in capital Retained earnings Accumulated other comprehensive loss El 1931 916,628 1,139,082 (38,987) 872.266 1,184,441 (38,211) 2018 $ $ $ S 5.193,185 2.852.714 2.340,471 2,182,339 2016 4,833,338 2,584,724 2,248,614 1,831,143 2015 3,963,313 2,057,766 1,905,547 1,497,000 2014 3,084,370 1,572,164 1,512,206 1.158.251 183.149 2017 4.989,244 2,737,830 2,251,414 2,099,522 124,049 27,843 (34,538) (3,614) (10.309) 37,951 417,471 (26,434) (2.755) (in thousands, except per share amounts) Net revenues Cost of goods sold Gross profit Selling, general and administrative expenses Restructuring and impairment charges Income (loss) from operations Interest expense, net Other expense, net Income (loss) before income taxes Income tax expense (benefit) Income from equity method investment Net income (loss) Adjustment payment to Class C capital stockholders Net income (loss) available to all stockholders Net income available per common share Basic net income (loss) per share of Class A and B common stock Basic net income (loss) per share of Class C common stock Diluted net income (loss) per share of Class A and B common stock Diluted net income (loss) per share of Class C common stock 353,955 (5,335) (6,410) (25,017) (33,568) (9.203) (67,788) (20,552) 934 (46,302) 408,547 (14,628) (7.234) 386,685 154.112 388,282 131,303 342,210 134,168 (48,260) 256,979 232,573 208,042 59,000 197,979 (46,302) $ (48,260) $ $ 232,573 $ 208,042 (0.10) $ (0.10) $ (0.10) $ (0.10) $ (0.11) $ (0.11) $ (0.11) $ (0.11) $ 0.45 $ 0.72 $ 0.45 $ 0.71 $ 0.54 $ 0.54 $ 0.53 $ 0.53 $ 0.49 0.49 0.47 0.47 Weighted average common shares outstanding Class A and B common stock 215,498 Basic Diluted 221,001 221,001 219.254 219,254 217,707 221,944 213,227 219,380 220.868 Weighted average common shares outstanding Class C common stock Basic Diluted 224.814 224,814 221,475 221,475 218.623 222,904 215,498 220.868 213,227 219,380 Dividends declared - s - $ 59,000 $ - $ Common Stock Common Stock Common Stock Retained Total Shares Amount Shares Amount Shares Amount Earnings Equity Balance as of December 31, 2015 Accumulated Other Comprehensive Income 5 45,013) 181,630 lo 218,080 s Additional Paid-in-Capital 638,558S 8.203 1.076,533 S FIL 1.888.222 8.203 Exercise of stock options I Shares withheld in consideration of employee tax obligations relative to stock-based - (15.098 (15,098) compensation arrangements I Issuance of Class A Common Stock, net of forfeitures 7.884 7.884 25,834 Issuance of Class C Common Stock, net of forfeitures 25,835 Issuance of Class C dividend 58,073 50,000 1 2.927 Stock-based compensation expense 46,149 I 48,149 44,783 Net excess tax benefits from stock-based compensation arrangements 44,783 1 Comprehensive income (loss) 258.979 7.130 249.849 1 1 Balance as of 12/31/2016 1 1 1 1 1 ELI I I II I 220.174 1.259,414 52.143) 183.815 809 2.030,900 823,484 3,884 Exercise of stock options 558 3,884 1 Shares withheld in consideration of employee tax obligations relative to stock-based - 2,781) compensation arrangements Issuance of Class A Common Stock, net of forfeitures NI I II II III I II II 131 - - Issuance of Class C Common Stock, net of forfeitures 1 7,853 Impact of adoption of accounting standard updates 7,852 2.866 39.932 (23,932 (26,598) 39,932 Stock-based compensation expense 1 Comprehensive income (loss) 48,260) (34,328) 1 13,932 38,211 Balance as of December 31, 2017 1,184,441 2.018,842 185,257 2,034 222.375 2,127 872.288 8,747 Exercise of stock options and warrants 6.748 1 Shares withheld in consideration of employee tax obligations relative to stock-based 2,584 2.564 compensation arrangements Issuance of Class A Common Stock, net of forfeitures - Issuance of Class C Common Stock, net of forfeitures II III111||| 4,168 4.167) 1 Impact of adoption of accounting standard updates 3.507 3,507 Stock-based compensation expense 1 41.783 41,783 Comprehensive income (loss) 47,078 1 (46,302 1,139,082 Balance as of December 31, 2018 187.710 34.450 S 228,422 916.8285 $ 38,987) S 2.016,871 1
