Your assignment submission must in either Word or Excel and uploaded (one file only) to the...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Your assignment submission must in either Word or Excel and uploaded (one file only) to the assignment drop-box before 11:59pm on Saturday April 3. This assignment may be done individually or in pairs. If you are working in pairs then only one copy of the assignment needs to be submitted. Please indicated both student names and student numbers in the file name. Question 1 Recently, Uber released its financial statements for the year ended Dec 31 2020. It showed a loss of $6.7 billion on sales of 11.1 billion. Some analysts are quick to blame Covid-19 for this loss, but others pointed to bigger long-term issues and reminded investors that the showed a loss of $8.5 billion on sales of 13.0billion in 2019. Assume the following cost structure: Cost of Sales and Operations and support are all variable, and all of the other costs (Sales and Marketing, R+D all fixed, General and admin, Depreciation and Amortization) are all fixed. 1. Based on 2020 information on page 87 of the financial statements (provided with this assignment), how big would revenues have to have been in 2020 in order for Uber to break even? [for simplicity purposes, you can ignore items such as interest expense, other income/expenses, income taxes, gains/losses on equity method investments, and issues related to minority interests]? 2. How much would sales have to grow each year over 5 years in order for Uber to break even? 3. Suppose Uber's grand plan is to become a monopoly by driving everyone else out of industry and then raising fairs. How much would prices have to increase to break even if Uber felt they would be a monopoly once they reached sales of $18billion? 4. Do you think investors will ever see a return on their investment? (see attached article) Revenue Costs and expenses Cost of revenue, exclusive of depreciation and amortization shown separately below Operations and support Sales and marketing Research and development General and administrative Depreciation and amortization UBER TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share amounts which are reflected in thousands, and per share amounts) Total costs and expenses Loss from operations Interest expense Other income (expense), net Income (loss) before income taxes and loss from equity method investments Provision for (benefit from) income taxes Loss from equity method investments Net income (loss) including non-controlling interests Less: net loss attributable to non-controlling interests, net of tax Net income (loss) attributable to Uber Technologies, Inc. Net income (loss) per share attributable to Uber Technologies, Inc. common stockholders: Basic Diluted Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: Basic Diluted $ 87 $ $ $ Year Ended December 31, 2019 (¹) 13,000 $ 2018 (¹) 10,433 S 4,786 1,516 3,151 1,505 2,082 426 13,466 (3,033) (648) 4,993 1,312 283 (42) 987 (10) 997 $ 443,368 478,999 $ 6,061 2,302 4,626 4,836 3,299 472 21,596 (8,596) (559) 722 (8,433) 45 (34) (8,512) (6) (8,506) S (6.81) $ (6.81) $ 1,248,353 1,248,353 2020 11,139 5,154 1,819 3,583 2,205 2,666 575 16,002 (4,863) (458) (1,625) (6,946) (192) (34) (6,788) (20) (6,768) (3.86) (3.86) 1,752,960 1,752,960 (¹) Our revenue and cost of revenue, exclusive of depreciation and amortization, have been retrospectively adjusted to reflect the implementation of our new accounting policy adopted in the fourth quarter of 2020. Refer to Note 1 - Description of Business and Summary of Significant Accounting Policies for further information on the change in accounting policy. The accompanying notes are an integral part of these consolidated financial statements. Your assignment submission must in either Word or Excel and uploaded (one file only) to the assignment drop-box before 11:59pm on Saturday April 3. This assignment may be done individually or in pairs. If you are working in pairs then only one copy of the assignment needs to be submitted. Please indicated both student names and student numbers in the file name. Question 1 Recently, Uber released its financial statements for the year ended Dec 31 2020. It showed a loss of $6.7 billion on sales of 11.1 billion. Some analysts are quick to blame Covid-19 for this loss, but others pointed to bigger long-term issues and reminded investors that the showed a loss of $8.5 billion on sales of 13.0billion in 2019. Assume the following cost structure: Cost of Sales and Operations and support are all variable, and all of the other costs (Sales and Marketing, R+D all fixed, General and admin, Depreciation and Amortization) are all fixed. 1. Based on 2020 information on page 87 of the financial statements (provided with this assignment), how big would revenues have to have been in 2020 in order for Uber to break even? [for simplicity purposes, you can ignore items such as interest expense, other income/expenses, income taxes, gains/losses on equity method investments, and issues related to minority interests]? 2. How much would sales have to grow each year over 5 years in order for Uber to break even? 3. Suppose Uber's grand plan is to become a monopoly by driving everyone else out of industry and then raising fairs. How much would prices have to increase to break even if Uber felt they would be a monopoly once they reached sales of $18billion? 4. Do you think investors will ever see a return on their investment? (see attached article) Revenue Costs and expenses Cost of revenue, exclusive of depreciation and amortization shown separately below Operations and support Sales and marketing Research and development General and administrative Depreciation and amortization UBER TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (In millions, except share amounts which are reflected in thousands, and per share amounts) Total costs and expenses Loss from operations Interest expense Other income (expense), net Income (loss) before income taxes and loss from equity method investments Provision for (benefit from) income taxes Loss from equity method investments Net income (loss) including non-controlling interests Less: net loss attributable to non-controlling interests, net of tax Net income (loss) attributable to Uber Technologies, Inc. Net income (loss) per share attributable to Uber Technologies, Inc. common stockholders: Basic Diluted Weighted-average shares used to compute net income (loss) per share attributable to common stockholders: Basic Diluted $ 87 $ $ $ Year Ended December 31, 2019 (¹) 13,000 $ 2018 (¹) 10,433 S 4,786 1,516 3,151 1,505 2,082 426 13,466 (3,033) (648) 4,993 1,312 283 (42) 987 (10) 997 $ 443,368 478,999 $ 6,061 2,302 4,626 4,836 3,299 472 21,596 (8,596) (559) 722 (8,433) 45 (34) (8,512) (6) (8,506) S (6.81) $ (6.81) $ 1,248,353 1,248,353 2020 11,139 5,154 1,819 3,583 2,205 2,666 575 16,002 (4,863) (458) (1,625) (6,946) (192) (34) (6,788) (20) (6,768) (3.86) (3.86) 1,752,960 1,752,960 (¹) Our revenue and cost of revenue, exclusive of depreciation and amortization, have been retrospectively adjusted to reflect the implementation of our new accounting policy adopted in the fourth quarter of 2020. Refer to Note 1 - Description of Business and Summary of Significant Accounting Policies for further information on the change in accounting policy. The accompanying notes are an integral part of these consolidated financial statements.
