Questions
Consolidated Statements of Income Years ended December 31 ($ millions) 2010 2009 2008 Net sales $26,662...

Consolidated Statements of Income
Years ended December 31 ($ millions) 2010 2009 2008
Net sales $26,662 $23,123 $25,269
Operating expenses
Cost of sales 13,831 12,109 13,379
Selling, general and administrative expenses 5,479 4,907 5,245
Research, development and related expenses 1,434 1,293 1,404
Loss/(gain) from sale of business -- -- 23
Total operating expenses 20,744 18,309 20,051
Operating income 5,918 4,814 5,218
Interest expenses and income
Interest expense 201 219 215
Interest income (38) (37) (105)
Total interest expense 163 182 110
Income before income taxes 5,755 4,632 5,108
Provision for income taxes 1,592 1,388 1,588
Net income including noncontrolling interest 4,163 3,244 3,520
Less: Net income attributable to noncontrolling interest 78 51 60
Net income $ 4,085 $ 3,193 $ 3,460
Consolidated Balance Sheets
($ millions) 2010 2009
Assets
Current Assets
Cash and cash equivalents $ 3,377 $ 3,040
Marketable securities-current 1,101 744
Accounts receivable-net 3,615 3,250
Inventories
Finished goods 1,476 1,255
Work in process 950 815
Raw materials and supplies 729 569
Total inventories 3,155 2,639
Other current assets 967 1,122
Total current assets 12,215 10,795
Marketable securities-noncurrent 540 825
Investments 146 103
Property, plant and equipment 20,253 19,440
Less: Accumulated depreciation (12,974) (12,440)
Property, plant and equipment-net 7,279 7,000
Goodwill 6,820 5,832
Intangible assets-net 1,820 1,342
Prepaid pension benefits 74 78
Other assets 1,262 1,275
Total assets $ 30,156 $ 27,250
Liabilities
Current liabilities
Short-term borrowings and current portion of long-term debt $ 1,269 $ 613
Accounts payable 1,662 1,453
Accrued payroll 778 680
Accrued income taxes 358 252
Other current liabilities 2,022 1,899
Total current liabilities 6,089 4,897
Long-term debt 4,183 5,097
Pension and postretirement benefits 2,013 2,227
Other liabilities 1,854 1,727
Total liabilities 14,139 13,948
Equity
3M Company shareholders' equity: Common stock, par value $.01 per share; 9 9
Additional paid-in capital 3,468 3,153
Retained earnings 25,995 23,753
Treasury stock (10,266) (10,397)
Accumulated other comprehensive income (loss) (3,543) (3,754)
Total 3M Company shareholders' equity 15,663 12,764
Noncontrolling interest 354 538
Total equity 16,017 13,302
Total liabilities and equity $ 30,156 $ 27,250

Compute return on equity (ROE) for 2010. (Round your answers to two decimal places. Do not round until your final answer.)

2010 ROE =Answer%

(f) What is the nonoperating return component of ROE for 2010? (Round your answers to two decimal places.)

Hint: Use your prior rounded answers to compute this answer.
2010 nonoperating return =Answer%

In: Accounting

Write down the structure of arachidonic acid (C20:4 Δ5,8,11,14). Write down the second and third cycles...

Write down the structure of arachidonic acid (C20:4 Δ5,8,11,14). Write down the second and third cycles of β-oxidation of arachidonic acids including the corresponding enzymes. How many ATPs can be synthesized with the free energy generated from the oxidation of arachidonic acid? Show your calculation.

In: Chemistry

Write down Maxwell’s Equations (integral notation). Write down a modified version of Maxwell’s Equations that includes...

Write down Maxwell’s Equations (integral notation). Write down a modified version of Maxwell’s Equations that includes magnetic monopoles. Use the symbol qm for magnetic change and J for magnetic current. Hint: Think of symmetry and units.

In: Physics

Head to www.bls.gov and select Multifactor Productivity from the Subject drop-down menu. Scroll down and select...

