P5-8 (pg 219-220), & "To the net case" 5 (pg. 222).

Instructions to get Data for "To the net case" 5 (pg. 222):

www.sec.gov

Under FILINGS, click "Company Filing Search"

Under Company Name, type Altaba Inc. then clickSEARCH

(because the name for Yahoo has been changed).

Then below "Filing type", type10-K, and below "Prior to", type 2011-02-28 and below Ownership, click :include" then click search

Thenunder 10-K, look for the filing date 2011-02-28; I think this is the first item.

Then clickDocumentsagainst that.

Then clickd10k.htmagainst "Annual Report on Form 10-K"

Then in page 60, you will see the Consolidated Income Statement for 2008, 2009, & 2010 & the data are for Yahoo Inc.

Then copy the numbers from 2009 & 2010 for the items you need.

Example of what you have do for the problem:

Increase(decrease)

Dec. 31 2009 Dec. 31, 2010 Dollars Percent

Salary expense $200 (say) $300 (say) $100 50% ($100/$200) (no sign indicates increase)

Interest income $200 $100 ($100) (50%)i.e. (100)/200 ( ) indicates decrease)

P 5-8 Required Answer the following multiple-choice questions: a. Which of the following statements is incorrect? 1. Ratios are fractions expressed in percent or times per year. 2. A ratio can be computed from any pair of numbers. 3. A very long list of meaningful ratios can be derived. 4. There is one standard list of ratios. Comparison of income statement and balance sheet numbers, in the form of ratios, should not be done. b. A figure from this year's statement is compared with a base selected from the current year. 4. Vertical common-size statement 2. Horizontal common-size statement 3. Funds statement 4. Absolute figures 5. Balance sheet C . Fremont Electronics has income of $1 million. Columbus Electronics has income of $2 million. Which of the following statements is a correct statement: 1. Columbus Electronics is getting a higher return on assets employed. 2. Columbus Electronics has higher profit margins than does Fremont Electronics. w how he company 3. Fremont Electronics could be more profitable than Columbus Electronics in relation to resources employed. 5 50 (4.) No comparison can be made between Fremont Electronics and Columbus Electronics. 5. Fremont Electronics is not making good use of its resources. d. Industry ratios should not be considered as absolute norms for a given industry because of all but which of the following? 1. The firms have different accounting methods. 2. Many companies have varied product lines. (continued)(P 5-8 CONTINUED) 3. Companies within the same industry may differ in their method of operations 4. The fiscal year-ends of the companies may differ. 5. The financial services may be private independent firms. e. Which of the following is a publication of the federal government for manufacturing mining, and trade corporations? Exam 1. Annual Statement Studies 2. Standard & Poor's Industry Surveys 3. Almanac of Business and Industrial Financial Ratios 4. Industry Norms and Key Business Ratios 5. The Department of Commerce Financial Report f. / Which service represents a compilation of corporate tax return data? 1. Annual Statement Studies 2. Standard & Poor's Industry Surveys 3. Almanac of Business and Industrial Financial Ratios 4. Industry Norms and Key Business Ratios 5. The Department of Commerce Financial Report 8. Which service includes over 800 different lines of business? 1. Annual Statement Studies 2. Standard & Poor's Industry Surveys 3. Almanac of Business and Industrial Financial Ratios 4. Industry Norms and Key Business Ratios 5. The Department of Commerce Financial Report h. Which analysis compares each amount with a base amount for a selected base year? Vertical common-size Horizontal common-size 3. Funds statement 4. Common-size statement 5. None of these i. Suppose you are comparing two firms in the coal industry. Which type of numbers would be most meaningful for statement analysis? 1. Relative numbers would be most meaningful for both firms, especially for interfirm comparisons. 2. Relative numbers are not meaningful. 3. Absolute numbers would be most meaningful. 4. Absolute numbers are not relevant. 5. It is not meaningful to compare two firms. Management is a user of financial analysis. Which of the following comments does not represent a fair statement as to the management perspective? Management is not interested in the view of investors. 2. Management is interested in liquidity. 