BUSN 5200
Homework Assignment for Week 3:
For Week 3, please complete the following for Joe’s Fly-By-Night Oil Company, whose
latest income statement and balance sheet are shown below:
Joe's Fly-by-Night Oil
INCOME STATEMENT, 2012
BALANCE SHEET, as of Dec 31, 2012
Sales
Cost of goods sold
Gross profit
S, G & A expenses
EBIT
Interest
Before-tax earnings
Taxes
Net income
ASSETS
Cash
Accounts receivable
Inventory
Current assets
Equipment (gross)
Less Accum Depreciation
Equipment (net)
Total assets
LIABILITIES AND EQUITY
Accounts payable
Current liabilities
Long-term debt
Total liabilities
Common stock (1,000 shares)
Retained earnings
Total equity
Total liabilities & Equity
$10,000
4,000
$6,000
3,000
$3,000
$200
$2,800
1,000
$1,800
EPS
$1.80
Dividends
Addition to retained earnings
$600
$1,200
$5,000
3,000
17,000
$25,000
27,000
(12,000)
$15,000
$40,000
$17,000
$17,000
$3,000
$20,000
$7,000
$13,000
$20,000
$40,000
• Prepare a graph of sales and net income for the years 2009 – 2012. For the
purposes of this exercise, assume the following historical sales and net income
figures for Joe’s Fly-By-Night Oil:
Year
Sales
2009
2010
2011
2012
$8,200
$8,000
$9,000
$10,000
Net Income
$1,500
$1,400
$1,600
$1,800
Comment on the results displayed on the graph.
• Prepare a pie chart of Joe’s Fly-By-Night Oil’s expense distribution for 2012 and
comment on the results displayed.
• Prepare a pie chart of Joe’s Fly-By-Night Oil’s asset distribution for Dec 31, 2012
and comment on the results displayed.
• Prepare a pie chart of Joe’s Fly-By-Night Oil’s capital structure for Dec 31, 2012
and comment on the results displayed.
Note: Be sure to comment on each of the four graphs. The numbers mean little
without your explanatory comments.
Case Study Tasks:
1. Revise your Company Overview file based on your instructor’s feedback when
received.
2. If you haven’t done so already, enter the data from your company’s last two years’
income statements, balance sheets, and statements of cash flows onto an Excel
spreadsheet and begin working on the Financial Overview section of your report.