Income Taxes Payable$471Short-term Investments and Marketable Securities8109Cash8442Other non-current Liabilities10449Common Stock1760Receivables4812Other Current Assets2973Long-term Investments10448Other Non-current Assets3585Property Plant and Equipment23486Trademarks6527Other Intangible Assets20810Allowance for Doubtful Accounts53Accumulated Depreciation9010Accounts Payable8680Short Term Notes Payable17874Prepaid Expenses2781Other Current Liabilities796Long-Term Liabilities14736Paid-in-Capital in Excess of Par Value11379Retained Earnings55038Inventories3264Treasury Stock35009Other information taken from the Annual Report:Sales Revenue for 2012$48017Cost of Goods Sold for 2012 19053Net Income for 2012 9019Inventory Balance on 12/31/11 3092Net Accounts Receivable Balance on 12/31/11 4920Total Assets on 12/31/11 79974Equity Balance on 12/31/11 31921Required: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 calculatetheCurrent Ratioand Return on common stockholders equity ratio. (Make sure to show all your work).(Points : 36) (TCO B) The following selected data was retrieved from the Wal-Mart Inc. financial statements for the year ending January 31 2013:Accounts Payable$38080Accounts Receivable6768Cash7781Common Stock3952Cost of Goods Sold352488Income Tax Expense7981Interest Expenses2064Membership Revenues3048Net Sales466114Operating Selling and Administrative Expenses88873Retained Earnings72978Required:Using the information provided above:1. Prepare a multiple-step income statement2. Calculate the Profit Margin and Gross profit rate for the company. Be sure to provide the formula you are using show your calculations and discuss your findings/results.(Points : 36) Cash flow from operating activitiesIn millionsIn millionsFor the year ended 2012For the year ended 2011Net (loss) earnings$(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$8043 Required:1) Please calculate the percentage increase or decrease in cash for the total line of the operating investing and financing sections bolded aboveand 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.(Points : 36) Assuming the goal is tomaximizenet 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:a. 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)?(Points : 36) Ratio 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.(Points : 36)
