analysis of worldcoms financial statements 2000 & 2001

WorldCom, Inc.

Balance Sheet

As on December 31

Figures in millions

ASSETS

2000

2001

Current assets:

Cash and cash equivalents

$761

$1,416

Accounts receivable, net of allowance for bad debts of $1,532 in 2000 and $1,086 in 2001

6,815

5,308

Deferred tax asset

172

251

Other current assets

2,007

2,230

Total current assets

9,755

9,205

Property, plant and equipment, net

37,423

38,809

Goodwill and other intangible assets

46,594

50,537

Other assets

5,131

5,363

$98,903

$103,914

LIABILITIES AND SHAREHOLDERS' INVESTMENT

Current liabilities:

Short-term debt and current maturities of long-term debt

$7,200

$172

Accrued interest

446

618

Accounts payable and accrued line costs

6,022

4,844

Other current liabilities

4,005

3,576

Total current liabilities

17,673

9,210

Long-term liabilities, less current portion:

Long-term debt

17,696

30,038

Deferred tax liability

3,611

4,066

Other liabilities

1,124

576

Total long-term liabilities

22,431

34,680

Minority interests

2,592

101

Company obligated mandatorily redeemable and other preferred securities

798

1,993

Shareholders' investment:

WorldCom, Inc. common stock, par value $.01 per share; authorized: 5,000,000,000 shares in 2000 and none in 2001; issued and outstanding: 2,887,960,378 shares in 2000 and none in 2001

29

0

WorldCom group common stock, par value $.01 per share; authorized: none in 2000 and 4,850,000,000 shares in 2001; issued and outstanding : none in 2000 and 2,967,436,680 shares in 2001

0

30

MCI group common stock, par value $.01 per share; authorized: none in 2000 and 150,000,000 shares in 2001; issued and outstanding: none in 2000 and 118,595,711 in 2001

0

1

Additional paid-in capital

52,877

54,297

Retained earnings

3,160

4,400

Unrealized holding gain (loss) on marketable equity securities

345

-51

Cumulative foreign currency translation adjustment

-817

-562

Treasury stock, at cost, 6,765,316 shares of WorldCom, Inc. in 2000, 6,765,316 shares of

-185

-185

Total shareholders' investment

55,409

57,930

WorldCom, Inc.
Income Statement
For the Years Ending December 31
Figures in Millions
	2000	2001
Revenues	$39,090	$35,179
Operating expenses:
Line costs	15,462	14,739
Selling, general and administrative	10,597	11,046
Depreciation and amortization	4,878	5,880
Total Expenses	30,937	31,665
Operating income	8,153	3,514
Other income (expense):
Interest expense	-970	-1,533
Miscellaneous	385	412
Income before income taxes, minority interest	7,568	2,393
Provision for income taxes	3,025	927
Income before minority interests	4,543	1,466
Minority interests	-305	35
Income before cumulative effect of accounting change	4,238	1,501
Cumulative effect of accounting change (net of income tax of $50 in 2000)	-85	0
Net income	$4,153	$1,501
Distributions on mandatorily redeemable preferred securities and
other preferred dividend requirements	65	117
Net income applicable to common shareholders	$4,088	$1,384

$98,903

$103,914

what things would you mention in your analysis?