R cky’s Bikes Brett Feeney, Shane Whitman, Emily Benson

201001791, 201102398, 2011026522

Rocky’s Bikes Overview in 2018Total Sales of 7,603,520Shareholder value of 3.54Profits of 391,787Earnings Per Share of 0.43Total units sold of 13,526Total costs of goods sold of 3,225,013

Rocky’s bikes decided to manufacture and sell two bikes in the mountain bike market segment. We put one in the higher price category at $750 a unit and one in the lower price range at $650 a unit.

Income Statement Financial Analysis

Decrease of net income in 2018 of $1,173,735 which was a decrease of 75% for a total net income of $391,787.

Highest net income in 2017 of $1,565,522 which was a 1663.3% increase from the previous year.

Highest Expenses in year 2018 of $3,818,811 Ending Inventory was extremely high contributing

to our raised expenses

Negative net income in year 2015 of (724,529).high cost of COGS at 74.9% majorly contributed to

this.

Balance Sheet Financial AnalysisHighest total assets in year 2018 with $11,906,074

invested which was a 59.8% increase from the previous year

Finished goods contributed to this significantly with $9,819,493 invested into finished goods.

Highest total liabilities and Shareholder Equity in 2018 totaling $5,508,123 and $6,397,951 respectively.

Since 2015 our total assets have been increasing which is good because the company is growing, but because Assets=Equity+Debt, our equity and debt are growing as well.

Ratio Analysis Rocky’s Bikes had a Current Ratio of 1.78 which means

our firm is healthy. When your Current Ratio is below 1.00 your firm may be in trouble because they may not be able to meet upcoming/unexpected costs and expenses.

Using the Earnings Per Share ratio our firm had EPS of 0.43 in 2018. This was so low because we had low net income of $391,787. Our closest competitor had an EPS ratio of 0.76 followed by 3.05.

Sales Growth and COGS

Positioning Map

MountainYouth Road

High price

Low price

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