Krispy Kreme Case

Case Project #1: Krispy Kreme Doughnuts, Inc. What can the historical income statements (case usher 1) and balance sheets (case Exhibit 2) tell you about the financial health and condition of Krispy Kreme Doughnuts, Inc.? The income statement and balance sheet provides an all overview of the bon tons expenditures, future debt constraints, and how the company has done in previous historic period allowing investors and other relevant parties to make future predictions for investment purposes. dilate of the income statement provide insight into Krispy Kreme Doughnuts authentic state as wellspring as their future as a company and the balance sheet is more akin a snapshot of their assets and liabilities. Reviewing the income statement, the first thing that became apparent was the beginning in total revenue as well as operating expenses. The revenues grew from $220MM to about $666MM and net income skyrocketed from about $6MM to $57MM. The operations expenses withal increased significantly, over 100%, from $190MM to $507MM.

These increases promote that the organization is in good operating health and is likely attributed due to factors such as acquisitions of a new brand that is already effected (Mountain Mills) or their expansion of the Krispy Kreme stores nationwide as well as entering the global market. However it is probable as well that it is a combination of profitable new stores in financially sound sectors and the rebound of the Mountain Mills brand. While income from operations reports as a large increase year over year, which is positive, there are some signs of negative growth for the income from pursual is significantly low. This provides evidence that they called in some of their accounts receivable or some franchise stores likely closed. Looking at the companys interest income from the FY2001 through FY2003, the interest income was reported significantly higher due primarily to their aggressive accounting methods, which make the firm appear much healthier... If you want to get a full essay, order it on our website: Orderessay

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