...ACC230 Lucent Technologies 2. Evaluate the asset, debt, and equity structure of Lucent technologies, as well as trends and changes found on the common size balance sheet. Assets are current assets plus long-term assets, current assets were about 49.42% and fixed assets equal about 10%.Which has been mostly financed by long-term liabilities of 96% and short-term liabilities of 31%, this equals to 127% financing do to negative equity on previous year losses. In 2004 assets decreased to at about 48.52%, the company sold some of the fixed assets equaling about 13.5%. There was also an increase in inventory from 4% in 2003 to 4.8% in 2004. There was an increase in long-term liability of about 9% but there was also a decrease in short-term liability of about 9.5% which helps offsets the increase in the long-term liabilities. There was improvement in equity of about 9% for the year. 3. What concerns would investors and creditors have based on only this information? According to the balance sheet the company is not financially sound with mostly long-term financing 82% and short-term of about 26% a total of about 108% this is still high, Lucent inventory has also increased this is also something that needs to be kept in mind if the demand for the product starts to decline and there’s to much inventory that’s not moving what will be the carrying cost and can the company with stand those costs, and as an investor or creditor I am sure they definitely don’t want...
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...L 11 ESSAY ACC 230 - Cash Flow Methods By definition, the statement of cash flows is, “a financial statement that shows the sources and all of the uses of cash for an accounting period.” (Kemp & Waybright, 2013; 2010, p. 586) The statement of cash flows is also called the cash flow statement. Cash is the most important life line of a business. Without cash, the business cannot successfully maintain stability. Furthermore, without knowing where the cash is coming from, and going to, investors are more likely to not be attracted to the business. Businesses are much like people, in the sense that they are constantly worried about cash flow. They need a statement to explain to them where the cash is going, where it is coming from, and where they started to where they have come in the period. This is the statement of cash flows. The statement of cash flows categorizes the uses and sources of cash into three categories, operating activities, financing activities, and investing activities. The first category is operating activities. Operating activities are a part of the uses of cash, as well as, the sources of cash in a business. Uses of cash for a business are obviously how the business uses the cash, or in more basic terms how it spends its money (cash out). The sources of cash are respectively, the places the business gets its money (cash in). Operating cash flows, using the indirect method, includes net income, depreciation, depletion, and amortization expenses, gains and...
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...Week 2 - Assignment Lucent Technologies Axia College of University of Phoenix “Lucent Technologies design and deliver the systems, software and services that drive communication networks for the next-generation.” (Axia College, 2007) Lucent Technologies are also backed by Bell Labs research and development. Lucent Technologies customer base includes communication service providers, governments and enterprises all around the world. There are three segments that Lucent Technologies specializes in, Integrated Network Solutions (“INS”), Mobility Solutions (Mobility) and Lucent Worldwide Services (Services). INS is software that has a broad range and is related to voice messaging products, data and network management and optical networking. The Mobility segment specializes in wireless equipment and software to support radio access. The Services segment provides deployment, maintenance and support in their products. In 2001 through 2003, Lucent Technologies had a decrease in capital spending due to the economic slowdown. 2004 appears to be more profitable then the previous years. When looking at the common-sized balance sheet the total current assets of the company have gone down about .9%. Lucent Technologies had a pick up in marketable securities, other current assets and inventories. The decrease in assets came from the less cash on hand in 2004 and the amount of receivables received in 2004. The low receivables could be from customers slow paying due to the economic...
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...March 29, 2013 ACC230 Nortel Networks Case The Nortel case does show that Nortel has agreements in associated to the guarantee under FIN 45. The payments based on a liability, charges relating to assets, or equities security that was provided by third parties has to be made to that third party. Nortel was able to retain liabilities for the events that occurred before the sale. Nortel guaranteed escrow for specified periods and had no limits of the potential amounts of the liabilities. It seems to be common for a business sale agreement to exclude maximum amounts of these liabilities since it is difficult to estimate the maximum potential of them for the indemnification guarantees. The company has agreements with its customers, lease agreements, third party debt, banks, agents and suppliers of intellectual property. Nortel has not made any indemnification payments in relation to any of the agreements mentioned. With regards to the commitments Nortel has made those commitments through bids, performance bonds, and other bonds that are in relation to their contracts. Nortel did not make any significant payments for any of these. The company did make capital agreements requiring them to fund new capital. The commitment they have of $16 million expires on a variety of dates through 2012. Nortel has purchase commitments with some suppliers that hold Nortel to detailed purchases and minimums. I think that the disclosures are stated well, but based...
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...Lucent Technologies Sheila D Griffith ACC230 University of Phoenix, Axia College January 17, 2013 Craig Hanson Lucent Technologies The asset, debt and equity structure of Lucent Technologies is quite stable. For the years of 2003 and 2004 there is a marked trend toward increased assets and decreased liabilities. The overall picture showing that 2004 had about 6% more in assets then did the other years. The changes were really not that great in any category but there was a decrease in receivables but also a decrease in payables, I feel these two balance each other out for this time period. Hopefully this trend will continue as it has in inventory, marketable securities and goodwill. These all have higher percentages for the year 2004 then for the prior year of 2003. Liabilities as I have previously stated, accounts payable has decreased but payroll and benefit related liabilities has increased, long term debt has stayed within . 05% between the two years and other liabilities has decreased, so it seems to me that the overall outlook of Lucent Technologies would tend toward the company being quite solvent. Investors would see that as a whole this is a relatively good company to invest in. What they should look out for would be that our economy is not really healthy at this time which could affect the overall numbers. As an investor I would be the comprehensive loses and shareowner’s deficit. If and it does show that these deficits are becoming less with each...
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...CALIFORNIA STATE UNIVERSITY, DOMINGUEZ HILLS School of Business and Public Administration GOVERNMENTAL AND NONPROFIT ACCOUNTING-ACC 431 FALL 2014 Section 01, T 7-945 PM (SBS G126) Dr. Reza Mazhin Office: SBS C-302 Telephone: (310) 243-3576 Email: RMAZHIN@CSUDH.EDU Hours: T/TH: 430-530 PM Other times by appointment Catalog Description And Prerequisite: Prerequisite: ACC230 The course covers the nature of fund accounting system used by governments and nonprofit entities. Topics include principles underlying fund accounting, budgeting procedures, and discussion of types of funds used. Course requirements include a term project. Required Textbook: Reck, Lowensohn and Wilson, Accounting for Governmental and Nonprofit Entities, 16th Edition. Student Learning Objectives and Course Explanation and Policies: 1. Objectives of the Course For purposes of study and practice, the discipline of accounting is commonly divided into the following areas financial accounting, managerial accounting, tax accounting, and governmental/nonprofit or fund accounting. This course concentrates on fund accounting. Financial accounting has been characterized as the branch of accounting that focuses on the general-purpose reports on financial position and results of operations known as financial statements. These statements provide a continual history quantified in money terms of economic resources and obligations...
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