URS Corporation is an integrated engineering, construction, and technical services company that operates in nearly 50 countries.
Question:
1. URS’s 2010 balance sheet showed goodwill of $3,393.2 million out of total assets of $7,351.4 million and its 2011 balance sheet showed goodwill of $2,773.0 million out of total assets of $6,862.6 million. Express goodwill as a percentage of total assets for each year, and indicate what that suggests about the company’s growth.
2. From the information provided, can you determine whether URS engaged in any new acquisitions in 2011?
3. What happened to the excess earnings capacity of URS during 2011? How is this reflected in the company’s income statement and balance sheet?
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Related Book For
Introduction to Financial Accounting
ISBN: 978-0133251036
11th edition
Authors: Charles Horngren, Gary Sundem, John Elliott, Donna Philbrick
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