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cash flow (TCO C) Please review the following real-world Hewlett Packard Statement and more




Question;3.(TCO C) Please review the following real-world Hewlett;Packard Statement of Cash flows and address the two questions below;Cash flow from operating activities;In millions;In millions;For the year ended 2012;For the year ended 2011;Net (loss) earnings;$(12,650);$7,074;Depreciation and amortization;5,095;4,984;Impairment of goodwill and purchased intangible assets;18,035;885;Stock-based compensation expense;635;685;Provision for doubtful accounts;142;81;Provision for inventory;277;217;Restructuring charges;2,266;645;Deferred taxes on earnings;(711);166;Excess tax benefit from stock-based competition;(12);(163);Other, net;265;(46);Accounts and financing receivables;1,269;(227);Inventory;890;(1,252);Accounts payable;(1,414);275;Taxes on earnings;(320);610;Restructuring;(840);(1,002);Other assets and liabilities;(2,356);(293);Net cash provided;by;operating activities;10,571;12,639;Cash flows from investing activities;Investment in property, plant, and equipment;(3,706);(4,539);Proceeds from sale of property, plant, and equipment;617;999;Purchases of available-for-sale securities and other;investments;(972);(96);Maturities and sales of available-for-sale securities and;other investment;662;68;Payments in connection with business acquisitions, net of;cash acquired;(141);(10,480);Proceeds from business divestiture, net;87;89;Net cash used in;investing activities;(3,453);(13,959);Cash flow from financing activities;(Payments) issuance of commercial paper and notes payable;net;(2,775);(1,270);Issuance of debt;5,154;11,942;Payment of debt;(4,333);(2,336);Issuance of common stock under employee stock plans;716;896;Repurchase of common stock;(1,619);(10,117);Excess tax benefit from stock-based compensation;12;163;Cash dividends paid;(1,015);(844);Net cash used in financing;activities;(3,860);(1,566);Increase (decrease) in cash and cash equivalents;3,258;(2,886);Cash and cash equivalents at beginning of period;8,043;10,929;Cash and cash equivalents at end of period;$11,301;$8,043;Required;1) Please;calculate the percentage increase or decrease in cash for the total line of the;operating, investing, and financing sections bolded above 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.;4. 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;a. Goforit carries significant electronics inventory;in a competitive environment in which 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)?;1.;(TCO A) 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;8,109;Cash;8,442;Other non-current Liabilities;10,449;Common Stock;1,760;Receivables;4,812;Other Current Assets;2,973;Long-term Investments;10,448;Other Non-current Assets;3,585;Property, Plant and Equipment;23,486;Trademarks;6,527;Other Intangible Assets;20,810;Allowance for Doubtful Accounts;53;Accumulated Depreciation;9,010;Accounts Payable;8,680;Short Term Notes Payable;17,874;Prepaid Expenses;2,781;Other Current Liabilities;796;Long-Term Liabilities;14,736;Paid-in-Capital in Excess of Par Value;11,379;Retained Earnings;55,038;Inventories;3,264;Treasury Stock;35,009;Other information taken from the Annual Report;Sales Revenue for 2012;$48,017;Cost of Goods Sold for 2012;19,053;Net Income for 2012;9,019;Inventory Balance on 12/31/11;3,092;Net Accounts Receivable Balance on 12/31/11;4,920;Total Assets on 12/31/11;79,974;Equity Balance on 12/31/11;31,921;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 the Current;Ratio and Return on common stockholders? equity ratio. (Make sure to show all;your work).;2.;(TCO B) The following selected data was retrieved from the;Walmart, Inc. financial statements for the year ending January 31, 2013;Accounts Payable;$38,080;Accounts Receivable;6,768;Cash;7,781;Common Stock;3,952;Cost of Goods Sold;352,488;Income Tax Expense;7,981;Interest Expenses;2,064;Membership Revenues;3,048;Net Sales;466,114;Operating, Selling and Administrative Expenses;88,873;Retained Earnings;72,978;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.


Paper#37506 | Written in 18-Jul-2015

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