I asked this question a little bit ago but it would not let me edit my question to add information so I am re-doing the question. It will not allow me to upload the 10-k links but the links are here:

2011 10-k consolidated balance sheet starts on page 78 http://www.annualreports.com/HostedData/AnnualReportArchive/d/NYSE_DUK_2011.pdf

2014 10-k Consolidated balance sheet start on page 66

https://www.duke-energy.com/_/media/pdfs/our-company/investors/de-annual-reports/2014/annual-report-2014.pdf?la=en

Analyzing Duke Energys acquisition of Progress Energy

In 2012 Duke Energy, a large utility company with its headquarters in North Carolina, completed its $32 billion acquisition of Progress Energy. To get an idea of the size of this deal, in 2011 Duke Energy reported revenues of $14.5 billion. In 2012, with the additional revenue from Progress Energy, its revenues were $19.6 billion. To complete the requirements below you will need to obtain Duke Energy Holding Companys Form 10-K for 2011, the year before the acquisition, and for 2014, two years after the deal was closed. The Form 10-Ks can be accessed through the Investors link on the companys website, www.duke-energy.com, or through the EDGAR system. Be aware that the Form 10-Ks include separate financial statements for each of Duke Energys subsidiary companies, so be sure to use the statements for the consolidated company, Duke Energy Corporation.

Questions

a.Compute the following ratios for 2011 and 2014. To make the computations simpler, use end-of-year amounts for total assets and total equity rather than averages. Show your calculations.

Net Margin

ROI

Return on equity

Current ratio

Debt to asset ratio

b.Based on the ratios computed in Requirement a, comment on the apparent effects of Duke Energys acquisition of Progressive Energy. Assume any significant change in these ratios was the result of the acquisition.

c.Based on this limited analysis, does it appear that the effects of the merger were good or bad for Duke Energy?

Financial Data for 2014 and 2011

2014 and 2011 (2011 at end of 2014)

Operating Revenues Regulated electric $21,550

Nonregulated electric, natural gas, and other 1,802

Regulated natural gas 573

Total operating revenues 23,925

Operating Expenses

Fuel used in electric generation and purchased power regulated 7,686

Fuel used in electric generation and purchased power nonregulated 533

Cost of natural gas and other 248

Operation, maintenance and other 5,856

Depreciation and amortization 3,066

Property and other taxes 1,213

Impairment charges 81

Gains (Losses) on Sales of Other Assets and Other, net 16

Operating Income 5,2584

Other Income and Expenses

Equity in earnings of unconsolidated affiliates 130

Gains on sales of unconsolidated affiliates 17

Other income and expenses, net 351

Total other income and expenses 498

Interest Expense 1,622

Income From Continuing Operations Before Income Taxes 4,134

Income Tax Expense from Continuing Operations 1,669

Income From Continuing Operations 2,465

(Loss) Income From Discontinued Operations, net of tax (576)

Net Income 1,889

Less: Net Income Attributable to Noncontrolling Interests 6

Net Income Attributable to Duke Energy Corporation $ 1,883

Earnings Per Share Basic and Diluted Income from continuing operations attributable to Duke Energy Corporation common shareholders Basic $ 3.46

Diluted $ 3.46

(Loss) Income from discontinued operations attributable to Duke Energy Corporation common shareholders Basic $ (0.80) -

Diluted $ (0.80)

Net Income attributable to Duke Energy Corporation common shareholders Basic $ 2.66

Diluted $ 2.66 -

Weighted-average shares outstanding Basic 707 1332

Diluted 707 1333

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(in millions) 2014

Net Income $ 1,889

Other Comprehensive Loss, net of tax Foreign currency translation adjustments (124)

Pension and OPEB adjustments(a) 4

Net unrealized (losses) gains on cash fl ow hedges(b) (26)

Reclassifi cation into earnings from cash fl ow hedges 7

Unrealized gains (losses) on investments in available-for-sale securities 3

Reclassification into earnings from available-for-sale securities

Other Comprehensive Loss, net of tax (136)

Comprehensive Income 1,753

Less: Comprehensive Income Attributable to Noncontrolling Interests 14

Comprehensive Income Attributable to Duke Energy Corporation $ 1,739

CONSOLIDATED BALANCE SHEETS

December 31, 2014

ASSETS Current Assets

Cash and cash equivalents $ 2,036

Short-term investments

Receivables (net of allowance for doubtful accounts of $17 at December 31, 2014 and $30 at December 31, 2013) 791

Restricted receivables of variable interest entities (net of allowance for doubtful accounts of $51 at December 31, 2014 and $43 at December 31, 2013) 1,973

Inventory 3,459 1588

Assets held for sale 364

Regulatory assets 1,115

Other 1,837

Total current assets 11,575

Investments and Other Assets

Investments in equity method unconsolidated affiliates 358

Nuclear decommissioning trust funds 5,546

Goodwill 16,321

Assets held for sale 2,642

Other 3,008

Total investments and other assets 27,875

Property, Plant and Equipment

Cost 104,861

Accumulated depreciation and amortization (34,824)

