Questions
Comparative Income Statement Analysis Comparative 2012 and 2013 income statements for Dakota Products: 2017 2018 Change...

Comparative Income Statement Analysis
Comparative 2012 and 2013 income statements for Dakota Products:
2017 2018 Change
Unit Sales       10,000         14,000      4,000
Revenue $ 150,000 $    220,000     70,000
Expenses      120,000        160,000     40,000
Operating Profit $    30,000 $      60,000
a. What is the break-even point?
b. What number of units are required to earn an operating profit of $70,000
c. What was the margin of safety for both 2017 and 2018?

In: Accounting

X Company is constructing a building. Construction began in 2018 and the building was completed 31...

X Company is constructing a building. Construction began in 2018 and the building was completed 31 December, 2018. X made payments to the construction company of $1,000,000 on 1 July, $2,100,000 on 1 September, and $2,000,000 on 31 December. Average accumulated expenditures were ------.
Select one:
a. $5,100,000.
b. $1,200,000.
c. $3,100,000.
d. $1,025,000.



The treasury stocks should be deducted from the stockholder’s equity.
Select one:
a. True.
b. False.

In: Accounting

In 2013, TCCC introduced “Coca-Cola Life” to the family of Coca-Cola brands (i.e., Classic, Diet, and...

In 2013, TCCC introduced “Coca-Cola Life” to the family of Coca-Cola brands (i.e., Classic, Diet, and Zero). While Coke Life is available in the U.S., it has been gradually rebranded into “Coca-Cola Stevia” in some markets, including Australia (since 2017), New Zealand (since 2018), and Singapore (since 2018).

Compare these two (2) branding strategies in terms of their potential to achieve stronger brand equity.

In: Operations Management

Year Number of Alternative-Fueled Vehicles in US 2000 394,664 2001 425,457 2002 471,098 2003 533,999 2004...

Year

Number of Alternative-Fueled Vehicles in US

2000

394,664

2001

425,457

2002

471,098

2003

533,999

2004

565,492

2005

592,125

2006

634,562

2007

695,766

1. Do the variables have significant correlation? For full credit, you must show each step of the hypothesis test. Use the 0.05 significance.

2. In 2008, the price of gas dropped drastically and hit a low average of $1.59 for the nation. What effect do you think this will have on the alternative-fuel car sales, if any? Do you think that this would affect the number of alternative-fueled vehicles used in the United States? Do you think that it would follow the same pattern as before 2008? Write 2 or 3 sentences explaining how you think the new vehicles will affect the number of alternative-fueled vehicles in the United States.

3. Use your regression equation to predict the number of alternative-fueled vehicles used in the United States in 2010. Assume that the pattern remains the same after the introduction of the electric-gas vehicles. Show your work.

4. Search online to find some evidence for or against your opinion in part e. Give the information that you found and state the URL to the data. Was your prediction correct or incorrect? Why do you think that happened? Write 2 or 3 sentences summarizing the information that you found and explain why you think that happened. Be sure to answer each question.

In: Statistics and Probability

Cisco Income Statements 2002 2001 2000 Sales 18,915 22,293 18,928 Cost of sales, reported 6,902 11,221...

