Small business Analysis and Financial Statement
L3 Harris Technologies Inc. has shown performance in a 3year period. Their Total Revenue begin July 2016 with an amount of 6,801.00 and their ending June 2019 was 5,992. Showing that there was a profit increase of 809.00. Then the Cost of Revenue which is the manufacturing and service L3 Harris has incurred in a 3year period. Beginning July 2016 with the amount of 4,467.00 and ending with 3,832.00 . This proves that there was less funds used in the 3 year period which was 635.00 less. Leaving the company with a gross profit change in that period to be decreased. The ending balance of that gross profit, was calculated by substracting the Revenue from the cost of Revenue. Which is how much we marked up the services.
The Gross profit would need to be high enough to cover the amount of expenses listed below. Starting with 7/1 with the amount of 2,160.00, in 6/30 there was a decrease in funds of 117.00. 6/29 there was an increase of 59.00. Increasing back up 232.00 ending with 2,334.00 for the gross profit.
Selling expenses, admin expenses and
Operations Expenses
Next we have the operating expenses which is considered what expenses has been used to operate the company. Now this company show that for their Research and Development they did not have any expenses for that. The Sales, General and Admin expense is 1,242.00 There was an influcuation within the 3 year period. It begin with 1,105.00 with an increase of 45.00 then 6/17 it decreased 32.00 to increase again in 6/29 60.00 ending with a total of 1,242.00 as the Total Operating Expense.
Subtracting the operations expenses from the gross amount will provide the Income from Operation which is 1,242-2,334.00= 1,092
The operating Income in the Beginning 7/1 was 1,055.00 with a decrease 6/30 of 162.00, a small increase 6/29 of 27.00. Then back up 6/28 of 172.00 with the ending amount 1,092.00.
Additional income/ expense items is 190,00 for the year ended June 29,2019, which was an addition to the operating income of 1,092.00 resulting in the earnings before interest and tax amount of 1,282.00.
Results of Non- operating income/ activities
The earnings before interest and Tax was 1,282,000
Interest expense 169,000
Earnings Before tax 1,113,000
Income Tax 160,000
The Net income of operations were 953,00 for the year ended June 29,2019. The firm determined their income by substracting the earnings before interest and tax from the interest expense, which give you 1,113,000 earnings before tax. Then, substracting the Income Tax of 160,00 giving you the net income for operations.
Balance sheet
The Current assest I will discuss for L3 Balance sheet is the cash and cash equivalents,Net recievables, Inventory and other Curent assesst to include the total
In the order based on liquidity, how quick you can get the funds. On the Balance sheet its starts with the cash and cash equivalents that provides a reports the company’s value of assets that are cash. It can be a bank account. The balance sheet shows that the cash assets was at 487,000 July 1, 2016 then it begin to decrease alittle June 30, 2017, decreased a lot June 29,2018 by 196,000, ending with a balance of 530,000 June 28,2019.
There is no value in the Short Term investment area
There is a the Net Recievables known as the funds that their customers owe or will pay them sometime soon. As shown on the balance sheet they had 749,00 at their on July 1,2016 and then the mount slowly decreased to 648,000. But it is still money they can say, will always be available as long as someone owe them.
Next is the Inventory which would have to be sold to turn it into cash. The company is showing that they have 867,00 in inventory July 1,2016 and that amount has decreased over a period of time June 29,2018 to 411,000, ending on June 28,2019 with 360,000.
Other current assest are not specified but they begin with 521,000 , later they had only 101,000 then there was a gain of 784,000 placing the assets at 885,000 June 29,2018, with an ending amount of 1,040,000.
In order to get the total assets which is 2,578,000 all the other assets was added together except for the other current assest.
Next column is the Longterm assest such as the long term investments, fixed assets, goodwill, intangible assets, and so fourth.
The Long term investments is considered reported a fair value, meanwhile this company do not have any