1. Below you will find selected information (in millions) from Coca-Cola Co. s 2012 Annual Report: Income Taxes Payable $471 Short-term Investments and Marketable Securities 8109 Cash 8442 Other non-current Liabilities 10449 Common Stock 1760 Receivables 4812 Other Current Assets 2973 Long-term Investments 10448 Other Non-current Assets 3585 Property Plant and Equipment 23486 Trademarks 6527 Other Intangible Assets 20810 Allowance for Doubtful Accounts 53 Accumulated Depreciation 9010 Accounts Payable 8680 Short Term Notes Payable 17874 Prepaid Expenses 2781 Other Current Liabilities 796 Long-Term Liabilities 14736 Paid-in-Capital in Excess of Par Value 11379 Retained Earnings 55038 Inventories 3264 Treasury Stock 35009 Other information taken from the Annual Report: Sales Revenue for 2012 $48017 Cost of Goods Sold for 2012 19053 Net Income for 2012 9019 Inventory Balance on 12/31/11 3092 Net Accounts Receivable Balance on 12/31/11 4920 Total Assets on 12/31/11 79974 Equity Balance on 12/31/11 31921 Required:1. Using the information provided prepare a Balance Sheet. Separate the current assets from non-current assets and provide a total for each. Also separate the current liabilities from the non-current liabilities and provide a total for each.2. Using the Balance Sheet from your answer above calculate; Current Ratio Days in Inventory Average Collection Period Return on Assets Ratio Debt to Total Assets and Return on common stockholders equity ratio. (Make sure to show all your work) (Points : 36)2. The following selected data was retrieved from the Wal-Mart Inc. financial statements for the year ending January 31 2013: Accounts Payable $38080 Accounts Receivable 6768 Cash 7781 Common Stock 3952 Cost of Goods Sold 352488 Income Tax Expense 7981 Interest Expenses 2064 Membership Revenues 3048 Net Sales 466114 Operating Selling and Administrative Expenses 88873 Retained Earnings 72978 Required: Using the information provided above: 1. Prepare a multiple-step income statement 2. Calculate the Profit Margin and Gross profit rate for the company. Be sure to provide the formula you are using show your calculations and discuss your findings/results. (Points : 36)(TCO C) Please review the following real-world Hewlett Packard Statement of Cash flows and address the 2 questions below:Cash flow from operating activitiesIn millionsIn millionsFor the year ended 2012For the year ended 2011Net (loss) earnings$(12650)$7074Depreciation and amortization50954984Impairment of goodwill and purchased intangible assets18035885Stock-based compensation expense635685Provision for doubtful accounts14281Provision for inventory277217Restructuring charges2266645Deferred taxes on earnings(711)166Excess tax benefit from stock-based competition(12)(163)Other net265(46)Accounts and financing receivables1269(227)Inventory890(1252)Accounts payable(1414)275Taxes on earnings(320)610Restructuring(840)(1002)Other assets and liabilities(2356)(293)Net cash provided by operating activities1057112639Cash flows from investing activities:Investment in property plant and equipment(3706)(4539)Proceeds from sale of property plant and equipment617999Purchases of available-for-sale securities and other investments(972)(96)Maturities and sales of available-for-sale securities and other investment66268Payments in connection with business acquisitions net of cash acquired(141)(10480)Proceeds from business divestiture net8789Net cash used in investing activities(3453)(13959)Cash flow from financing activities:(Payments) issuance of commercial paper and notes payable net(2775)(1270)Issuance of debt515411942Payment of debt(4333)(2336)Issuance of common stock under employee stock plans716896Repurchase of common stock(1619)(10117)Excess tax benefit from stock-based compensation12163Cash dividends paid(1015)(844)Net cash used in financing activities(3860)(1566)Increase (decrease) in cash and cash equivalents3258(2886)Cash and cash equivalents at beginning of period804310929Cash and cash equivalents at end of period$11301$8043Required:1) Please calculate the percentage increase or decrease in cash for the operating investing and financing sections and explain the major reasons for the increase or decrease for each of these sections.) 2. Please calculate the free cash flow for 2012 and explain the meaning of this ratio.You are CFO of Goforit Inc. a wholesale distribution company specializing in emerging technologies. Your CEO is a brilliant marketer but relies on you to explain issues and choices in accounting and finance. She has heard from other members of a CEO organization to which she belongs that a company s net income can vary widely depending on which accounting choices are made from the GAAP menu. Assuming the goal is to maximize net income choose an accounting treatment from each of the following scenarios and explain to your CEO why the choice will produce the desired effect on reported Net Income for the current year. Include in your answer the effect of the choice on both the income statement and balance sheet. Required:Goforit carries significant electronics inventory in a competitive environment where prices are actually falling. Which inventory valuation method would you choose LIFO FIFO or average cost? Assume that unit purchases exceed unit sales.b. Goforit has a large investment in warehouse equipment including conveyor belts forklifts and automated packaging systems. Which depreciation method would you choose: Straight line (SL) or double declining balance (DDB)?5. (TCO F) Please review the following real-world ratios for Johnson & Johnson and Pfizer for the year ended 2012 and address the 2 questions belowRatio NameJohnson & JohnsonPfizerProfit margin16.1%24.7%Inventory turnover ratio3.11.7Average collection period59.4 days69.1 daysCash debt coverage ratio.27.16Debt to Total assets46.6%127.5%Required:1) Please explain the meaning of each of the Pfizer ratios above.2) Please state which company performed better for each ratio.

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