Cisco Income Statements
2002 2001 2000
Sales 18,915 22,293 18,928
Cost of sales, reported 6,902 11,221 6,746
Gross margin 12,013 11,072 12,182
R&D 3,448 3,922 2,704
Sales and marketing 4,264 5,296 3,946
General and administrative 618 778 633
Restructuring charges --- 1,170 ---
Amortization of good will 690 154
Amortization of intagible assets 699 365 137
In-process R&D 65 855 1,373
total operating expenses 9,094 13,076 8,947
operating income from sales, before tax 2,919 -   (2,004) -   3,235
Investment income (209) 1,130 1,108
Income before tax 2,710 (874) 4,343
Taxes 817 140 1,675
Net income 1,893 -   (1,014) -   2,668
Cisco Balance Sheets
Assets 2002 2001 2000 1999
Current Assets:
Working Cash 9,484 4,873 4,234 913
Short-term investments 3,172 2,034 1,291 1,189
Accounts Receivable 1,105 1466 2299 1250
Inventories 880 1684 1232 658
Deferred tax assets 2,030 1809 1091 580
Lease receivables 239 405 -   -  
Prepaid expenses 523 564 963 171
total current assets 17,433 12,835 11,110 4,761
investments 8,800 10,346 13,688 7,032
restricted investments 1,264 1,286 1,080
Property and equipment 4,102 2,591 1,426 825
Goodwill 3,565 3,189 2,937 157
Lease receivables 39 253 527 500
Purchased intangibles 797 1,470 1,150 303
Other assets 3,059 3,290 746 235
Total assets 37,795 35,238 32,870 14,893
Liabilities
Current
Accounts payable 470 644 739 374
Income tax payable 579 241 233 630
Accrued compensation 1,365 1,058 1,317 679
Deferred revenue 3,892 3,214 1,386 724
Other accrued liabilities 2,496 2,553 2,653 631
Restructuring liabilities 322 386 --- ---
9,124 8,096 6,328 3,038
Minority interest 15 22 45 44
Common shareholders' equity 28,656 27,120 26,497 11,811
Cash Flow
Years Ended July 27, 2002 July 28, 2001 July 29, 2000
Cash flows from operating activities:
Net income (loss) $1,893.00 ($1,014.00) $2,668.00
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 1,957 2,236 863
Provision for doubtful accounts 91 268 40
Provision for inventory 149 2,775 339
Deferred income taxes ($573.00) ($924.00) ($782.00)
Tax benefits from employee stock option plans 61 1,397 2,495
Adjustment to conform fiscal year ends of pooled acquisitions - - ($18.00)
In-process research and development 53 739 1,279
Net (gains) losses on investments and provision for losses 1,127 43 ($92.00)
Restructuring costs and other special charges - 501 -
Change in operating assets and liabilities:
Accounts receivable 270 569 ($1,043.00)
Inventories 673 ($1,644.00) ($887.00)
Prepaid expenses and other current assets ($28.00) ($25.00) ($249.00)
Accounts payable ($174.00) ($105.00) 286
Income taxes payable 389 ($434.00) ($365.00)
Accrued compensation 307 ($256.00) 576
Deferred revenue 678 1,629 662
Other accrued liabilities ($222.00) 251 369
Restructuring liabilities ($64.00) 386 -
Net cash provided by operating activities 6,587 6,392 6,141
Cash flows from investing activities:
Purchases of short-term investments ($5,473.00) ($4,594.00) ($2,473.00)
Proceeds from sales and maturities of short-term investments 5,868 4,370 2,481
Purchases of investments ($15,760.00) ($18,306.00) ($14,778.00)
Proceeds from sales and maturities of investments 15,317 15,579 13,240
Purchases of restricted investments ($291.00) ($941.00) ($458.00)
Proceeds from sales and maturities of restricted investments 1,471 1,082 206
Acquisition of property and equipment ($2,641.00) ($2,271.00) ($1,086.00)
Purchases of technology licenses - ($4.00) ($444.00)
Acquisition of businesses, net of cash and cash equivalents 16 ($13.00) 24
Change in lease receivables, net 380 457 ($535.00)
Purchases of investments in privately held companies ($58.00) ($1,161.00) ($130.00)
Lease deposits 320 ($320.00) -
Purchase of minority interest of Cisco Systems, K.K. (Japan) ($115.00) ($365.00) -
Other 159 ($516.00) ($424.00)
Net cash used in investing activities ($807.00) ($7,003.00) ($4,377.00)
Cash flows from financing activities:
Issuance of common stock 655 1,262 1,564
Repurchase of common stock ($1,854.00) - -
Other 30 ($12.00) ($7.00)
Net cash (used in) provided by financing activities ($1,169.00) 1,250 1,557
Net increase in cash and cash equivalents 4,611 639 3,321
Cash and cash equivalents, beginning of fiscal year 4,873 4,234 913
Cash and cash equivalents, end of fiscal year $9,484.00 $4,873.00 $4,234.00

Analysis of Changes in

Profitability and Growth: Cisco Systems, Inc.

1

By any stretch of the imagination, Cisco System

s (CSCO) has been a strong growth company. A

darling of the Internet boom of

the late 1990s, it was one of the few technology companies tied to

the Internet and telecommunications

that prospered during that era.

Its products - networking and

communications equipment such as router and sw

itching devices - built the infrastructure of the

Internet. While most Internet

and telecommunications firms str

uggled and failed, their supplier,

Cisco, capitalized on the new technology. At one poi

nt in 2000, its market capitalization was over

half a trillion dollars, the largest market capitaliza

tion of any firm ever.

Its stock price increased

from $10 in 1995 to $80 in 2000, supported by sales growth from $2.0 billion in 1995 to $18.9

billion 2000.

In early 2000, Cisco’s P/E stood at 130 so investors

saw plenty of room for more earnings growth.

However, with the subsequent collapse

of the technology bubble

and the demise of

telecommunications firm such as WorldCom, Qwes

t, and AT&T, the anticipated growth failed to

materialize. Indeed, in 2001 Cisco wrote down

inventory by an astonish

ing $2.3 billion (under the

lower-of-cost-or-market rule), to reflect the dr

op in demand for its products and the emergence of

second-hand telecom equipment market.

