3.1

Using the annual balance sheet and the Income Statement, calculate the cash flow identify To complete this requirement, you need to use your company's income statement information and generate a simplified income statemen. The tax dollars in your income statement should be the same as the tax from your company's income statement . a) OCF b) NCS C) changes in NWC . d) Is the Net working capital negative or positive? e) Does this indicate any potential difficulty for the company? Why? f) CFA 9) CFC h) is the Cash Flow to Creditors Negative? 1) Explain how this might come about? ]) What is the last total dividend paid? - refer to the Statement of Changes in Equity k) Did the company issue new shares? Yes or no. What is the total dollar value? - refer to the Statement of Changes in Equity 1) Did the company repurchase shares? Yes or no. What is the total dollar value? - refer to the Statement of Changes in Equity m) Based on the information above (from point "a" to "l"), what is your opinion regarding the cash flow of your company? Income statement and statement of comprehensive income for the year ended 31 December Note 2020 2019 2018 111,831 2.1, 22 22 17,617 126,946 20,932 106,014 32,928 15,462 3,958 94214 29,397 22 22,23 DKK million Income statement Net sales Cost of goods sold Gross profit Sales and distribution costs Research and development costs Administrative costs Other operating income, net Operating profit Financial income Financial expenses Profit before income taxes Income taxes Net profit 14,805 22 3.916 22,25 460 122,021 20,088 101,933 31,823 14,220 4,007 600 52,483 65 3.995 48,553 9,602 38,951 1,152 49 54,126 1,628 2,624 53,130 10,992 42,138 47,248 2,122 1,755 47,615 49 2.6 8.987 38,628 Earnings per share Basic earnings per share (DKK) Diluted earnings per share (DKK) 4.1 18.05 18.01 16.41 16.38 15.96 15.93 4.1 Balance sheet at 31 December Note 2020 2019 3.1 5.835 3.1 50,551 DKK million Assets Intangible assets Property, plant and equipment Investments in associated companies Deferred income tax assets Other receivables and prepayments Other financial assets Total non-current assets 474 26 20,657 50,269 582 5,865 674 1,066 79,113 4121 841 1,334 63,156 17.641 3.3 3.4 24,912 806 Inventories Trade receivables Tax receivables Other receivables and prepayments Derivative financial instruments Cash at bank Total current assets 18,536 27,734 289 4,161 2,332 12,757 65,809 42,43 42,45 3,434 188 15,475 62,456 Total assets 144,922 125,612 Note 2020 2019 480 DKK million Equity and liabilities Share capital Treasury shares Retained earnings Other reserves Total equity 4.1 41 470 (8) 63,774 (911) 63,325 (10) 57,817 (694) 57,593 4.1 44 3,009 2.6 Borrowings Deferred income tax liabilities Retirement benefit obligations Provisions Total non-current liabilities 2,897 2,502 1,399 80 1,334 3.5 3.6 4613 4,526 11,324 9,036 44 1.474 6,358 4212 15,085 3.7 Borrowings Trade payables Tax payables Other liabilities Derivative financial instruments Provisions Total current liabilities Total liabilities 7459 5,717 3,913 17,005 1.365 34,814 70,273 81,597 43 734 3.6 31,120 58,983 68,019 Total equity and liabilities 144,922 125,612 Section 3 Operating assets and liabilities 16.30 3.1 Intangible assets and property, plant and equipment of a property,port and prevent and angle LOX 131 willen bieden Darmara 2122 2010 OK 12.750 milions located in the US (DX 20.256 milion in 2019, where the Groces main production filing pacaramoulding assembly facines wees are located Patents Software Total Meets Property and and other intangible and and Donne Other under plant and Diten licences intangibles assets tulding machinery woment conquipment 2020 Cost at the beginning of the year 7.220 2.560 9,830 30.250 27,994 6215 20 351 84420 Actors during the year 15.105 396 MI 506 410 4560 29 Dispose during the year 119 (1223 H 8:401 Transfer and recreation 240 4586 515 (12.541 regelen 10 00 INI 0813 022) 11.50 0,190 Cost at the end of the year 22.404 2.936 140 2.500 31.50) 63 10,798 BOM Amortato/deprecation and impormenosses at the beginning of the year 2,043 1.252 3. 11.578 TU 145 SU Amortisation deprecation for the year 202 1,00 821 4,180 Impaments for the you 350 350 14 69 28 16 127 Norton/depresion and imparare krises reversed on asuring they w 11191 116 1831) rect lenger 191 (10) M (10) 20 Amor deprecand parents at the end of the 1.540 . 12.00 1944 40) 16417 Carrying amount at the end of the year 19.00 1. 