Interim Reports
Falcon Amusements, Inc. chose September 30 as its year-end. Reported below are its quarterly income statements for fiscal 2000 and its annual income statement.
|
|
|
|
Quarterly |
|
|
|
|
10/1/99 |
1/1/00 |
4/1/00 |
7/1/00 |
Annual at |
|
|
12/31/99 |
3/31/00 |
6/30/00 |
9/30/00 |
9/30/00 |
|
Net sales |
$577,441 |
$571,930 |
$698,432 |
$818,034 |
$2,665,837 |
|
Cost of goods |
118,563 |
126,471 |
134,587 |
174,259 |
553,880 |
|
Gross profit |
458,878 |
445,459 |
563,845 |
643,775 |
2,111,957 |
|
Selling, general |
|
|
|
|
|
|
& administrative |
|
|
|
|
|
|
expense |
303,755 |
377,096 |
393,309 |
428,588 |
1,502,748 |
|
Depreciation |
52,055 |
51,622 |
52,651 |
53,044 |
209,372 |
|
Non-operating |
|
|
|
|
|
|
income |
(114,062) |
(17,251) |
(14,845) |
(3,315) |
(149,473) |
|
Interest expense |
28,413 |
11,515 |
11,717 |
9,234 |
60,879 |
|
|
270,161 |
422,982 |
442,832 |
487,551 |
1,623,526 |
|
Income before tax |
188,717 |
22,477 |
121,013 |
156,224 |
488,431 |
|
Provision for |
|
|
|
|
|
|
income tax |
51,614 |
6,412 |
36,499 |
44,521 |
139,046 |
|
Net income |
$137,103 |
$ 16,065 |
$ 84,514 |
$111,703 |
$ 349,385 |
Required
a. Discuss briefly why Falcon is reporting quarterly information. Is it audited?
b. How does the annual audited information differ from the quarterly data?
c. Are there any obvious seasonal trends? Why might the cost of goods sold rise in the fourth quarter (aside from sales being higher)? Hint:Year-end adjustments. How might an investor be concerned about such trends and fluctuations?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
