YOUR UNDERSTANDING Analysis statemest of cash fw the balance sheet, and the GIES INC. 240 o thefinncial statements presented for Lacent Technologjis Inc on tie previous wo pagen swer the following questions. BALANCE SHEET 1. (1)Examine the following accounts, subeotals, and tosals: C2) describe your observations; and then (3) identify what your observations indicate. A response is given for PPE, net to help understanding a. Total assets of $17.791 meillion on 9/30/2002 are approximately half of the $35,372 pec 1nv million of contraction assets reported on 913011999, indicating the company has gone through a major b. Total liabilities c. On 9/30/1999 contributed capital totaled smillion and on 9/30/2002 contributed capital totaled S million. Total coetributed capital d. Retained carnings 2. mpute the current ratia Currentsetsentblies) for each year and comment on whar the results indicate. Compute the debt ratio (total liabilities / total assets) for each year and comment on what the results indicate. 3. Review the four years of information reported on the balance sheet and comment on your observations 4. INCOME STATEMENT 5. Revenues were S milion for the earliest year reported and s milion for the most recent year reported. Since the earlest year reported,this account has (increased / decreased) by $ the same time period, net income (dipped / plunged). million, which is a % (increase / decrease). During 6. Compute the gross,.margin percentage (gross margin /revenues) for each year. The strongest gross margin percentage was reported during (2002 /2001 /2000/1999). Comment on the results. 7. Compute the return-on-sales ratio (net income / revenues) for each year. The strongest return on sales was reported during (2002 /2001 /2000 /1999) and the weakest in (2002 / 2001 /2000/ 1999), 8. Review the four years of information reported on the income statement and comment on your observations Interpreting and Analyzing 3e Review Page 121 YOUR UNDERSTANDING Analysis statemest of cash fw the balance sheet, and the GIES INC. 240 o thefinncial statements presented for Lacent Technologjis Inc on tie previous wo pagen swer the following questions. BALANCE SHEET 1. (1)Examine the following accounts, subeotals, and tosals: C2) describe your observations; and then (3) identify what your observations indicate. A response is given for PPE, net to help understanding a. Total assets of $17.791 meillion on 9/30/2002 are approximately half of the $35,372 pec 1nv million of contraction assets reported on 913011999, indicating the company has gone through a major b. Total liabilities c. On 9/30/1999 contributed capital totaled smillion and on 9/30/2002 contributed capital totaled S million. Total coetributed capital d. Retained carnings 2. mpute the current ratia Currentsetsentblies) for each year and comment on whar the results indicate. Compute the debt ratio (total liabilities / total assets) for each year and comment on what the results indicate. 3. Review the four years of information reported on the balance sheet and comment on your observations 4. INCOME STATEMENT 5. Revenues were S milion for the earliest year reported and s milion for the most recent year reported. Since the earlest year reported,this account has (increased / decreased) by $ the same time period, net income (dipped / plunged). million, which is a % (increase / decrease). During 6. Compute the gross,.margin percentage (gross margin /revenues) for each year. The strongest gross margin percentage was reported during (2002 /2001 /2000/1999). Comment on the results. 7. Compute the return-on-sales ratio (net income / revenues) for each year. The strongest return on sales was reported during (2002 /2001 /2000 /1999) and the weakest in (2002 / 2001 /2000/ 1999), 8. Review the four years of information reported on the income statement and comment on your observations Interpreting and Analyzing 3e Review Page 121
