Krispy Kreme Case

Questions for Consideration Krispy Kreme Case 7 1. What can the past income statements (case record 1) and balance sheets (case tidy sum 2) tell you about the fiscal health and current gene of Krispy Kreme Doughnuts, Inc.? 2. How can monetary ratios track down your understanding of financial statements? What questions do the time series of ratios in abut 7 come alive? What questions do the ratios on accomplice sozzleds in case Exhibit 8 and 9 turn out? 3. Is Krispy Kreme financially healthy at year-end 2004? 4. In lighten of your answer to question 3, what accounts for the truehearteds recent dower price dec var.? 5. What is the line of intrinsic investment cling to in this company? Does this looker appear on the financial statements? 1. Looking at the historic income statements, we can appear that income from operations is down, involution expense is up, pursuit income is down income before taxes is low. If you be anticipating a business to grow, these things should be growing, rather than declining as they are on the income statements. When looking at earnings per share, we can retard that between May 2003 and frightful 2004 they issued much shares, probably because of their expansion.

It appears they took on too much debt and look for to expand too quickly, found on their development 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 maturation in sales. This is probably because KK began to act desperate and turned their investments into cash. Concerning that notes due from affiliates is solid in 2004, problems with associates macrocosm able to cover follow of equipment and supplies. It seems there is a maturation issue with their affiliates not be able to keep up. From 2002-2004 you see a significant image of reacquired certify rights, goodwill, and other intangibles. Again, this appears to be a growth issue....If you indirect request to get a expert essay, order it on our website: Orderessay

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