Chapter 5 Solutions

Chapter 5 Solutions - Gibson, Financial Reporting &...

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Gibson, Chapter 5 Basics of Analysis To The Net 1. Years Ended December 31 In Millions 2006 2005 2004 (In millions) Operating revenue: Ocean transportation $936 $873 $846 Logistics services 444 432 377 Property leasing 95 79 71 Property sales 8 98 81 Agribusiness 124 121 111 Total revenue $1,607 $1,603 $1,486 Horizontal Common-Size Years Ended December 31 2006 2005 2004 Operating revenue: Ocean transportation 110.6 103.2 100.0 Logistics services 117.8 114.6 100.0 Property leasing 133.8 111.3 100.0 Property sales 9.9 121.0 100.0 Agribusiness 111.7 109.0 100.0 Total revenue 108.1 107.9 100.0 Comment Property leasing had material gains Vertical Common-Size* Years Ended December 31 2006 2005 2004 Operating revenue: Ocean transportation 58.2 54.5 56.9 Logistics services 27.6 26.9 25.3 Property leasing 5.9 4.9 4.8 Property sales .5 6.1 5.5 Agribusiness 7.7 7.5 7.5 Total revenue 100.0 100.0 100.0 Comment Ocean transportation is the major segment and gaining *Some rounding differences 97
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Gibson, 2. Consolidated Statements of Earnings (In Millions) March 3, 2007 Feb. 25, 2006 Feb 26, 2005 Revenue $35,934 $30,898 $27,433 Cost of goods sold 27,165 23,122 20,938 Gross Profit 8,769 7,726 6,495 Selling, general, and administrative expense 6,770 6,082 5,053 Operating income 1,999 1,644 1,442 Horizontal Common-Size Consolidated Statements of Earnings March 3, 2007 Feb. 25, 2006 Feb. 26, 2005 Revenue 131.0 112.6 100.0 Cost of goods sold 129.7 110.4 100.0 Gross Profit 135.0 119.0 100.0 Selling, general, and administrative expense 134.0 120.4 100.0 Operating income 138.6 114.0 100.0 Note: Operating income increased materiality more than revenue Vertical Common-Size Consolidated Statements of Earnings March 3, 2007 Feb. 25, 2006 Feb. 26, 2005 Revenue 100.0 100.0 100.0 Cost of goods sold 75.6 74.8 76.3 Gross Profit 24.4 25.0 23.7 Selling, general, and administrative expense 18.8 19.7 18.4 Operating income 5.6 5.3 5.3 Note: A good increase in operating income 98
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Gibson, 3. Consolidated Balance Sheets (In Millions) December 31, 2006 2005 Liabilities and stockholders’ equity Total current liabilities $2,532 $1,899 Long-term debt 1,247 1,480 Other long-term liabilities 153 71 Stockholders’ equity Common stock 4 4 Treasury stock, at cost (252) ----- Additional paid-in capital 2,517 2,263 Accumulated other comprehensive income (loss) (1) 6 Accumulated deficit (1,837) (2,027) Total stockholder’s equity 431 246 Total liabilities and stockholders’ equity $4,363 $3,696 Horizontal Common-Size December 31, 2006 2005 Liabilities and stockholders’ equity: Total current liabilities 133.3 100.0 Long-term debt .8 100.0 Other long-term liabilities 215.5 100.0 Stockholders’ equity Common stock 100.0 100.0 Treasury stock, at cost N/A 100.0 Additional paid-in capital 111.2 100.0 Accumulated other comprehensive income (loss) N/A 100.0 Accumulated deficit 90.6 100.0 Total stockholders’ equity
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Chapter 5 Solutions - Gibson, Financial Reporting &...

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