Case Assignment 1

INTRODUCTION TO EXECUTIVE TOOLS FOR DECISION MAKING

Jonathan Griffin

Financial Accounting, WIN2015-2

Professor Dr. Heesam Kang

January 20, 2015

Abaxis

Abaxis Incorporated is a company that has the mission to improve the efficiency of care and the quality of life of patients in the medical and veterinary markets. They provide products that can test for multiple illnesses in both human beings and animals. They have multiple machines that analyze specimen and can give accurate results and diagnose illnesses. In 2014 the company had a goal to expand and began to reach out to other countries for business. It expanded to Europe, Asia and other parts of the world. Its total revenue by percentage for 2014 was distributed as follows. North America amounted to 79% of the total revenue, Europe amounting to 16% total revenue, Asia Pacifica and the rest of the world amounting to 5% total revenue. They achieved their goal by expanding the company overseas by 6% but went down in total revenue by 8%. Although they achieved their goal they lost 2% in total revenue from 2013 to 2014. The total revenue that Abaxis made in 2014 was 171,870. The companies Cash and cash equivalents and investments went from $95,264 in 2013 up to 121,182 for 2014. So this company is continuing to invest. Their total assets went up from $201,163 in 2013 to $216,968 for 2014. The company’s working capital went up from $132,944 in 2013 to a total of $148,553 in 2014. The companies cost of revenues stayed about the same and only going up slightly from 2013 to 2014. In 2013 the total cost of revenues was $87,794 and $88,761 for 2014. The diluted net income went down to nearly half of what it used to be in 2013. It went from $1.23 in 2013 to $.63 in 2014 per net share. Their shares used in calculating diluted net income per share stayed about the same and only going up slightly from 2013 to 2014. The diluted net income per share was 22,381 in 2013 and 22,575 in 2014. The Investors in this company...