20,457 24573 12.05 2.000 1070 50.200 2019 Cost at the beginning of reye 2412 7 25401 2413 4739 16 Changen accounting poy, 201 417 3,77 Additions during the your 221 2,170 350 7510 1983 Dis during the you 070 791 041 110 (1.229 Translation 12 2.340 04.100 tect of the 6 71 10 TE 450 Cox at the end of the 7.220 2.560 3830 200 22596 6215 20350 MAXO Norton deprecation na partenere at the being the year 1.390 1.124 2,514 970 2006 305 Amortisation deprecation for the year 312 195 487 181 1410 391 imponentes for the yow 914 52 20 14 221 Amortation and parents reversed on disposals during the year (1) 10 11601 504 1943 016) Effect of extingere adjustment 27 3 30 41 13 97 Anton and commenteerd of the year 1/43 3.995 11.578 18.85 3433 Carrying amount at the end of the year 4,627 1.200 1872 2015 50.550 1504 1721 2 Intangible assets capitained and tegen een garants payable in achievement Factors.comded material that could trigger amamente include a contingerever wil betaledon ecoger enteng the following Amortisation and impamentos probable of being achieved - Development of acting Dikon 2020 Cunges in the legal courring patents, tigres and licences 2018 Amortion is based on me straightine method ove the standine - Advances medienorchlogy that the medical Cost of goods sold 360 916 200 f. This means the legal or the economice depending on we predicted sales Sales and wint 15 with short and not exceeding 15 years. The motion of patients - Adverse impact option for brand names Research and development costs and licences begins atter regalatory approval frisbeen obtained Ongi economies olimets 10 other tongeniets or property and equipment Adicions 10 3 Internal development of store fortelle were - Changes or anticipated changes in participation rates or reimbursement One operating income 2 noble assets the recognition ter we met foelast Does Total amortisation and business where the expenditure ads to the rest darable impairments 1441 1,000 Amor con based on the streets over the med theang montoneeseed the recoverable amount Total amortisation of 15 years. The most begin within the med en store for de more of the abovendients of parent focionand condition.cssary for to be abfcing in the 350 Total impairment fortes any ensured based on discounted projected cash flows maintended by Management 2020 additions Research and development projects Key accounting estimates and judgements on intangible assets In 2020 Novo Nordkorea Con Therapeutication mal and subcontracted researchests are changed to the 2020 DKK 350 milioni 2010 accord for at det of 458 was dated income into which they are curred recently lowed to parts and licences DKK 250 regednates and for the customer Care why eventos persedil millon Don 2010 het sted to the Dube human raciona body directed and technie story pro ottaned or stable prefer to 23 and they are rendronted to topharm x 700 milion Ninyit, which is under development 2019 Althe presin 2020 was rected arthand ther concerts direction cost of goods and C 450 ton Nordisk rediger of red for the frames which represere har 2018. There are the converter chand West Virgin word 2007 andere proprietary delivered to which the full No te defedin 2020 Aty Norge operty developed by the end the art of God wake wandelen mange Wholder the brandende Forech and even there are not they are agreement Rodrigo Tood of training comelected the cost of the part of whether there sayincantate USD As part of the Nivea precocordered to war wurdeneder Copywameiomodtand the Ashe cost of under and door Moragement Cerere of her for USD 150 bere te these projects in Harghetsnet yet being and out to D.507 min milion. The troubled forth Bonerate in 2011 mai contoh DOC 11. caged and of which DX240 nachement of contingere commento) and development projects inarmentessin 2020 2019 pants and millones de development 1 December 2009 are de cost of the glass where to use we based on respections and opted Cwryngauno redintangible to be 16 teachers probable Developer represent of the format det mirangimo pensar Tooted.com essed are based on pected to products forecasted Iecycle and cash flower the period and the other of the total adition of intangible assets in 2009 may hon angement to the driped Dex 271 milion in 2019 As the subject to amorowe formarmere When sing whether awanson is a business combination or whenever events anges normes de the carrying anston Acoustion will be when braly all Accounting policies montant the contenangle or when there is Persandices including pressured for sth substante tusiness processes in te quedert dgements are and development projects are comida torta satu made in eving with payments de colaboration arrangements woration and any marmers option fees and custoote gustonos rameno 2020 2019 2018 Property, plant and equipment Depreciation and impairment losses DKK million Cost of goods sold 2,729 Sales and