Question
Please use Applied Materials 2013 10-K to answer the questions below. Applied Materials 2013 10-K address : https://www.sec.gov/Archives/edgar/data/6951/000000695113000044/amat10272013-10kdoc.htm (Please copy the address and then paste
Please use "Applied Materials 2013 10-K" to answer the questions below.
Applied Materials 2013 10-K address : https://www.sec.gov/Archives/edgar/data/6951/000000695113000044/amat10272013-10kdoc.htm
(Please copy the address and then paste it into the address bar.)
- The fixed charge coverage ratio for 2012 with two decimal points, and times (Example 1.47 times) was
- The fixed charge coverage ratio for 2013 with two decimal points, and times (Example 1.47 times) was
- The cash flow adequacy coverage ratio for 2012 with two decimal points, and times (Example 1.47 times) was
- The cash flow adequacy coverage ratio for 2013 with two decimal points, a 0 before the decimal point and times (Example 0.47 times) was
- The gross profit margin for 2012 with two decimal points, including zeroes if necessary and a percentage (Example 20.00%) was
- The gross profit margin for 2013 with two decimal points, including zeroes if necessary and a percentage (Example 20.00%) was
- The operating profit margin for 2012 with two decimal points and a percentage (Example 7.83%) was
- The operating profit margin for 2013 with two decimal points and a percentage (Example 7.83%) was
- The net profit margin for 2012 with two decimal points and a percentage (Example 7.83%) was
- The net profit margin for 2013 with two decimal points and a percentage (Example 7.83%) was
- The cash flow margin for 2012 with two decimal points and a percentage (Example 7.83%) was
- The cash flow margin for 2013 with two decimal points and a percentage (Example 7.83%) was
- The return on assets for 2012 with two decimal points and a 0 before the decimal point and a percentage (Example 0.83%) was
- The return on assets for 2013 with two decimal points and a percentage (Example 0.83%) was
- The return on equity for 2012 with two decimal points and a percentage (Example 0.83%) was
- The return on equity for 2013 with two decimal points and a percentage (Example 0.83%) was
- The cash return on assets for 2012 with two decimal points and a percentage (Example 10.83%) was
- The cash return on assets for 2013 with two decimal points and a percentage (Example 3.83%) was
- The earnings per share for 2012 with two decimal points, a 0 before the decimal point (Example 0.83) was
- The earnings per share for 2013 with two decimal points, a 0 before the decimal point (Example 0.83) was
- The price-to-earnings ratio for 2012 with two decimal points (Example 10.83) was
- The price-to-earnings ratio for 2013 with two decimal points (Example 10.83) was
- The dividend payout ratio for 2012 with two decimal points and a percentage (Example 10.83%) was
- The dividend payout ratio for 2013 with two decimal points and a percentage (Example 10.83%) was
- The dividend yield ratio for 2012 with two decimal points and a percentage (Example 10.83%) was
- The dividend yield ratio for 2013 with two decimal points and a percentage (Example 10.83%) was
- Applied Materials manufactures equipment and provides services and software in all of the following industries except
a. global semiconductor
b.pharmaceuticals
c.flat panel display
d .solar photovoltaic
28.Applied Materials current and quick ratios both increased from 2012 to 2013. The cash flow liquidity ratio decreased though in 2013. What was the reason(s) for this
a.An increse in cash from operating activities (CFO) caused by decreasing accounts receivable and inventories.
b.An increase in cash from operating activities (CFO) caused by increasing accounts receivable and inventories.
c.A decrease in cash from operating activities (CFO) caused by increasing accounts receivable and inventories.
d.A decrease in cash from operating activities (CFO) caused by decreasing accounts receivable and inventories.
29.The average collection period has increased 28 days and is now 80 days which is of concern. What reason(s) did management give for the increase in accounts receivable that contributed to this
a.The increase in accounts receivable resulted from a higher proportion of shipments at the beginning of the year, while inventories shrank due to decreased customer demand.
b.The increase in accounts receivable resulted from a lower proportion of shipments near the end of the year, while inventories grew to support projected customer demand.
c.The increase in accounts receivable resulted from a lower proportion of shipments near the end of the year, while inventories shrank due to decreased customer demand.
d.The increase in accounts receivable resulted from a higher proportion of shipments near the end of the year, while inventories grew to support projected customer demand.
