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K-Swiss Inc. Jason Corbett ACG2021.080
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Transcript of K-Swiss Inc. Jason Corbett ACG2021.080
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Executive Summary
Upon completion of reviewing the annual report of K-Swiss Inc., I have come to the conclusion that this company is not doing too bad for itself. As you will see in the following slides, the information provided shows that K-Swiss nearly doubled their Net income from 2002-2003, as well as maintained a strong and healthy business which has been audited and approved by the G.A.A.P.
www.wssource.com
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• Chief Executive Officer…
• Home Office…
• Fiscal Year…
• Main productivity…
• Geographic area…
• STEVEN NICHOLS
• Delaware
31248 Oak Crest Drive,
Westlake Village, California
• For the fiscal year ended December 31, 2003
• K-Swiss primarily produces a wide variety of athletic and casual footwear for everyday use, along with other athletic apparel.
• North-East United States
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Audit Report• All in all, the auditors of K-Swiss Inc. had
very little to comment on about the company. The only thing they reported was that they reviewed the financial statements according to the G.A.A.P and that they believed they looked to be fair in content.
• Grant Thornton (LLP)
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Stock Market Information
• Most recent price stock…
• Twelve month trading range of the company’s stock…
• Dividend per share…
• Date of the above information…
• $.01 Per Share
• January 1st – December 31st
• $.04 per share
• Balances derived December 31st, 2003
I believe that now is a good time to hold K-Swiss stock for those who currently own it and for investors to seriously consider buying some stock while the market is prosperous. As the Income statement reflects, K-Swiss nearly doubled it’s income from 2002 – 2003, and if it continues on the path it is going, then investing in this company could prove to be rewarding.
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Industry Situation and Company Plans
K-Swiss Inc. looks like they have a good forecast in there future. They are almost doubling there income, and continue to
improve. They will more than likely continue to sell the same quality products while
keeping up with the modern day fashions. From the looks of it, the stockholder’s will
always own the majority of the business
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Income Statement
• K-Swiss resembles a multi-step income statement the most
NET SALES
-C.O.G.S.
GROSS
MARGIN
OPERATING
-EXPENSES
E.B.I.T.
-INCOME TAXES
INCOME FROM
CONT. OPS.
-LOSS
NET INCOME
$429,126 $289,593
-235,603 -159,026
193,559 130,567
-106,966 -80,316
87,991 52,367
-34,199 -20,554
53,792 31,813
-3,736 -3,116
$50,056 $28,697
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Balance SheetAssets = Liabilites + S.H.E.
TOTAL CURRENT ASSETS $213,895 $163,793
PROPERTY, PLANT AND EQUIPMENT 8,596 8,444
INTANGIBLE AND
OTHER ASSETS 12,139 11,646
TOTAL ASSETS
2002 $183,883
2003 $234,630
2002 2003
TOTAL CURRENT $36,509 $30,875
LIABILITIES
OTHER
LIABILITIES 15,234 7,408
DEFERRED
TAXES 3,360 5,807
TOTAL
LIABILITIES 55,103 44,090
2002 2003
PAID IN
CAPITAL $31,059 $47,612
RETAINED
EARNINGS 143,427 180,318
OTHER
S.H.E. 5,041 (88,137)
TOTAL
S.H.E. 179,527 139,793
2002 2003
TOTAL LIABILITES AND S.H.E
2002 $183,833
2003 $234,360
Assets = Liabilites + S.H.E.
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Accounting PoliciesAccounting Policies•Significant accounting policies include:
–Revenue recognition: K-Swiss recognizes revenue when title passes which is normally upon shipment. They also maintain allowances for doubtful accounts.
–Cash: cash equivalents are considered by the company when they are highly liquid and if maturity is within 3 months.
–Inventories: K-Swiss accounts for it’s inventory using the F.i.f.o. Method.
– property and equipment: K-Swiss calculates depreciation and amortization using straight-line and accelerated methods.
•List Of The Topics for Notes To The Financial Statements:
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES : PROPERTY PLANT AND EQUIPMENT: INTANGIBLE ASSETS: ACCRUED LIABILITIES: OTHER LIABILITIES: BANK LINES OF CREDIT: INCOME TAXES: COMMITMENTS AND CONTINGENCIES: EMPLOYEE BENEFIT PLANS: STOCKHOLDERS’ EQUITY: CONCENTRATIONS OF CREDIT RISK: NATIONAL GEOGRAPHIC: ROYAL ELASTICS: SEGMENT INFORMATION: QUARTERLY FINANCIAL DATA (Unaudited)
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• Working Capital: $213,895-36,509 = $177,386
• Current Ratio: $213,895/36,509 = 5.9
• Receivable turnover: $429,162/44,027 = 9.75
• Average days’ sales uncollected: ~38days
• Inventory turnover: $235,603/63,444 = 3.71
• Average days’ inventory on hand: ~99days
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• Profit margin: $50,056/429,162 = 11.7%
• Asset turnover: $429,162/209,257 = 2.1 times
• Return on assets: $50,056/209,257= 23.9%
• Return on equity: $50,056/ 51,743= 96.7%
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• Debt to equity ’02: $38,283/183,883 = .21
• Debt to equity ’03: $51,743/234,630 = .22
Comments: It is quite evident that the stockholder’s are the primary owner’s of K-Swiss Inc. The debt to equity is extremely less than 1.
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• Price/earnings per share» $50,056/35,438,096 = $.001
• Dividend yield:» $.04/.01= $4