Dirt Bikes

Selected Financial selective information We have provided a spread public opinion poll with three worksheets containing Dirt Bikes financial selective information for you to freshen see Dirt Bikes Financial Data. xls Income arguing and summary residual sheet data from 2007-2009 Annual sales of each Dirt Bikes model between 2005 and 2009 rack up domestic vs. international bicycle sales between 2005 and 2009 The income argumentation and balance sheet are the primary financial statements used by counselling to determine how well a firm is performing.The income statement, also called an operating statement or lettuce and loss statement, shows the income and expenses of a firm over a period of time, such as a class, a quarter, or a month. The gross profit represents the difference between the firms tax revenue (or sales) and the terms of goods sold. The gross margin is calculated by dividing gross profit by revenues (or sales). Net profit (or loss) is calculated by subtracting a ll another(prenominal) expenses, including operating expenses and income taxes from gross profit.Operating expenses are all railway line costs (such as expenditures for sales and marketing, general and administrative expenditures, and depreciation) other than those include in the cost of goods sold. Net margins are calculated by dividing net profit (or loss) by revenues (or sales). A balance sheet provides a snapshot of a corporations financial assets and liabilities on a given date, usually the rigorous of an accounting period. It lists what material and intangible assets the business owns and what m wholenessy the business owes either to its creditors (liabilities) or to its owners (shareholders equity, also known as net worth).We have included here are only the most important pieces of balance sheet data for you to review. At any given time a businesss assets equals the sum of its liabilities plus its net worth. Current assets include cash, securities, accounts receivable, o r other investments that are likely to be converted into cash in spite of appearance one year. Current liabilities are debts that are due within one year. Long-term debt consists of liabilities that are not due until after a year or more.If too much debt has been used to finance the firms operations, problems may arise in meeting future interest payments and repaying salient(ip) loans. By examining a series of financial statements one can delineate and analyze trends in the financial strength of a business. When examining Dirt Bikes income statement and balance sheet data, pay special attention to the companys three-year trends in revenue (sales), costs of goods sold, gross margins, operating expenses, and net income (or loss). correct attention to whether the companys short and long-term liabilities are growing and whether they exceed assets.If a company has more current assets than current liabilities, it is a sign that it probably has enough working capital to fund investmen ts in new equipment or information systems. The two other spreadsheets present motorcycle shipment data between 2005 and 2009, which can be used to dullard motorcycle sales. When examining these spreadsheets, pay attention to the trends in sales. This includes the sales trends for each harvest-festival Dirt Bikes sells, overall sales trends, and the proportion of international to domestic sales.