30.Two abnormal patterns that were associated with accounts receivable and the allowance for doubtful accounts were found for 2013. These were
a.Sales have increased while accounts receivable decreased and the allowance for doubtful accounts increased despite the deecrease in accounts receivable.
b.Sales have increased while accounts receivable increased and the allowance for doubtful accounts decreased despite the increase in accounts receivable
c.Sales have decreased while accounts receivable increased and the allowance for doubtful accounts decreased despite the increase in accounts receivable.
d.Sales have decreased while accounts receivable decreased and the allowance for doubtful accounts increased despite the decrease in accounts receivable
31.The cash conversion cycle is high at 147 days. Which of the following is the reason for this
a.It is a result of the increases in average collection period and days inventory held, offset by the shorter days payable.
b.It is a result of the decreases in average collection period and days inventory held, offset by the shorter days payable.
c.It is a result of the increases in average collection period and days inventory held, offset by the longer days payable.
d.It is a result of the decreases in average collection period and days inventory held, offset by the longer days payable.
32.Overall the liquidity of Applied Materials is good but which of the following ratios would require continued monitoring in the future based on the 2013 ratios
a. Days inventory held and average collection period
b. Times interest earned
c. Asset turnover
d. Debt-to-equity
33.The accounts receivable, inventory and payables turnover ratios for Applied all decreased in 2013. These were discussed in liquidity in relation to allof the following ratios except
a.Average collection period
b.Days inventory held
c.Days payable outstanding
d.Debt to equity
34.The fixed asset turnover for 2013 decreased. Referring to the management discussion and analysis section, we can determine that the reason for this was
a.Sales decreasing faster than the Increase in property, plant and equipment. AMAT continues to replace fixed assets each year but the Varian acquisition decreased the investment in fixed assets
b.Sales increasing faster than the decrease in property, plant and equipment. AMAT has not replaced fixed assets each year and the Varian disposal decreased the investment in fixed assets
c.Sales decreasing faster than the decrease in property, plant and equipment. AMAT continues to replace fixed assets each year and the Varian acquisition increased the investment in fixed assets
d.Sales decreasing faster than the decrease in property, plant and equipment. AMAT has not replaced fixed assets each year and the Varian disposal decreased the investment in fixed assets
35.Referring to the statement of cash flows for Applied Materials from 2011 to 2013, which of the following describes the source of cash flows for Applied
a.Most cash inflows are obtained from long-term borrowing each year; however, this source has decreased in dollar amount from 2011 to 2013.
b.Most cash inflows are obtained from operations and short-term investments each year; both of these sources have increased in dollar amount from 2011 to 2013.
c.Most cash inflows are obtained from long-term borrowing each year; however, this source has increased in dollar amount from 2011 to 2013.
d.Most cash inflows are obtained from operations and short-term investments each year; however, both of these sources have decreased in dollar amount from 2011 to 2013.
36.AMAT's debt structure is good and ratios are stable with approximately half of the debt short-term and half of the debt long-term. The only significant borrowing was occurred in which year
a.2013
b.2010
c.2012
d.2011
37.The accrual-based times interest earned ratio and fixed charge coverage ratios have decreased significantly from 2011. Which of the following is the reason for this
a.Large increase in cash flows from operations
b.Large drop in cash flows from operations
c.Large increase in operating profit
d.Large drop in operating profit
38.Which of the following is correct regarding the profitability of Applied Materials
a.Gross profit margin decreased in 2012, but recovered somewhat in 2013.
b.Operating profit margin increased in 2012, but decreased somewhat in 2013.
c.Gross profit margin increased in 2012, but decreased somewhat in 2013.
d.Net profit margin increased in 2012, but decreased somewhat in 2013.
39.The Earnings per share and Price-to-earnings (PE) ratio changes from 2011 to 2013 can best be described by which of the following statements
a.The PE ratio decreased from 2011 to 2013 indicating that investors are alarmed by the past two years of lower profits and lower CFO
b.The PE ratio decreased from 2011 to 2013 with the stock price dropping by much less compared to the drop in earnings per share.
c.Earnings per share has increased significantly from 2011, although it dropped slightly from 2012 to 2013.
d.The PE ratio increased from 2011 to 2013 with the stock price dropping by much less compared to the drop in earnings per share.
40.Which of the followig operating segments of Applied Materials was the greatest revenue producer for 2013
a.Display
b.Silicon Systems Group
c.Applied Global Services
d.Energy and Environmental Solutions
41.Which of the following segments of Applied Materials had negative contributions to operating profits for 2013?
a.Silicon Systems Group
b.Energy and Environmental Solutions
c.Applied Global Services
d.Display
42.Which segment of Applied Materials had the largest operating profit margin for 2013?
a.Energy and Environmental Solutions
b.Display
c.Silicon Systems Group
d.Applied Global Services
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