Question
Please answer questions 1-4. You need to show your clear calculation to support each statement provide a paragraph of interpretation related to the result of
Please answer questions 1-4. You need to show your clear calculation to support each statement provide a paragraph of interpretation related to the result of your analysis on each statement. I can't award credit if all questions and instructions are not answered.
Question 1: Common size for income statement Income Statement (Common Size) :
Consolidated Income Statement
| 2011 | % | 2010 | % |
Revenue | $19,176.1 |
| $18,627.0 |
|
Cost of sales | ( 10,571.7) |
| ( 10,239.6 ) |
|
Gross Profit | 8,604.4 |
| 8,387.4 |
|
Selling and administrative expenses | ( 6,149.6) |
| ( 5,953.7) |
|
Restructuring charges | ( 195.0) |
| 0.0 |
|
Goodwill impairment | ( 199.3) |
| 0.0 |
|
Intangible and other asset impairment | ( 202.0) |
| 0.0 |
|
Other income (expenses) | 88.5 |
| ( 7.9 ) |
|
Operating Income | $ 1,947.0 |
| $ 2,425.8 |
|
Interest and other income | 49.7 |
| 115.8 |
|
Interest expense | ( 40.2) |
| ( 38.7) |
|
Income before income taxes | $ 1,956.5 |
| $ 2,502.9 |
|
Provision for income taxes | ( 469.8) |
| ( 619.8) |
|
Net Income | $ 1,486.7 |
| $ 1,883.4 |
|
Question 2: Comparative Analysis for balance sheet:
| 2011 | 2010 | Difference | % changed |
ASSETS: |
|
|
|
|
Current Assets |
|
|
|
|
Cash and equivalents | $ 2,291.1 | $ 2,133.9 |
|
|
Short-term investments | 1,164.2 | 642.2 |
|
|
Account receivable | 2,883.9 | 2,795.3 |
|
|
Inventory | 2,357.0 | 2,438.4 |
|
|
Prepaid expenses and other assets | 765.6 | 602.3 |
|
|
Deferred income taxes, net | 272.4 | 227.2 |
|
|
Total Current Assets | $ 9,734.0 | $ 8,839.3 |
|
|
Property and equipment, gross | 4,255.7 | 4,103.0 |
|
|
Accumulated depreciation | (2,221.9) | (2,298.0) |
|
|
Property and equipment, net | $ 1,957.7 | $ 1,891.1 |
|
|
Identifiable intangible assets | 467.4 | 743.1 |
|
|
Good will | 193.5 | 448.8 |
|
|
Deferred income taxes and other assets | 897.0 | 520.4 |
|
|
Total Assets | $13,249.6 | $12,442.7 |
|
|
|
|
|
|
|
Liabilities and Stockholders Equity |
|
|
|
|
Current Liability : |
|
|
|
|
Current portion of long-term debt | $ 32.0 | $ 6.3 |
|
|
Note Payable | 342.9 | 177.7 |
|
|
Account Payable | 1,031.9 | 1,287.6 |
|
|
Accrued liabilities | 1,783.9 | 1,761.9 |
|
|
Income taxes payable | 86.3 | 88.0 |
|
|
Total Current Liabilities | $ 3,277.0 | $ 3,321.5 |
|
|
Long term debt | 437.2 | 441.1 |
|
|
Deferred taxes and other long-term liabilities | 842.0 | 854.5 |
|
|
Total Liabilities | $ 4,556.2 | $ 4,617.1 |
|
|
Redeemable preferred stock | $ 0.3 | $ 0.3 |
|
|
Common Shareholders Equity |
|
|
|
|
Common stock | 2.8 | 2.8 |
|
|
Capital in excess of stated value | $ 2,781.4 | $ 2,497.8 |
|
|
Retained earnings | 5,451.4 | 5,073.3 |
|
|
Accumulated other comprehensive income | 367.5 | 251.4 |
|
|
Total Common Shareholders Equity | $ 8,693.1 | $ 7,825.3 |
|
|
Total Liabilities and Shareholders Equity | $13,249.6 | $12,442.7 |
|
|
Question 3 : Please create a statement of cash flow with indirect method
Statement of Cash Flow with Indirect method
| 2011 | 2010 | Difference | Operating | Investing | Financing |
ASSETS: |
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
Cash and equivalents | $ 2,291.1 | $ 2,133.9 |
|
|
|
|
Short-term investments | 1,164.2 | 642.2 |
|
|
|
|
Account receivable | 2,883.9 | 2,795.3 |
|
|
|
|
Inventory | 2,357.0 | 2,438.4 |
|
|
|
|
Prepaid expenses and other assets | 765.6 | 602.3 |
|
|
|
|
Deferred income taxes, net | 272.4 | 227.2 |
|
|
|
|
Total Current Assets | $ 9,734.0 | $ 8,839.3 |
|
|
|
|
Property and equipment, gross | 4,255.7 | 4,103.0 |
|
|
|
|
Accumulated depreciation | (2,221.9) | (2,298.0) |
|
|
|
|
Property and equipment, net | $ 1,957.7 | $ 1,891.1 |
|
|
|
|
Identifiable intangible assets | 467.4 | 743.1 |
|
|
|
|
Good will | 193.5 | 448.8 |
|
|
|
|
Deferred income taxes and other assets | 897.0 | 520.4 |
|
|
|
|
Total Assets | $13,249.6 | $12,442.7 |
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders Equity |
|
|
|
|
|
|
Current Liability : |
|
|
|
|
|
|
Current portion of long-term debt | $ 32.0 | $ 6.3 |
|
|
|
|
Note Payable | 342.9 | 177.7 |
|
|
|
|
Account Payable | 1,031.9 | 1,287.6 |
|
|
|
|
Accrued liabilities | 1,783.9 | 1,761.9 |
|
|
|
|
Income taxes payable | 86.3 | 88.0 |
|
|
|
|
Total Current Liabilities | $ 3,277.0 | $ 3,321.5 |
|
|
|
|
Long term debt | 437.2 | 441.1 |
|
|
|
|
Deferred taxes and other long-term liabilities | 842.0 | 854.5 |
|
|
|
|
Total Liabilities | $ 4,556.2 | $ 4,617.1 |
|
|
|
|
Redeemable preferred stock | $ 0.3 | $ 0.3 |
|
|
|
|
Common Shareholders Equity |
|
|
|
|
|
|
Common stock | 2.8 | 2.8 |
|
|
|
|
Capital in excess of stated value | $ 2,781.4 | $ 2,497.8 |
|
|
|
|
Retained earnings | 5,451.4 | 5,073.3 |
|
|
|
|
Accumulated other comprehensive income | 367.5 | 251.4 |
|
|
|
|
Total Common Shareholders Equity | $ 8,693.1 | $ 7,825.3 |
|
|
|
|
Total Liabilities and Shareholders Equity | $13,249.6 | $12,442.7 |
|
|
|
|
Question 4:
Ration Analysis:
Return on Asset
Debt to assets ratio
Profit margin
Account receivable turnover & accounting receivable turnover
Inventory turnover & days of inventory turnover
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