The income statement and balance sheet of Superior Technologies are exhibited in Tables 7.20 and 7.21. Conduct a ratio analysis and observe major trends and deviations from the available historical company information and industry data (see also Table 7.22).

TABLE 7.20 Income Statement of Superior Technologies Year 2013 Year 2014 (Thousands of Dollars) (Thousands of Dollars) 193,213 91,954 Net Sales Cost of goods and services Gross Profit Selling, general, and administrative expenses Employee proft sharing and retirement 128,434 60,776 31,178 64,779 26,369 13,844 9,831 4,167 Total overhead 36,200 18,011 Operating profit before interest and tax 28,579 13,167 Other income 956 273 13,440 EBIT 29,535 Interest paid Taxable income 680 505 28,855 14,712 14,143 12,935 6,934 Income tax Net Income 6,001 TABLE 7.21 Balance Sheet of Superior Technologies Year 2014 (Thousands Year 2013 (Thousands of Dollars) of Dollars) 17856 Cash 10,841 19,350 6,869 Receivables (net) 29,053 Inventories 23,282 Prepaid expenses Payments received on govenment contracts 315 664 6,013 405 64842 60,806 36,970 Total CAs Property, plant, and equipment Accumulated depreciation Net property account Patents, etc. (net) Other assets 26,773 20,083 10,281 40,723 17492 249 429 80 Total Assets 105,994 53,791 Accounts payable Accrued wages, pensions, taxes, etc. Other CLs 10368 5,337 21,309 10,696 5,589 2,867 37,266 Total Cls 18,900 29,935 Long-term debt 9,250 Preferred stock 3,265 Common stock 3,915 3,257 Paid in surplus Retained eamings 6,228 8,205 23,408 16,156 Total Liabilities and Net Worth 105,994 53,791