Question

Using the common size (vertical) balance sheet, identify the significant trends, and compare to the industry standards.

	FY 2015	%	FY 2014	%		Industry
ASSETS
Cash and cash equivalents	$                   4,046	10.05%	$                   2,210	5.34%		4.20%
Inventory	8,601	21.36%	8,790	21.23%		19.56%
Assets of discontinued operations	322	0.80%	1,333	3.22%
Other current assets	1,161	2.88%	1,754	4.24%		3.32%
Total current assets	$                 14,130	35.10%	$                 14,087	34.02%		30.88%
Property and equipment
Land	6,125	15.21%	6,127	14.80%
Buildings and equipment	27,059	67.21%	26,614	64.28%
Fixtures and equipment	5,347	13.28%	5,346	12.91%
Computer hardware and software	2,617	6.50%	2,553	6.17%
Construction-in-progress	315	0.78%	424	1.02%
Accumulated depreciation	(16,246)	-40.35%	(15,106)	-36.48%
Property and equipment, net	$                 25,217	62.63%	$                 25,958	62.69%		69.12%
Noncurrent assets of discontinued operations	75	0.19%	442	1.07%
Other noncurrent assets	840	2.09%	917	2.21%
Total assets	$                 40,262	100.00%	$                 41,404	100.00%		100.00%
LIABILITIES
Accounts payable	$                   7,418	18.42%	$                   7,759	18.74%		13.37%
Accrued and other current liabilities	4,236	10.52%	3,783	9.14%		10.40%
Current portion of long-term debt and other borrowings	815	2.02%	91	0.22%
Liabilities of discontinued operations	153	0.38%	103	0.25%
Total current liabilities	$                 12,622	31.35%	$                 11,736	28.35%
Long-term debt and other borrowings	$                 11,945	29.67%	$                 12,705	30.69%		32.08%
Deferred income taxes	823	2.04%	1,321	3.19%
Noncurrent liabilities of discontinued operations	18	0.04%	193	0.47%
Other noncurrent liabilities	1,897	4.71%	1,452	3.51%
Total noncurrent liabilities	$                 14,683	36.47%	$                 15,671	37.85%
Total liabilities	$                 27,305	67.82%	$                 27,407	66.19%		60.52%
SHAREHOLDERS' INVESTMENT
Common stock	$                        50	0.12%	$                        53	0.13%
Additional paid-in capital	5,348	13.28%	4,899	11.83%
Retained earnings	8,188	20.34%	9,644	23.29%
Accumulated other comprehensive loss
Pension and other benefit liabilities	(588)	-1.46%	(561)	-1.35%
Currency translation adjustment and cash flow hedges	(41)	-0.10%	(38)	-0.09%
Total shareholders' investment	$                 12,957	32.18%	$                 13,997	33.81%		39.48%
Total liabilities and shareholders' investment	$                 40,262	100.00%	$                 41,404	100.00%		100.00%

Answer 1