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Analyze the financial statements of the company to you in terms of: 1. Solvency Ratio:                                                                                       *Equity Ratio 2. Asset Management Ratio:                                                                         *Invetory Turnover Ratio                                                                         *Fixed Asset Turnover Ratio                                                                             *Total Asset Turnover Ratio 3. Debt Management Ratio:                                                                               *Time Interest Earned Ratio

Analyze the financial statements of the company to you in terms of: 1. Solvency Ratio:                                                                                       *Equity Ratio 2. Asset Management Ratio:                                                                         *Invetory Turnover Ratio                                                                         *Fixed Asset Turnover Ratio                                                                             *Total Asset Turnover Ratio 3. Debt Management Ratio:                                                                               *Time Interest Earned Ratio

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter11: The Statement Of Cash Flows
Section: Chapter Questions
Problem 32BE
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Analyze the financial statements of the company to you in terms of:
1. Solvency Ratio:                                                                                       *Equity Ratio

2. Asset Management Ratio:                                                                         *Invetory Turnover Ratio                                                                         *Fixed Asset Turnover Ratio                                                                             *Total Asset Turnover Ratio

3. Debt Management Ratio:                                                                               *Time Interest Earned Ratio

4. Profitability Ratio:                                                                                           *Operating Margin                                                                                           *Return on Total Assets                                                                                   *Return on Common Equity.                                                                 *Return on Invested Capital                                                                   *Basic Earnings Power Ratio

