Financial Intelligence for HR Professionals: What You Really Need to Know About the Numbers

APPENDIX A

Sample Financials

The following is a sample set of financials for an imaginary company.

INCOME STATEMENT (in millions)

Year ended Dec. 31, 2007
Sales	$8,689
Cost of goods sold	6,756
Gross profit		$1,933
Selling, general, and admin. (SG&A)	1,061
Depreciation	239
Other income	19
EBIT		$ 652
Interest expense	191
Taxes	213
Net profit		$ 248

BALANCE SHEET (in millions)

Dec. 31, 2007	Dec. 31, 2006
Assets
Cash and cash equivalents		$ 83	$ 72
Accounts receivable		1,312	1,204
Inventory		1,270	1,514
Other current assets and accruals		85	67
Total current assets			2,750	2,857
Property, plant, and equipment		2,230	2,264
Other long-term assets		213	233
Total assets			$5,193	$5,354
Liabilities
Accounts payable ...