Using the recent news releases regarding your corporation plus the common-sized financial statements and industry averages, present and support your hypothesis (e.g., prediction, expectation) for this

Running head: INCOME STATEMENTS AND BALANCE SHEETS 1

Abstract

Synnex is a leading provider of business process solutions to organizations in different parts of the world. The company has existed for over 30 years and provides a variety of business solutions, including technological services, marketing, financial services, and supply chain improvement. The company has recorded tremendous growth since it was founded in 1980 through both the acquisitions of clients in new markets as well as the purchase of other business solution providers in different markets. Currently, the company operates in more than 40 countries and has more than 600 clients. Abstract is incomplete.

Keywords: are missing

Income Statements and Balance Sheets for Synnex Corporation

Introduction

Synnex Corporation offers a variety of business service processes to its clients that include supply chain management, provision of technological services, specialized marketing services, and financial assistance. The company aims at improving the efficiency of its clients’ business processes by introducing new technologies that simplify business processes and result in cost savings. It offers specialized marketing services that are intended to improve the reach of its clients in different markets. In addition, the company also provides financial assistance that can enable its client to immediately take advantage of existing market opportunities. Due to the number of services offered to clients the recent earnings released by the organization show its expansion both in market share and in revenue. According to projections made by the company, revenues are expected to grow by over $300 million to total $5.85 billion by the end of the third quarter of 2019 (Synnex, 2019). Concisely, Synnex Corporation has had positive financial trend over the years, The material in this paragraph before this comment does not belong in the introductory paragraph. The Week 5 versions must include the history as a section of the paper and not as part of the abstract. the paper highlights the income statement and balance sheets for the organization to show the trends of the financial performance of the organization starting from the year 2016 to 2018. The first section explains the trend of the elements in the income statement while the second section explains the trends of the liabilities and assets included in the balance sheet. The last section of the paper is the conclusion. The last three sections of the paper must be the conclusions, recommendations and then summary. Under each of these headings there must be a minimum of a paragraph.

Description of Corporation

History of Corporation

Net Income for the last three years

Common Sized Financial Statements

Income Statement

Common Sized Statements
	2018	2017	2016
Revenue	(20035225) 100%	(17041091) 100%	(14061837) 100%
Expenses	(19314725) 96.4038%	(16448164) 96.5206%	(13612103) 96.8017%
Operating Income	(720500) 3.5962%	(592927) 3.4794%	(449734) 3.1983%
Depreciation	(100955) 0.5039%	(80705) 0.4736%	(65803) 0.4680%
EBITDA	(821455) 4.1001%	(673632) 3.9530%	(515537) 3.6662%
Diluted EPS	(10.89) 0.0001%	(8.86) 0.0001%	(7.04) 0.0001%

A common size analysis of the company’s financial statements indicates that the expenses of the company have been reducing steadily from 2016 to 2018. This indicates that management is efficiently managing internal processes and as a result the operating expenses are decreasing. The operating income of the company has also been steadily increasing, as shown by the increase in operating income earned each year as a percentage of revenue. The operating income recorded by the company increased from 3.2% of the revenue in 2016 to 3.5% of the revenue in 2018 (Synnex, 2019b,). The increase is attributed to the decrease in the operating expenses of the company as well as the growth in the total revenues earned by the company from 2016 to 2018.

The depreciation expense recorded by the company increased steadily from 2016 to 2018, which means that the company has been investing in new equipment and machinery. The depreciation expense as a percentage of revenue increased from 0.46% in 2016 to 0.5% in 2018. The earnings made by the company also increased from 2016 to 2018. This is shown by the increase in the EBITDA of the company from 3.7% in 2016 to 4.1% in 2018. The increase is attributed to the growth in the revenues of the company as well as the reduction of operating expenses during the three years. The EPS of the company increased significantly over the three years. The EPS increased from 7.04 in 2016 to 10.89 in 2018, which indicates increasing profitability.

Balance Sheet

Balance Sheets

	2016			2017			2018
	USD		USD			USD
ASSETS
Cash and Cash Equivalents	380,417	7.3	550,688		7.54	454,694		3.96
Restricted cash	6,265	0.12	5,837		0.08	7,126		0.06
Short-term investments	5,109	0.10	5,475		0.07	2,581		0.02
Account receivable, net	1,756,494	33.68	2,846,371		36.97	3,855,431		33.53
Receivable from related parties	102	0.00	77		0.00	65		0.00
Inventories	1,741,734	33.40	2,162,226		28.09	2,518,219		21.94
Other Current Assets	104,609	2.00	168,704			261,536		2.28
Total current assets	3,995,030	76.60	5,739,778		74.56	7,099,753		61.84
Property and Equipment	312,716	6.00	346,589		4.50	571,326		4.98
Goodwill	486,239	9.32	872,641		11.34	2,203,316		19.19
Intangible assets	298,550	5.73	583,051		7.57	1,377,305		12.00
Deferred tax assets	58,564	1.12	31,087		0.41	76,508		0.67
Other assets	64,182	1.23	124,780		1.62	152,227		1.326
Total assets	5,215,281	100	7,698,526		100	11,480,434		100
LIABILITIES
Current Liabilities
Borrowings, current	362,989	11.20	805,471		14.88	833,216		10.35
Accounts payable	1,683,155	51.96	2,626,720		48.51	3,025,197		37.59
Payable to related parties	30,679	0.95	16,888		0.31	22,905		0.25
Accrued compensation and benefits	165,585	5.11	204,665		3.78	358,352		4.83
Other Accrued liabilities	217,127	6.70	354,104		6.54	613,449		7.62
Income taxes payable	17,097	0.53	33,359		0.62	41,322		0.51
Total current Liabilities	2,476,532	18.90	4,041,207		74.63	4,894,441		60.81
Long-term borrowings	601,095	19.00	1,136,089		20.98	2,622,782		32.59
Other Long-term liabilities	103,217	19.11	124,008		2.29	325,119		4.04
Deferred tax liabilities	58,639	19.21	113,527		2.10	206,024		2.56
Total Liabilities	3,239,483	100	5,414,831		100	8,048,366		100
STOCKHOLDER'S EQUITY
Preferred stock
Common stock	41	0.00	41		0.00	51		0.00
Additional paid-in capital	440,713	20.49	467,948		20.49	1,512,203		44.06
Treasury stock	-67,262	-3.38	-77,133		-3.38	-149,533		-4.36
Accumulated other comprehensive income	-93,116	-2.71	-61,919		-2.71	-126,288		-3.68
Retained earnings	1,695,400	85.60	1,954,758		85.60	2,195,635		64.00
Total equity	1,975,798	100	2,283,695		100	3,432,068		100

The organization’s assets increased from $5,215,281 in 2016 to $11,480,434 in 2018; the assets increased by more than 100%. The organization’s liabilities increased from $3,239,483 in 2016 to $ 8048366 in 2018. The total equity increased from $1,975,798 to $3,432,068 in 2018. The results show that the organization expanded in terms of assets by acquiring new property, equipment, and gaining goodwill. However, the liabilities were controlled; hence, they did not increase drastically as to reduce the total equity.

Conclusions

The financial report for Synnex Corporation shows that its expansion is due to strategic management that focused on increasing its efficiency that led to reduced expenses. Furthermore, the organization’s management was strategic in their business process, which led to increase in accounts receivable and invested in new property.

Recommendations

Summary

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References must be presented in full form, which you have not done.

Synnex Corporation (2019). FY19 Earnings. Web. Accessed on 4/8/2019

Synnex Corporation (2019b). Form 10-K :Annual Report. Web. Accessed on 4/8/2019