2023 2022
Revenue
Net sales $49,690 $47,850
Cost of merchandise sold 27,016 24,969
Gross Profit 22,674 22,881
Operating Expenses
Selling, general and administrative 7,850 7,182
Depreciation 1,822 1,010
Amortization 45 45
Operating income 12,957 14,644
Interest expense, net 276 235
Gain on sale of property & equip 800 350
Income before income taxes 13,481 14,759
Provision for income taxes 3,370 3,690
Net income $10,111 $11,069
H & K INC.
Income Statement
For the Years Ended December 31, 2023 and 2022
$ in millions
2023 2022
Current Assets
Cash and cash equivalents $18,953 $9,839
Accounts Receivable, net 3,512 2,010
Merchandise inventories 3,120 4,029
Other current assets 315 326
Total Current Assets 25,900 16,204
Long-Term Assets
Property and equipment 13,405 11,995
Accumulated depreciaion -3,990 -3,220
Intangible assets, net of accumulated
amortization
148 193
Total Long-Term Assets 9,563 8,968
Total Assets $35,463 $25,172
Current Liabilities
Accounts payable $1,318 $1,276
Accrued liabilities 975 1,200
Income taxes payable 2,619 2,455
Current portion of long-term debt 125 99
Total Current Liabilities 5,037 5,030
Non-current Liabilities
Long-term debt 4,699 4,525
Total Liabilities 9,736 9,555
Shareholders’ Equity
Common stock; .01 par value; 9,000
shares authorized; 380 and 370 shares
issued & outstanding respectively 4 4
Paid-in capital 3,718 3,018
Treasury stock, at cost -3,000 -2,649
Retained earnings 25,005 15,244
Total Shareholders’ Equity 25,727 15,617
Total Liabilities and Shareholders’
Equity
$35,463 $25,172
H & K INC.
Balance Sheet
December 31, 2023 and 2022
$ in millions
Additional Information:
The company paid cash dividends of $350 in 2023.
The company purchased treasury stock of $351 during 2023, and sold common stock for $700 during 2023. No other stock transactions took place.
The company purchased $2,762 in equipment for cash during the year. In addition, equipment was sold for $1,100 in cash; the equipment had a book value at the time of sale of $300.
There were no purchases or sales of intangible assets.
The company made payments of $250 on its debt obligations, and took an additional $450 in debt during the year.
350
The company purchased treasury stock of $351 during 2023, and sold common stock for $700 during 2023. No other stock transactions took place.
351
The company purchased $2,762 in equipment for cash during the year. In addition, equipment was sold for $1,100 in cash; the equipment had a book value at the time of sale of $300.
2762
The company made payments of $250 on its debt obligations, and took an additional $450 in debt during the year.
250
700
1100
300
450
Cash flow from operating activities
Net Income 10,111
Adjustments from Net Income to Net Cash from operation
Income statement items not affecting cash
Amortization Expense 45
Depreciation Expense 1,822
Gain on Sale of Plant Assets (800)
Changes in Current Assets & Current Liabilities
Increase in Accounts Receivable (1,502)
Decrease in Merchandise Inventory 909
Decrease in other Current Assets 11
Increase in accounts Payable 42
Decrease in Accrued Liabilities (225)
Increase in income taxes payable 164
Net Cash from Operating Activities 10,577
Cash flow from investing activities
Purchase of Equipment (2,762)
Sale of Equipment 1,100
Net Change from Investing Activities (1,662)
Cash Flows from Financing Activities
Cash paid to retire debt (250)
Common Stock Issued 700
Treasury Stock Bought (351)
Aditional debt acquired 450
Cash paid for dividends (350)
Net Cash from Financing Activities 199
Net Increase in Cash 9,114$
Cash balance at year-end 2022 9,839$
Cash Balance at year-end 2023 $18,953
H & K INC.
Statement of Cash Flows
For the Year Ended December 31, 2023
USD ($) in Millions
2023
Current Ratio
5.14
Acid-Test Ratio
4.46
AR Turnover
18.00
Days Sales Uncollected
25.80
Inventory turnover
7.56
Days sales in Inventory
42.15
Total Asset Turnover
1.64
Debt to Equity
0.38
Times Interest Earned
47.84
Net Profit Margin
20.35%
Return on Total Assets
33.35%
Return on Stockholders Equity
48.91%
Earnings per Share (EPS)
$26.96
H & K INC.
Ratio Analysis
For the Year Ended December 31, 2023
Average AR, net:
2761
Average inventory:
3574.5
Average total assets:
30,317.50
Average Total Equity:
20672
Average common shares outstanding:
375
