Question

Using the information below, discuss both the positive andnegative trends presented in the company

Suncor Energy Inc.

Income Statement Horizontal Analysis

For the years ending December X, 2012

And December X, 2013 ($ millions)

	2013	2012	Amount	Variance % Change 2013 from 2012
Revenues and Other Income
Operating revenues, net of royalties	39,593	38,107
Other Income	704	419
	40,297	38,526	1,771	4.60
Expenses
Purchases of crude oil and products	17,293	17,047
Operating, selling and general	9,447	8,897
Transportation	845	685
Depreciation, depletion, amortization and impairment	4,892	6,446
Exploration	332	309
Gain on disposal of assets	(137)	(44)
Project start-up costs	15	60
Voyageur upgrader project charges	82	-
Financing expenses	1,162	142
	33,921	33,542
Earnings before Income Taxes	6,376	4,984	1,392	27,93
Income Taxes
Current	2,083	1,515
Deferred	382	729
	2,465	2,244
Net earnings	3,911	2,740	1,171	42,74
Other Comprehensive Income (loss)
Items that may be subsequently reclassified to Profit orLoss:
Foreign currency translation adjustment	325	(16)
Cash flow hedges reclassified to net earning	-	(1)
Items That will not be reclassified to profit or loss:

Actuarial gain (loss) on employee retirement benefit plans, net of income taxes.	579	(134)
Other comprehensive Income (loss)	904	(151)
Total Comprehensive Income	4,815	2,589	2,226	85.98
Per Common share
Net earnings-basic	2.61	1.77
Net earning-diluted	2.60	1.76
Cash dividends	0.73	0.50

Suncor Energy Inc.

Balance Sheet Horizontal Analysis

For the years ending December X, 2012

And December X, 2013

	2013	2012	Amount	Variance % Change 2013 from 2012
Assets
Current assets
Cash and cash equivalents	5,202	4,385
Accounts receivable	5,254	5,201
Inventories	3,944	3,697
Income taxes receivable	294	799
Total current assets	14,694	14,082
Property, plant and equipment, net	57,270	55,434
Exploration and evaluation	2,772	3,284
Other assets	422	419
Goodwill & other intangible assets	3,092	3,104
Deferred income taxes	65	78
Total assets	78,315	76,401	1,914	2.50
Liabilities and Shareholders’ Equity
Current liabilities
Short-term debt	798	775
Current portion of long-term debt	457	311
Accounts payable and accrued liabilities	7,090	6,446
Current portion of provisions	998	856
Income taxes payable	1,263	1,165
Total current liabilities	10,606	9,553
Long-term debt	10,203	9,938
Other long-term liabilities	1,464	2,319
Provisions	4,078	4,932
Deferred income taxes	10,784	10,444
Total liabilities	37,135	37,186	-51	-0.14
Stockholder’s equity	41,180	39,215	1,965	5.01
Total liabilities and equity	78,315	76,401	1,915	2.50 See More from Todd Young