Review the Financial Statements and make some initial observations about the company. Come up with at least 3 observations about the company. (For example, by looking at the Income Statement you can see that the company is  currently operating profitably. Your observations can be simple or complex, broad or detailed.  

Balance Sheet Milavec Company As of December 31 Income Statement and Statement of Retained Earnings Year 5 Year 4 Year 3 For the Years Ending Assets 36,200 $ 20,000 $ 20,000 $ Year 5 Year 4 Year 3 Cash 17,000 Sales 1,600,000 $ 900,000 $ 800,000 Marketable Securities 2$ 20,000 $ 22,000 Cost of Goods Sold Notes Receivable 24 4,000 $ 3,000 50,000 $ 70,000 $ Accounts Receivable 65,000 $ 56,000 Beginning Inventory Purchases 43,000 $ 637,000 $ 70,000 $ 40,000 1,078,000 $ 483,000 Merchandise Inventory 60,000 $ 43,000 Prepaid Expenses 24 4,000 $ 4,000 1,148,000 $ 60,000 $ 1,088,000 $ Goods available for sale 680,000 $ 523,000 340,000 $ 521,200 $ Ending Inventory 70,000 $ 43,000 Property Plant and Equipment (net) 340,000 $ 310,000 Cost of Goods Sold 610,000 $ 480,000 Total Assets 508,000 $ 455,000 Gross Margin 2$ 512,000 $ 290,000 $ 320,000 248,000 $ 42,000 $ Liabilities and Stockholder's Equity Accounts Payable Operating Expenses 24 480,000 $ 280,000 40,000 $ 2,000 $ 4,000 $ 100,000 $ 50,000 $ Income before taxes 32,000 $ 40,000 24 40,000 $ 38,000 Income taxes 12,800 $ 17,000 $ 18,000 Salaries Payable 2,000 $ 3,000 Taxes Payable Bonds Payable, 8% Preferred Stock, 6%, $100 par, cumulative $ Common Stock, $10 par 4,000 $ 100,000 $ 50,000 $ 2,000 19,200 $ 162,000 $ 25,000 $ 137,000 $ 2$ Net Income 22,000 Plus: Beg bal Retained Earnings 130,000 100,000 Less: Dividends 6,000 $ 15,000 50,000 Ending Balance Retained Earnings 175,200 $ 162,000 $ 137,000 150,000 $ 150,000 $ 125,000 Retained Earnings 175,200 $ 521,200 $ 162,000 $ 508,000 $ 137,000 Total Liabilities and Stockholders' Equity 455,000