$ millions L01, 5 P5-49. Analyzing Segment Disclosures Company TN) ework BC Raytheon Company disclosed the...

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$ millions L01, 5 P5-49. Analyzing Segment Disclosures Company TN) ework BC Raytheon Company disclosed the following data related to segment sales and operating profits for fiscal 2018. Total Net Sales Operating Income 2018 2017 2016 2018 2017 2016 Integrated defense systems........... $ 6,180 $ 5,804 $ 5,529 $1,023 $ 935 $971 Intelligence, information and services... 6,722 6,177 6,169 538 455 467 Missile systems .... 8,298 7,787 7,096 973 1,010 921 Space and airborne systems 6,748 6,430 6,182 884 862 808 Forcepoint.. 634 608 586 5 33 90 Eliminations. Total net sales. (1,514) (1,423) (1,361) $27,068 $25,383 $24,201 Cambridge Business Publishers Module 5 Revenues, Receivables, and Operating Expenses 5-4 The company also reported the following on its balance sheet. $ millions 2018 2017 Receivables, net of allowance for doubtful accounts of $12 and $8.... $1,648 $1,324 Required a. Which segment is largest in 2018? Has this ranking changed over the three-year period? b. Calculate the operating profit margin for each segment and determine which segment is most profit- able in 2018 by this measure. c. Which segment's sales grew the most in 2018? How does this compare to 2017 sales growth? d. Calculate the company's accounts receivable turnover and its days sales outstanding (DSO) for 2018. Does this seem reasonable? What might explain the DSO? e. Assess the size of the receivables allowance. Does it seem reasonable? -50. Non-GAAP Disclosures L07 General Electric (GE) disclosed the following non-GAAP reconciliation for its Industrial segment General Electric (GE) from its 2018 Form 10-K. Homework MBC $ millions 2018 2017 2016 GE Industrial earnings (loss). $(20,587) Less: Nonoperating pension benefit costs (net of tax).. Less: Gains and impairments for disposed or held for sale (2,184) $(1,841) (1,550) $ 9,048 (1,527) businesses (net of tax). 974 864 2,374 Less: Restructuring and other (net of tax). (2,948) (2,778) (2,483) Less: Goodwill impairments (net of tax).. (22,371) (1,156) Less: GE Industrial U.S. tax reform enactment adjustment.... (38) (4,905) Adjusted GE Industrial earnings (loss) (Non-GAAP) .. $ 5,980 $7,685 $10,684 Required a. Explain how the non-GAAP items (in total) affected adjusted earnings each year. Are the adjust- ments significant? b. GE makes five specific adjustments. Are any of the adjustments likely beyond the company's control? c. Calculate the year-over-year change (in % terms) in reported net income for 2017 and 2018. Cal- culate the year-over-year change (in % terms) in the non-GAAP net income. Which trend do we believe more accurately depicts GE's performance over this period? $ millions L01, 5 P5-49. Analyzing Segment Disclosures Company TN) ework BC Raytheon Company disclosed the following data related to segment sales and operating profits for fiscal 2018. Total Net Sales Operating Income 2018 2017 2016 2018 2017 2016 Integrated defense systems........... $ 6,180 $ 5,804 $ 5,529 $1,023 $ 935 $971 Intelligence, information and services... 6,722 6,177 6,169 538 455 467 Missile systems .... 8,298 7,787 7,096 973 1,010 921 Space and airborne systems 6,748 6,430 6,182 884 862 808 Forcepoint.. 634 608 586 5 33 90 Eliminations. Total net sales. (1,514) (1,423) (1,361) $27,068 $25,383 $24,201 Cambridge Business Publishers Module 5 Revenues, Receivables, and Operating Expenses 5-4 The company also reported the following on its balance sheet. $ millions 2018 2017 Receivables, net of allowance for doubtful accounts of $12 and $8.... $1,648 $1,324 Required a. Which segment is largest in 2018? Has this ranking changed over the three-year period? b. Calculate the operating profit margin for each segment and determine which segment is most profit- able in 2018 by this measure. c. Which segment's sales grew the most in 2018? How does this compare to 2017 sales growth? d. Calculate the company's accounts receivable turnover and its days sales outstanding (DSO) for 2018. Does this seem reasonable? What might explain the DSO? e. Assess the size of the receivables allowance. Does it seem reasonable? -50. Non-GAAP Disclosures L07 General Electric (GE) disclosed the following non-GAAP reconciliation for its Industrial segment General Electric (GE) from its 2018 Form 10-K. Homework MBC $ millions 2018 2017 2016 GE Industrial earnings (loss). $(20,587) Less: Nonoperating pension benefit costs (net of tax).. Less: Gains and impairments for disposed or held for sale (2,184) $(1,841) (1,550) $ 9,048 (1,527) businesses (net of tax). 974 864 2,374 Less: Restructuring and other (net of tax). (2,948) (2,778) (2,483) Less: Goodwill impairments (net of tax).. (22,371) (1,156) Less: GE Industrial U.S. tax reform enactment adjustment.... (38) (4,905) Adjusted GE Industrial earnings (loss) (Non-GAAP) .. $ 5,980 $7,685 $10,684 Required a. Explain how the non-GAAP items (in total) affected adjusted earnings each year. Are the adjust- ments significant? b. GE makes five specific adjustments. Are any of the adjustments likely beyond the company's control? c. Calculate the year-over-year change (in % terms) in reported net income for 2017 and 2018. Cal- culate the year-over-year change (in % terms) in the non-GAAP net income. Which trend do we believe more accurately depicts GE's performance over this period?