Dirt Bikes

Selected m geniustary Data We have provided a spreadsheet with 3 worksheets containing ungraded Bikes fiscal data for you to canvass see Dirt Bikes Financial Data. xls Income line of reasoning and abbreviation balance sheet data from 2007-2009 annual sales of to each one Dirt Bikes case between 2005 and 2009 Total domestic vs. outside(a) motorcycle sales between 2005 and 2009 The income statement and balance sheet be the direct financial statements used by anxiety to determine how well a degraded is performing.The income statement, also called an operating statement or profit and loss statement, shows the income and expenses of a planetary house over a period of time, such as a year, a quarter, or a month. The swinish profit represents the departure between the firms tax income (or sales) and the apostrophize of goods sold. The consummate(a) margin is reckon by dividing gross profit by revenues (or sales). Net profit (or loss) is calculated by subtracting all o ther expenses, including operating expenses and income taxes from gross profit.Operating expenses are all business cost (such as expenditures for sales and marketing, general and administrative expenditures, and depreciation) other than those included in the cost of goods sold. Net margins are calculated by dividing net profit (or loss) by revenues (or sales). A balance sheet provides a snatch of a companys financial assets and liabilities on a given date, unremarkably the close of an accounting period. It lists what material and nonphysical assets the business owns and what m whizy the business owes either to its creditors (liabilities) or to its owners (shareholders equity, also known as net worth).We have included hither are only the most eventful pieces of balance sheet data for you to review. At any given time a businesss assets equals the sum of its liabilities confirming its net worth. Current assets include cash, securities, accounts receivable, or other investments th at are likely to be converted into cash within one year. Current liabilities are debts that are overdue within one year. Long-term debt consists of liabilities that are not due until after a year or more.If too much(prenominal) debt has been used to finance the firms operations, problems may arise in group meeting future interest returnments and re generateing outstanding loans. By examining a series of financial statements one can identify and analyze trends in the financial strength of a business. When examining Dirt Bikes income statement and balance sheet data, pay special solicitude to the companys three-year trends in revenue (sales), costs of goods sold, gross margins, operating expenses, and net income (or loss). Pay attention to whether the companys short and semipermanent liabilities are growing and whether they exceed assets.If a company has more watercourse assets than current liabilities, it is a sign that it probably has nice working capital to fund investments in new equipment or information systems. The cardinal other spreadsheets present motorcycle commitment data between 2005 and 2009, which can be used to gauge motorcycle sales. When examining these spreadsheets, pay attention to the trends in sales. This includes the sales trends for each product Dirt Bikes sells, overall sales trends, and the proportion of international to domestic sales.