Analyze Income Statement and Balance sheet for Jack in the Box
Analysis of the income statements
Sales
For any potential or existing investor for the Jack in the box company several important elements would signify the different levels of activity in a company. Sales and purchases go hand in hand and signify the level of activity for any company. The difference between the two and carriage costs whether inward or outward reflects the gross profits earned and whether the company has had an increase in its level of stock. Any investor will look for an increase in the trading volumes in a business, which if not overshadowed by increase in costs would result in higher earnings for the investor.
| Sales | 2009 | 2010 | 2011 |
| Amount | $ 2,471,096 | $ 2,297,531 | $ 2,193,298 |
| Increase/ Decrease | – | -$173,565 | -$ 104,233 |
The information presented shows a decrease in the sales volume meaning that the company had a deteriorating sales level and thus a decline in the revenues. However, there were improvements for the period in the year 2010-2011 as there w
Net earnings
The net earnings of a company are also important to a potential or existing investor in Jack in the Box Company because the amounts reflects the amount that is to be shared among the investors and the level of profitability.
| Net earnings | 2009 | 2010 | 2011 |
| Amount | $118,408 | $ 70,210 | $ 80,600 |
| Increase/ decrease | – | -$48,198 | $10,390 |
The net earnings over the three years show mixed signs from the information provided. However, during the period 2010-2011 there were improvements in the net earnings. This might be attributed to the reduction in the costs of the business. An increase in net earnings would be positive news for any investor, as this would result in the increase in the earnings per share.
Expenses
In addition, the expenses of the company would also show an investor if the costs of doing business are on an increase or decrease in the company. Costs overrun would reduce the profits of the company and returns for the investor.
| Total expenses | 2009 | 2010 | 2011 |
| Amount | $ 2,050,665 | $ 2,175,621 | $ 2,239,828 |
| Increase /Decrease | – | $ 124,956 | $ 64,207 |
An increase in the expenses would automatically result in a decline for profits thus the investors and the shareholders will witness a reduction in the earnings per share. Increase in expenses to an investor is a clear indication that the company is unable to maintain its costs and might be declining in its level of profitability.
. Balance sheet
Cash and cash equivalents
Cash and cash equivalent amounts show the amount of cash flowing through a business such that the business has enough liquidity to meet its immediate costs.
| Cash and cash equivalents | 2009 | 2010 | 2011 |
| Amounts | $53,002 | $ 10,607 | $ 11,424 |
| Increase /Decrease | – | -$ 42,395 | $ 817 |
The presence of adequate liquidity shows that a business can be able to pay its debts with ease. This is vital as it also shows the investor that a business has adequate cash flowing in the business. Thus, cash flow statements reflect the amounts of cash that a business has to enable it offset its short-term liabilities. There was a significant decrease in the CCE amounts. This could be because of purchase in an asset or increase in liabilities that were paid for by the company. However, the amount improved may be because of receipts from debtors.
Total stockholder’s equity
| Total stockholders equity | 2009 | 2010 | 2011 |
| Amount | $ 524,489 | $520,463 | $405,956 |
| Decrease/ increase | – | -$ 4,026 | $ 114,507 |
A reduction in shareholders equity is usually because of consecutive loss in value of shares of the shareholders because of the losses accrued by a company. In addition Total shareholders’ equity is calculated as (Total assets – Total liabilities= Total shareholders equity) thus a reduction automatically means that the company has an increase in liabilities. The information provided shows that there was a significant decline in the value of the shares thus the shareholder mad a significant loss on his investment. The was a decline in the value of shares in the period of 2009-2010, however there were improvements after the company made significant gains after increase in sales and value of shares was on a rebound.
Comprehensive loss on shares
| Total loss | 2009 | 2010 | 2011 |
| Amount | $ 83,442 | $ 78,787 | $ 95,940 |
| Increase or decrease | – |
A decrease in the value of shares is due to losses by the business maybe due to under-subscription on shares or loss in value of shares. Constant loss in the value of shares would be a sure sign for an investor that all is not well in the business and that it is making constant losses. The statements show that there were losses for the period 2009-2010. The stocks rebounded and gained value in the period 2010-2011. This is because of return to profitability by the company.
Last Completed Projects
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