Balance Sheet Analysis Applebees International 2004 Essay -- Finance F

Balance Sheet Analysis Applebees International 2004In analyzing the common-size balance sheet for Applebees, it is noted that the total current assets has jumped from 11% to 14% of the total assets. The total assets for Applebees has jumped 6% from 2000 to 2001 drive by improver in the total current assets of 28%. Of those 28% increase, they consisted of 88% increase in the Cash & Equivalents ( change magnitude of $10.6 millions) caused by the diminish in the Capital express repurchasing in 2001 by Applebees. The repurchase of capital stock has decreased by 31% as noted from the year-to-year percentage changes of the Statement of Cash stop which equivalent to about $11 million dollars. The other current assets increased was from the other Current Assets category there was an increase of 92% from 2000 to 2001. imputable to the higher earnings for Applebees, there was an increase in income tax due. A significant component of the increase of other Current Assets was from increased in prepaid income taxes with net deferred income tax asset of $6.7 millions dollars. The intangibiles has also decreased from 18% to 16% in common-size balance sheet for Applebees from 2000 to 2001. This is equivalent to a decrease of 7% from year to year percentage change. This change was driven by amortization of intangible assets related to previous acquisitions of other franchisee restaurants by Applebees.There was a trend in rise of the net billet & equipment related assets since 2002 to 2004. This boost in net position and equipment assets was related to the acquisition strategy conducted by Applebees. For the $34 millions acquisitions of 21 restaurants in Washington D.C. theater of operations on November 7, 2002 $24 millions has been allocated to the fair value of property and equipment plus $10 millions in goodwill. This has caused a jump in net property & equipment assets for 2002 to jumped 16% and Intangibles assets to jumped 12% when comp atomic number 18d to 2001. Si nce most of the purchased are by cash, this has caused a 31% decreased in the Cash & Equivalents for Applebees balance sheet. For the 11 Applebees restaurants acquisitions in Illinois, Indianan, Kentucky, and Missouri for $21.8 million on March 24, 2003, $7.9 millions were allocated to the fair value of property and equipment, the other $16.6 millions went to goodwill, plus a net liabilities in additions of $1.3... ...ense has decreased 82.8% from 2000 to 2004. all told the above are contributing factors in Applebees achieving higher earnings, a 75% increase in net earnings from 2000 to 2004. Average shares has take due to arranged share repurchasing programs by Applebees. Overall, the common-size analysis of the income statement are relatively consistent over the five years of study. Cost of goods has stayed consistent between 74%-75%, the Depreciation and amortization is between 9%-11%, income from address operations and Net Income are also both between 9%-10% in common-size analysis for income Statement. No unusual flutuations has been discovered. As of December 26, 2004, our crystalline assets totaled $10,924,000. These assets consisted of cash and cash equivalents in the amount of $10,642,000 and short-term investments in the amount of $282,000. The working capital deficit increased slightly from $50,359,000 as of December 28, 2003 to $51,041,000 as of December 26, 2004. This increase was due primarily to increases in the loss reserve and unearned premiums related to the captive insurance subordinate word and accounts payable and was partially offset by increases in inventories and receivables.