Prepare the required common size income statements for ibm

Assignment Help Business Management
Reference no: EM131319861

Business Management Assignment

An annual report is a comprehensive statement describing a company's activities throughout the preceding year. Annual reports are intended to give shareholders and other interested stakeholders information about the company's activities and financial performance. All public corporations must provide shareholders with a financial report every year so that shareholders understand and are able to assess overall performance.

The front part of the report often contains an impressive combination of graphics, photos and an accompanying narrative, all of which chronicle the company's activities over the past year. The back part of the report contains detailed financial and operational information.

In this assignment, you will read and assess the financial performance of IBM, Inc. over the past couple of years. Begin by downloading the 2013 IBM annual report from the IBM Website.

Read Pages 1 - 28 and then find the financial data (i.e., income statements, balance sheets and statements of cash flows) on pages 78 - 81.
Using the IBM income statement data on Page 78 in the annual report, create a common size income statement by filling in the following format:

 

2013

2012

2011

Revenue (services)




Cost (services)




Gross profit (services)




Revenue (sales)




Cost (sales)




Gross profit (sales)




Revenue (financing)




Cost (financing)




Gross profit (financing)




 




Total revenue




Total cost




Gross profit (total)




Less expenses




Selling, general and administrative




Research, development, engineering




Intellectual property and custom development income




Other (income) and expense




Interest expense




Total expenses and other (income)




Income before taxes




Provision for income taxes




Net income




Then, using the income statement data and the balance sheet data on page 80 in the IBM annual report, create a table of ratios

To create the required common size income statements for IBM, see the following resources:

NetMBA (2010) Common Size Financial Statements Investigating AnswersUse total revenue for sales to construct these values.

Write a four-part analysis of IBM. In Section 1 your paper, summarize what you learned and/or found particularly interesting about IBM in your reading of the first 28 pages of the annual report. In Section 2, insert the tables you created (either cut and paste from Excel or create tables in Word) . In Section 3, evaluate IBM by discussing the numbers in your common size income statement and balance sheet ratios. Look for trends that identify areas of strength, stability or possible concern. Finally, in Section 4, find two scholarly reports that discuss IBM's financial performance during this period and discuss how those professional reports correlate with what you found in your analysis.

Length: 4-5 pages not including title page and references

Your response should demonstrate thoughtful consideration of the ideas and concepts presented in the course and provide new thoughts and insights relating directly to this topic. Your response should reflect scholarly writing and current APA standards.

Reference no: EM131319861

How can this practice help us in executing a project

Duration compression can make a difference in keeping your project on track. However, duration compression has some drawbacks depending on which method one uses. What is mea

Find the probability and interpret the results

Find the probability and interpret the results. Ifconvenient, use technology to find the probability. The population mean annual salary for environmental compliance speciali

Transportation carriers have continually adjusted daily

In this module's chapters, we see how transportation carriers have continually adjusted their daily routines to increase productivity and profits. The institution of the hub

Provide a reflection on weeks group activity

The assignment is to provide a reflection on this weeks group activity - regrading the  consulting of a new business (clothing store) in terms of management and marketing the

Cost to government for imposing the estate tax

1. What is the cost to government for imposing the estate tax? 2. What is the cost to the taxpayer for imposing the estate tax on him? 3. Does this case have to do with the ab

Explaining civil rights act or gender sensitivity issues

If the responsible manager and employees involved had been more aware of the Civil Rights Act or the gender sensitivity issues involved, how could he or she have handled it

Outline of a research project

A brief statement of the problem that you would like to investigate. Research aim and objectives that can solve the problem you have identified. A brief methodology: Provide

Employee development in solution

What assumptions can you make regarding how changes in diversity, workforce demographics, and organizational structures have impacted employee development programs?

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd