Prompt

Using the business you selected for Project Two, complete the calculations for determining working capital, and describe their relevance in assessing financial health.

Specifically, you must address the following rubric criteria:

• Financial Statement(s): Explain the various financial statement(s) needed to calculate a businesss working capital and how each financial statement is used. Provide examples to support your claims.

• Working Capitals Role: Discuss how effective working capital management supports a healthy business.

• Working Capital Interpretation: Use the appropriate formula to calculate working capital, then discuss the businesss current financial liquidity position.
  • For example, does the business have sufficient working capital on hand to address bills to suppliers? Will there be potential cash inflow at the end of the year?

• Working Capital Management Direction: Discuss the current direction of the business regarding working capital management.
  • Keep in mind that financial statements reflect a specific moment or period of time and the value of the businesss working capital during that period. To get a better understanding of the direction in which a business is going, use the businesss balance sheets from Mergent Online to compare the businesss value today against its value from one year ago.

Jag Johnson & Johnson (NYS: JNJ) + to Company Analysis List Address: One Johnson & Johnson Plaza, New Brunswick, NJ 08933 United States | Phone: 732 524-0400 | Fax: 732 214-0332 | Company Website: www.jnj.com Powered by Clearbit Recent Companies Incorporated: November 1887, NJ, United States IRS Number: 221024240 CUSIP: 47816010 Auditor: PricewaterhouseCoopers LLP Transfer Agent: Computershare Trust Company, N.A., Canton, MA Country: United States Industry: Pharmaceuticals (ICB 20103015) Industry: Pharmaceutical preparations (SIC 2834) Industry: Pharmaceutical Preparation Manufacturing (NAICS 325412) Number of Employees: 136,400 (Approximate Full-Time as of 01/03/2021) Number of Shareholders: 132,376 (record) (as of 02/16/2021) Market Cap: 453,570,137,130 Revenue: 91,446,000,000 Net Income: 17,880,000,000 Dividend: 4.19 Dividend Yield: 2.432 EPS Basic: 6.78 EPS Diluted: 6.69 PE Ratio: 25.7534 Company details Executives Ownership Company financials Equity pricing Annual reports Filings News Competitors Report builder Supply chain Company reports As reported Prelims Standardized Restated Ratios Analysis Include Auditor Data within Download Download Printer Friendly Mergent Tools + Annuals V Balance Sheet 5 Years/Quarters O Show Footnotes Refresh As Reported Currency As Reported Scale v Exchange rate used is that of the Year End reported date Standardized Annual Balance Sheet Report Date Currency 01/03/2021 12/29/2019 12/30/2018 12/31/2017 01/01/2017 USD USD USD USD USD Audit Status Not Qualified Not Qualified 0 Not Qualified Not Qualified 6 Not Qualified 6 Consolidated Yes Yes Yes Yes Yes Scale Millions Millions Millions Millions Millions Cash & Equivalents 17,305 > 18,107 > 17,824 > 13,985 > 11,200 > 18,972 > 22,935 > ? Short Term Investments 1,982 > 1,580 > 472 > Cash & Equivs & ST Investments 25,185 > 19,287 > 19,687 > 