Equity, Cash Flow, and Notes Analysis of Samsung Electronics

1446 WordsJun 18, 20056 Pages
Introduction The Chief Executive Officer for Samsung Electronics, Jong-Yong Yun, contacted our firm to request our service to prepare a financial overview for the record management team regarding the following segments: Statement of Changes in Owner's Equity, Statement of Cash Flows, Notes, and other Financial Information. The theme and goal for this company is to endeavor to become the best; through the spirit of excellence; however, the only way to accomplish this, is to build and maintain a thriving financial department. Samsung Electronic is a multi-million dollar company and it is now one of the world's greatest companies (with the trust and full support of their shareholders), and an increasingly powerful brand. Despite the…show more content…
The final section of the Statement of Cash Flows provides the cash from financing activities. The following are totaled in the financing activity section: Proceeds from short-term borrowings (2,345,952), increase in other accounts payable (574,784), Proceeds from long-term debt (5,582,428), Repayment of long term debt (185,404), Repayment of current maturities (4,539,967), Increase in long-term liabilities (68,719), Payment of dividends (760,394), Acquisition of treasury stock (1,652,934), and Others (82,336). The totals of these three sections are totaled along with the Cash and Cash equivalent number at the beginning of the year (1,970,452) to get the total Cash and Cash equivalents at the end of the year (3,446,700). The final total represents the amount of cash that at is available the organization at that period of time. Analysis of Balance Changes While Samsung registered a sales increase in 2003, costs-of-goods-sold and inventory also increased significantly, resulting in a 3.2% drop in gross profit. As shown in the following chart, net income and operating profits for 2003 were also drastically lower than those of 2002, resulting in a decrease of overall profitability and earnings per share. Table 1.1 represents graphically Samsung's 2002-03 Financial Ratios. ROE relates net income with the investment made by the owners. It measures how much the firm earned for each dollar of stockholder's investment. In 2002, for each dollar invested by the

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