Head to www.bls.gov and select Multifactor Productivity from the Subject drop-down menu. Scroll down and select the PDF version of the

Multifactor productivity decreases 0.2% in 2016, first decline since 2009..  

1. What has been the general trend for multi-factor productivity in the U.S. over the past 15 years?

2. What does this trend suggest has happened to production functions in the U.S.?

3. Assuming this change in productivity has happened to all firms, how will this change in productivity affect cost curves?

In: Economics

A marble rolls down an incline, and when it’s halfway down it’s going at 1.12 m/s....

A marble rolls down an incline, and when it’s halfway down it’s going at 1.12 m/s. Find (a) its starting height and (b) its speed at the bottom.

In: Physics

Z Corporation has taxable income of $100,000 in 2020 after properly accounting for all the following...

Z Corporation has taxable income of $100,000 in 2020 after properly accounting for all the following items on the tax return. In reviewing the tax workpapers you discover the following notations. Indicate for each of the following transactions, what necessary adjustment to taxable income that is needed to determine the current E & P.

Label your answers A-E and indicate the dollar amount for each adjustment. If the adjustment is a negative one, enclose the amount in brackets. If no adjustment is needed, state None.

A. During 2020, the company paid $21,000 in federal income taxes

B. During 2020, the company elected to expense $40,000 under Section 179   

C. In 2020, the company received $1,000 in tax-exempt income

D. In 2020, the company paid $6,000 in business meals.

E. In 2020, the company had $5,000 in capital gains. From 2019, they had a $4,000 capital loss carryforward which they could utilize in 2020.

In: Accounting

ABC Pty Ltd is an Australian resident private company and on 1 July 2019 its franking...

ABC Pty Ltd is an Australian resident private company and on 1 July 2019 its franking account balance was $35,000. ABC paid PAYG instalments of income tax during the year ended 30 June 2020 as follows: 21 July 2019 -- $35,000 21 October 2019 -- $35,000 21 January 2020 -- $35,000 21 April 2020 -- $26,000 A refund of income tax of $22,500 was received by ABC from the ATO on 1 April 2020. ABC paid GST of $65,000 on 28 October 2019 and FBT of $57,000 on 30 April 2020. ABC received a fully franked dividend of $21,000 on 1 November 2019 and an unfranked dividend of $33,000 on 12 December 2019. ABC paid a 75% franked dividend of $120,000 on 1 February 2020and a 50% franked dividend of $70,000 on 1 June 2020. Prepare a franking account for ABC for the year ended 30 June 2020.

In: Accounting

On January 1, 2014, Paterson Company purchased 70% of the common stock of Smith Company for...

On January 1, 2014, Paterson Company purchased 70% of the common stock of Smith Company for $420,000. At that time, Smith’s stockholders’ equity consisted of $80,000 of Common stock, $60,000 of Other contributed capital, and $240,000 of Retained earnings. Any difference between implied and book value relates to Smith’s land. Paterson uses the cost method to record its investment in Smith. Its fiscal year ends on December 31. Additional information for both companies for 2020 follows:

Paterson Smith
Common stock 300,000 80,000
Other contributed capital 120,000 60,000
Retained earnings, 1/1/2020 240,000 240,000
Net income for 2020 262,000 164,000
Dividends declared in 2020 40,000 16,000

Required:

A)Prepare all the necessary eliminating entries on a consolidated statements workpaper on 12/31/2020.

B) Calculate the consolidated net income for 2020.

C) Calculate the non controlling interest in net income for 2020.

In: Accounting

The Meals for the Homeless is a private, not-for-profit organization that provides free meals for the...

The Meals for the Homeless is a private, not-for-profit organization that provides free meals for the destitute in a large city. The following transactions took place in the accounts of Meals for the Homeless during 2020.

1.         Restricted Cash gifts of $80,000 that were received last year (in cash)         were spent on food (this year) in 2020.

2.         Unrestricted Cash of $200,000 was received as a donation in 2020.

Additional Information: The January 1, 2020 balances from the Statement of Financial Position (balance sheet) were as follows:

a)         Cash $700,000 (debit)

b)         Net Assets Unrestricted By Donor $500,000 (credit)

c)         Net Assets Restricted By Donor $200,000 (credit)

Required:

A)        Record the two transactions above in journal entry form.

