compute the ratios and percentages using the 2019 Annual Report of IBM

Accounting 10 Chapter 13 Assignment--50 Points Name Round all amounts to the nearest two decimal places. Note: for any ratio that requires you to use net sales, use Total Revenues from the income statement. 1. What is IBM's current ratio on December 31, 2019? 1. 2. What is IBM's acid-test or quick ratio on December 31, 2019? 2. 3. 3. What is IBM's Receivable Turnover for 2019? (Note: use the TRADE receivables only in your computation) 4. What is the number of days to collect accounts receivable for IBM for 2019? 4. 5. 5. What is IBM's inventory turnover for 2019? (Note: use TOTAL COST from the income statement for Cost of Goods Sold) 6. What is IBM's days to sell inventory for 2019? 6. 7. What is IBM's conversion period for 2019? 7. 8. What is IBM's asset turnover for 2019? 00 9. What is IBM's profit margin on sales or return on sales for 2019? 9. 10. What is IBM's return on assets for 2019? 10. 11. What is IBM's cash return on sales for 2019? 11. 12. 12. What is IBM's return on TOTAL common stockholders' equity for 2019? Note: Use IBM'S Stockholders' Equity only 13. What is IBM'S TOTAL basic (no dilution) earnings per share for 2019? 13. 14. What is IBM'S TOTAL earnings per share assuming dilution for 2019? 14. 15. 15. What is IBM's price to earnings ratio for 2019? (Note: use the TOTAL earnings per share assuming dilution and assume a stock price of $134.04) 16. 16. What is IBM's payout ratio for 2018? (Note: cash dividends paid on common stock can be found on the Five-Year Comparison of Selected Data) 17. What is IBM's debt to total assets on December 31, 2019? 17. 18. What is times interest earned for IBM for 2019? 18. 19. What is IBM's cash debt coverage for 2019? 19. 20. 20. How many shares of IBM common stock have been authorized as of December 31, 2019? 21. How many shares of IBM common stock have been issued as of December 31, 2019? 21. 22. How many of the issued shares of IBM common stock are being held as treasury shares as of December 31, 2019? 22. 23. How many shares of IBM common stock are outstanding as of December 31, 2019? 23. 24. What is the par value of IBM's common stock? 24. 25. 25. What is IBM's book value per share outstanding on December 31, 2019? (Note: Use IBM's Stockholders' Equity--don't forget that financial statement dollar amounts are millions of dollars) 26. What is IBM's comprehensive income for 2019 (in millions of dollars)? 26. 27. Was the computation of comprehensive income for IBM shown 1-at the bottom of the income statement; 2-on a separate schedule reconciling net income to comprehensive income; or 3-on the expanded statement of equity? 27. 28. Was IBM's cash flow statement prepared using the direct or indirect method? 28. 29. Which SPECIFIC investing or financing activity USED the most cash during 2019? 29. 30. Which SPECIFIC investing or financing activity PROVIDED the most cash during 2019? 30. 31. On the Balance Sheet on December 31, 2019, what does the balance of the account "Noncontrolling Interest" represent? 31. Note: Use the Notes to the Financial Statements to answer the following questions. On the income statement and balance sheet, there is a letter next to the accounts that tells you which note provides addiitonal explanation about the account. 32. Are IBM's marketable DEBT securities accounted for as trading securities or available for sale securities? (See Note A, page 83) 32. 33. Back in 2017, IBM had a change in accounting principle (after I told you how rare these would be!) Where was this reported on IBM's financial statements and what was the amount? 33. (Hint: these are reported the same way as corrections of errors from prior periods.) IBM completed the acquisition of another corporation during 2019. (See Note E, page 94) 34. What was the name of the corporation? 35. What percent of the comon shares of that corporation does IBM now own? 34. 35. 36. What estimated useful lives does IBM use for buidlings? (See Note A, page 80) 36. 37. IBM is organized into 5 major business segments. During 2019, they re-organized what was included in each segment and re-named 2 of the segments. Name the two segments whose names were changed. (See Note D, page 90) 37 (1). 37 (2). 38. Who is IBM's auditor? 39. What opinion did they issue in 2019 regarding IBM's financial statement 40. What "concern" did they raise in 2019 regarding IBM's internal contol? 38. 39. 40. 41. Compute the PERCENT OF CHANGE from 2018 to 2019 in Total Liabilities, Total Assets, Total Revenue, and Net Income by completing the following chart. Be sure to indicate if the change is positive or negative. 