distribution costs 403 Research and development costs Administrative costs 433 Other operating income, net 18 Total depreciation and impairment losses 4,307 2,312 69 2,656 354 783 376 724 468 70 23 6 4.192 2.925 Capital expenditure in the reporting period was primarily related to investments in facility upgrades and new production facilities for active pharmaceutical ingredients for diabetes, mainly the facility in Clayton, US. The facility in Clayton is intended to strengthen the Novo Nordisk supply chain. Capital expenditure also related to investments in facility upgrades of the purification plant in Kalundborg and investments were also made to establish additional API capacity in Kalundborg. Finally, capital expenditure related to the establishment of an oral tablet facility near Durham, US for launch and commercial manufacturing of tablets. Accounting policies Property, plant and equipment is measured at historical cost less accumulated depreciation and any impairment loss. The cost of self- constructed assets includes costs directly and indirectly attributable to the construction of the assets. Any subsequent cost is included in the asset's carrying amount or recognised as a separate asset only when it is probable that future economic benefits associated with the item will fiow to Novo Nordisk and the cost of the item can be measured reliably. Depreciation is based on the straight-line method over the estimated useful lives of the assets (buildings: 12-50 years, plant and machinery: 5-25 years and other equipment: 3-10 years. Land is not depreciated). The depreciation commences when the asset is available for use, ie when it is in the location and condition necessary for it to be capable of operating in the manner intended by Management. The assets residual values and useful lives are reviewed and adjusted, if appropriate at the end of each reporting period. If an asset's carrying amount is higher than its estimated recoverable amount. it is written down to the recoverable amount Plant and equipment with no alternative use developed as part of a research and development project are expensed. However, plant and equipment with an alternative use or used for general research and development purposes are capitalised and depreciated over the estimated useful life as research and development costs. Using the annual balance sheet and the Income Statement, calculate the cash flow identify To complete this requirement, you need to use your company's income statement information and generate a simplified income statemen. The tax dollars in your income statement should be the same as the tax from your company's income statement . a) OCF b) NCS C) changes in NWC . d) Is the Net working capital negative or positive? e) Does this indicate any potential difficulty for the company? Why? f) CFA 9) CFC h) is the Cash Flow to Creditors Negative? 1) Explain how this might come about? ]) What is the last total dividend paid? - refer to the Statement of Changes in Equity k) Did the company issue new shares? Yes or no. What is the total dollar value? - refer to the Statement of Changes in Equity 1) Did the company repurchase shares? Yes or no. What is the total dollar value? - refer to the Statement of Changes in Equity m) Based on the information above (from point "a" to "l"), what is your opinion regarding the cash flow of your company? Income statement and statement of comprehensive income for the year ended 31 December Note 2020 2019 2018 111,831 2.1, 22 22 17,617 126,946 20,932 106,014 32,928 15,462 3,958 94214 29,397 22 22,23 DKK million Income statement Net sales Cost of goods sold Gross profit Sales and distribution costs Research and development costs Administrative costs Other operating income, net Operating profit Financial income Financial expenses Profit before income taxes Income taxes Net profit 14,805 22 3.916 22,25 460 122,021 20,088 101,933 31,823 14,220 4,007 600 52,483 65 3.995 48,553 9,602 38,951 1,152 49 54,126 1,628 2,624 53,130 10,992 42,138 47,248 2,122 1,755 47,615 49 2.6 8.987 38,628 Earnings per share Basic earnings per share (DKK) Diluted earnings per share (DKK) 4.1 18.05 18.01 16.41 16.38 15.96 15.93 4.1 Balance sheet at 31 December Note 2020 2019 3.1 5.835 3.1 50,551 DKK million Assets Intangible assets Property, plant and equipment Investments in associated companies Deferred income tax assets Other receivables and prepayments Other financial assets Total non-current assets 474 26 20,657 50,269 582 5,865 674 1,066 79,113 4121 841 1,334 63,156 17.641 3.3 3.4 24,912 806 Inventories Trade receivables Tax receivables Other receivables and prepayments Derivative financial