Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Balance Sheet (in millions) 2011 2010 Assets: Current: Cash and Equivalents $1,955 $3,079 Short-Term Investments $2,583 $2,067 Accounts Receivable $3,212 $2,724 less: Allowance for Doubtful
Balance Sheet (in millions) | 2011 | 2010 | ||||||||||||||
Assets: | ||||||||||||||||
Current: | ||||||||||||||||
Cash and Equivalents | $1,955 | $3,079 | ||||||||||||||
Short-Term Investments | $2,583 | $2,067 | ||||||||||||||
Accounts Receivable | $3,212 | $2,724 | ||||||||||||||
less: Allowance for Doubtful Accounts | ($74) | ($74) | ||||||||||||||
Inventories | $2,715 | $2,041 | ||||||||||||||
Deferred Income Taxes | $312 | $249 | ||||||||||||||
Prepaid Expenses and other Current Assets | $594 | $873 | ||||||||||||||
Total Current Assets | $11,297 | $10,959 | ||||||||||||||
Non-Current Assets | ||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||
At Cost | $4,906 | $4,390 | ||||||||||||||
Less: Accumulated Depreciation | ($2,791) | ($2,458) | ||||||||||||||
Net Property, Plant and Equipment | $2,115 | $1,932 | ||||||||||||||
Identifiable Intangible Assets | $487 | $467 | ||||||||||||||
Goodwill | $205 | $188 | ||||||||||||||
Deferred Income Taxes and other Assets | $894 | $873 | ||||||||||||||
Total Non-current Assets | $3,701 | $3,460 | ||||||||||||||
Total Assets | $14,998 | $14,419 | ||||||||||||||
2011 | 2010 | |||||||||||||||
Liabilities and Shareholder's Equity | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Current portion of Long-Term Debt | $200 | $7 | ||||||||||||||
Notes Payable | $187 | $139 | ||||||||||||||
Accounts Payable | $1,469 | $1,255 | ||||||||||||||
Accrued Liabilities | $1,985 | $1,904 | ||||||||||||||
Income Taxes Payable | $117 | $59 | ||||||||||||||
Total Current Liabilities | $3,958 | $3,364 | ||||||||||||||
Non-Current Liabilities | ||||||||||||||||
Long-Term Debt | $276 | $446 | ||||||||||||||
Deferred Income Taxes and other Liabilities | $921 | $855 | ||||||||||||||
Total Non-Current Liabilities | $1,197 | $1,301 | ||||||||||||||
Total Liabilities | $5,155 | $4,665 | ||||||||||||||
Shareholder's Equity: | ||||||||||||||||
Redeemable Preferred Stock | * | * | ||||||||||||||
Common Stock at Stated Value | ||||||||||||||||
Class A convertible | * | * | ||||||||||||||
Class B | $3 | $3 | ||||||||||||||
Capital in Excess of Stated Value | $3,944 | $3,441 | ||||||||||||||
Retained Earnings | $5,801 | $6,095 | ||||||||||||||
Accumulated other Comprehensive Income | $95 | $215 | ||||||||||||||
Total Shareholders' Equity | $9,843 | $9,754 | ||||||||||||||
Total Liabilities and Shareholders' Equity | $14,998 | $14,419 | ||||||||||||||
* denotes less than .5 million | ||||||||||||||||
Income Statement (in millions) | ||||||||||||||||
2011 | 2010 | |||||||||||||||
Revenues | $20,862 | $19,014 | ||||||||||||||
Cost of Sales | $11,354 | $10,214 | ||||||||||||||
Gross Margin | $9,508 | $8,800 | ||||||||||||||
Demand creation Expense | $2,448 | $2,356 | ||||||||||||||
Operating Overhead Expense | $4,245 | $3,970 | ||||||||||||||
Total Selling and Administrative Expense | $6,693 | $6,326 | ||||||||||||||
Income from Operations | $2,815 | $2,474 | ||||||||||||||
Other Expenses (Income) | ||||||||||||||||
Interest Expense, net | $4 | |||||||||||||||
$6 | ||||||||||||||||
Other Income, net | ($33) | ($49) | ||||||||||||||
Total Other Expenses (Income) | ($29) | ($43) | ||||||||||||||
Income before Taxes | $2,844 | $2,517 | ||||||||||||||
Income Taxes | $711 | $610 | ||||||||||||||
Net Income | $2,133 | $1,907 | ||||||||||||||
. | ||||||||||||||||
Required: Using your financial statement analysis expertise, tell me five things of interest and/or concern regarding this company. |
Step by Step Solution
★★★★★
3.41 Rating (151 Votes )
There are 3 Steps involved in it
Step: 1
Here are five things of interestconcern regarding the company based on the provided financial statem...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started