2020 Analysis BUT also compare with 2018 - 2019.

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Balance sheet (Statement of financial position) ($ in millions) Annual | Quarterly 12/31/2020 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 TTM ASSETS Current Assets Cash, cash equivalents, and short-term investments 5,264 4,632 2,757 8,938 2,691 2,263 1,611 Cash and cash equivalents 5,028 4.351 2,687 8,756 2,462 2,129 1,530 Short-term investments 236 281 71 182 229 134 81 Receivables 1,221 1,269 1,020 1,649 925 825 756 Inventory, net of allowances, customer advances and progress billings 1,472 1,551 1,529 1,401 1,364 1,379 1,306 Inventory 1,472 1,551 1,529 1,401 1,364 1,379 1,306 Prepaid expense 253 228 347 507 Deferred tax assets 382 Other undisclosed current assets 149 126 304 294 298 Total current assets: 8,358 7,806 5,654 12,494 5,283 4,761 4,353 Noncurrent Assets Operating lease, right-of-use asset 8,199 8,134 Property, plant and equipment 6,178 6,241 6,432 5,929 4,920 4,534 4,088 Long-term investments and receivables 426 336 335 1,024 1,496 665 Long-term investments 426 336 335 1,024 1,496 665 Intangible assets, net (including goodwill) 4,213 4,149 4,273 4,584 1,981 2,236 2,096 Goodwill 3,707 3,597 3,491 3,542 1,539 1,720 1,575 Intangible assets, net (excluding goodwill) ) 506 552 782 1,042 441 516 520 Other noncurrent assets 541 569 480 412 363 418 416 Deferred tax assets, net 135 795 885 829 Other undisclosed noncurrent assets 2,479 2,048 2,046 268 Total noncurrent assets: 21,611 21,568 13,566 11,662 9,082 9,569 8,093 TOTAL ASSETS: 29,968 29,375 19,220 24,156 14,366 14.330 12,446 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts payable and accrued liabilities 3,503 2,953 4,900 3,478 2,717 2,730 3,523 Accounts payable 1,051 998 1,190 1,179 783 731 684 Accrued liabilities 1,617 1,161 1,754 2,298 1,935 1,999 1,761 Employee-related liabilities 685 696 665 522 Taxes payable 150 98 1.292 259 Interest and dividends payable 297 Deferred revenue 1,871 1,457 1,269 Debt 1,243 1,689 350 400 Deferred compensation liability 91 102 98 Self insurance reserve 214 215 246 225 Deferred revenue and credits 1,289 1,171 984 Deferred tax liabilities 5 Other undisclosed current liabilities 1,268 1.157 1,541 (1,182) Total current liabilities: 7,884 7,347 6,169 5,684 4,221 4,547 3,654 Noncurrent Liabilities Long-term debt and lease obligation 22,428 22,321 11,167 9,090 3,933 3,202 2,348 Long-term debt, excluding current maturities 14,674 14,660 11,167 9,090 3,933 3,202 2,348 Operating lease, liability 7,755 7,662 Liabilities, other than long-term debt 6,630 6,745 6,852 314 755 690 753 Deferred revenue 6,598 6,599 6,744 Asset retirement obligations 111 96 82 60 Deferred tax liabilities, net 270 68 Other liabilities 755 690 625 Derivative instruments and hedges, 33 36 12 (39) liabilities Other undisclosed noncurrent liabilities 930 761 1,263 7,893 (128) Total noncurrent liabilities: 29,989 29,827 19,282 17,296 4,688 3,892 2,973 Total liabilities: 37,872 37,174 25,451 22,981 8,909 8,439 6,626 Stockholders' equity Stockholders' equity attributable to parent, (7,910) (7,805) (6,232) 1,170 5,450 5,884 5,818 including: Common stock 1 1 1 1 1 2 Additional paid in capital 489 374 41 41 41 41 41 Accumulated other comprehensive loss (146) (365) (503) (330) (156) (108) (199) Retained eamings (accumulated deficit) (8,254) (7,816) (5,771) 1,457 5,563 5,950 5,975 Other additional capital 39 Other undisclosed stockholders' equity (39) attributable to parent Stockholders' equity attributable to 6 6 1 6 7 7 2 noncontrolling interest Total stockholders' equity: (7,904) (7,799) (6,231) 1,176 5,457 5,891 5,820 TOTAL LIABILITIES AND EQUITY: 29,968 29,375 19,220 24,156 14,366 14,330 12,446
Transcribed Image Text:Balance sheet (Statement of financial position) ($ in millions) Annual | Quarterly 12/31/2020 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 TTM ASSETS Current Assets Cash, cash equivalents, and short-term investments 5,264 4,632 2,757 8,938 2,691 2,263 1,611 Cash and cash equivalents 5,028 4.351 2,687 8,756 2,462 2,129 1,530 Short-term investments 236 281 71 182 229 134 81 Receivables 1,221 1,269 1,020 1,649 925 825 756 Inventory, net of allowances, customer advances and progress billings 1,472 1,551 1,529 1,401 1,364 1,379 1,306 Inventory 1,472 1,551 1,529 1,401 1,364 1,379 1,306 Prepaid expense 253 228 347 507 Deferred tax assets 382 Other undisclosed current assets 149 126 304 294 298 Total current assets: 8,358 7,806 5,654 12,494 5,283 4,761 4,353 Noncurrent Assets Operating lease, right-of-use asset 8,199 8,134 Property, plant and equipment 6,178 6,241 6,432 5,929 4,920 4,534 4,088 Long-term investments and receivables 426 336 335 1,024 1,496 665 Long-term investments 426 336 335 1,024 1,496 665 Intangible assets, net (including goodwill) 4,213 4,149 4,273 4,584 1,981 2,236 2,096 Goodwill 3,707 3,597 3,491 3,542 1,539 1,720 1,575 Intangible assets, net (excluding goodwill) ) 506 552 782 1,042 441 516 520 Other noncurrent assets 541 569 480 412 363 418 416 Deferred tax assets, net 135 795 885 829 Other undisclosed noncurrent assets 2,479 2,048 2,046 268 Total noncurrent assets: 21,611 21,568 13,566 11,662 9,082 9,569 8,093 TOTAL ASSETS: 29,968 29,375 19,220 24,156 14,366 14.330 12,446 LIABILITIES AND EQUITY Liabilities Current Liabilities Accounts payable and accrued liabilities 3,503 2,953 4,900 3,478 2,717 2,730 3,523 Accounts payable 1,051 998 1,190 1,179 783 731 684 Accrued liabilities 1,617 1,161 1,754 2,298 1,935 1,999 1,761 Employee-related liabilities 685 696 665 522 Taxes payable 150 98 1.292 259 Interest and dividends payable 297 Deferred revenue 1,871 1,457 1,269 Debt 1,243 1,689 350 400 Deferred compensation liability 91 102 98 Self insurance reserve 214 215 246 225 Deferred revenue and credits 1,289 1,171 984 Deferred tax liabilities 5 Other undisclosed current liabilities 1,268 1.157 1,541 (1,182) Total current liabilities: 7,884 7,347 6,169 5,684 4,221 4,547 3,654 Noncurrent Liabilities Long-term debt and lease obligation 22,428 22,321 11,167 