Dial Chemicals

    Dial chemicals is a company involved in the manufacture and distribution of a wide range of consumer products. The company’s products have dominated the market in America for a period of about 130 years. Currently, the company is Henkel KGaA’s subsidiary. Dial was USA’s pioneer antibacterial soap company. The company was established by a number of Armour and company chemists and is listed at the New York stock exchange with the ticker symbol Dl and its auditors are Ernst and young.

The company’s cash and cash equivalents for the year ended march 31^st 2009 were $ 9,591,182 while those for the year ended 31^st march 2010 were reported as $8,774,223. This represents a decrease from the previous year’s cash and cash equivalents. It is however important to note that this did not affect the amount of current assets and this can be explained partially by the deferred tax asset value which rose as well as some settlements in terms of accounts receivables.

The total current assets for the year ended march 31^st 2009 and the year ended march 31^st 2010 were $15,924,690 and $16, 309,138 respectively. According to Weygandt (2008) currents assets should be presented in order of their liquidity. The two largest current assets for the year ended March 31^st 2009 and were cash and cash equivalents and accounts receivables. This was also the case for the year ended 31^st march 2010. For the same periods, that is 31^st march 2009 and 31^st march 2010 the total assets value stood at $20,427,781 and $21, 312,765 respectively. The accounts receivables for these two years were recorded as $2,876,087 and $1, 912,947 respectively. The total current liabilities for the company for the year ended 31^st march 2009 and 31^st march 2010 were $2,398,787 and $1,992,853 respectively.

The two biggest items in the current liabilities section for the two respective periods were accounts payable and accrued taxes. With regard to total liabilities, the year ended 31^st march 2009 and 31^st march 2010 registered total liabilities and stockholders equity of $20,987,153 and $19, 837,643 respectively. The company’s reported net income for the years ended 31^st march 2008, 31^st march 2009, 31^st march 2010 as reported in the company’s income statement were $3,654,987; $3,908,098; $3,890,080 respectively. The difference in net income for the year ended 31^st march 2009 and 31^st march 2010 was -18,018. The difference in net income for the year ended 31^st march 2008 and 31^st march 2009 was $253,111.

References

Weygandt, J. J. (2008). Financial accounting, 6^th Ed. Hoboken, NJ: John Wiley & Sons

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