Blue Bill Corporation Income Statement For The Year End

Sheet1blue Bill Corporationincome Statementfor The Year Ended 20xx2004

Remove unnecessary data such as repetitive mentions of the company name, unstructured financial data, and extraneous sheet references. Focus solely on the core assignment: analyze the company's financial statements for the year ended 20xx, including the income statement and balance sheet, and interpret key financial data.

Paper For Above instruction

The financial statements of Blue Bill Corporation for the year ended 20xx provide a comprehensive overview of the company’s financial performance and position. Analyzing these statements reveals insights into profitability, operational efficiency, liquidity, and financial stability, which are critical for stakeholders such as management, investors, and creditors.

Starting with the income statement, Blue Bill reported net sales of $4,250,000 for the year, which increased from the previous year’s $5,175,000. Although sales grew, the company’s gross profit was $1,180,000 (calculated as net sales minus cost of goods sold of $2,220,000), indicating a relatively healthy gross margin of approximately 27.8%. However, operating expenses amounted to $650,000, and other expenses, primarily interest, stood at $120,000, leading to Earnings Before Interest and Taxes (EBIT) of approximately $410,000. After accounting for interest expenses of $15,000, the taxable income resulted in net earnings which, although not specified explicitly, can be estimated based on the income tax expense, which is not provided but must be deducted from pre-tax income to determine net profit.

Moving to the balance sheet, Blue Bill’s total assets increased slightly from $2,912,000 to $3,523,000. Current assets are significant, totaling approximately $3,457,000, which demonstrates good liquidity. Cash and cash equivalents increased from $450,000 to $500,000, indicating improved liquidity, allowing the firm to meet short-term obligations comfortably. Accounts receivable remained substantial at approximately $2,912,000, less doubtful accounts, suggesting active receivables collection. Inventory levels decreased from $1,980,000 to approximately $1,980,000, aligning with operational changes or inventory management strategies.

In terms of liabilities, accounts payable have increased from $900,000 to $1,000,000, reflecting increased short-term obligations, possibly due to expanded operations or delays in payments. Other current liabilities also rose, from $22,000 to $35,000. Long-term debt slightly decreased from $930,000 to $900,000, which may indicate debt repayment or restructuring. The company’s equity increased from an unspecified previous figure to $1,793,000, emphasizing retained earnings or new equity injections.

Financial ratios derived from these statements offer further insights. The current ratio, calculated as current assets divided by current liabilities, remains healthy, indicating adequate liquidity. The debt-to-equity ratio has slightly decreased owing to the reduction in long-term debt, reflecting improved leverage management. Profitability ratios like net profit margin and return on assets would further clarify earnings efficiency but require explicit net earnings data.

Overall, Blue Bill Corporation appears to be in a stable financial position with steady asset growth, manageable liabilities, and consistent profitability. However, detailed analysis of trends over multiple years would better reveal underlying performance and strategic effectiveness.

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