Expert Answer:
Answer rating: 100% (QA)
1 In order for Uber to break even in 2020 revenues would have to have been 16659 million This is cal... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
The auditor is auditing financial statements for the year ended December 31, 2011, and is completing the audit in early March 2012. The following situations have come to the auditor's attention: 1....
-
The Magna International Inc. financial statements for the year ended December 31, 2011, can be found on SEDAR (www.sedar.com). Instructions (a) The company has many different types of shares...
-
The auditor is auditing financial statements for the year ended December 31, 2015, and is competing the audit in early March 2016. The following situations have come to the auditor's attention....
-
Describe how price variances create incentives to build inventories.
-
Stockholders of Poppa Rollos Pizza have prospered during its second year of operation. In order to help with decisions on whether to open another pizzeria, Poppa Rollos Pizza has prepared the current...
-
What terminal selling price is required for a 15% internal rate of return on the Richie project? A. \($588\),028. B. \($593\),771. C. \($625\),839. Maximilian Bohm is reviewing several capital...
-
Which of the following statements about lift is false? a. Lift can be interpreted as how much more likely the antecedent and consequent itemsets occur together than if they were totally unrelated. b....
-
On May 2, 2019, HPF Vacations received its April bank statement from First City Bank and Trust. Enclosed with the bank statement, which appears below, was a debit memorandum for $160 that covered an...
-
1) your essay answers the question being posed in detail; 2) your responses must be at least 250 words per question; 3) APA formatting is mandatory, so please be sure your formatting is correct...
-
Aardvark, Inc., began 20X1 with the following receivables-related account balances: Accounts receivable ...................... $575,000 Allowance for credit losses .............. 43,250 Aardvarks...
-
Sheridan Publishing identified the following overhead activities, their respective costs, and their cost drivers to produce the three types of textbooks the company publishes. Activity (Cost) Machine...
-
discuss the detail about process of nitrogen fixation using the rhizobium bacteria that maintaining the balance of environment.
-
The president of a company says that new products to be introduced are sure to double company profits. Based on this, investors buy stock in the company, pushing up its price. The products flop, the...
-
Does the contract contain a lease? Specifically Is there an identified asset in the contract? If there is an identified asset, does the contract convey the right to control the use of the identified...
-
We have discussed how effective citizen advisory councils can be for building mutual trust. Not all successful chiefs of police buy into the concept, however. They complain that they do not want...
-
Sking about the potential deal, if pfizer acquires curevac what could be potential concerns in the deal or transaction considering pfizer is US based and curevac is german?
-
i) The acceleration of a vehicle starting from rest and at position x = 0 (i.e., v(0) = 0 m/s and x(0) = 0 m) is as shown in the figure below: a(t), m/s x(t) i(1) 10 C -10 v(1) 2 a) Knowing that...
-
The cost curve for the city water supply is C(Q) = 16 + 1/4 Q2, where Q is the amount of water supplied and C(Q) is the cost of providing Q acre-feet of water. (An acre-foot is the amount of water...
-
In Issue 338 of the Amstat News, thenpresident of the American Statistical Association Fritz Scheuren reported the results of a survey on how members would prefer to receive ballots in annual...
-
A right-tailed test with = 0.05. Determine the critical value(s) for a one-mean z-test. For each exercise, draw a graph that illustrates your answer.
-
Let X be a discrete random variable with a finite number of possible values, say, x1, x2, . . . , xm. For convenience, set pk = P(X = xk ), for k = 1, 2, . . . ,m. Think of a horizontal axis as a...
-
What is the relation between the square of the mean velocity and the mean of the velocity squared in the context of the Boltzmann distribution?
-
The distribution of the energy of the molecules is also of importance in the kinetics of chemical reactions. The fraction of molecules with energy in the range between \(E\) and \(E+d E\) is given...
-
The simple formula \(C_{p}=(5 / 2) R\) (molar units) is valid only for monatomic gases. A simple extension that has been suggested is \[C_{p}=\left(5+N_{\mathrm{r}} ight) \frac{1}{2} R\] where...
Study smarter with the SolutionInn App