The statement cannot be assessed in isloation and needs to have either previous

income statements or industry bench marks in order to make a viable comparison of

the company's performance.
In the absense odf the above mentioned information the following can be garnered
from the income statement provided:

The company has earned postive gross profit, operating profit and as well as
positive EBIT. This means that the company is able to cover all its expenses such
as COGGS, Operating expenses as werll as interest and tax expenses and that
company was able to earn US$2.15 per shareholdser for its owners (common share
holders). At the same time

The Balance sheet has been provided for two years which allows for comparison with
preceding year to assess the fiunance performance of the company in terms of
assets, liabilityies as well as liabilities of the company towards the owners.

The company's cash and near cash ( marketable securities have both reduced) while
inventories (unsold stock) have gone up abd accounts receiving webt town meaning
cash actually came in the copmy. This , conbined with seemingkly an alarming
increase in unsold stock seems to show a lower level of performance in 2012. On the
other hand, the company's fixed assests have increased which nmay result in
enhanced performance thus resulting in benefits for the company oqwewners.

COmpany has more assets than liabilities thereby denotog a staritifactory

performance for covnering liquiity.

The company pruchased shared this year, companie4s usually do that when they think
that their shares are unvalued. this should be investigated and may actually
present opprotunities fotr investors for buying a shares aof a company whose
manaGgment seems to think that there shares may be unvalued.

Account P