The following information comes from the balance sheet of Micros Systems, Inc.:
Micros Systems, Inc., and Subsidiaries
Consolidated Balance Sheets

1. Calculate the debt-to-equity ratio for the years shown.
2. Who would be interested in this information and why?
3. Suppose you were considering investing in some of this firm€™s stock. What do you think of the change in this ratio from one year to the next?
4. If Micros Systems has bonds payable, where do you think they might be included on the balance sheet?
5. What risks are associated with the long-term debt on the balance sheet of Micros Systems,Inc.?

Transcribed Image Text:

une (in thousands, except par value data) Assets Current Assets: 2008 2007 Cash and cash equivalents Short-term investments Accounts receivable, net of allowance for doubtful accounts » 381,964 $242,702 86,950 192,445180,203 47,790 16,683 27,650 687,445 601,978 of $28,348 at June 30, 2008, and $23,110 at June 30, 2007 64,575 18,724 29,737 Inventory, net Deferred income taxes Prepaid expenses and other c urrent assets Total current assets Investments, non-current Property, plant, and equipment, net Deferred income taxes, non-current Goodwill Intangible assets, net Purchased and internally developed software costs, net of 29,16527,955 23,145 159,722 138,332 14,509 65,216 7,108 16,168 accumulated amortization of $61,691 at June 30, 2008, and S54,708 at June 30, 2007 Other assets Total assets 30,846 36,296 4,541 $1,003,006 $846,756 7,336 Liabilities and shareholders' equity Current Liabilities: Bank lines of credit Accounts payable Accrued Income taxes payable Deferred revenue $ 989 $ 2,308 43,126 124,913 117,142 8,094 115,398 86,742 294,506257,412 46,843 expenses and other current liabilities 6,363 Total current liabilities Income taxes payable, non-c Deferred income taxes, non-current Other non-current liabilities 18,302 2,181 8,103 urrent 15,934 17,554 323,092 290,900 Total liabilities Minority interests and minority ownership put arrangement Commitments and contingencies (Note 12) Shareholders' equity: 6,898 4,723 Common stock, $0.00625 par value; authorized 120,000 shares; issued and outstanding 80,898 at June 30, 2008 and 81,096 at June 30, 2007 Capital in excess of par Retained earnings Accumulated other comprehensive income 607 131,517 149,089 480,777 382,785 18,752 673,016 551,133 $1,003,006 $846,756 506 60,216 Total shareholders' equity Total liabilities and shareholders' equity The accompanying notes are a integral part of the consolidated financial stalemerts.