ACCT 220 - UPS – SEC 10-K Report
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UPS – SEC 10-K REPORT
JEAN-JOSEPH BONI
NEED TO KNOW
•
United Parcel Service is one of the largest shipping and logistics companies in the world •
The company started in the telegraph industry with only $100 investment and it was previous named American Messenger Company founded by Claude Ryan in Seattle, Washington in the early 1900s. •
According to Forbes magazines, UPS has made $97.2 billion of revenue so far in 2022 (Forbes, n.d.) INTRODUCTION
NEED TO KNOW
•
UPS had a revenue of $49,144,000,000 (2022) and operating expenses ,which includes compensation and benefits, repairs and maintenance, depreciation and amortization, purchased transportation, fuel and other expenses, totaled to $42,358,000,000 (2022).
•
Operating profit totaled to $6,786,000,000 (2022) meaning the company earned more than it spent in 2022.
INCOME STATEMENT
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NEED TO KNOW
•
Account receivables are the balance of money that customers owe to a company for services and goods that have not been paid yet.
•
It includes balance that is already billed and currently due •
UPS’ account receivables in 2022 totaled to $11, 396,000,000
ACCOUNT RECEIVABLE
NEED TO KNOW
•
138 Class A common stock shares issued in 2022 valued $2,000,000
•
732 Class B common stock shares issued in 2022 valued $7,000,000
•
Total shareowners’ equity and liabilities are totaled to $70,089,000,000
SHAREOWNERS EQUITY
NEED TO KNOW
•
All the data in the 10-K Report suggested that UPS had a positive fiscal year.
•
COVID19 has been beneficial for the company as it has been one of the major players in moving goods and services around the globe when the economy was paused. CONCLUSION
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NEED TO KNOW
•
The comprehensive income statement “establishes standards for reporting and display of comprehensive income and its components (revenues, expenses, gains, and losses) in a full set of general-purpose financial statements” (FASB, n.d.)
•
UPS’ Comprehesive Income (Loss) reported $2,855,000,000 as of June 30
th
, 2022
COMPREHENSIVE INCOME (LOSS)
NEED TO KNOW
•
Forbes. (n.d.). United Parcel Service | UPS Stock Price, company Overview & News
. Forbes. Retrieved November 2, 2022, from https://www.forbes.com/companies/united-parcel-service/?sh=5e9e6b
4b72da
•
US S.E.C. (n.d.). UPS - Form 10-Q
. Inline XBRL Viewer. Retrieved November 3, 2022, from https://www.sec.gov/ix?doc=%2FArchives
%2Fedgar%2Fdata%2F1090727%2F000109072722000034%2Fups-
20220630.htm#idf962fbb8de4442ca7e7241710d28b36_22 •
FASB. (n.d.). Summary of statement no. 130. FASB. Retrieved November 11, 2022, from https://www.fasb.org/page/PageContent?
pageId=%2Freference-library%2Fsuperseded-standards%2Fsummary-
of-statement-no-130.html&bcpath=tff REFERENCES
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Part 1
(Comprehensive problem) Over the past few years, Microsoft founder Bill Gates' net worth has fluctuated between $20 billion and $130 billion. In early 2006, it was about $26
billion—after
he reduced his stake in Microsoft from 21 percent to around 14 percent by moving billions into his charitable foundation. Let's see what Bill Gates can do with his money in the following problems.
a. Manhattan's native tribe sold Manhattan Island to Peter Minuit for
$24
in 1626. Now,
387
years later in 2013, Bill Gates wants to buy the island from the "current natives." How much would Bill have to pay for Manhattan if the "current natives" want a
5
percent annual return on the original
$24
purchase price?
b. Bill Gates decides to pass on Manhattan and instead plans to buy the city of Seattle,
Washington,
for
$70
billion in
10
years. How much would Bill have to invest today at
9
percent compounded annually in order to purchase Seattle in
10…
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Jeter, Advanced Accounting, 6e
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CALCULATOR
PR
Exercise 13-4
On January 1, 2014, Trenten Systems, a U.S.-based company, purchased a controlling interest in Grant Management Consultants located in Zurich, Switzerland. The acquisition was treated as a
2014 financial statements stated in Swiss francs are given below.
