Which of the three companies is in the strongest financial shape? Which of the three businesses is performing the best? How do you know that? Try to support your answer with specific financial information.

TINOSIVIL TAILIVILINI 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 ASTROBUCKS Year 2 Year 1 Jan 1 Dec 31 Jan 1 - Dec 31 (In thousands) $4,075,522 $3,288,908 1,685,928 1,350,011 2,389,594 1,938,897 1,765,470 1,450,447 237,807 205,557 386,317 282,893 0 50,018 56,106 436,335 338,999 167,989 126,313 268,346 212,686 0 0 $ 268,346 $212,686 0 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 ASTROBUCKS Year 2 Year 1 Jan 1 Dec 31 Jan 1 - Dec 31 100.00% 100.00% 41.37% 41.05% 58.63% 58.95% 43.32% 44.10% 5.84% 6.25% 9.48% 8.60% 0.00% 0.00% 1.23% 1.71% 10.71% 10.31% 4.12% 3.84% 6.58% 6.47% 0.00% 0.00% 6.58% 6.47% 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 WHITE MOUNTAIN Coffee Year 2 Year 1 Jan 1 Dec 31 Jan 1- Dec 31 (In thousands) $116,727 $ 100,000 67,716 57,134 49,011 42,866 31,560 28,105 4,330 4,081 13,121 10,680 56 (30) (1,666) (542) 11,511 10,108 5,245 4,138 6,266 5,970 0 0 $ 6,266 $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 WHITE MOUNTAIN Coffee Year 2 Year 1 Jan 1 Dec 31 Jan 1- Dec 31 100.0% 100.0% 58.0% 57.1% 42.0% 42.9% 27.0% 28.1% 3.7% 4.1% 11.2% 10.7% 0.0% 0.0% -1.4% -0.5% 9.9% 10.1% 4.5% 4.1% 5.4% 6.0% 0.0% 0.0% 5.4% 6.0% 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 WKrunchy Krust DONUTS & COFFEE Year 2 Year 1 Jan 1 - Dec 31 Jan 1 - Dec 31 (In thousands) $491,549 $ 394,354 381,489 316,946 110,060 77,408 37,972 27,562 12,271 7,959 59,817 41,887 (749) 2,408 (4,295) (1,749) 54,773 42,546 21,295 16,168 33,478 26,378 0 0 $33,478 $26,378 BALANCE SHEET 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 ASTROBUCKS Dec 31, Year 2 Dec 31, Year 1 (In thousands) $200,907 $99,677 114,448 97,573 342,944 263,174 265,730 312,219 924,029 772,643 2,434,712 2,077,759 (1,049,810) (812,003) 1,384,902 1,265,756 420,815 175,993 1,805,717 1,441,749 $2,729,746 $2,214,392 $ 168,984 $ 135,994 722 710 438,997 325,891 608,703 462,595 4,354 5,076 33,217 22,496 1,045 1,036 38,616 28,608 647,319 491,203 0 0 973,351 882,459 39,393 39,393 1,069,683 801,337 2,082,427 1,723,189 $2,729,746 $2,214,392 BALANCE SHEET 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 WHITE MOUNTAIN Coffee Dec 31, Year 2 Dec 31, Year 1 (In thousands) $800 9,132 5,876 1,863 17,671 35,959 (15,125) 20,834 16,182 37,016 $54,687 $6,271 3,193 2,302 11,766 15,209 647 15,856 27,622 0 $ 502 12,708 7,465 1,937 22,612 41,768 (19,455) 22,313 15,065 37,378 $ 59,990 $6,352 3,123 3,879 13,354 8,908 2,460 120 11,488 24,842 0 816 21,589 12,743 35,148 $59,990 0 795 19,793 6,477 27,065 $54,687 BALANCE SHEET 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 Cur 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 Krunchy Krust DONUTS & COFFEE Dec 31, Year 2 Dec 31, Year 1 (In thousands) $38,169 $ 21,904 46,319 38,682 24,365 16,159 38,241 25,024 147,094 101,769 252,770 156,484 (56,178) (43,907) 196,592 112,577 66,801 41,030 263,393 153,607 $410,487 $ 255,376 $14,055 $ 12,095 15,576 4,602 30,056 35,836 59,687 52,533 57,188 3,912 9,849 3,930 10,411 7,334 77,448 15,176 137,135 67,709 0 0 173,259 121,052 0 0 100,093 66,615 273,352 187,667 $ 410,487 $255,376 STATEMENT OF CASH FLOWS 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 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 CASH AND CASH EQUIVALENTS, END OF PERIOD ASTROBUCKS Year 2 Jan 1 - Dec 31 (In thousands) $ 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) 90,892 (722) 9 90,179 101,230 99,677 $200,907 DIATEMENT OF CASH FLUWO 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 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 CASH AND CASH EQUIVALENTS, END OF PERIOD WHITE MOUNTAIN Coffee Year 2 Jan 1 - Dec 31 (In thousands) $6,266 4,330 1,813 (1,589) (3,576) (74) 81 (70) 1,577 8,758 (5,809) 1,117 (4,692) 1,817 (6,301) 120 (4,364) (298) 800 $502 STATEMENT OF CASH FLOWS 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 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 CASH AND CASH EQUIVALENTS, END OF PERIOD Krust Year 2 Jan 1 - Dec 31 (In