Question
The following Tables present the summary of the balance sheet and income statement items of IBM Company. All values are in millions dollars. A. Balance
The following Tables present the summary of the balance sheet and income statement items of IBM Company. All values are in millions dollars.
A. Balance sheet
Items
2019
2018
Cash
8,313
11,604
Marketable securities
696
618
Account receivables
23,795
30,563
Inventory
1,619
1,682
Prepaid expenses
3,997
4,678
Net Fixed Assets
96,457
68,764
Investment in AB Co. stocks
17,309
5,473
Account payables
24,600
21,372
Wages and salaries payable
13,101
16,855
Bond payable (10 yrs.)
54,102
35,605
Notes payable (3 yrs.)
39,398
32,621
Total shareholders Equity Capital
20,985
16,929
B. Income statement
Items
2019
2018
Revenues
77,147
79,591
Cost of goods sold
40,659
42,655
Salaries & benefits
11,786
13,197
Rent & other expenses
4,412
5,000
Deprecation
8,780
6,674
Interest
1,344
723
Taxes (23%)
731
2,619
Net Income
9,435
8,723
Required?
A. Compute the Net-operating Asset turnover (NOAT) of IBM Company in 2019. Suppose that the industry
average NOAT is 2.5x. Evaluate the asset management performance of the company compared to the industry
(6 pts
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Focus On Personal Finance An Active Approach To Help You Develop Successful Financial Skills
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0078034787, 978-0078034787
