case study

XYZ Corporation, Financial Summary, 1990-1994 (in millions of dollars, except for per share data) Income Statement Data 1990 1991 1992 1993 1994 Net Sales $77.00 $97.00 $132.00 $140.30 $148.80 Cost of Sales 54.2 68.5 94.4 100.2 109.8 Gross Profit 22.8 28.5 37.6 40.1 39 General & Admin Expense 17.6 21.3 26.2 28.3 36.3 Operating Income 5.2 7.2 11.3 11.9 2.7 Interest Income 0.3 0.1 0.4 0.8 1 Interest Expense 0.9 0.7 0.2 0.1 0.3 Other Income (Expense) -0.1 -0.1 -0.2 -0.5 -7.2 Income Before Taxes 4.5 6.5 11.3 12 -3.8 Income Taxes 1.9 2.8 4.6 4.8 -1.9 Net Income 2.6 3.7 6.7 7.2 -1.9 Earnings Per Share $0.50 $0.67 $1.07 $1.01 ($0.26) Balance Sheet Data Current Assets $16.40 $23.70 $35.50 $42.40 $51.90 Current Liabilities 8.2 12.7 17.5 13.1 14.5 Net Property, Plant & Eq. 17.3 19.3 26.7 40.3 58 Total Assets 34.3 43.1 88.2 106.4 120.3 Long-Term Debt 8.9 2.8 2.6 18 32.4 Total Liabilities 18.2 16.8 21.4 32.1 47.8 Total Shareholder's Equity 16.1 26.3 66.8 74.3 72.5