3. Management is interested in profitability. 4. Management is interested in the debt position. 5. Management is interested in the financial structure of the entity.CHAPTER 5 TO THE NET CASE 1. Go to the SEC Web site (www.sec.gov). Under "Filings & Forms (EDGAR)," click on "Search for Company Filings." Click on "Company or Fund, etc." Under Company Name, enter "Alexander & Baldwin" (or under Ticker Symbol, enter "ALEX"). Select the 10-K filed February 25, 201 1. For the following partial consolidated statements of income, compute horizontal and vertical common-size analysis. Use December 31, 2008, for the base on the horizontal common-size analysis. Use total revenue for the vertical common-size analysis. Comment on the results. Years Ended December 31, 2010 2009 2008 Operating revenue: Ocean transportation Logistics services Real estate leasing Real estate sales Agribusiness Total operating revenue 2. Go to the SEC site (www.sec.gov). Under "Filings & Forms" click on "Search for Company Filings." Click on "Company or fund, etc." Under Company Name, enter "Best Buy Co" (or under Ticker Symbol, enter "BBT"). Select the 10-K filed April 25, 201 1. For the following partial consolidated statements of earnings, compute horizontal and vertical common-size analysis. Use February 28, 2009 as the base in the horizontal common-size analysis. Use revenue for the vertical common-size analysis. Comment on the results. Consolidated Statements of Earnings February 26, February 27, February 28, 2011 2010 2009 Revenue Cost of goods sold Restructuring charges - cost of goods sold Gross profit Selling, general and administrative expenses Restructuring charges Goodwill and tradename impairment Operating income 3. Go to the SEC Web site (www.sec.gov). Under "Filings & Forms (EDGAR)," click on "Search for Company Filings." Click on "Company or Fund, etc." Under Company Name, enter "Amazoncom Inc" (or under Ticker Symbol, enter "AMZN"). Select the 10-K filed January 28, 201 1. For the following partial consolidated balance sheets, compute horizontal and vertical common-size analyses. Use December 31, 2009, for the base in the horizontal common-size analysis. Use total liabilities and stockholders' equity for the vertical common-size analysis. Comment on the results. December 31, 2010 2009 Liabilities and stockholders' equity Total current liabilities Long-term liabilities Commitments and contingencies Stockholders' equity Preferred stock Common stock Treasury stock, at cost Additional paid-in capital Accumulated other comprehensive income (loss) Retained earning Total stockholders' equity Total liabilities and stockholders' equity (continueTER 5 . Basics of Analysis to the SEC Web site (www.sec.gov). Under "Filings & Forms Cream, click on "Sey (To THE NET CONTINUED) company Filings." Click on "Company or fund, etc." Under Smith, me, enter "Kim co (or under Ticker Symbol, enter "KR"). Select the 10-K filed March 29, 201 1. For thiK following partial consolidated statement of income, prepare a horizontal common-size analy. with change in dollars. Use the year ended January 30, 2010, as the base. Comment on taly results. Consolidated Statement of Income (In Part) Years Ended January 29, 201 1, and January 30, 2010 (In millions) Jan. 30, 2010 Increase (Decrease) Jan. 29, 201 1 52 Weeks Dollars 52 Weeks Percent Sales Merchandise costs, including advertising, warehousing, and transportation, excluding items shown separately below Operating, general and administrative Rent Depreciation and amortization Goodwill impairment charge Operating profit 5. Go to the SEC Web site (www.sec.gov). Under "Filings & Forms (EDGAR)," click on "Search for Company Filings." Click on "Company or Fund, etc." Under Company Name, enter "Yahoo Inc." (or under Ticker Symbol, enter "YHOO"). Select the 10-K filed February 28, 201 1. For the following partial consolidated statements of operations, prepare a horizontal common-size analysis with change in dollars. Use the year ended December 31, 2009, as the base. Comment on the results. Yahoo! Inc. Consolidated Statements of Income Years Ended December 31, 2009, and December 31, 2010 (In thousands) Dec. 31, Dec. 31, Increase (Decrease) 2009 2010 Dollars Percent Revenues Cost of revenues Gross profit Operating expenses: Sales and Marketing Product development General and administrative Amortization of intangibles Restructuring changes, net Goodwill impairment change Total operating expense Income from operations