The following consolidated income statements and balance sheets are available for Azimio Products:

Required:
1. Explain why income from operations decreased in 2010 and 2011 while sales increased.
2. Determine whether the proportion of resources invested in the various asset categories changed from 2009 to 2011.
3. Determine whether the proportion of capital supplied by creditors changed.
4. Indicate from what sources Azimio secured the capital to finance its increase in current assets in 2011.

Transcribed Image Text:

Azimio Products Consolidated Income Statements Year Ended December 31, 2010 Amount % Amount % Amount % $901,170 100.0 $728,035 100.0 $661,850 100.0 $539,801 59.9 $439,005 60.3 $401,743 60.7 318,113 35.3206,034 28.3 176,052 26.6 2011 2009 Revenues Costs and expenses: Cost of goods sold Selling and administrative Interest Other expenses (incomel 7,122 1.9 18,20 2.5 7,208 2.6 9913 1.1 2,912 043240.2) $884.949 98.2 s666.152 91.5 $593.67989.7 16,221 .8 $ 61,883 8.5 68,171 10.3 Total costs and expenses Income before provision for income taxes Provision for income taxes Net income 4,506 0.5 22,569 3.1 23,827 3.6 $ 11,71513 39314 5.4 44,344 6.7 Azimio Products Consolidated Balance Sheets December 31, 2010 Amount % Amount % Amount % $147,129 314 $62,417 14.366,927 16.1 270,831 57.8 261,015 59.8 241,519 58.1 2011 2009 ASSETS Current assefs Investment Property, plant, and equipment (net) Other assets Total assets 30,925 6.6 95,589 21.9 91,453 22.0 19,680 4.2 17459 4.0 15,796 3.8 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Long-term debt Total liabilities Common stock Retained earnings Total stockholders equity Total liabilities and stockholders' equity 68,410 14.6 $ 29,244 6.7 28,6836.9 152,284 32.5 162,807 37.3 152,976 36.8 $220,694 47.1 $192,051 44.0 $181,659 43.7 $183,209 39 $182,332 41.8 $171,266 41.2 64,662 3.862,097 62,770 15.1 7852.9 $244 429 56.0 $234,036 56.3 $468,565 00.0 $436,480 100.0 $415,695 100.0