Review the Attached Statements

Review the attached statements:

There are two questions

1.Perform horizontal analysis for net sales comparing sales for 2011 and 2012:

What was the difference in net sales (net income) between the two years?
Answer is stated in dollars and as a percentage from the prior year.
Was the difference positive or negative?
What caused the change and was it good or bad?

2. Performs at least two ratio analyzes for

1. liquidity,

2. solvency,

3. profitability and shares interpretation of the results

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Income Statement

Period Ending / Dec 31, 2012 / Dec 31, 2011 / Dec 31, 2010
Total Revenue / 32,974,000 / 30,303,000 / 20,583,000
Cost of Revenue / 29,002,000 / 27,007,000 / 18,251,000
Gross Profit / 3,972,000 / 3,296,000 / 2,332,000
Operating Expenses
Research Development / - / - / -
Selling General and Administrative / 1,854,000 / 1,732,000 / 1,716,000
Non Recurring / - / - / -
Others / 445,000 / 417,000 / 422,000
Total Operating Expenses / - / - / -
Operating Income or Loss / 1,402,000 / 1,080,000 / 140,000
Income from Continuing Operations
Total Other Income/Expenses Net / (295,000) / (63,000) / (64,000)
Earnings Before Interest And Taxes / 1,378,000 / 1,084,000 / 130,000
Interest Expense / 166,000 / 179,000 / 155,000
Income Before Tax / 1,212,000 / 905,000 / (25,000)
Income Tax Expense / 442,000 / 342,000 / 4,000
Minority Interest / (27,000) / (17,000) / -
Net Income From Continuing Ops / 743,000 / 546,000 / (29,000)
Non-recurring Events
Discontinued Operations / - / - / -
Extraordinary Items / - / - / -
Effect Of Accounting Changes / - / - / -
Other Items / - / - / -
Net Income / 743,000 / 546,000 / (29,000)
Preferred Stock And Other Adjustments / - / - / -
Net Income Applicable To Common Shares / 743,000 / 546,000 / (29,000)

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Balance Sheet

Period Ending / Dec 31, 2012 / Dec 31, 2011 / Dec 31, 2010
Assets
Current Assets
Cash And Cash Equivalents / 1,639,000 / 900,000 / 648,000
Short Term Investments / - / - / -
Net Receivables / 1,221,000 / 1,272,000 / 908,000
Inventory / 1,578,000 / 1,763,000 / 1,257,000
Other Current Assets / 198,000 / 216,000 / 115,000
Total Current Assets / 4,636,000 / 4,151,000 / 2,928,000
Long Term Investments / - / - / -
Property Plant and Equipment / 5,245,000 / 5,148,000 / 5,170,000
Goodwill / - / - / -
Intangible Assets / 214,000 / 226,000 / 246,000
Accumulated Amortization / - / - / -
Other Assets / 607,000 / 367,000 / 388,000
Deferred Long Term Asset Charges / - / - / -
Total Assets / 10,702,000 / 9,892,000 / 8,732,000
Liabilities
Current Liabilities
Accounts Payable / 2,878,000 / 2,831,000 / 2,344,000
Short/Current Long Term Debt / 3,000 / 418,000 / 152,000
Other Current Liabilities / - / - / -
Total Current Liabilities / 2,881,000 / 3,249,000 / 2,496,000
Long Term Debt / 1,587,000 / 1,283,000 / 1,843,000
Other Liabilities / 647,000 / 567,000 / 562,000
Deferred Long Term Liability Charges / 850,000 / 815,000 / 616,000
Minority Interest / 486,000 / 310,000 / -
Negative Goodwill / - / - / -
Total Liabilities / 6,451,000 / 6,224,000 / 5,517,000
Stockholders' Equity
Misc Stocks Options Warrants / - / - / -
Redeemable Preferred Stock / - / - / -
Preferred Stock / - / - / -
Common Stock / 25,000 / 25,000 / 25,000
Retained Earnings / 3,649,000 / 2,944,000 / 2,398,000
Treasury Stock / (356,000) / (226,000) / (128,000)
Capital Surplus / 1,070,000 / 1,000,000 / 970,000
Other Stockholder Equity / (137,000) / (75,000) / (50,000)
Total Stockholder Equity / 4,251,000 / 3,668,000 / 3,215,000
Net Tangible Assets / 4,037,000 / 3,442,000 / 2,969,000

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Cash Flow

Period Ending / Dec 31, 2012 / Dec 31, 2011 / Dec 31, 2010
Net Income / 743,000 / 546,000 / (29,000)
Operating Activities, Cash Flows Provided By or Used In
Depreciation / 457,000 / 434,000 / 440,000
Adjustments To Net Income / 85,000 / 186,000 / (17,000)
Changes In Accounts Receivables / 48,000 / (365,000) / 208,000
Changes In Liabilities / (61,000) / 448,000 / 452,000
Changes In Inventories / 192,000 / (506,000) / (635,000)
Changes In Other Operating Activities / 94,000 / (71,000) / (34,000)
Total Cash Flow From Operating Activities / 1,585,000 / 689,000 / 385,000
Investing Activities, Cash Flows Provided By or Used In
Capital Expenditures / (529,000) / (298,000) / (297,000)
Investments / (170,000) / - / -
Other Cash flows from Investing Activities / 3,000 / 7,000 / 2,000
Total Cash Flows From Investing Activities / (696,000) / (291,000) / (295,000)
Financing Activities, Cash Flows Provided By or Used In
Dividends Paid / (38,000) / - / -
Sale Purchase of Stock / 48,000 / 190,000 / 3,000
Net Borrowings / (168,000) / (349,000) / 139,000
Other Cash Flows from Financing Activities / 8,000 / 13,000 / 3,000
Total Cash Flows From Financing Activities / (150,000) / (146,000) / 145,000
Effect Of Exchange Rate Changes / - / - / -
Change In Cash and Cash Equivalents / 739,000 / 252,000 / 235,000