Dirt Bikes

Selected Financial Data We imbibe provided a spread weather sheet with three worksheets containing Dirt Bikes financial entropy for you to review see Dirt Bikes Financial Data. xls Income contention and unofficial balance sheet data from 2007-2009 Annual gross revenue of all(prenominal) Dirt Bikes model among 2005 and 2009 wide domestic vs. international motorcycle sales amidst 2005 and 2009 The income statement and balance sheet ar the capital financial statements used by management to line up how well a family is performing.The income statement, to a fault c on the wholeed an run statement or profit and loss statement, shows the income and expenses of a firm over a period of time, such(prenominal) as a year, a quarter, or a month. The gross profit represents the difference between the firms revenue (or sales) and the constitute of goods sold. The gross strand is calculated by dividing gross profit by revenues (or sales). Net profit (or loss) is calculated by subtra cting al genius separate expenses, including operating expenses and income taxes from gross profit.Operating expenses are all product line be (such as expenditures for sales and marketing, familiar and administrative expenditures, and depreciation) other than those include in the cost of goods sold. Net margins are calculated by dividing lolly profit (or loss) by revenues (or sales). A balance sheet provides a snapshot of a comp boths financial assets and liabilities on a given date, usually the close of an accounting period. It lists what material and intangible assets the business owns and what money the business owes either to its creditors (liabilities) or to its owners (shareholders equity, also known as net worth).We have included here are only the most great pieces of balance sheet data for you to review. At any given time a businesss assets equals the sum of its liabilities plus its net worth. period assets include cash, securities, accounts receivable, or other in vestments that are likely to be converted into cash within one year. Current liabilities are debts that are due within one year. Long-term debt consists of liabilities that are not due until subsequently a year or more than.If too such(prenominal) debt has been used to finance the firms operations, problems whitethorn arise in meeting future refer payments and repaying 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 fear to the companys three-year trends in revenue (sales), costs of goods sold, gross margins, operating expenses, and net income (or loss). Pay economic aid to whether the companys short and long-term liabilities are growing and whether they exceed assets.If a company has more current assets than current liabilities, it is a sign that it probably has enough working capital to fund investments in new equipment or information systems. The two other spreadsheets present motorcycle shipment 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 proportionality of international to domestic sales.