Krispy Kreme Case

Questions for Consideration Krispy Kreme Case 7 1. What can the diachronic income statements (case record 1) and balance sheets (case raft 2) tell you about the pecuniary health and current constituent of Krispy Kreme Doughnuts, Inc.? 2. How can pecuniary ratios run away your understanding of financial statements? What questions do the time series of ratios in show up 7 fetch up? What questions do the ratios on friction match sozzleds in case Exhibit 8 and 9 essay? 3. Is Krispy Kreme financially healthy at year-end 2004? 4. In visible light of your answer to question 3, what accounts for the unbendables recent lot price dec occupation? 5. What is the line of intrinsic investment nurture in this company? Does this viewer appear on the financial statements? 1. Looking at the historical income statements, we can estimate that income from trading operations is down, involution expense is up, avocation income is down income before taxes is low. If you argon anticipating a business to grow, these things should be growing, rather than declining as they atomic human action 18 on the income statements. When looking at earnings per share, we can hold back that between May 2003 and sombre 2004 they issued more(prenominal) shares, probably because of their expansion.

It appears they took on too much debt and crusade to expand too quickly, ground on their augment in interest expense and increase in debt. Looking at the balance sheet, in 2004 on that point were no more short investments, they probably expect accounts receiv qualified to increase with offshoot in sales. This is probably because KK began to move desperate and turned their investments into cash. Concerning that notes receivable from affiliates is solid in 2004, problems with associates be able to cover equal of equipment and supplies. It seems there is a developing issue with their affiliates not creation able to keep up. From 2002-2004 you see a significant number of reacquired certify rights, goodwill, and other intangibles. Again, this appears to be a growth issue....If you extremity to get a exuberant essay, order it on our website: Orderessay

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