|
2002
|
2001
|
’01 to ’02
|
|||
|
.
|
$
|
% of Sales
|
$
|
% of Sales
|
% increase
|
|
Net sales
|
62349545
|
|
26072585
|
|
139.1%
|
|
Cost of Goods Sold
|
51402174
|
82.4%
|
21010605
|
80.6%
|
144.6%
|
|
Gross Profit
|
10947371
|
17.6%
|
5061980
|
19.4%
|
116.3%
|
|
Advertising
|
1818126
|
2.9%
|
327479
|
1.3%
|
455.2%
|
|
General & Administrative
|
8067331
|
12.9%
|
4162408
|
16.0%
|
93.8%
|
|
Total Operating Exp
|
9885457
|
15.9%
|
4489887
|
17.2%
|
120.2%
|
|
|
|
|
|
|
|
|
Income from Operations
|
1061914
|
1.7%
|
572093
|
2.2%
|
85.6%
|
|
Interest Income
|
17977
|
0.0%
|
16237
|
0.1%
|
10.7%
|
|
Gain on Marketable Securities
|
0.0%
|
41962
|
0.2%
|
-100.0%
|
|
|
Interest Expense
|
-2400
|
0.0%
|
-3184
|
0.0%
|
-24.6%
|
|
Total Other
|
15577
|
0.0%
|
55015
|
0.2%
|
-71.7%
|
|
Income Before Taxes
|
1077491
|
1.7%
|
627108
|
2.4%
|
71.8%
|
|
Taxes
|
536143
|
0.9%
|
161000
|
0.6%
|
233.0%
|
|
Net Income
|
541348
|
0.9%
|
466108
|
1.8%
|
16.1%
|
Answer the following questions in your evaluation:
- What was the percentage increase in sales from 2001 to 2002?
- What impact did the new sales have on the gross profit?
- Were the new sales more or less profitable sales based upon their impact on the gross profit?
- What happened to the advertising expenses ($ & %)?
- Is the change in advertising likely to be long term? Why?
- What impact did the new sales have on G&A (General & Administrative)? Why?
- Are total operating expenses up or down as a percentage?
- What impact does the change in operating expenses have on the bottom line?
- Is income from operations up or down ($ & %)?
- Is total other a significant dollar amount? Percentage increase?
- Look at the amount of taxes paid. Why is the change so significant?
- Compare the increases in sales to the increase in profit after taxes. Was it worth it from an operations point of view? From the stockholders point of view?
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