instruments Cash at bank Total current assets 18,536 27,734 289 4,161 2,332 12,757 65,809 42,43 42,45 3,434 188 15,475 62,456 Total assets 144,922 125,612 Note 2020 2019 480 DKK million Equity and liabilities Share capital Treasury shares Retained earnings Other reserves Total equity 4.1 41 470 (8) 63,774 (911) 63,325 (10) 57,817 (694) 57,593 4.1 44 3,009 2.6 Borrowings Deferred income tax liabilities Retirement benefit obligations Provisions Total non-current liabilities 2,897 2,502 1,399 80 1,334 3.5 3.6 4613 4,526 11,324 9,036 44 1.474 6,358 4212 15,085 3.7 Borrowings Trade payables Tax payables Other liabilities Derivative financial instruments Provisions Total current liabilities Total liabilities 7459 5,717 3,913 17,005 1.365 34,814 70,273 81,597 43 734 3.6 31,120 58,983 68,019 Total equity and liabilities 144,922 125,612 Section 3 Operating assets and liabilities 16.30 3.1 Intangible assets and property, plant and equipment of a property,port and prevent and angle LOX 131 willen bieden Darmara 2122 2010 OK 12.750 milions located in the US (DX 20.256 milion in 2019, where the Groces main production filing pacaramoulding assembly facines wees are located Patents Software Total Meets Property and and other intangible and and Donne Other under plant and Diten licences intangibles assets tulding machinery woment conquipment 2020 Cost at the beginning of the year 7.220 2.560 9,830 30.250 27,994 6215 20 351 84420 Actors during the year 15.105 396 MI 506 410 4560 29 Dispose during the year 119 (1223 H 8:401 Transfer and recreation 240 4586 515 (12.541 regelen 10 00 INI 0813 022) 11.50 0,190 Cost at the end of the year 22.404 2.936 140 2.500 31.50) 63 10,798 BOM Amortato/deprecation and impormenosses at the beginning of the year 2,043 1.252 3. 11.578 TU 145 SU Amortisation deprecation for the year 202 1,00 821 4,180 Impaments for the you 350 350 14 69 28 16 127 Norton/depresion and imparare krises reversed on asuring they w 11191 116 1831) rect lenger 191 (10) M (10) 20 Amor deprecand parents at the end of the 1.540 . 12.00 1944 40) 16417 Carrying amount at the end of the year 19.00 1. 20,457 24573 12.05 2.000 1070 50.200 2019 Cost at the beginning of reye 2412 7 25401 2413 4739 16 Changen accounting poy, 201 417 3,77 Additions during the your 221 2,170 350 7510 1983 Dis during the you 070 791 041 110 (1.229 Translation 12 2.340 04.100 tect of the 6 71 10 TE 450 Cox at the end of the 7.220 2.560 3830 200 22596 6215 20350 MAXO Norton deprecation na partenere at the being the year 1.390 1.124 2,514 970 2006 305 Amortisation deprecation for the year 312 195 487 181 1410 391 imponentes for the yow 914 52 20 14 221 Amortation and parents reversed on disposals during the year (1) 10 11601 504 1943 016) Effect of extingere adjustment 27 3 30 41 13 97 Anton and commenteerd of the year 1/43 3.995 11.578 18.85 3433 Carrying amount at the end of the year 4,627 1.200 1872 2015 50.550 1504 1721 2 Intangible assets capitained and tegen een garants payable in achievement Factors.comded material that could trigger amamente include a contingerever wil betaledon ecoger enteng the following Amortisation and impamentos probable of being achieved - Development of acting Dikon 2020 Cunges in the legal courring patents, tigres and licences 2018 Amortion is based on me straightine method ove the standine - Advances medienorchlogy that the medical Cost of goods sold 360 916 200 f. This means the legal or the economice depending on we predicted sales Sales and wint 15 with short and not exceeding 15 years. The motion of patients - Adverse impact option for brand names Research and development costs and licences begins atter regalatory approval frisbeen obtained Ongi economies olimets 10 other tongeniets or property and equipment Adicions 10 3 Internal development of store fortelle were - Changes or anticipated changes in participation rates or reimbursement One operating income 2 noble assets the recognition ter we met foelast Does Total amortisation and business where the expenditure ads to the rest darable impairments 1441 1,000 Amor con based on the streets over the med theang montoneeseed the recoverable amount Total amortisation of 15 years. The most begin within the med en store for de more of the abovendients of parent focionand condition.cssary for to be abfcing in the 350 Total impairment fortes any ensured based on discounted projected cash flows maintended by Management 2020 additions Research and development projects Key accounting estimates and judgements on intangible assets In 2020 Novo Nordkorea Con Therapeutication mal and subcontracted researchests are changed to the 2020 DKK 350 milioni 2010 accord