Dawning Company Consolidated Balance Sheet (in millions, except per share amounts) As of December 31 2011 2010
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Dawning Company Consolidated Balance Sheet (in millions, except per share amounts)
As of December 31 | 2011 | 2010 |
Assets | ||
current asset | ||
cash and cash equivalent | $ 878 | $ 490 |
Receivables (net of allowances of $49 and $53, respectively) | 1,675 | 1,610 |
Inventories | 1,327 | 1,222 |
Other current assets | 522 | 408 |
Total current assets | 4,402 | 3,730 |
Property, plant and equipment, net | 3,668 | 3,693 |
Goodwill, net | 2,657 | 2,362 |
Other intangible assets, net | 1,341 | 831 |
Deferred income taxes | 115 | 84 |
Other assets | 541 | 472 |
Total assets | $12,724 | $ 11,172 |
Liabilities and Shareholders’ Equity | ||
Current liabilities | ||
Notes and loans payable | $ 34 | $ 48 |
Current portion of long-term debt | 346 | 561 |
Accounts payable | 1,244 | 1,165 |
Accrued income taxes | 392 | 272 |
Other accruals | 1,700 | 1,682 |
Total current liabilities | 3,716 | 3,728 |
Long-term debt | 4,430 | 2,815 |
Deferred income taxes | 252 | 108 |
Other liabilities | 1,785 | 1,704 |
Total liabilities | 10,183 | 8,355 |
Commitments and contingent liabilities | ||
Shareholders’ equity | ||
Common stock, $1 par value | ||
(2,000,000,000 shares authorized, 732,853,180 shares issued) | ||
Additional paid-in capital | 1,336 | 1,132 |
Retained earnings | 15, 649 | 14,329 |
Accumulated other comprehensive income (loss) | (2,475) | (2,115) |
15,243 | 14,079 | |
Unearned compensation | (60) | (99) |
Treasury stock, at cost | (12,808) | (11,305) |
Total Dawning Company shareholders’ equity | 2,375 | 2,675 |
Noncontrolling interests | 166 | 142 |
Total shareholders’ equity | 2,541 | 2,817 |
Total liabilities and shareholders’ equity | $ 12,724 | $ 11,172 |
Dawning’s Comparative Income Statements (in millions)
2011 | 2010 | Changes | % Changes | |
Net sales | $16,734 | $15,564 | $1,170 | 7.5% |
Cost of sales | 7,144 | 6,360 | 784 | 12.3% |
Gross Profit | 9,590 | 9,204 | 386 | 4.2% |
Selling, general, and administrative expenses | 5,758 | 5,414 | 344 | 6.4% |
Other (income) expense, net | (9) | 301 | (310) | (103%) |
Operating profit | 3,841 | 3,489 | 352 | 10.1% |
Interest expense, net | 52 | 59 | (7) | (11.9%) |
Income before income taxes | 3,789 | 3,430 | 359 | 10.5% |
Provision for income taxes | 1,235 | 1,117 | 118 | 10.6% |
Net income including noncontrolling interests | 2,554 | 2,313 | 241 | 10.4% |
Less: Net income attributable to noncontrolling interests | 123 | 110 | 13 | 11.8% |
Net income attributable to Dawning Company | $2,431 | $2,203 | 228 | 10.3% |
Required
a) Compute the following ratios in the year 2011
i. Gross profit margin
ii. Net profit margin
iii. Current ratio
iv. Acid test ratio
v. Total debt to equity
vi. Return on assets
vii. Return on equity
viii. Accounts receivable turnover
ix. Inventory turnover
x. Total assets Turnover
xi. Price to earnings
xii. Dividend yield
b) Required: Interpret the above ratios on the company’s credit, solvency, and profitability status.
Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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