Krispy Kreme's Financial Health

Krispy Kremes Financial Health Looking at the financial reports of a monastic order for the first time can be overwhelm if not intimidating. Analyzing the financial reports to determine the health of a company is much that same but different survey mustiness be looked at properly in order to call up and assess the health and wellness of a company. The different aspect in assessing the health of a company include the derogation analysis, stock analysis, cash flow statement analysis, income statement issue analysis, management analysis, significant changes and possible reasons for the changes and implications of change. To begin the analysis on Krispy Kreme, the first analysis is that of the wear and tear analysis. There are third different systems to calculate depreciation and they are straight-line, units-of-production and double-declining-balance (Larson, Wild, & Chiappetta, 2005). The Krispy Kreme Company uses the straight-line method to calculate their depreciation on building, machinery, equipment and leasehold improvements. The breakdown of the depreciation on property and equipment consist of land, buildings, machinery and equipment, leasehold improvements and construction in process (Larson, Wild, & Chiappetta, 2005).

Krispy Kremes entireness gross property and equipment in 2002 was a total of $156,484,000 and in 2003, it was a total of $252,770,000. The accumulated depreciation for the family 2002 was a total of $43,907,000 and for the year 2003, the total was $50,212,000. To find the salary property and equipment amount, taking the gross property and equipment and subtracting the accumulated depreciation is the equation used. The enlighten property and equipment for the year 2002 would be $112,577,000 and 2003 would be $202,558,000. Once both the gross property and equipment amount and the net property and equipment amounts are calculated, one can determine the pct of original cost. By taking the net amount for 2002, which was a total of $112,577,000, and dividing it by... If you want to get a full essay, order it on our website: Orderessay

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