The consolidated financial statements for Dowsett Shipping Corporation and Subsidiaries follow.

Dowsett Shipping Corporation and Subsidiaries
Consolidated Balance Sheets
(In thousands)

LIABILITIES AND STOCKHOLDERS€™ EQUITY

Required:
1. Evaluate Dowsett€™s performance in 2011.
2. What were the primary factors responsible for Dowsett€™s loss in 2010 and return to profit- ability in 2011?
3. How did Dowsett finance the $329,878,000 increase in assets in 2011?

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Dowsett Shipping Corporation and Subsidiaries Consolidated Income Statements In thousands, except per share amounts Fiscal Year Ended May 31 2011 2010 2009 $7,808,043 $7,550,060 $7,688,296 Revenues Operating expenses: $3,807,493 $3,637,080 $3,438,391 650,001 562,207 663,327 449,394 121,000 1,497,820 1,473,818 1,551,850 $7430,870 7,527093 $7436,170 $ 377,173 22,967 252,126 Salaries and employee benefits Rentals and landing fees Fuel Maintenance and repairs Restructuring charges Other 658,138 579,896 495,384 404,639 (12,500) 672,341 577,157 508,386 404,311 254,000 Operating income Other income (expenses Interest, net 0,92 $(164,315 $(181,880 Gain on disposition of aircraft and ralated 2,832 11,375 8,679) 32,000 173,57 9,795 $(211184) equipment Other, net Payroll tax loss 4,633 17,307 8,312 0 Other income (expenses), net Income (loss) before income taxes and extraordinary loss Provision (credit) for income taxes 203,576 (146,828 33,046 40,942 35,044 93,767 Income (loss) before extraordinary loss $109,809 113,782 5,898 Extraordinary loss, net of tax beneht of $34,28755,943 Net income (loss 113,78 5,898 2011 2010 Current ossets: $ 155,456 Cash and cash equivalents Receivable, less allowance for doubtful accounts of 78,177 $31,308 and $32,074 Spare parts, supplies and fuel Prepaid expenses and other Deferred income toxes 922,727 164,087 63,573 133,875 899,773 158,062 69,994 $ 1,439718 $ 1206,006 Total current assets Property and equipment, at cost $ 2,843,253 $2,540,350 1,413,793 1,352,659 851,686 1,501,250 433,212 $ 6,706,209 $6,177,907 3,229,941 2,766,610) $3,476,268 $3,411,297 Flight equipment Package handling and ground support equipment Computer and electronic equipment 3 947,913 Less occumulated depreciation and a Net property and equipment Other assets: S 432,215 487,780 358,103 $ 877,078 $ 845,883 $ 5,793,064 $5,463,186 Goodwill Equipment deposits and other assets 444,863 35010 Total other assets Total assets Current liabilities $ 133,797 155,257 430,130 799 468 $ 1,449,265 1,384,855 1,882,279 ,797,844 123,715 577,050 $ 4,121,683 3,883 464 Current portion of long-term debt Accounts payable 554,111 761,357 Accrued expenses Total current liabilities Long-term debt, less current portion Deferred income taxes Other liabilities Total liabilities Common stockholders equity: 72,479 717.660 Common stock, $0.10 par value, 100,000 shares $ 5,474 $ 5,410 672,727 906,555 $1,674,374 $ 1,584,692 authorized, 54,743 and 54,100 shares issued Additional paid-in capital-common stock Retained earnings 699,385 969,515 Less treasury stock and deferred n related to 970) 67138 579.722 $ 5,463,186 stock plans 993 Total common stockholders' equity Total liabilities and stockholders' equity $5,793,064