for at det of 458 was dated income into which they are curred recently lowed to parts and licences DKK 250 regednates and for the customer Care why eventos persedil millon Don 2010 het sted to the Dube human raciona body directed and technie story pro ottaned or stable prefer to 23 and they are rendronted to topharm x 700 milion Ninyit, which is under development 2019 Althe presin 2020 was rected arthand ther concerts direction cost of goods and C 450 ton Nordisk rediger of red for the frames which represere har 2018. There are the converter chand West Virgin word 2007 andere proprietary delivered to which the full No te defedin 2020 Aty Norge operty developed by the end the art of God wake wandelen mange Wholder the brandende Forech and even there are not they are agreement Rodrigo Tood of training comelected the cost of the part of whether there sayincantate USD As part of the Nivea precocordered to war wurdeneder Copywameiomodtand the Ashe cost of under and door Moragement Cerere of her for USD 150 bere te these projects in Harghetsnet yet being and out to D.507 min milion. The troubled forth Bonerate in 2011 mai contoh DOC 11. caged and of which DX240 nachement of contingere commento) and development projects inarmentessin 2020 2019 pants and millones de development 1 December 2009 are de cost of the glass where to use we based on respections and opted Cwryngauno redintangible to be 16 teachers probable Developer represent of the format det mirangimo pensar Tooted.com essed are based on pected to products forecasted Iecycle and cash flower the period and the other of the total adition of intangible assets in 2009 may hon angement to the driped Dex 271 milion in 2019 As the subject to amorowe formarmere When sing whether awanson is a business combination or whenever events anges normes de the carrying anston Acoustion will be when braly all Accounting policies montant the contenangle or when there is Persandices including pressured for sth substante tusiness processes in te quedert dgements are and development projects are comida torta satu made in eving with payments de colaboration arrangements woration and any marmers option fees and custoote gustonos rameno 2020 2019 2018 Property, plant and equipment Depreciation and impairment losses DKK million Cost of goods sold 2,729 Sales and distribution costs 403 Research and development costs Administrative costs 433 Other operating income, net 18 Total depreciation and impairment losses 4,307 2,312 69 2,656 354 783 376 724 468 70 23 6 4.192 2.925 Capital expenditure in the reporting period was primarily related to investments in facility upgrades and new production facilities for active pharmaceutical ingredients for diabetes, mainly the facility in Clayton, US. The facility in Clayton is intended to strengthen the Novo Nordisk supply chain. Capital expenditure also related to investments in facility upgrades of the purification plant in Kalundborg and investments were also made to establish additional API capacity in Kalundborg. Finally, capital expenditure related to the establishment of an oral tablet facility near Durham, US for launch and commercial manufacturing of tablets. Accounting policies Property, plant and equipment is measured at historical cost less accumulated depreciation and any impairment loss. The cost of self- constructed assets includes costs directly and indirectly attributable to the construction of the assets. Any subsequent cost is included in the asset's carrying amount or recognised as a separate asset only when it is probable that future economic benefits associated with the item will fiow to Novo Nordisk and the cost of the item can be measured reliably. Depreciation is based on the straight-line method over the estimated useful lives of the assets (buildings: 12-50 years, plant and machinery: 5-25 years and other equipment: 3-10 years. Land is not depreciated). The depreciation commences when the asset is available for use, ie when it is in the location and condition necessary for it to be capable of operating in the manner intended by Management. The assets residual values and useful lives are reviewed and adjusted, if appropriate at the end of each reporting period. If an asset's carrying amount is higher than its estimated recoverable amount. it is written down to the recoverable amount Plant and equipment with no alternative use developed as part of a research and development project are expensed. However, plant and equipment with an alternative use or used for general research and development purposes are capitalised and depreciated over the estimated useful life as research and development costs