2019 2018 $ Change % of Change Total Liabilities Total Assets Total Revenues Net Income 42. Prepare a VERTICAL ANALYSIS or common-size income statement for 2019 for the following items only: Total Revenue, Total Cost, Gross Profit, Total Expense and Other Income, Income from Continuing Operations Before Income Taxes, Provision for Income Taxes, Income from Continuing Operatings, Loss from Discontinued Operations, and Net Income Vertical Analysis Total Revenue 77,147 Total Cost 40,659 Gross profit 36,488 Total Expense and Other Income 26,332 Income from Cont Ops Before Taxes 10,166 Provision for Income Taxes 731 Income from Continuing Ops 9,435 Loss/Gain from Disc Operations (4) Net Income 9,431 43. Note: Use the Five Year Comparison of Selected Financial Data Prepare a TREND analysis for Revenue and Net Income for 2015-2019 using 2015 as the base year. 2019 2018 2017 2016 2015 Revenue Trend Net Income Trend Notes 2019 2010 $ 8172 141 696 $ 11,379 225 618 1 7,432 K 7,870 14192 2.233 1,619 1,896 2,101 38,420 32,028 22.018 10,010 4.996 8712 6,865 2,472 5.182 58,222 15235 2,074 $152,186 22,388 743 1.682 2,300 2,378 49,146 32,460 21,668 10,792 M K V G N N 0 9,148 4,666 2,676 5,216 36,265 3,087 2,386 $ 123,382 Sin milions cap per share amount At December 31: Assets Current assets Cash and cash equivalents Restricted cash Marketable securities Notes and accounts receivable-trade (net of allowances of $299 in 2019 and $309 in 2018) Short term financing receivables (net of allowances of $188 in 2019 and $244 in 2018) Other accounts receivable (net of allowances of $33 in 2019 and $38 in 2018) Inventory Deferred costs Prepaid expenses and other current assets Total current assets Property, plant and equipment Less Accumulated depreciation Property, plant and equipment-net Operating right of use assets-net Long-term financing receivables (net of allowances of $33 in 2019 and 548 in 2018) Prepaid pension assets Deferred costs Deferred taxes Goodwill Intangible assets-net Investments and sundry assets Total assets Liabilities and equity Current liabilities Taxes Short-term debt Accounts payable Compensation and benefits Deferred income Operating lease abilities Other accrued expenses and liabilities Total current liabilities Long-term debt Retirement and nonpension postretirement benefit obligations Deferred income Operating lease liabilities Other liabilities Total liabilities Commitments and Contingencies Equity IBM stockholders' equity Common stock, par value $ 20 per share, and additional paid in capital Shares authorized: 4,687.500.000 Shares issued 2019-2.237,996,975 2018-2.233.427,058) Retained earnings Treasury stock, at cost (shares: 2019-1,350,886,521: 2018-1.340,947,648) Accumulated other comprehensive income/loss) Total IBM stockholders' equity Noncontrolling interests Total equity Total liabilities and equity Reflects the adoption of the dance on Amount may not add due to mounting The contre ani part of the financial statements $ IP $ 3,046 10,207 6,558 3,310 11,165 M 2.839 8,297 4,896 3,406 12.026 1,380 4,357 37,201 54,102 17,142 3,851 3,879 14,526 131,202 IRP v 3,941 38,227 35,605 17,002 3,445 M O 12,174 106,452 R s 55,895 55,151 162,954 (169,4131 (28,597) 20,841 144 20,985 $ 152, 186 159,206 (168,071) (29,490 16,796 134 16,929 $ 123,382 Consolidated Statement of Cash Flows International Business Machines Corporation and Subsidiary Companies 2010 2010 2017 $ 9,431 $ 8,728 $ 5,753 4,209 1,850 679 1,527 11,096) 3,127 1,353 510 853 123 3,021 1.520 534 1931) 14 502 301 67 858 (503) 14,770 1,006 1,368 (127) (1,819 126 15,247 1,297 1,014 18 4,437 47 16,724 in mo For the year anded December 31: Cash flows from operating activities Net income Adjustments to reconcile net income to cash provided by operating activities Depreciation Amortization of intangibles Stock-based compensation Deferred taxes Net (gaini/loss on asset sales and other Change in operating assets and liabilities, net of acquisitions divestitures Receivables (including financing receivables) Retirement related Inventory Other assets/other abilities Accounts payable Net cash provided by operating activities Cash flows from investing activities Payments for property, plant and equipment Proceeds from disposition of property, plant and equipment Investment in software Purchases of marketable securities and other investments Proceeds from disposition of marketable securities and other investments Non-Operating finance receivables-net Acquisition of businesses, net of cash acquired