9,090 3,933 3,202 2,348 Long-term debt, excluding current maturities 14,674 14,660 11,167 9,090 3,933 3,202 2,348 Operating lease, liability 7,755 7,662 Liabilities, other than long-term debt 6,630 6,745 6,852 314 755 690 753 Deferred revenue 6,598 6,599 6,744 Asset retirement obligations 111 96 82 60 Deferred tax liabilities, net 270 68 Other liabilities 755 690 625 Derivative instruments and hedges, 33 36 12 (39) liabilities Other undisclosed noncurrent liabilities 930 761 1,263 7,893 (128) Total noncurrent liabilities: 29,989 29,827 19,282 17,296 4,688 3,892 2,973 Total liabilities: 37,872 37,174 25,451 22,981 8,909 8,439 6,626 Stockholders' equity Stockholders' equity attributable to parent, (7,910) (7,805) (6,232) 1,170 5,450 5,884 5,818 including: Common stock 1 1 1 1 1 2 Additional paid in capital 489 374 41 41 41 41 41 Accumulated other comprehensive loss (146) (365) (503) (330) (156) (108) (199) Retained eamings (accumulated deficit) (8,254) (7,816) (5,771) 1,457 5,563 5,950 5,975 Other additional capital 39 Other undisclosed stockholders' equity (39) attributable to parent Stockholders' equity attributable to 6 6 1 6 7 7 2 noncontrolling interest Total stockholders' equity: (7,904) (7,799) (6,231) 1,176 5,457 5,891 5,820 TOTAL LIABILITIES AND EQUITY: 29,968 29,375 19,220 24,156 14,366 14,330 12,446
Income statement (P&L) ($ in millions) Annual | Quarterly 12/31/2020 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 TTM Revenues 23,170 23,518 26,509 24,720 22,387 21,316 19,163 Revenue, net 22,387 21,316 19,163 Cost of revenue (18,317) (18,459) (19,021) (17,368) (15,532) (14,575) (12,580) Cost of goods and services sold (1,998) (8,527) (10,175) (9,038) (8,511) (7,788) Gross profit: 4,853 5,059 7,488 7,352 6,855 6,741 6,582 Operating expenses (3,929) (3,820) (3,708) (3,770) (3,112) (2,887) (3,231) Other undisclosed operating income 331 323 298 301 391 318 250 Operating income: 1,255 1,562 4,078 3,883 4,135 4,172 3,601 Nonoperating expense (5) (Investment Income, Nonoperating) Interest and debt expense (466) (437) (331) (170) (93) (81) (132) Income from continuing operations 790 1,125 3,747 3,713 4,042 4,091 3,465 before equity method investments, income taxes: Income from equity method investments 250 Other undisclosed income from continuing 39 40 719 2,067 275 108 188 operations before income taxes Income from continuing operations 829 1,164 4,466 5,780 4,318 4,199 3,903 before income taxes: Income tax expense (167) (240) (872) (1,262) (1,433) (1,380) (1,144) Net income: 662 925 3,595 4,518 2,885 2,819 2,759 Net income (loss) attributable to (0) (1) (2) noncontrolling interest Net income available to common 665 928 3,599 4,518 2,885 2,818 2,757 stockholders, diluted: Comprehensive Income ($ in millions) Annual | Quarterly 12/31/2020 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 TTM Net income: 662 925 3,595 4,518 2,885 2,819 2,759 Other comprehensive income (loss) 242 134 (173) (175) (47) 91 (225) Comprehensive income: 903 1,059 3,422 4,343 2,838 2,910 2,535 Comprehensive income (loss), net of tax, (0) (1) 29 attributable to noncontrolling interest Comprehensive income, net of tax, attributable to parent: 906 1,062 3,426 4,344 2,838 2,909 2,564 Statements sources The financial statements are based on the company's filings with the The U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). The information is derived from the 10-K and 10-Q reports submitted to the SEC in XBRL (eXtensible Business Reporting Language) format and presented according to the US GAAP Taxonomy. Please review the original filings for a more detailed information.
Transcribed Image Text:Income statement (P&L) ($ in millions) Annual | Quarterly 12/31/2020 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 TTM Revenues 23,170 23,518 26,509 24,720 22,387 21,316 19,163 Revenue, net 22,387 21,316 19,163 Cost of revenue (18,317) (18,459) (19,021) (17,368) (15,532) (14,575) (12,580) Cost of goods and services sold (1,998) (8,527) (10,175) (9,038) (8,511) (7,788) Gross profit: 4,853 5,059 7,488 7,352 6,855 6,741 6,582 Operating expenses (3,929) (3,820) (3,708) (3,770) (3,112) (2,887) (3,231) Other undisclosed operating income 331 323 298 301 391 318 250 Operating income: 1,255 1,562 4,078 3,883 4,135 4,172 3,601 Nonoperating expense (5) (Investment Income, Nonoperating) Interest and debt expense (466) (437) (331) (170) (93) (81) (132) Income from continuing operations 790 1,125 3,747 3,713 4,042 4,091 3,465 before equity method investments, income taxes: Income from equity method investments 250 Other undisclosed income from continuing 39 40 719 2,067 275 108 188 operations before income taxes Income from continuing operations 829 1,164 4,466 5,780 4,318 4,199 3,903 before income taxes: Income tax expense (167) (240) (872) (1,262) (1,433) (1,380) (1,144) Net income: 662 925 3,595 4,518 2,885 2,819 2,759 Net income (loss) attributable to (0) (1) (2) noncontrolling interest Net income available to common 665 928 3,599 4,518 2,885 2,818 2,757 stockholders, diluted: Comprehensive Income ($ in millions) Annual | Quarterly 12/31/2020 9/30/2020 9/30/2019 9/30/2018 9/30/2017 9/30/2016 9/30/2015 TTM Net income: 662 925 3,595 4,518 2,885 2,819 2,759 Other comprehensive income (loss) 242 134 (173) (175) (47) 91 (225) Comprehensive income: 903 1,059 3,422 4,343 2,838 2,910 2,535 Comprehensive income (loss), net of tax, (0) (1) 29 attributable to noncontrolling interest Comprehensive income, net of tax, attributable to parent: 906 1,062 3,426 4,344 2,838 2,909 2,564 Statements sources The financial statements are based on the company's filings with the The U.S. Securities and Exchange Commission (SEC) through the Electronic Data Gathering, Analysis, and Retrieval system (EDGAR). The information is derived from the 10-K and 10-Q reports submitted to the SEC in XBRL (eXtensible Business Reporting Language) format and presented according to the US GAAP Taxonomy. Please review the original filings for a more detailed information.
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