18,296 > 41,907 > 2 Receivables (IST) 13576 14 481 > 14 098> 13.490 11.699> Receivables (ST) 13,576 > 14,481 > 14,098 > 13,490 > 11,699 > ? Inventories 9,344 > 9,020 > 8,599 > 8,765 > 8,144 > Assets Held for Sale (ST) 94 > 950 > ? Other Current Assets 3,132 > 2,392 > 2,699 > 2,537 > 3,282 > ? Total Current Assets 51,237 > 45,274 > 46,033 > 43,088 > 65,032 > 46,804 > 43,332 > 41,851 > 37,773 > 41,466 > 24,461 > 28,038 > 25,674 > 24,816 > 21,861 > Gross Property Plant & Equip Accumulated Depreciation Net Property Plant & Equip Intangible Assets 18,766 > 17,658 > 17,035 > 17,005 > 15,912 > 89,795 > 81,282 > 78,064 > 85,134 > 49,681 > ? Deferred LT Assets 8,534 > 7,819 > 7,640 > 7,105 > 6,148 > ? Other Assets 6,562 > 5,695 > 4,182 > 4,971 > 4,435 > ? Total Assets 174,894 > 157,303 > 157,728 > 34,762 > Accounts Payable & Accrued Exps Accounts Payable Accrued Expenses 26,631 > 152,954 > 28,434 > 7,537 > 39,862 > 9,505 > 141,208 > 21,603 > 6,918 > 8,544 > 7,310 > 30,357 > 26,218 > 20,897 > 19,321 > 14,685 > ? Current Debt 2,631 > 1,202 > 2,796 > 3,906 > 4,684 > ? Other Current Liabilities 0 > 0 > 0 > 0 > 0 > ? Total Current Liabilities 42,493 > 35,964 > 31,230 > 30,537 > 26,287 > ? LT Debt & Leases 32,635 > 26,494 > 27,684 > 30,675 > 22,442 > ? Pensions & OPEB 7,990 > 7,835 > 7,610 > 7,674 > 7,443 > ? Deferred LT Liabilities 7,214 > 5,958 > 7,506 > 8,368 > 2,910 > Minority Interests 0 > 0> 0 > 0 > 0 > ? Other Liabilities 21,284 > 22,006 > 19,889 > 11,708 > 19,172 > 93,202 > ? Total Liabilities 111,616 > 98,257 > 97,143 > 70,790 > 3,120 > 3,120 > 3,120 > 3,120 > 3,120 > Common Share Capital Retained Earnings 113,890 > 110,659 > 106.216 > 101,793 > 110,551 > 111,616 > 98,257 > 93,202 > 97,143 > 70,790 > 3,120 > 3,120 > 3,120 > 3,120 > 3,120 > 110,551 > ? Total Liabilities Common Share Capital Retained Earnings Accum Other Comprehensive Income Treasury Stock For Curr Trans (BS) 110,659 > (15,891) > 106,216 > (15,222) > 101,793 > (13,199) > 113,890 > (15,242) > 38,490 > (8,938) > 8,938 > (14,901) > 28,352 > 38,417 > 34,362 > (8,705) > (8,869) > (9,047) > 31,554 > (7,351) > 7,351 > 60,160 > 8,705 > 8,869 > 9,047 > ? Other Equity Total Equity Total Liabilities & Equity 63,278 > 59,471 > 59,752 > 70,418 > 174,894 > 157,728 > 152,954 > 157,303 > 141,208 > Jag Johnson & Johnson (NYS: JNJ) + to Company Analysis List Address: One Johnson & Johnson Plaza, New Brunswick, NJ 08933 United States | Phone: 732 524-0400 | Fax: 732 214-0332 | Company Website: www.jnj.com Powered by Clearbit Recent Companies Incorporated: November 1887, NJ, United States IRS Number: 221024240 CUSIP: 47816010 Auditor: PricewaterhouseCoopers LLP Transfer Agent: Computershare Trust Company, N.A., Canton, MA Country: United States Industry: Pharmaceuticals (ICB 20103015) Industry: Pharmaceutical preparations (SIC 2834) Industry: Pharmaceutical Preparation Manufacturing (NAICS 325412) Number of Employees: 136,400 (Approximate Full-Time as of 01/03/2021) Number of Shareholders: 132,376 (record) (as of 02/16/2021) Market Cap: 453,570,137,130 Revenue: 91,446,000,000 Net Income: 17,880,000,000 Dividend: 4.19 Dividend Yield: 2.432 EPS Basic: 6.78 EPS Diluted: 6.69 PE Ratio: 25.7534 Company details