Divestiture of businesses, net of cash transferred Net cash provided by used in) investing activities Cash flows from financing activities Proceeds from new debe Payments to settle det Short term borrowings/Trepayments) less than 90 days-net Common stock repurchases Common stock repurchases for tax withholdings Financing other Cash dividends paid Net cash provided by used in financing activities Effect of exchange rate changes on cash, cash equivalents and restricted cash Net change in cash, cash equivalents and restricted cash Cash, cash equivalents and restricted cash at January 1 Cash, cash equivalents and restricted cash at December 31 Supplemental data Income taxes paid-net of refunds received Interest paid on debt Ammatt rounding The accompanying notes are an integral part of the financial statemente 12.286 537 (621) 3.6931 3,961 6,720 32,630 1.076 126,936 3.395) 248 (569) 17,041) 6,487 (503) (139 3.229 460 (540 (4,949) 3,910 12,028 (496 (205 17,081) 14,913) 9,643 31,825 112,944 12.597 1,361 (272 99 15.707 9,042 (167 3.290 11,604 $ 8,314 6,891 18,533) 1,341 (4.443) (171) 111 15.666 110,469 (495) (630 12,234 $11,604 (6,816 620 14.340 (1930 175 15.506 16,418 937 4,161 8,073 $12,234 $ 2,091 $1,685 $ 1,745 $ 1,423 $ 1.597 S 1,200 68 Consolidated Income Statement International Business Machines Corporation and Subsidiary Companies Consolidated Income Statement International Business Machines Corporation and Subsidiary Companies 2017 $48,652 28,772" 1,715 79.139 1.599 33.399 7,587 1.210 42.196 36,943 Sin milions except pershare amounts For the year ended December 31: Notes 2019 2018 Revenue Services $47,493 $49,257 Sales 28,252 28,735 Financing 1.402 Total revenue 77.147 79,591 Cost Services 32,491 33,687 Sales 7,263 7,835 Financing 904 1.132 Total cost 40,659 42,655 Gross profit 36,488 36,936 Expense and other (income) Selling, general and administrative 20,604 19,366 Research, development and engineering F 5.989 5.379 Intellectual property and custom development income (648) (1026) Other (income) and expense 1968) 1152 Interest expense 1.344 723 Total expense and other (Income) 26,322 25.594 Income from continuing operations before income taxes 10,166 11 342 Provision for income taxes 731 2.619 Income from continuing operations 9,435 8.723 Income/loss) from discontinued operations, net of tax 5 Net income $ 9,431 $ 8.728 Earnings/(loss) per share of common stock Assuming dilution Continuing operations $ 10.57 $ 9.51 Discontinued operations H 10.01) 0.01 Total $10.56 $ 9.52 Basic Continuing operations H $ 10.63 $ 9.56 Discontinued operations 0.00 0.01 Total $ 10.63 $9.57 Weighted average number of common shares outstanding Assuming dilution 892,813,376 916,315,714 Basic 887,235.105 912048,072 classified to conform to 2019 presentation for tesis of Presentation in note A Significant Accounting Policies Amounts may not add due to rounding The accompanying notes we an integral part of the financial statements 19.680 5.590 (1.466) 1.125 615 25,543 11,400 5,642 5,758 (5 $ 5,753 $ 6.14 0.00 $ 6.14 $ 6.17 0.00 $ 6.17 937,385,625 932,828,295 Consolidated Statement of Comprehensive Income International Business Machines Corporation and Subsidiary Companies Notes 2019 $ 9,431 2018 $8,728 2017 $5,753 (39) (730) 152 nu 2 (2) 1 1 2 2 (2) S (689) 75 (614) (136) 449 313 (58) (363) (421) Sin miliona) For the year ended December 31: Net Income Other comprehensive income/(loss), before tax Foreign currency translation adjustments Net changes related to available-for-sale securities Unrealized gains (losses) arising during the period Reclassification of (gains)/losses to net income Total net changes related to available-for-sale securities Unrealized gains/losses) on cash flow hedges Unrealized gains/(losses) arising during the period Reclassification of (gains/losses to net income Total unrealized gains/Llosses) on cash flow hedges Retirement-related benefit plans Prior service costs/(credits) Net (losses/gains arising during the period Curtailments and settlements Amortization of prior service (credits/costs Amortization of net (gains/losses Total retirement-related benefit plans Other comprehensive income/loss), before tax Income tax (expensel/benefit related to items of other comprehensive income Other comprehensive income/loss) Total comprehensive Income Amounts may not add due to rounding The accompanying notes are an integral part of the financial statements s (73) (120) 682 41 (9) 1843 1682 (182) (2,517) 11 (73) 2,966 204 (215) 19 189) 2,889 3,502 3,235 s 1029 (262) uu (236 893 $10.324 (476) (429) 2,806 $8,559 $8,252