B)        Prepare a Statement of Activities for the year 2020.

C)        Prepare a Statement of Changes in Net Assets for 2020.

D)        Prepare a Statement of Financial Position (balance sheet) as of December 31, 2020.

 

In: Accounting

PROVIDE EQUATIONS OR FORMULAS a. Using the financial statements shown below, calculate net operating working capital,...

PROVIDE EQUATIONS OR FORMULAS

a. Using the financial statements shown below, calculate net operating working capital, total net operating capital, net operating profit after taxes, free cash flow, and return on invested capital for the most recent year. The federal-plus-state tax rate is 25%.
Lan & Chen Technologies: Income Statements for Year Ending December 31
(Millions of Dollars) 2020 2019
Sales $945,000 $900,000
Expenses excluding depreciation and amortization 812,700 774,000
  EBITDA $132,300 $126,000
Depreciation and amortization 33,100 31,500
  EBIT $99,200 $94,500
Interest Expense 10,400 8,900
  EBT $88,800 $85,600
Taxes (25%) 22,200 21,400
  Net income $66,600 $64,200
Common dividends $43,300 $41,230
Addition to retained earnings $23,300 $22,970
Lan & Chen Technologies: December 31 Balance Sheets
(Millions of Dollars)
Assets 2020 2019
Cash and cash equivalents $47,250 $45,000
Short-term investments 3,800 3,600
Accounts Receivable 283,500 270,000
Inventories 141,750 135,000
  Total current assets $476,300 $453,600
  Net fixed assets 330,750 315,000
Total assets $807,050 $768,600
Liabilities and equity
Accounts payable $94,500 $90,000
Accruals 47,250 45,000
Notes payable 17,400 9,000
  Total current liabilities $159,150 $144,000
Long-term debt 90,000 90,000
  Total liabilities $249,150 $234,000
Common stock $444,600 $444,600
Retained Earnings 113,300 90,000
  Total common equity $557,900 $534,600
Total liabilities and equity $807,050 $768,600
Key Input Data
Tax rate 25%
Net operating working capital (NOWC)
2020 NOWC = Operating current assets - Operating current liabilities
2020 NOWC = ?? - ??
2020 NOWC = ??
2019 NOWC = Operating current assets - Operating current liabilities
2019 NOWC = ?? - ??
2019 NOWC = ??
Total net operating capital (TNOC)
2020 TNOC = NOWC + Fixed assets
2020 TNOC = ?? + ??
2020 TNOC = ??
2019 TNOC = NOWC + Fixed assets
2019 TNOC = ?? + ??
2019 TNOC = ??
Investment in total net operating capital
2020 2019
2020 Inv. In TOC = TNOC - TNOC
2020 Inv. In TOC = ?? - ??
2020 Inv. In TOC = ??
Net operating profit after taxes
2020 NOPAT = EBIT x ( 1 - T )
2020 NOPAT = ?? x ??
2020 NOPAT = ??
Free cash flow
2020 FCF = NOPAT - Investment in total net operating capital
2020 FCF = ?? - ??
2020 FCF = ??
Return on invested capital
2020 ROIC = NOPAT / Total net operating capital
2020 ROIC = ?? / ??
2020 ROIC = ??
b. Assume that there were 15 million shares outstanding at the end of the year, the year-end closing stock price was $65 per share, and the after-tax cost of capital was 10%. Calculate EVA and MVA for the most recent year.
Additional Input Data
Stock price per share $65.00
# of shares (in thousands) 15,000
After-tax cost of capital 10.0%
Market Value Added
MVA  = Stock price x # of shares - Total common equity
MVA  = ?? x ?? - ??
MVA  = ?? - ??
MVA  = ??
Economic Value Added
EVA  = NOPAT - (Operating Capital x After-tax cost of capital)
EVA  = ?? - ?? x ??
EVA  = ?? - ??
EVA  = ??

In: Finance