BSA/500 Week 4 Individual Assignment: Balance Sheet and Income Statement

Name: BSA/500 Week 4 Individual Assignment: Balance Sheet and Income Statement
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Author: Eva Reed

Analysis of balance sheets and income statements for financial reporting.

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Week 4 Individual Assignment: Balance Sheet and Income Statement
BSA/500
Week 4 Individual Assignment: Balance Sheet and Income Statement
Short Commentaries
Based on your analysis of the balance sheets and financial statements of Kroger Co. and
Simon Transportation, evaluate the financial health of both companies. Discuss the
impact of liabilities, equity, and cash flow management on the overall stability and
potential for growth of each company. Provide a comparison of their strategies in
managing debt and assets. (Word count: 800-1000 words)

Company one (in the same industry as Kudler Fine Foods):
Kroger Co. is a very large organization and knows how to watch their bottom line
and stay ahead of the competitors. The organization keeps a very steady bottom line after
looking at their balance sheet. Kroger’s keeps their assets above the liability bottom line
so the company makes a profit overall. The stock options are very good in the company
so this will keep the shareholders happy. Understanding the things that can make the
company grow is the overall goal of the management team and Kroger’s understands this.
Company two (in the same industry as Riordan Manufacturing):
Company three (in the same industry as Huffman Trucking):
Simon Transportation had to file Chapter 11 bankruptcy after showing a couple of
years of hardship in their agency. This company was known for transporting temperature-
controlled products for major companies like Kraft, M&M Mars, and Wal-Mart.
Reviewing their balance sheet was a way to see how problems can be caught and maybe
worked on if it is not too late. If you look at the cash flow of the company you can see
that they were using borrowed money to operate and a business cannot grow in this state.
Their records show a sign of the customers not paying their taps on time so the company
as all of its assets tied up in accounts receivables.
Simon was booked up with about 44% of debt after you divide the shareholder
equity and the long term debt. This would not have been that bad if the company was able

to have a high return on equity, but they did not. With the short term loans taking over the
company it was possible now for the banks to come in and take over the company,
because they are not able to pay the bills. Simon Transportation took a major hit and
could not recover from the drastic financial situation they had gotten into.
Company four (in the same industry as McBride Financial Services):
Appendix
Company one (in the same industry as Kudler Fine Foods):
Insert should insert a Balance Sheet here:
You should insert an Income Statement here:
• KROGER CO Balance Sheet
• View:
Annual Data | Quarterly Data
Period Ending Q4 FY10 Q3 FY10 Q2 FY10 Q1 FY10 Q4 FY09
Assets
Cash and Short Term Investments 1.49 B 1.51 B 1.78 B 1.28 B 1.08 B
Net Receivables 845.00 M 847.00 M 805.00 M 828.00 M 909.00 M
Total Inventories 4.97 B 5.26 B 4.65 B 4.77 B 4.94 B
Progress Payments & Others — — — — —
Prepaid Expenses 300.00 M 282.00 M 338.00 M 300.00 M 301.00 M
Other Current Assets 319.00 M 291.00 M 306.00 M 305.00 M 261.00 M
Current Assets Total 7.62 B 7.91 B 7.55 B 7.18 B 7.48 B
Long Term Receivables — — — — —
Investment in Unconsolidated Subsidiaries 0.00 0.00 0.00 0.00 0.00
Other Investments — — — — —
Property, Plant & Equipment Net 14.15 B 14.11 B 14.00 B 13.98 B 13.93 B
Property, Plant & Equipment Gross 26.72 B 25.67 B 23.90 B 22.44 B 20.98 B
Accumulated Depreciation 12.57 B 11.74 B 10.74 B 9.94 B 9.20 B
Other Assets 1.74 B 1.74 B 1.73 B 1.72 B 1.71 B
Deferred Charges — — — — —
Tangible Other Assets — — — — —
Intangible Other Assets 1.14 B 1.16 B 1.16 B 1.16 B 1.16 B