thousands) $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) 52,207 53,276 3,077 108,560 16,265 21,904 $38,169 DONUTS & COFFEE TINOSIVIL TAILIVILINI 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 ASTROBUCKS Year 2 Year 1 Jan 1 Dec 31 Jan 1 - Dec 31 (In thousands) $4,075,522 $3,288,908 1,685,928 1,350,011 2,389,594 1,938,897 1,765,470 1,450,447 237,807 205,557 386,317 282,893 0 50,018 56,106 436,335 338,999 167,989 126,313 268,346 212,686 0 0 $ 268,346 $212,686 0 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 ASTROBUCKS Year 2 Year 1 Jan 1 Dec 31 Jan 1 - Dec 31 100.00% 100.00% 41.37% 41.05% 58.63% 58.95% 43.32% 44.10% 5.84% 6.25% 9.48% 8.60% 0.00% 0.00% 1.23% 1.71% 10.71% 10.31% 4.12% 3.84% 6.58% 6.47% 0.00% 0.00% 6.58% 6.47% 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 WHITE MOUNTAIN Coffee Year 2 Year 1 Jan 1 Dec 31 Jan 1- Dec 31 (In thousands) $116,727 $ 100,000 67,716 57,134 49,011 42,866 31,560 28,105 4,330 4,081 13,121 10,680 56 (30) (1,666) (542) 11,511 10,108 5,245 4,138 6,266 5,970 0 0 $ 6,266 $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 WHITE MOUNTAIN Coffee Year 2 Year 1 Jan 1 Dec 31 Jan 1- Dec 31 100.0% 100.0% 58.0% 57.1% 42.0% 42.9% 27.0% 28.1% 3.7% 4.1% 11.2% 10.7% 0.0% 0.0% -1.4% -0.5% 9.9% 10.1% 4.5% 4.1% 5.4% 6.0% 0.0% 0.0% 5.4% 6.0% 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 WKrunchy Krust DONUTS & COFFEE Year 2 Year 1 Jan 1 - Dec 31 Jan 1 - Dec 31 (In thousands) $491,549 $ 394,354 381,489 316,946 110,060 77,408 37,972 27,562 12,271 7,959 59,817 41,887 (749) 2,408 (4,295) (1,749) 54,773 42,546 21,295 16,168 33,478 26,378 0 0 $33,478 $26,378 BALANCE SHEET 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 ASTROBUCKS Dec 31, Year 2 Dec 31, Year 1 (In thousands) $200,907 $99,677 114,448 97,573 342,944 263,174 265,730 312,219 924,029 772,643 2,434,712 2,077,759 (1,049,810) (812,003) 1,384,902 1,265,756 420,815 175,993 1,805,717 1,441,749 $2,729,746 $2,214,392 $ 168,984 $ 135,994 722 710 438,997 325,891 608,703 462,595 4,354 5,076 33,217 22,496 1,045 1,036 38,616 28,608 647,319 491,203 0 0 973,351 882,459 39,393 39,393 1,069,683 801,337 2,082,427 1,723,189 $2,729,746 $2,214,392 BALANCE SHEET 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 WHITE MOUNTAIN Coffee Dec 31, Year 2 Dec 31, Year 1 (In thousands) $800 9,132 5,876 1,863 17,671 35,959 (15,125) 20,834 16,182 37,016 $54,687 $6,271 3,193 2,302 11,766 15,209 647 15,856 27,622 0 $ 502 12,708 7,465 1,937 22,612 41,768 (19,455) 22,313 15,065 37,378 $ 59,990 $6,352 3,123 3,879 13,354 8,908 2,460 120 11,488 24,842 0 816 21,589 12,743 35,148 $59,990 0 795 19,793 6,477 27,065 $54,687 BALANCE SHEET 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 Cur 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 Krunchy Krust DONUTS & COFFEE Dec 31, Year 2 Dec 31, Year 1 (In thousands) $38,169 $ 21,904 46,319 38,682 24,365 16,159 38,241 25,024 147,094 101,769 252,770 156,484 (56,178) (43,907) 196,592 112,577 66,801 41,030 263,393 153,607 $410,487 $ 255,376 $14,055 $ 12,095 15,576 4,602 30,056 35,836 59,687 52,533 57,188 3,912 9,849 3,930 10,411 7,334 77,448 15,176 137,135 67,709 0 0 173,259 121,052 0 0 100,093 66,615 273,352 187,667 $ 410,487 $255,376 STATEMENT OF CASH FLOWS 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 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 CASH AND CASH EQUIVALENTS, END OF PERIOD ASTROBUCKS Year 2 Jan 1 - Dec 31 (In thousands) $ 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) 90,892 (722) 9 90,179 101,230 99,677 $200,907 DIATEMENT OF CASH FLUWO 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 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 CASH AND CASH EQUIVALENTS, END OF PERIOD WHITE MOUNTAIN Coffee Year 2 Jan 1 - Dec 31 (In thousands) $6,266 4,330 1,813 (1,589) (3,576) (74) 81 (70) 1,577 8,758 (5,809) 1,117 (4,692) 1,817 (6,301) 120 (4,364) (298) 800 $502 STATEMENT OF CASH FLOWS 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 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 CASH AND CASH EQUIVALENTS, END OF PERIOD Krust Year 2 Jan 1 - Dec 31 (In thousands) $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) 52,207 53,276 3,077 108,560 16,265 21,904 $38,169 DONUTS & COFFEE