.
2002
2001
’01 to ’02
.
$
% of Sales
$
% of Sales
% increase
Net sales
62349545
26072585
139.1%
Cost of Goods Sold
51402174
82.4%
21010605
80.6%
144.6%
Gross Profit
10947371
17.6%
5061980
19.4%
116.3%
Advertising
1818126
2.9%
327479
1.3%
455.2%
General & Administrative
8067331
12.9%
4162408
16.0%
93.8%
Total Operating Exp
9885457
15.9%
4489887
17.2%
120.2%
Income from Operations
1061914
1.7%
572093
2.2%
85.6%
Interest Income
17977
0.0%
16237
0.1%
10.7%
Gain on Marketable Securities
0.0%
41962
0.2%
-100.0%
Interest Expense
-2400
0.0%
-3184
0.0%
-24.6%
Total Other
15577
0.0%
55015
0.2%
-71.7%
Income Before Taxes
1077491
1.7%
627108
2.4%
71.8%
Taxes
536143
0.9%
161000
0.6%
233.0%
Net Income
541348
0.9%
466108
1.8%
16.1%
Consider the following questions in your evaluation:
What was the percentage increase in sales from 2001 to 2002?
What impact did the new sales have on the gross profit?
Were the new sales more or less profitable sales based upon their impact on the gross profit?
What happened to the advertising expenses ($ & %)?
Is the change in advertising likely to be long term? Why?
What impact did the new sales have on G&A (General & Administrative)? Why?
Are total operating expenses up or down as a percentage?
What impact does the change in operating expenses have on the bottom line?
Is income from operations up or down ($ & %)?
Is total other a significant dollar amount? Percentage increase?
Look at the amount of taxes paid. Why is the change so significant?
Compare the increases in sales to the increase in profit after taxes. Was it worth it from an operations point of view? From the stockholders point of view?
