March 24, 2012
Balance Sheet and Income Statement Commentary
Balance sheets and income statements are a snapshot of a company’s stability and financial situation. Combined the statements show the income, expenses, and stockholder’s equity in the company. These statements are often analyzed by financial institutions when a company comes to them needing a loan. Stockholders and other investors also look at these statements to make sure their investment will return a profit for them. This paper will look at four different companies and their balance sheets and income statements. The companies are Eastman Chemical Company, Covenant Transportation Group, The Cheesecake Factory and BB&T. In 1994 Eastman Chemical Company was the 10th largest chemical company within the United States and 34th largest in the world. In 2003 the company launches a new ready to blend beverage weighting agent, which reduces crystallization speed and has excellent clarity and ease of processing. In 2005 Eastman is the world leader in supplying polyethylene terephthalate (PET) for packaging (Eastman Chemical Company, 2012). They are considered a chemicals company with over 10,000 full-time employees. Eastman does the manufactures and sales chemicals, plastics, and fibers within the United States as well as around the world. The company was founded in 1920, and the headquarters are in Kingsport, Tennessee (Yahoo Finance, 2012). Eastman’s balance sheet and income statement is a comparison of the years 2011 and 2010, which shows the company profitable and stable. The company’s total assets increased by 3.31% and include cash, short-term investment as well as inventory and long term investments. The company had a decrease of 1.03% in their total liabilities that was due to a decrease in deferred long-term liability charges. The net tangible assets for Eastman showed an increase of 16.93% over the...