Executives Ownership Company financials Equity pricing Annual reports Filings News Competitors Report builder Supply chain Company reports As reported Prelims Standardized Restated Ratios Analysis Include Auditor Data within Download Download Printer Friendly Mergent Tools + Annuals V Balance Sheet 5 Years/Quarters O Show Footnotes Refresh As Reported Currency As Reported Scale v Exchange rate used is that of the Year End reported date Standardized Annual Balance Sheet Report Date Currency 01/03/2021 12/29/2019 12/30/2018 12/31/2017 01/01/2017 USD USD USD USD USD Audit Status Not Qualified Not Qualified 0 Not Qualified Not Qualified 6 Not Qualified 6 Consolidated Yes Yes Yes Yes Yes Scale Millions Millions Millions Millions Millions Cash & Equivalents 17,305 > 18,107 > 17,824 > 13,985 > 11,200 > 18,972 > 22,935 > ? Short Term Investments 1,982 > 1,580 > 472 > Cash & Equivs & ST Investments 25,185 > 19,287 > 19,687 > 18,296 > 41,907 > 2 Receivables (IST) 13576 14 481 > 14 098> 13.490 11.699> Receivables (ST) 13,576 > 14,481 > 14,098 > 13,490 > 11,699 > ? Inventories 9,344 > 9,020 > 8,599 > 8,765 > 8,144 > Assets Held for Sale (ST) 94 > 950 > ? Other Current Assets 3,132 > 2,392 > 2,699 > 2,537 > 3,282 > ? Total Current Assets 51,237 > 45,274 > 46,033 > 43,088 > 65,032 > 46,804 > 43,332 > 41,851 > 37,773 > 41,466 > 24,461 > 28,038 > 25,674 > 24,816 > 21,861 > Gross Property Plant & Equip Accumulated Depreciation Net Property Plant & Equip Intangible Assets 18,766 > 17,658 > 17,035 > 17,005 > 15,912 > 89,795 > 81,282 > 78,064 > 85,134 > 49,681 > ? Deferred LT Assets 8,534 > 7,819 > 7,640 > 7,105 > 6,148 > ? Other Assets 6,562 > 5,695 > 4,182 > 4,971 > 4,435 > ? Total Assets 174,894 > 157,303 > 157,728 > 34,762 > Accounts Payable & Accrued Exps Accounts Payable Accrued Expenses 26,631 > 152,954 > 28,434 > 7,537 > 39,862 > 9,505 > 141,208 > 21,603 > 6,918 > 8,544 > 7,310 > 30,357 > 26,218 > 20,897 > 19,321 > 14,685 > ? Current Debt 2,631 > 1,202 > 2,796 > 3,906 > 4,684 > ? Other Current Liabilities 0 > 0 > 0 > 0 > 0 > ? Total Current Liabilities 42,493 > 35,964 > 31,230 > 30,537 > 26,287 > ? LT Debt & Leases 32,635 > 26,494 > 27,684 > 30,675 > 22,442 > ? Pensions & OPEB 7,990 > 7,835 > 7,610 > 7,674 > 7,443 > ? Deferred LT Liabilities 7,214 > 5,958 > 7,506 > 8,368 > 2,910 > Minority Interests 0 > 0> 0 > 0 > 0 > ? Other Liabilities 21,284 > 22,006 > 19,889 > 11,708 > 19,172 > 93,202 > ? Total Liabilities 111,616 > 98,257 > 97,143 > 70,790 > 3,120 > 3,120 > 3,120 > 3,120 > 3,120 > Common Share Capital Retained Earnings 113,890 > 110,659 > 106.216 > 101,793 > 110,551 > 111,616 > 98,257 > 93,202 > 97,143 > 70,790 > 3,120 > 3,120 > 3,120 > 3,120 > 3,120 > 110,551 > ? Total Liabilities Common Share Capital Retained Earnings Accum Other Comprehensive Income Treasury Stock For Curr Trans (BS) 110,659 > (15,891) > 106,216 > (15,222) > 101,793 > (13,199) > 113,890 > (15,242) > 38,490 > (8,938) > 8,938 > (14,901) > 28,352 > 38,417 > 34,362 > (8,705) > (8,869) > (9,047) > 31,554 > (7,351) > 7,351 > 60,160 > 8,705 > 8,869 > 9,047 > ? Other Equity Total Equity Total Liabilities & Equity 63,278 > 59,471 > 59,752 > 70,418 > 174,894 > 157,728 > 152,954 > 157,303 > 141,208 >