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I have to provide one half page double spaced APA text (minimum) on

the condition of the  'right-hand' side of the balance sheet for IBM (my chosen company) in terms of total debt to total equity of the firm.  In other words, provide and analyze the debt to equity ratio (I have provided spreadsheets for this).  I also need to skim through the annual report (i have attached) and need to provide one full APA page of text (minimum) that discusses the impressions on the company's income statement trends and balance sheet trends.  Report on at least one interesting finding from each of the income statement trends and balance sheet trends. List some interesting financial facts about your company.  This could be related to revenue, income, taxes paid. 
I can obviously write the paper up for this but was wondering if I could get some findings from the financials and touch on some of the questions that were asked of me. I am having a hard time looking at all of the financial information and picking out what stands out.

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qattachments_16c25b0187d7f6f338c7dc236813c2023d238c63 Page 1 ???INTERNATIONAL BUSINESS MACHINES CORP (IBM) CashFlowFlag BALANCE SHEET Fiscal year ends in December. USD in millions except per share data. 2012-12 Assets Current assets Cash Cash and cash equivalents 10412 Short-term investments 717 Total cash 11129 Receivables 12540 Inventories 2287 Deferred income taxes 1415 Prepaid expenses 4024 Other current assets 18038 Total current assets 49433 Non-current assets Property, plant and equipment Gross property, plant and equipment 40502 Accumulated Depreciation -26506 Net property, plant and equipment 13996 Equity and other investments 5021 Goodwill 29247 Intangible assets 3786 Deferred income taxes 3973 Prepaid pension benefit Other long-term assets 13757 Total non-current assets 69780 Total assets 119213 Liabilities and stockholders' equity Liabilities Current liabilities Short-term debt 9181 Accounts payable 7952 Taxes payable 4948 Accrued liabilities 9592 Deferred revenues 11952 Other current liabilities Total current liabilities 43625 Non-current liabilities Long-term debt 24088 Deferred taxes liabilities 448 Accrued liabilities 1925 Deferred revenues 4491 Pensions and other benefits 20418 Minority interest 124 Other long-term liabilities 5234 Total non-current liabilities 56728 Total liabilities 100353 Stockholders' equity Common stock 50110 Retained earnings 117641 Treasury stock -123131 Accumulated other comprehensive income -25760 Total stockholders' equity 18860
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qattachments_16c25b0187d7f6f338c7dc236813c2023d238c63 Page 2 Total liabilities and stockholders' equity 119213
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qattachments_0d67cf3e2b110088e6edd3f94e02004f28c741c6 Page 1 ???Growth Profitability and Financial Ratios for International Business Machines Corp Financials 2007-12 Revenue USD Mil 98786 Gross Margin % 42.2 Operating Income USD Mil 13516 Operating Margin % 13.7 Net Income USD Mil 10418 Earnings Per Share USD 7.15 Dividends USD 1.5 Payout Ratio % * 20.9 Shares Mil 1457 Book Value Per Share * USD 20.57 Operating Cash Flow USD Mil 16094 Cap Spending USD Mil -5505 Free Cash Flow USD Mil 10589 Free Cash Flow Per Share * USD 7.3 Working Capital USD Mil 8867 Key Ratios -> Profitability Margins % of Sales 2007-12 Revenue 100 COGS 57.76 Gross Margin 42.24 SG&A 22.33 R&D 6.23 Other Operating Margin 13.68 Net Int Inc & Other 0.98 EBT Margin 14.67 Profitability 2007-12 Tax Rate % 28.1 Net Margin % 10.55 Asset Turnover (Average) 0.88 Return on Assets % 9.32 Financial Leverage (Average) 4.23 Return on Equity % 36.57 Return on Invested Capital % 18.89 Interest Coverage 24.71 Key Ratios -> Growth 2007-12 Revenue % Year over Year 8.05 3-Year Average 0.86 5-Year Average 4 10-Year Average 2.32 Operating Income % Year over Year 13.3 3-Year Average 7.19 5-Year Average 14.74 10-Year Average 4.04
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qattachments_0d67cf3e2b110088e6edd3f94e02004f28c741c6 Page 2 Net Income % Year over Year 9.76 3-Year Average 7.31 5-Year Average 23.82 10-Year Average 5.51 EPS % Year over Year 17.51 3-Year Average 13.35 5-Year Average 28.37 10-Year Average 9.1 Key Ratios -> Cash Flow Cash Flow Ratios 2007-12 Operating Cash Flow Growth % YOY 7.16 Free Cash Flow Growth % YOY 7.47 Cap Ex as a % of Sales 5.57 Free Cash Flow/Sales % 10.72 Free Cash Flow/Net Income 1.02 Key Ratios -> Financial Health Balance Sheet Items (in %) 2007-12 Cash & Short-Term Investments 13.41 Accounts Receivable 23.9 Inventory 2.21 Other Current Assets 4.63 Total Current Assets 44.16 Net PP&E 12.52 Intangibles 13.61 Other Long-Term Assets 29.71 Total Assets 100 Accounts Payable 6.69 Short-Term Debt 10.16 Taxes Payable 3.05 Accrued Liabilities 8.76 Other Short-Term Liabilities 8.14 Total Current Liabilities 36.79 Long-Term Debt 19.13 Other Long-Term Liabilities 20.44 Total Liabilities 76.36 Total Stockholders' Equity 23.64 Total Liabilities & Equity 100 Liquidity/Financial Health 2007-12 Current Ratio 1.2 Quick Ratio 1.01 Financial Leverage 4.23 Debt/Equity 0.81 Key Ratios -> Efficiency Ratios Efficiency 2007-12 Days Sales Outstanding 44.81 Days Inventory 17.51 Payables Period 51.23
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2015 IBM Annual Report
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Subject: Business, Finance
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