The comparative balance sheets of the Darling Corporation for 2011 December 31, and 2010 follow: Darling Corporation Comparative balance sheets 2011 December 31, and 2010 (USD millions)
|
2011 |
2010 |
|
|
Assets |
||
|
Cash |
$ 480,000 |
$ 96,000 |
|
Accounts receivable, net |
86,400 |
1,15,200 |
|
Merchandise inventory |
3,84,000 |
4,03,200 |
|
Plant and equipment, net |
2,68,800 |
2,88,000 |
|
Total assets |
$ 1,219,200 |
$902,400 |
|
Liabilities and stockholders” equity |
$ 96,000 |
$ 96,000 |
|
Accounts payable |
||
|
Common stock |
6,72,000 |
6,72,000 |
|
Retained earnings |
4,51,200 |
1,34,400 |
|
Total liabilities and stockholders” equity |
$1,219,200 |
$902,400 |
Based on your review of the comparative balance sheets, determine the following:
a. What was the net income for 2011 assuming there were no dividend payments?
b. What was the primary source of the large increase in the cash balance from 2010 to 2011?
c. What are the two main sources of assets for Darling Corporation?
d. What other comparisons and procedures would you use to complete the analysis of the balance sheet?