Mini Case Assignment 4

Mini Case Assignment 4 - CEG GSB 703 Mini Case Assignment...

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CEG GSB 703 Mini Case Assignment #4 Adam Ohanesian Email: Adam.Ohanesian@nichols.edu Table of Contents I. Recasting Dell financial statements a. Table 4-1 b. Table 4-2 c. Table 4-3 II. Creative Technology a. Excess inventory b. Inventory impairment charge c. Changes in financial statements III. Acceptance Insurance Companies a. Loss revenues too low or too high b. Updated estimate c. Percentage outstanding d. Questions for the CFO IV. AMR a. Interest rate to capitalize its capital leases b. Capitalize operating leases c. Adjustment to balance sheet
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d. Affect on 2006 income statement V. Estimate the value of brands a. Underlying assumptions b. Questions for CFO VI. Indicators of long-term assets impaired a. Approach to asses dollar value of asset impairment b. Questions for CFO VII. Litigation risks a. Record a liability b. Questions for CEO VIII. General Motors a. Adjustment b. Factors for difference IX. Lufthansa a. Required adjustment b. X. Bristol-Myers Squibb a. Adjustments in balance sheet b. Underlying adjustments c. Affect of adjustments 1. Use the templates in Tables 4-1, 4-2, and 4-3 to recast the financial statements for Dell Inc.
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Income Statement: February 3, 2006 January 28, 2005 January 30, 2004 Sales $55,908 $49,205 $41,444 Cost of Sales 45,958 40,190 33,892 Gross Profit 9,950 9,015 7,552 5,140 4,298 3,544 Other Operating Expense 463 463 464 Operating Income 4,347 4,254 3,544 Investment Income 0 0 0 Other Income, net of Other Expense 0 0 0 Other Income 0 0 0 Other Expense 0 0 0 Net Interest Expense (Income) 227 191 180 Minority Interest 0 0 0 Pre-Tax Income 4,574 4,445 3,724 Tax Expense 1,002 1,402 1,079 Unusual Gains, Net of Unusual Losses (after tax) 0 0 0 Net Income 3,572 3,043 2,645 Preferred Dividends 0 0 0 Net Income to Common $3,572 $3,043 $2,645 Beginning Balance Sheet: February 3, 2006 January 28, 2005 Assets Cuurent Assets: Cash and Marketable Securities $9,058 $9,807 Accounts Receivable 5,452 4,548 Inventory 576 459 Other Current Assets 2,620 2,083 Total Current Assets 17,706 16,897 Long-Term Tangible Assets 2,005 1,691 Long-Term Intangible Assets 0 0 Other Long-Term Assets 3,398 4,627 Total Long-Term Assets 5,403 6,318 Total Assets $23,109 $23,205
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Accounts Payable 9,840 8,895 Short-Term Debt 0 0 Other Current Liabilities 6,087 5,241 Total Current Liabilities 15,927 14,136 Long-Term Debt 504 505 Deferred Taxes 0 0 Other Long-Term Liabilities (non-interest bearing) 2,549 2,089 Total Long-Term Liabilities 3,053 2,594 Total Liabilities 18,980 16,730 Minority Interest 0 0 Shareholder's Equity Preferred Stock 0 0 Common Shareholder's Equity 4,129 6,485 Total Shareholder's Equity 4,129 6,485 Total Liabilities and Shareholder's Equity $23,109 $23,205 Statement of Cash Flows: February 3, 2006 January 28, 2005 January 30, 2004 Net Income $3,572 $3,043 $2,645 After-tax net interest expense (income)
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This note was uploaded on 09/02/2011 for the course GSB 703 taught by Professor Girardin during the Summer '09 term at Nichols.

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Mini Case Assignment 4 - CEG GSB 703 Mini Case Assignment...

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