Exhibit 1 presents Cisco’s income statements fo

r the fiscal years 2000-2002 and balance sheets for

1999-2002. The exhibit also includes

the cash flow from operations a

nd cash investing sections of

the cash flow statements. The 2000 sales of $18

.9 billion were up from $12.2 billion in 1999 and

$8.5 billion in 1998, a tremendous gr

owth record. But subsequent

sales growth was not as

impressive, as you can see, and led to declini

ng earnings. Indeed, Cisc

o posted a loss for 2001.

Lower earnings on increasing shareholders’ equity clea

rly implies that residual income is declining.

By the end of 2002, Cisco’s shares traded

at $15, well down from the 2000 high of $80.

Other information, most of the from the 10-K f

ootnotes, that was useful in reformulating the

financial statements is presented below. Note th

at the cash flow statements from Exhibit 1 are

particularly useful for identifying core income becau

se some of the items in the reconciliation of net

income to cash flow from operati

ng activities involve unusual items.

Questions:

1.

What adjustments are necessary to reformulate

the income statements and balance sheets to

properly separate financ

ing from operations?

2.

What adjustments are necessary to separate

core operations from othe

r sources of income?

What items are identified as

core in the Balance Sheet?

3.

Calculate Core RNOA and decompose the ratio for Cisco for 2002 and 2001.

In: Finance

Calculate: Using the data given below, fill in the tables. State-to-State Domestic Migration Between 1995-2000 (Select...

Calculate: Using the data given below, fill in the tables.

State-to-State Domestic Migration Between 1995-2000 (Select States)

Migration Flows

In-Migrant

Out-Migrant

Gross Migrants

Net Migrants

State A

1,448,964

2,204,500

State B

466,123

232,189

State C

726,477

1,600,725

State D

1,362,849

1,214,609

Migration Measures

Pop Size

IMR

OMR

GMR

NMR

MER

State A

30,754,866

State B

1,544,657

State C

17,899,362

State C

18,371,281

In: Statistics and Probability

Year IBM’s yearly stock return Yearly return on the S&P500 1999 17.02% 21.04% 2000 -21.21% -9.10%...

Year

IBM’s yearly stock return

Yearly return on the S&P500

1999

17.02%

21.04%

2000

-21.21%

-9.10%

2001

13.09%

-1.89%

2002

16.22%

-22.10%

The riskless rate for this period is 3.5%, and the covariance between returns on IBM stock and the S&P500 over this period is 0.02276.

1F. What is IBM’s CAPM beta according to this data?

1G. What is IBM’s CAPM cost of equity according to this data?

1H. If IBM’s debt to equity ratio is 0.57, what is their unlevered cost of equity according to this model?

Please work out by hand not on excel

In: Accounting

Year IBM’s yearly stock return Yearly return on the S&P500 1999 17.02% 21.04% 2000 -21.21% -9.10%...

Year

IBM’s yearly stock return

Yearly return on the S&P500

1999

17.02%

21.04%

2000

-21.21%

-9.10%

2001

13.09%

-1.89%

2002

16.22%

-22.10%

The riskless rate for this period is 3.5%, and the covariance between returns on IBM stock and the S&P500 over this period is 0.02276.

1E. What is the variance of the S&P500 over this period?

1F. What is IBM’s CAPM beta according to this data?

1G. What is IBM’s CAPM cost of equity according to this data?

1H. If IBM’s debt to equity ratio is 0.57, what is their unlevered cost of equity according to this model?

Please show work for each.

In: Finance

Year IBM’s yearly stock return Yearly return on the S&P500 1999 17.02% 21.04% 2000 -21.21% -9.10%...

Year

IBM’s yearly stock return

Yearly return on the S&P500

1999

17.02%

21.04%

2000

-21.21%

-9.10%

2001

13.09%

-1.89%

2002

16.22%

-22.10%

The riskless rate for this period is 3.5%, and the covariance between returns on IBM stock and the S&P500 over this period is 0.02276.

1E. What is the variance of the S&P500 over this period? 2 points

1F. What is IBM’s CAPM beta according to this data? 5 points

1G. What is IBM’s CAPM cost of equity according to this data? 5 points

1H. If IBM’s debt to equity ratio is 0.57, what is their unlevered cost of equity according to this model? 5 points

In: Finance

Question 1. Year IBM’s yearly stock return Yearly return on the S&P500 1999 17.02% 21.04% 2000...

Question 1.

Year

IBM’s yearly stock return

Yearly return on the S&P500

1999

17.02%

21.04%

2000

-21.21%

-9.10%

2001

13.09%

-1.89%

2002

16.22%

-22.10%

The riskless rate for this period is 3.5%, and the covariance between returns on IBM stock and the S&P500 over this period is 0.02276.

1E. What is the variance of the S&P500 over this period?

1F. What is IBM’s CAPM beta according to this data?

1G. What is IBM’s CAPM cost of equity according to this data?

1H. If IBM’s debt to equity ratio is 0.57, what is their unlevered cost of equity according to this model?

In: Finance