Balance Sheet and Income Statement Commentary

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Balance Sheet and Income Statement Commentary

Tyler Gilmore

University of Phoenix

Business Systems I


Nancy Mingus

Aug 13, 2012

Balance Sheet and Income Statement Commentary

Komatsu Ltd is a company that deals with the manufacturing, marketing, and sale of industrial products and services. The company’s balance sheet shows that their total current assets for 2011 are 1,244,372 yen. The company’s long-term trade receivables total was at 183,270 yen. Total investments equal 89,094 yen. With property, plant and equipment, goodwill, other intangible assets, and deferred income taxes and other assets; the company’s total assets for 2011 is 2,149,137 yen. This year’s assets increased from 1,959,055 yen.

The company’s total current liabilities equal up to 799,988 yen. The total long-term liabilities owed are 376,469 yen, giving a grand total for all liabilities 1,176,457 yen. This is higher than last year’s liabilities, which was 1,082,256 yen. The total shareholders’ equity for the company equal up to 923,843 yen, plus non-controlling interests of 48,837 yen equals a total equity of 972,680 yen. With total liabilities and total equity, the grand total is 2,149,137 yen, which balances out with total assets.

On the company’s income statement, the operating income totals 222,929 yen. This was increased from 67,035 yen in 2010. After expenses, income before taxes in 2011 was 219,809 yen. After income taxes were taken out and before equity in earnings of affiliated companies the total was 155,103 yen. After the equity in earnings of affiliated companies was taken out, the net income was 157,827 yen. After the attributable to non-controlling interests was taken out, the company’s total net income for 2011 was 150,752 yen. Compared to 2010 figures, the company’s net income increased dramatically from 33,559 yen, which shows that the company did much better in the...