Balance Sheet and Income Statement Commentary
Organizations need to keep a close eye on their finances. They need to know from where the money is coming and where it is going. A close look at the balance sheet and income statement will answer those questions. This paper will make statements about different organizations and their balance sheet and income statements. Deswell Industries (DSWL
Deswell industries has been losing face value according to NASDAQ. In the balance sheet the amount of their total current assets in 2010 was 72,844 and in 2012 it was 75,203 dollars, but the total assets in 2010 were 134,011 and in 2012 they were at 121,959 dollars. Even though their total current assets increased, their total assets decreased less than 12 thousand. Deswell’s liabilities increased close to 2,000 dollars and stockholder’s equity decreased by 13 thousand all within the 2010 and 2012 physical year. The income statement has the same sad news. Deswell’s gross profit has gone from 12,656 down to 9,465 dollars. Their operating income has increased close to 1,000 dollars and their net income has stayed gradually the same but decreased by 30 dollars. Management needs to look at the root of the problem and come up with a solution. Old Dominion Freight Line Inc. (ODFL)
Old Dominion Freight Line, Inc. (ODFL) is a strong financial company. ODFL’s total current assets have increased from 17,000 in 2010 to 21,000 dollars in 2012. In two years ODFL’s total assets increased by 500,000 dollars. Total liabilities increased, which is normal, but the increase was a slight 100,000 dollars not much compared to the total assets acquired within those physical years. The stockholder’s equity and tangible assets increased close to 400,000 dollars. ODFL’s income statement has the same good news of increasing profits. In 2010, OFDL’s gross profit was 1,048,671and it increased to 1,485,428 dollars more than 300,000 dollar increase. Their operating income has increased but that is...
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