Period Ending Q4 FY10 Q3 FY10 Q2 FY10 Q1 FY10 Q4 FY09
Total Assets 23.50 B 23.76 B 23.28 B 22.88 B 23.13 B
Liabilities
Short Term Debt & Current Portion of Long Term
Debt
1.29 B 547.00 M 539.00 M 528.20 M 1.26 B
Accrued Payroll — — — — —
Income Taxes Payable 220.00 M 354.00 M 354.00 M 354.00 M 354.00 M
Dividends Payable — — — — —
Other Current Liabilities 3.04 B 3.26 B 3.18 B 2.96 B 2.90 B
Current Liabilities Total 8.07 B 8.34 B 7.92 B 7.80 B 7.73 B
Long Term Debt 7.25 B 7.42 B 7.24 B 6.94 B 7.42 B
Provision for Risks & Charges — — — — —
Deferred Taxes 750.00 M 577.00 M 555.00 M 560.00 M 722.00 M
Deferred Income — — — — —
Deferred Tax Liability in Untaxed Reserves — — — — —
Other Liabilities 2.14 B 2.39 B 2.39 B 2.48 B 2.48 B
Total Liabilities 18.21 B 18.49 B 18.11 B 17.38 B 18.20 B
Shareholders Equity
Non-Equity Reserves 0.00 0.00 0.00 0.00 0.00
Minority Interest 2.00 M -3.00 M 4.00 M -2.00 M 74.00 M
Preferred Stock 0.00 0.00 0.00 0.00 0.00
Common Equity 5.30 B 5.26 B 5.16 B 5.11 B 4.85 B
Common Stock 959.00 M 959.00 M 959.00 M 959.00 M 958.00 M
Capital Surplus 3.39 B 3.34 B 3.33 B 3.36 B 3.36 B
Revaluation Reserves — — — — —
Other Appropriated Reserves — -593.00
M
— — —
Unappropriated (Free) Reserves — — — — —
Retained Earnings 8.22 B 8.01 B 7.88 B 7.68 B 7.36 B
Equity in Untaxed Reserves — — — — —
ESOP Guarantees — — — — —
Unrealized Foreign Exchange Gain (Loss) 0.00 — — — —
Unrealized Gain (Loss) on Marketable Securities -247.00
M
-238.00
M
-228.00
M
-225.00
M
0.00
Treasury Stock 6.73 B 6.49 B 6.43 B 6.31 B 6.24 B
Total Liabilities & Shareholders Equity 23.50 B 23.75 B 23.28 B 22.88 B 23.13 B
Common Shares Outstanding 620.00 M 632.00 M 634.00 M 640.00 M 642.00 M
Period Ending FY2010 FY2009 FY2008 FY2007 FY2006
Assets
Cash and Short Term Investments 1.49 B 1.08 B 894.00 M 918.00 M 803.00 M

Period Ending Q4 FY10 Q3 FY10 Q2 FY10 Q1 FY10 Q4 FY09
Net Receivables 845.00 M 909.00 M 944.00 M 786.00 M 778.00 M
Total Inventories 4.97 B 4.94 B 4.86 B 4.86 B 4.61 B
Progress Payments & Others -827.00
M
-770.00
M
-800.00
M
-604.00
M
-450.00
M
Prepaid Expenses 300.00 M 300.00 M — — —
Other Current Assets 319.00 M 261.00 M 209.00 M 555.00 M 565.00 M
Current Assets Total 7.62 B 7.48 B 7.21 B 7.11 B 6.76 B
Long Term Receivables 0.00 0.00 0.00 0.00 0.00
Investment in Unconsolidated Subsidiaries 0.00 0.00 0.00 0.00 0.00
Other Investments 45.00 M 26.00 M 0.00 0.00 0.00
Property, Plant & Equipment Net 14.15 B 13.93 B 13.16 B 12.50 B 11.78 B
Property, Plant & Equipment Gross 26.72 B 25.67 B 23.90 B 22.44 B 20.98 B
Accumulated Depreciation 12.57 B 11.74 B 10.74 B 9.94 B 9.20 B
Other Assets 1.69 B 1.69 B 2.84 B 2.69 B 2.68 B
Deferred Charges — — — — —
Tangible Other Assets 552.00 M 530.00 M 573.00 M 543.00 M 489.00 M
Intangible Other Assets 1.14 B 1.16 B 2.27 B 2.14 B 2.19 B
Total Assets 23.50 B 23.13 B 23.21 B 22.30 B 21.22 B
Liabilities
Short Term Debt & Current Portion of Long Term
Debt
1.29 B 1.26 B 1.22 B 2.25 B 1.51 B
Accrued Payroll 888.00 M 786.00 M 828.00 M 815.00 M 796.00 M
Income Taxes Payable 220.00 M 354.00 M 344.00 M 239.00 M 268.00 M
Dividends Payable — — — — —
Other Current Liabilities 2.15 B 2.12 B 2.08 B 1.99 B 1.81 B
Current Liabilities Total 8.07 B 7.73 B 7.63 B 8.69 B 7.58 B
Long Term Debt 7.25 B 7.42 B 7.50 B 6.53 B 6.15 B
Provision for Risks & Charges 946.00 M 1.08 B 1.17 B — —
Deferred Taxes 750.00 M 568.00 M 384.00 M 367.00 M 722.00 M
Deferred Income — — — — —
Deferred Tax Liability in Untaxed Reserves — — — — —
Other Liabilities 1.19 B 1.40 B 1.25 B 1.80 B 1.84 B
Total Liabilities 18.21 B 18.20 B 17.94 B 17.38 B 16.29 B
Shareholders Equity
Non-Equity Reserves 0.00 0.00 0.00 0.00 0.00
Minority Interest 2.00 M 74.00 M 95.00 M 0.00 0.00
Preferred Stock 0.00 0.00 0.00 0.00 0.00
Common Equity 5.30 B 4.85 B 5.18 B 4.91 B 4.92 B
Common Stock 959.00 M 958.00 M 955.00 M 947.00 M 937.00 M

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Averett University

Subject

Accounting

BSA/500 Week 4 Individual Assignment: Balance Sheet and Income Statement

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