You are on page 1of 8

BRIDGFORD FOODS

CORPORATION

ANALYSIS OF FINANCIAL STATEMENTS


COMPARATIVE BALANCE SHEET
Particulars 2010 2011 Absolute Proportion
($) ($) change ate change
($) (%)

Assets:
Cash and cash equivalents 15,686 9,324 (6,362) (40.56)
Accounts receivable 7,609 9,702 2,093 27.51
Inventories 16,307 16,888 581 3.56
Prepaid expenses 291 340 49 16.84
Refundable Income Taxes 1,594 1,036 (558) (35.01)
Property, plant and equipment 7,892 7,903 11 0.14
Other non-current assets 11,144 11,773 629 5.64
Total assets 60,523 56,966 (3,557) (5.88)
Liabilities:
Accounts payable 3,364 4,246 882 26.22
Accrued payroll, advertising and other expenses 5,532 5,590 58 1.05
Current portion of non-current liabilities 2,755 3,439 684 24.83
Non-current liabilities 12,672 18,853 6181 48.78
Total liabilities 24,323 32,128 7,805 32.09
Shareholders equity:
Common stock, $1.00 par value 9,385 9,255 (130) (1.39)
Capital in excess of par value 10,396 9,214 (1,182) (11.37)
Retained earnings 24,471 23,096 (1375) (5.62)
Accumulated other comprehensive loss (8,052 ) (16,727 ) (8675) (107.74)
Total shareholders equity 36,200 24,838 (11,362) (31.39)
Total liabilities and shareholders equity 60,523 56,966 (3,557) (5.88)
COMPARATIVE INCOME STATEMENT
(Figures in thousands)

Particulars 2010 2011 Absolute Percentage


($) ($) change ($) change (%)

Net sales 117,655 118,263 608 0.52

Cost of products sold (70,563) (80,736) 10,173 14.42

Gross margin 47,092 37,527 (9,565) (20.31)

Selling, general and administrative


expenses (41,569) (38,639) (2,930) (7.05)

(Loss) income before taxes 5,523 (1,112 ) (6,635) (120.13)

(Benefit) provision for income


taxes (1,204) 669 1,873 155.57

Net (loss) income 4,319 (443 ) (4,762) (110.26)


COMMON-SIZE BALANCE SHEET
Particulars 2010 2010 (%) 2011 2011 (%)
Assets:
Cash and cash equivalents 15,686 25.92 9,324 16.37
Accounts receivable 7,609 12.57 9,702 17.03
Inventories 16,307 26.94 16,888 29.65
Prepaid expenses 291 0.48 340 0.60
Refundable Income Taxes 1,594 2.63 1,036 1.82
Property, plant and equipment 7,892 13.04 7,903 13.87
Other non-current assets 11,144 18.41 11,773 20.67
Total assets 60,523 100.00 56,966 100.00
Liabilities:
Accounts payable 3,364 5.56 4,246 7.45
Accrued payroll, advertising and other
expenses 5,532 9.14 5,590 9.81
Current portion of non-current liabilities 2,755 4.55 3,439 6.04
Non-current liabilities 12,672 20.94 18,853 33.10
Total liabilities 24,323 40.19 32,128 56.40
Shareholders equity:
Common stock, $1.00 par value 9,385 15.51 9,255 16.25
Capital in excess of par value 10,396 17.18 9,214 16.18
Retained earnings 24,471 40.43 23,096 40.54
Accumulated other comprehensive loss (8,052 ) (13.30) (16,727 ) (29.36)
Total shareholders equity 36,200 59.81 24,838 43.60
Total liabilities and shareholders equity 60,523 100.00 56,966 100.00
COMMON-SIZE INCOME STATEMENT
Particulars 2010 2010 (%) 2011 2011 (%)
Net sales 117,655 100.00 118,263 100.00

Cost of products sold (70,563) (59.97) (80,736) (68.27)

Gross margin 47,092 40.03 37,527 31.73

Selling, general and administrative


expenses (41,569) (35.33) (38,639) (32.67)

(Loss) income before taxes 5,523 4.69 (1,112 ) (0.94)

(Benefit) provision for income


taxes (1,204) (1.02) 669 0.57

Net (loss) income 4,319 3.67 (443 ) (0.37)


TREND ANALYSIS
Base year 2007 =100
Year Sales Trend Inventory Trend Profit Trend
Percentage Percentage after tax Percentag
e

2007 125,091 100.00 18,332 100.00 (292) 100.00

2008 120,990 96.72 16,052 87.56 (12,447 )

2009 122,665 98.06 15,595 85.07 6,787

2010 117,655 94.06 16,307 88.95 4,319

2011 118,263 94.54 16,888 92.12 (443 )


RATIO ANALYSIS
Profitability Ratio: Profit/ Sales x100

Year 2007 2008 2009 2010 2011

Ratio (0.23%) (10.29%) 5.32% 3.67% (0.37%)

Liquidity Ratio: Liquid Assets/ Current Liabilities

Year 2007 2008 2009 2010 2011

Ratio 1.84 1.17 1.80 2.14 1.51

Total Assets Turnover Ratio: Net Sales/ Total Assets

Year 2007 2008 2009 2010 2011

Ratio 1.85 2.33 2.08 1.94 2.07


SUMMARY
The companys financial position is showing
sometime increase or decrease in its
performance. As we utilized various tools in
previous slides, we found that there was no
clear cut trend which could tell us about the
future performance of the company. In some
year assets were utilized more efficiently than
other year. Liquidity position also shows very
much up down in its 5 year history while profits
also shown fluctuations. Overall company is not
working in a right direction. There is a need to
take some corrective decisions.

You might also like