Intermediate Accounting 1

Financial Statement Analysis

The Food and Beverage Industry has taken a few hits this year due to health scares, such as the swine flu, and an unstable credit market. Many companies went into a financial crisis due to the global economic downturn; however, this has proven to be a great opportunity for profitable companies to merge with companies looking for a bailout. Consumers have begun to look for better quality products for their money, as well as spending less money on products that have proved less efficient. Exports rose the first half of the year due to an increase in the US dollar value. Due to the health scares in China and the economic downturn, dairy exports had a large decrease. Also, food safety regulations are being reformed in order to provide greater safety for consumers. Overall, the downturn in the US economy has in turn increased US and Canada’s trading; this should improve each country’s Food and Beverage exports in the near future.

H.J. Heinz Corporation manufactures processed food products, top products being ketchup, frozen foods, and soups. Heinz Co. divides operating segments by geographical area; their major trademarks include Heinz, Classico, Quality Chef Foods, and Jack Daniel’s. Heinz Co. fiscal year end is April 29 and were incorporated July of 1900, in Pittsburgh, Pennsylvania. Their Transfer Agent is Wells Fargo Shareowner Services located in South St. Paul, Minnesota.

ConAgra Foods is a food industry company which focuses on the sale of private label, well-known, and consumer products. This company provides products to restaurants, commercial customers, and foodservice operators. The company supplies businesses with such essentials as grain products, vegetable products, and spices. ConAgra’s branded products include Egg Beaters, Healthy Choice, Hebrew National, Hunts, and Reddi-wip. ConAgra is comprised of two reporting segments which are Consumer Foods and Commercial Foods.

All the companies in the pool...