Generation facilities to be retired, net 9

Net property, plant and equipment 70,046

Regulatory Assets and Deferred Debits

Regulatory assets 11,042

Other 171

Total regulatory assets and deferred debits 11,213

Total Assets $120,709

LIABILITIES AND EQUITY

Current Liabilities

Accounts payable $ 2,271

Notes payable and commercial paper 2,514

Taxes accrued 569

Interest accrued 418

Current maturities of long-term debt 2,807

Liabilities associated with assets held for sale 262

Regulatory liabilities 204

Other 2,188

Total current liabilities 11,233

Long-Term Debt 37,213

Deferred Credits and Other Liabilities

Deferred income taxes 13,423

Investment tax credits 427

Accrued pension and other post-retirement benefit costs 1,145

Liabilities associated with assets held for sale 35

Asset retirement obligations 8,466

Regulatory liabilities 6,193

Other 1,675

Total deferred credits and other liabilities 31,364

Commitments and Contingencies Equity Common stock, $0.001 par value, 2 billion shares authorized; 1336 million and 1329 million shares outstanding at December 31, 2011 and 2010, respectively 1 Additional paid-in capital 39,405

Retained earnings 2,012

Accumulated other comprehensive loss (543)

Total Duke Energy Corporation shareholders equity 40,875

Noncontrolling interests 24

Total equity 40,899

Total Liabilities and Equity $120,709

CONSOLIDATED STATEMENTS OF CASH FLOWS

CASH FLOWS FROM OPERATING ACTIVITIES

Net income $ 1,889

Adjustments to reconcile net income to net cash provided by operating activities: Depreciation, amortization and accretion (including amortization of nuclear fuel) 3,507

Equity component of AFUDC (135)

Severance expense

FERC mitigation costs (15)

Community support and charitable contributions expense

Gains on sales of other assets (33)

Impairment charges 915

Deferred income taxes 1,149

Equity in earnings of unconsolidated affi liates (130)

Voluntary opportunity cost deferral

Accrued pension and other post-retirement benefi t costs 108

Contributions to qualified pension plans

(Increase) decrease in Net realized and unrealized mark-to-market and hedging transactions 44

Receivables 58

Inventory (269)

Other current assets (414)

Increase (decrease) in Accounts payable (30)

Taxes accrued (14)

Other current liabilities (201)

Other assets 16

Other liabilities 141

Net cash provided by operating activities 6,586

CASH FLOWS FROM INVESTING ACTIVITIES Capital expenditures (5,384)

Investment expenditures (90)

Acquisitions (54)

Cash acquired from the merger with Progress Energy

Purchases of available-for-sale securities (4,110)

Proceeds from sales and maturities of available-for-sale securities 4,133

Net proceeds from the sales of equity investments and other assets, and sales of and collections on notes receivable 179

Change in restricted cash 9

Other (56)

Net cash used in investing activities (5,373)

CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from the: Issuance of long-term debt $ 2,914

Issuance of common stock related to employee benefi t plans 25

Payments for the: Redemption of long-term debt (3,037)

Redemption of preferred stock of a subsidiary

Proceeds from the issuance of short-term debt with original maturities greater than 90 days 1,066

Payments for the redemption of short-term debt with original maturities greater than 90 days (564)

Notes payable and commercial paper 1,186

Distributions to noncontrolling interests (65)

Contributions from noncontrolling interests

Dividends paid (2,234)

Other 31

Net cash (used in) provided by fi nancing activities (678)

Net increase (decrease) in cash and cash equivalents 535

Cash and cash equivalents at beginning of period 1,501

Cash and cash equivalents at end of period $ 2,036

Supplemental Disclosures: Cash paid for interest, net of amount capitalized $ 1,659

Cash paid for (received from) income taxes 158

Merger with Progress Energy Fair value of assets acquired

Fair value of liabilities assumed

Issuance of common stock

Signifi cant non-cash transactions: Accrued capital expenditures 664

2011

Consolidated Balance Sheet

Operating Revenues Regulated electric $10,589

Non-regulated electric, natural gas, and other 3,383

Regulated natural gas 557

Total operating revenues 14,529

Operating Expenses Fuel used in electric generation and purchased power regulated 3,309

Fuel used in electric generation and purchased power non-regulated 1,488

Cost of natural gas and coal sold 348

Operation, maintenance and other 3,770

Depreciation and amortization 1,806

Property and other taxes 704

Goodwill and other impairment charges 335

Total operating expenses 11,760

Gains on Sales of Other Assets and Other, net 8

Operating Income 2,777

Other Income and Expenses Equity in earnings of unconsolidated affiliates 160

Gains (losses) on sales of unconsolidated affiliates 11

Other income and expenses, net 376

Total other income and expenses 547

Interest Expense 859

Income From Continuing Operations Before Income Taxes 2,465

Income Tax Expense from Continuing Operations 752

Income From Continuing Operations 1,713

Income From Discontinued Operations, net of tax 1

Net Income 1,714

Less: Net Income Attributable to Noncontrolling Interests 8

Net Income Attributable to Duke Energy Corporation $ 1,706

Earnings Per Share Basic and Diluted Income from continuing operations attributable to Duke Energy Corporation common shareholders Basic $ 1.28

