Use the IBM Financial Report and the excerpted IBM Financial Statements found at the Wileyplus website under Chapter 14 Materials to answer the following questions.
NOTE: FOR ANY RATIO THAT REQUIRES YOU TO USE NET SALES IN THE COMPUTATION, USE TOTAL REVENUES.
Round all amounts to the nearest two decimal places.
1. What is IBM's current ratio on December 31, 2015?
2. What is IBM's acid-test or quick ratio on December 31, 2015?
3. What is IBM's Receivable Turnover for 2015?
(NOTE: use TRADE receivables only)
4. What is the number of days to collect accounts receivable for IBM for 2015?
5. What is IBM's inventory turnover for 2015?
(NOTE--use TOTAL COST for Cost of Goods Sold)
6. What is IBM's days to sell inventory for 2015?
7. What is IBM's conversion period for 2015?
8. What is IBM's asset turnover for 2015?
9. What is IBM's profit margin on sales or return on sales for 2015?
10. What is IBM's return on assets for 2015?
11. What is IBM's cash return on sales for 2015?
12. What is IBM's return on TOTAL common stockholders' equity for 2015?
13. What is IBM's TOTAL basic (no dilution) earnings per share for 2015?
14. What is IBM's TOTAL earnings per share assuming dilution for 2015?
15. What is IBM's price to earnings ratio for 2015?
(NOTE--use the TOTAL earnings per share assuming dilution and use the HIGH stock price from the FOURTH quarter from the quarterly data given on page 148 of the complete financial report).
16. What is IBM's payout ratio for 2015?
(Note--cash dividends paid on common stock can be found on the Five-Year Comparison of Selected Data on Page 147 of the complete financial report.)
17. What is IBM's debt to total assets on December 31, 2015?
18. What is times interest earned for IBM for 2015?
19. What is IBM's cash debt coverage for 2015?
20. How many shares of IBM common stock have been authorized as of December 31, 2015?
21. How many shares of IBM common stock have been issued as of December 31, 2015?
22. How many of the issued shares of IBM common stock are being held as treasury shares as of December 31, 2015?
23. How many shares of IBM common stock are outstanding as of December 31, 2015?
24. What is IBM's book value per share outstanding on December 31, 2015?
(NOTE: Use IBM's Stockholders' Equity--don't forget that financial statement dollar amounts are in millions of dollars)
25. What is IBM's comprehensive income for 2015 (in millions of dollars)?
26. Was the computation of comprehensive income for IBM shown 1-at the bottom of the income statement; 2-on a separate schedule reconciling net income to comprehensive income; or 3-on the expanded statement of equity?
27. Was IBM's cash flow statement prepared using the direct or indirect method?
28. Which SPECIFIC investing or financing activity USED the most cash during 2015?
29. Which SPECIFIC investing or financing activity PROVIDED the most cash during 2015?
30. On the Statement of Financial Position (Balance Sheet) on December 31, 2015, what does the balance of the account "Noncontrolling Interest" represent?
Use the information in the "Significant Accounting Policies" in the complete financial report to answer the following questions. On the financials, the LETTER of the note giving further explanation of the account is given--you can use the table of contents to more easily find specific notes.
31. Are IBM's marketable securities accounted for as trading securities or available for sale securities? Where are the unrealized gains and losses on valuation reported?
32. What is the par value of IBM's common stock?
33. IBM Purchased 14 companies as subsidiaries during the year. Name four of them.
34. What depreciation method does IBM use?
35. IBM is organized into how many different business segments? Name two of them.
36. Who is IBM's auditor? What opinion did they issue for 2015?
37. Compute the PERCENT OF CHANGE from 2014 to 2015 in Total Liabilities, Total Assets, Total Revenue, and Net Income. Be sure to indicate whether the change is positive or negative.
38. Prepare a VERTICAL ANALYSIS or common-size income statement for 2015 for the following items only: Total Revenue, Total Cost, Gross Profit, Total Expense and Other Income, Income from Continuing Operations Before Income Taxes, Provision for Income Taxes, Income from Continuing Operatings, Loss from Discontinued Operations, and Net Income.
39. Using the Five Year Comparison of Selected Financial Data on page 147 of the complete financial report, compute a TREND analysis for the Revenue and the Net Income from 2011 to 2015 using 2011 as the base.
Attachment:- Assignment Files.rar