1. The gross profit margin for 2013 financial year is 2. The EBIT margin for 2013...

  

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1. The gross profit margin for 2013 financial year is 2. The EBIT margin for 2013 financial year is 3. The effective tax rate for the 2013 financial year is 4. SSAC Ltd. recently acquired a property for a price of $200m. The estimated useful life of the property for financial reporting purposes is 2 years; the estimated useful life under tax rules is 4 years. The property is depreciated using the straight-line method under both accounting and tax rules with zero residual value. The applicable tax rates are as follows. Year 12 34 Tax rate 30.0% 27.5% 25.0% 25.0% The tax base of the property in Year 3 is BOMBARDIER INC. CONSOLIDATED STATEMENTS OF INCOME For the fiscal years ended December 31 (in millions of U.S. dollars, except per share amounts) Revenues Cost of sales Gross margin SG&A R&D Share of income of joint ventures and associates Other expense Special items EBIT Financing expense Financing income EBT Income taxes Net income (loss) Notes 16 6 34 7 8 9 9 11 $ 2014 20.111 17.534 2,577 1,358 347 (89) 38 1.489 (566) 249 2013 $18.151 15.658 2,493 1.417 293 (119) 9 (30) 923 271 (119) 771 (75) (740) 506 $ (1,246) $ 572 [20 marks; 2.5 marks each] Answer Questions 7 and 8 using the information about Intel Corporation provided below. Three Years Ended December 31, 2011 (In Millions, Except Per Share Amounts) Net revenue Cost of sales December 31, 2011 and December 25, 2010 (In Millions, Except Par Value) Assets Current assets: Cash and cash equivalents Short-term investments Trading assets Accounts receivable, net of allowance for doubtful accounts of $36 ($28 in 2010) Inventories Deferred tax assets Other current assets Total current assets Property, plant and equipment, net Marketable equity securities Other long-term Investments Goodwill Identified Intangible assets, net Other long-term assets Total assets Llabilities and stockholders' equity Current liabilities: Short-term debt Accounts payable. Accrued compensation and benefits Accrued advertising. Deferred income Other accrued liabilities Total current llabilities. 2011 2010 $ 53,999 $ 43,623 20,242 15,132 2011 $ 5,065 5,181 4,591 3,650 4,096 1,700 1,589 25,872 23,627 562 889 1,488 1,614 31,611 17,899 1,008 3,026 4,531 860 4,251 $71,119 $ 63,186 9,254 6,267 4,648 2,956 2,948 2010 247 S 38 2,290 2,888 1,007 747 2,357 9,327 1,134 1,929 2,814 12,028 $ 5,498 11,294 5,093 2,867 3,757 7. Based solely on the information above, the Receivable Days in 2011 is 8. Based solely on the information above, the Inventory Days in 2011 is 1. The gross profit margin for 2013 financial year is 2. The EBIT margin for 2013 financial year is 3. The effective tax rate for the 2013 financial year is 4. SSAC Ltd. recently acquired a property for a price of $200m. The estimated useful life of the property for financial reporting purposes is 2 years; the estimated useful life under tax rules is 4 years. The property is depreciated using the straight-line method under both accounting and tax rules with zero residual value. The applicable tax rates are as follows. Year 12 34 Tax rate 30.0% 27.5% 25.0% 25.0% The tax base of the property in Year 3 is BOMBARDIER INC. CONSOLIDATED STATEMENTS OF INCOME For the fiscal years ended December 31 (in millions of U.S. dollars, except per share amounts) Revenues Cost of sales Gross margin SG&A R&D Share of income of joint ventures and associates Other expense Special items EBIT Financing expense Financing income EBT Income taxes Net income (loss) Notes 16 6 34 7 8 9 9 11 $ 2014 20.111 17.534 2,577 1,358 347 (89) 38 1.489 (566) 249 2013 $18.151 15.658 2,493 1.417 293 (119) 9 (30) 923 271 (119) 771 (75) (740) 506 $ (1,246) $ 572 [20 marks; 2.5 marks each] Answer Questions 7 and 8 using the information about Intel Corporation provided below. Three Years Ended December 31, 2011 (In Millions, Except Per Share Amounts) Net revenue Cost of sales December 31, 2011 and December 25, 2010 (In Millions, Except Par Value) Assets Current assets: Cash and cash equivalents Short-term investments Trading assets Accounts receivable, net of allowance for doubtful accounts of $36 ($28 in 2010) Inventories Deferred tax assets Other current assets Total current assets Property, plant and equipment, net Marketable equity securities Other long-term Investments Goodwill Identified Intangible assets, net Other long-term assets Total assets Llabilities and stockholders' equity Current liabilities: Short-term debt Accounts payable. Accrued compensation and benefits Accrued advertising. Deferred income Other accrued liabilities Total current llabilities. 2011 2010 $ 53,999 $ 43,623 20,242 15,132 2011 $ 5,065 5,181 4,591 3,650 4,096 1,700 1,589 25,872 23,627 562 889 1,488 1,614 31,611 17,899 1,008 3,026 4,531 860 4,251 $71,119 $ 63,186 9,254 6,267 4,648 2,956 2,948 2010 247 S 38 2,290 2,888 1,007 747 2,357 9,327 1,134 1,929 2,814 12,028 $ 5,498 11,294 5,093 2,867 3,757 7. Based solely on the information above, the Receivable Days in 2011 is 8. Based solely on the information above, the Inventory Days in 2011 is

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