Diluted $ 1.28

Income from discontinued operations attributable to Duke Energy Corporation common shareholders Basic $

Diluted $

Net income attributable to Duke Energy Corporation common shareholders Basic $ 1.28

Diluted $ 1.28

Dividends declared per share $ 0.99

Weighted-average shares outstanding Basic 1,332

Diluted 1,333

ASSETS Current Assets

Cash and cash equivalents $ 2,110

Short-term investments 190

Receivables (net of allowance for doubtful accounts of $35 at December 31, 2011 and $34 at December 31, 2010) 784

Restricted receivables of variable interest entities (net of allowance for doubtful accounts of $40 at December 31, 2011 and $34 at December 31, 2010) 1,157

Inventory 1,588

Other 1,051

Total current assets 6,880

Investments and Other Assets Investments in equity method unconsolidated affiliates 460

Nuclear decommissioning trust funds 2,060

Goodwill 3,849

Intangibles, net 363

Notes receivable 62

Restricted other assets of variable interest entities 135

Other 2,231

Total investments and other assets 9,160

Property, Plant and Equipment Cost 60,537

Cost, variable interest entities 913

Less accumulated depreciation and amortization 18,789

Net property, plant and equipment 42,661

Regulatory Assets and Deferred Debits Regulatory assets 3,672

Other 153

Total regulatory assets and deferred debits 3,825

Total Assets $62,526

LIABILITIES AND EQUITY Current Liabilities

Accounts payable $ 1,433

Notes payable and commercial paper 154

Non-recourse notes payable of variable interest entities 273

Taxes accrued 431

Interest accrued 252

Current maturities of long-term debt 1,894

Other 1,091

Total current liabilities 5,528

Long-term Debt 17,730

Non-recourse Long-term Debt of Variable Interest Entities 949

Deferred Credits and Other Liabilities Deferred income taxes 7,581

Investment tax credits 384

Accrued pension and other post-retirement benefit costs 856

Asset retirement obligations 1,936

Regulatory liabilities 2,919

Other 1,778

Total deferred credits and other liabilities 15,454

Commitments and Contingencies Equity Common Stock, $0.001 par value, 2 billion shares authorized; 1,336 million and 1,329 million shares outstanding at December 31, 2011 and December 31, 2010, respectively 1 1

Additional paid-in capital 21,132

Retained earnings 1,873

Accumulated other comprehensive (loss) income (234)

Total Duke Energy Corporation shareholders equity 22,772

Noncontrolling interests 93

Total equity 22,865

Total Liabilities and Equity $62,526

Consolidated Cash Flows

CASH FLOWS FROM OPERATING ACTIVITIES

Net income $ 1,714

Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization (including amortization of nuclear fuel) 2,026

Equity component of AFUDC (260)

Gains on sales of other assets (19)

Impairment of goodwill and other long-lived assets 335

Deferred income taxes 602

Equity in earnings of unconsolidated affiliates (160)

Contributions to qualified pension plans (200)

Accrued pension and other post-retirement benefit costs 104

(Increase) decrease in Net realized and unrealized mark-to-market and hedging transactions (48)

Receivables 2

Inventory (247)

Other current assets 185

Increase (decrease) in Accounts payable 41

Taxes accrued 27

Other current liabilities (254)

Other assets 12

Other liabilities (188)

Net cash provided by operating activities 3,672

CASH FLOWS FROM INVESTING ACTIVITIES

Capital expenditures (4,363)

Investment expenditures (50)

Acquisitions (51)

Purchases of available-for-sale securities (3,194)

Proceeds from sales and maturities of available-for-sale securities 3,063

Net proceeds from the sales of equity investments and other assets, and sales of and collections on notes receivable 118 406 70 Purchases of emission allowances (9)

Sales of emission allowances 9

Change in restricted cash 22

Other 21

Net cash used in investing activities (4,434)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from the: Issuance of long-term debt 2,570

Issuance of common stock related to employee benefit plans 67

Payments for the redemption of long-term debt (278)

Notes payable and commercial paper 208

Distributions to noncontrolling interests (26)

Dividends paid (1,329)

Other (10)

Net cash provided by financing activities 1,202

Net increase in cash and cash equivalents 440

Cash and cash equivalents at beginning of period 1,670

Cash and cash equivalents at end of period $ 2,110

Supplemental Disclosures Cash paid for interest, net of amount capitalized $ 813

Cash paid (refunded) for income taxes $ 26

Significant non-cash transactions: Accrued capital expenditures $ 409

Debt associated with the consolidation of variable interest entities $