Homework_3_Operating_and_Financing (1)
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Required: For the years 2010 and 2011, separte the balance sheet accounts into operating (NOA) and financing (NFL). For the Income Statement, separete the accounts into operating (NOPAT) and financing (FEAT).
Fiscal Year Ended (in millions)
2010
201
Consolidated Stmt of Operations
2009
2010
2011
Operating
Financing
Operating
Sales
$82,494 $93,627 $104,859 Other income-net
918
1,122
1,287
Total revenues (Total Sales)
83,412
94,749
106,146
$ 94,749 $ 106,146 Cost of sales
65,586
74,564
83,663
$ (74,564)
$ (83,663)
Operating, Selling, General & Administrative Expenses
12,858
14,951
16,788
$ (14,951)
$ (16,788)
Total operating expenses
78,444
89,515
100,451
Operating income
4,968
5,234
5,695
Interest costs
Debt
520
692
629
$ (173)
$ 519 $ (157)
Capital leases
186
196
216
$ (49)
$ 147 $ (54)
Total Interest Costs
706
888
845
Income before taxes
4,262
4,346
4,850
Income tax expense
Current
1,572
1,530
1,974
$ (1,530)
$ (1,974)
Deferred
9
76
-180
$ (76)
$ 180 Total Income tax expense
1,581
1,606
1,794
Net income
$2,681 $2,740 $3,056 $ 3,406 $ 666 $ 3,690 Consolidated Balance Sheets (Amounts in millions)
2010
2011
Assets
Current assets:
Cash and cash equivalents
$83 $883 Receivables
853
845
Inventories at LIFO
15,989
15,897
Prepaid expenses and other
406
368
Total current assets
17,331
17,993
$ 17,331 $ 17,993 Property, plant and equipment, at cost:
Land
3,559
3,689
Building and improvements
11,290
12,724
Fixtures and equipment
5,665
6,390
Transportation equipment
336
379
20,850
23,182
Less accumulated depreciation
3,752
4,849
Net property, plant and equipment
17,098
18,333
$ 17,098 $ 18,333 Property under capital leases
2,476
2,782
Less accumulated amortization
680
791
Net property under capital leases
1,796
1,991
$ 1,796 $ 1,991 Other assets and deferred charges
1,316
687
$ 1,316 $ 687 Total assets
$37,541 $39,004 Liabilities and Shareholders’ Equity
Current liabilities:
Commercial paper (interst bearing)
$2,458 $ 2,458 Accounts payable
6,442
7,628
$ (6,442)
$ (7,628)
Accrued liabilities
2,091
2,413
$ (2,091)
$ (2,413)
Accrued income taxes
123
298
$ (123)
$ (298)
Long-term debt due within one year (interest bearing)
271
523
$ 271 69
95
$ 69 Total current liabilities
11,454
10,957
Long-term debt
8,508
7,709
$ 8,508 Long-term obligations under capital leases
2,092
2,307
$ 2,092 Deferred income taxes and other
400
463
$ (400)
$ (463)
Shareholders’ Equity
229
228
Capital in excess of par value
876
972
Retained earnings
13,982
16,368
Total shareholders’ equity
15,087
17,568
Total liabilities and shareholders’ equity
$37,541 $39,004 Obligations under capital leases due within one year (interest bearing)
Common stock ($.10 par value; 5,500 shares authorized, 2,285 and 2,293 issued and outstanding in 2006 and 2005, respectively)
$ 28,485 $ 13,398 $ 28,202
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Answer
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$ millions
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17,274
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$ millions
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2018
2017
Assets, restated
Answer
Answer
Answer
Equity, restated
Answer
Answer
Answer
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- Margaret O'Flaherty, a portfolio manager for MCF Investments, is considering investing in Alpine Chemical 7% bonds, which mature in 10 years. She asks you to analyze the company to determine the riskiness of the bonds. Alpine Chemical Company Financial Statements Years Ended December 31, ($ in millions) 20X1 20X2 20X3 20X4 20X5 20X6 Assets Cash $ 55 $ 1,637 2,021 190 $ 2,143 1,293 157 249 $ 1,394 1,258 3,493 1,322 Accounts receivable 3,451 1,643 2,087 Inventories 945 Other current assets 17 27 55 393 33 171 5,097 6,181 Current assets 3,114 5,038 2,543 2,495 3,986 5,757 3,138 3,865 2,707 5,619 2,841 2,778 5,265 4,650 2,177 2,473 Gross fixed assets 7,187 3,893 3,465 2,716 Less: Accumulated depreciation Net fixed assets 2,619 3,294 Total assets $6,338 $5,609 $5,485 $6,605 $7,813 $8,559 Liabilities and net worth Notes payable Accounts payable $1,300 338 $ 525 2$ 750 $1,750 $1,900 673 638 681 743 978 Accrued liabilities 303 172 359 359 483 761 Current liabilities 1,501 1,985 1,997 1,457…arrow_forwardThe condensed financial statements of Westward Corporation for 2009 and 2008 are presented below.Westward Corporation Westward CorporationBalance Sheet Income StatementDecember 31, 2009 For the Year Ended December 31, 2009Assets Revenues $2,000,000Current assets ExpensesCash and temporary Cost of goods sold 1,080,000investments $ 30,000Selling and administrativeAccounts receivable 70,000Expenses 495,000Inventories 120,000Interest expense 30,000Total current assets 220,000Total expenses 1,605,000Property, plant, and Incomebefore income taxes 395,000equipment (net) 780,000Income tax expense 140,000Total assets $1,000,000Net income $ 255,000Liabilities and Stockholders’ EquityCurrent liabilities $ 80,000Long-term liabilities 300,000Common stockholders’ equity 620,000Total liabilities and stockholders’ equity $1,000,000Westward Corporation Westward CorporationBalance Sheet Income StatementDecember 31, 2008 For the Year Ended December 31, 2008Assets Revenues $2,500,000Current assets…arrow_forwardThe extracts of the financial statements of Laki Project Specialists Limited for 2018 are provided below: Extract of the Statement of Comprehensive Income for the year ended 31 December 2018 R Revenue (credit) 988 000 Less purchases 400 000 Gross profit 560 000 Less Operating expenses 160 000 Operating profit 400 000 Less interest expense 70 000 Profit before tax 330 000 Profit after tax 280 000 Extract of Statement of Financial Position as at 31 December 2018 R Non-current assets 1 140 000 Inventories 266 000 Debtors 300 000 Bank 220 000 Total assets 1 926 000 Ordinary share capital 1 000 000 Retained earnings 482 000 Non-current liabilities 240 000 Creditors 215 000 Total liabilities 1 926 000 Required: Calculate the following ratios for 2018. Where applicable, answers must be rounded off to two decimal places. Profit margin Interest cover Debtors…arrow_forward
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