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Income Statement VERTICAL2011 Vertical 2010 Horizontal Sales Essay

¶ … Income Statement Vertical2011

Vertical 2010

Horizontal

Sales

Other Revenue

Total

Less

Cost of Goods Sold

Operation & Admin Expenses

Income Tax

Interest Expense

Total

Net Income

Because of economic decline and uncertainties of unemployment, energy prices, etc. 2010 was in over deflation and 2011 had an overall inflation (2011 Annual Report, 2011). Income tax increased in 2011 due to repatriation taxes on dividends from a Canadian subsidiary.

Balance Sheet

Vertical 2011

Vertical 2010

Horizontal

Cash & equivalent

Receivables

Inventories

Prepaid Expenses

Total

Property'

Depreciation & Amortization

-71.30%

-68.20%

Goodwill

Invest. Unconsolidated affiliate

Other Assets

Total Assets

Cur. Note Maturities

Cur. Cap. Lease Obligation

Accounts Payable

Accrued Sal. & Wages

3.30%

3.10%

6.80%

Deferred Income Tax

0.40%

0.60%

36.40%

Other Accrued Liabilities

4.80%

4.50%

5.80%

Total Current Liability

33.40%

28.50%

16.80%

Long-term Notes

27.60%

5.60%

8.40%

Cap. Lease Obligation

2.70%

3.00%

11.30%

Deferred Income Tax

0.90%

1.00%

7.60%

Pension Obligation

6.00%

4.80%

24.30%

Accrued Claims

4.80%

4.30%

11.50%

Total Liability

75.50%

67.00%

12.20%

Common Stock

0%

0%

0.00%

Add Paid Capital

29.60%

28.80%

2.30%

Treasury Stock

-52.20%

-41.50%

25.30%

Other Comprehensive Income

-0.40%

0.60%

Retained Earnings

47.40%

45.00%

4.80%

Total Equity

24.40%

40.00%

26.20%

Non-controlling Inter.

0%

0%

36.40%

Total Equity & Liabilities

0.50%

Other assets are inflated, probably...

Current Note Maturities are inflated, due to long-term debt coming due and more borrowing during the year. The company had an early adoption of accounting standards ASU 2011-05 causing adjustments to other comprehensive income and net income, which is probably where the added deferred taxes come into play.
Statement Of Cash Flow

Horizontal

Operating Activities

Net Income

29.20%

Depreciation Expense

1.20%

Property Impairment

37.70%

Share-Based Compensation

9.90%

Excess Tax Benefits

12.50%

LIFO Expense

Equity in Affiliate

15.00%

Pension Expense

8.70%

Contribution to Pensions

Property disposition

Accrued Claims

35.90%

Deferred Income Tax

Amort. Deferred Finance Cost

12.50%

Other

Total

11.20%

Investing Activities

Cash paid for property additions

30.70%

Proceeds from Property Sale

Other

57.00%

Total

27.00%

Financing Activities

Pay/add short-term borrow

Add Long-term borrow

Pay Long-term borrow

80.30%

Purchasing Treasury Stock

Dividends Paid

12%

Proceeds Stock Exercise

37.30%

Excess tax benefits-stock

12.50%

Pay debt issue costs

Other

17.60%

Total

Effects of Exchange Rate

23.30%

Cash Beginning Year

65.20%

Cash End of Year

6.30%

There was an increase in long-term borrowing for new stores and a higher debt issuance. Pension expense was higher due to pension liabilities being greater than pension assets and higher actuarial losses. The company made higher contributions to the pension plans. There was an interest rate fluctuation with uncertainty in the economies. The housing market was also in decline causing sale of property to be of less value and then raising later.

Ratios

2011

2010

Current

0.83

0.98

Quick

0.31

0.35

Current Cash Debt Coverage

0.43

0.4

Profit Margin

0.01

0.01

Rate of Return on Assets

0.03

0.04

Rate of Return Common…

Sources used in this document:
Bibliography

Analyze Investments Quickly With Ratios. (2006, Dec 1). Retrieved from Investopedia: http://www.investopedia.com/articles/stocks/06/ratios.asp#axzzlvpb34qrt

2011 Annual Report. (2011). Retrieved from Safeway: http://216.139.227.101/interactive/swy/2011/2010

Kieso, D.E. (2008). Intermediate Accounting I, II, & III. Hoboken, NJ: John Wiley & Sons, Inc.
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