GRANT MANAGEMENT CONSULTANTS
Comparative Balance Sheets
January 1 and December 31, 2014
Jan. 1
Dec. 31
Cash and Receivables
19,600
54,400
Net Property, Plant, and Equipment
40,200
37,600
Totals
59,800
92,000
Accounts and Notes Payable
29,500
32,200
Common Stock
19,600
19,600
Retained Earnings
10,700
40,200
Totals
59,800
92,000
GRANT MANAGEMENT CONSULTANTS
Consolidated Income and Retained Earnings Statement
for the Year Ended December 31, 2014
Revenues
74,900
Operating Expenses including Depreciation of 2,600 francs
Net Income
Dividends Declared and Paid
30,600
44,300…
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2 (CH 15-17)
You are the new accounting manager at the Barry Transport Company. Your CFO has asked you to provide input on the company's
income tax position based on the following:
1. Pretax accounting income was $78 million and taxable income was $15 million for the year ended December 31, 2021.
2. The difference was due to three items:
a. Tax depreciation exceeds book depreciation by $60 million in 2021 for the business complex acquired that year. This amount is
scheduled to be $70 million in 2022 and to reverse as ($70 million) and ($60 million) in 2023 and 2024, respectively.
b. Insurance of $9 million was paid in 2021 for 2022 coverage.
c. A $6 million loss contingency was accrued in 2021, to be paid in 2023.
3. No temporary differences existed at the beginning of 2021.
4. The tax rate is 25%.
Required:
1. Determine the amounts…
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ECO 232 Chapter 29 Quiz Flashc x
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Unit 1 Quiz
What do we call the study of the ways in which money is created and used in society?
O A
global trade
O B. bartering
OC. monopolies
OD.
economics
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Mode: CH-09 Assignment 0
Brief Exercise 9-11 [LO 9-1
Doughton Bearings produces ball bearings for industrial equipment. In evaluating the financial data from the previous year, the
management accountant has determined that the company's selling price per unit is $35, while the variable cost per unit is $30. What
is the contribution margin per unit?
Book
Contribution margin per unit
per beaning
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Chapter 14 Homework
#7
Wingter communications Corporation (WCC) produces.
airpods that
and this year's
Sales are expected to be 440, por set,
440,000 units. Vanable
Production costs at present are $1,560,000 WCC has
$4, 800,000 of debt outstanding at on
14
the
stack
7% There are 240,000 shares of common
outstanding, and there is no preferred stock. The dividend
payout ratio is 70% and wee is in the 25% federal-plus-
state tax brucket. WCC is a small company with average
Sales of $25 million or less during the past 3 years, so it
is exempt from the interest deduction limitation.
**
The company is considering inves has $7,200,000 in new equipment.
Sales would not increase, but variable costs per wit would decline
35 20%. Also, fixed operating costs would increase from $1,560,000
to $1,800,000. WCC could raise the required capital by bomowing
$7,200,000 at 10%
a) What would be wcC's EPS (1) under the old production process,…
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eferences
Mc
Graw
Hill
122.601
F1
@
2
W
S
X
*
and
Critical Thinking 4-1 (Algo)
Malcolm Figueroa is a sales employee of Carefree Pools and Spas, Incorporated. In 2021, he was issued a company car with a fair
market value of $35,000. He drove a total of 22,000 miles; used the car for 3,700 miles for personal use; and his employer paid for
fuel, charging Malcolm 5.5 cents per mile.
Required:
Under the lease-value rule, what is the amount that must be added to Malcolm's gross pay for 2021? (Use the following table for lease
values.) (Round "Employer Charge Per Mile" to 3 decimal places. Round other intermediate calculations and final answers to 2
decimal place.)
Employee Name: Malcolm Figueroa
Annual Lease Method:
1. Fair Market Value of Vehicle:
2. Annual Lease Value:
3. Prorated Annual Lease Percentage:
3. Prorated Annual Lease Percentage:
4. Prorated Annual Lease Value:
4. Prorated Annual Lease Value:
5. If fuel is provided by the employer, enter personal miles:
5.…
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Whispering Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested
construction of a new plant to meet the increasing demand for the company's bikes. After a careful evaluation of the request, the
board of directors has decided to raise funds for the new plant by issuing $ 3,018,500 of 8% term corporate bonds on March 1, 2020,
due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020.
At the time of issuance, the market interest rate for similar financial instruments is 6%.
Click here to view factor tables
As the controller of the company, determine the selling price of the bonds. (Round factor values to 5 decimal places, eg. 1.25124 and final
answer to O decimal places, e.g. 458,581.)
Selling price of the bonds
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Problem 17-2 Agency Costs
Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing.
Because of this, the company's profits are driven by the amount of work Tom does. If he
works 50 hours each week, the company's EBIT will be $560,000 per year; if he works a
60-hour week, the company's EBIT will be $645,000 per year. The company is currently
worth $3.3 million. The company needs a cash infusion of $1.4 million and can issue
equity or issue debt with an interest rate of 8 percent. Assume there are no corporate
taxes.
a. What are the cash flows to Tom under each scenario? (Do not round intermediate
calculations and enter your answers in dollars, not millions of dollars, rounded to
the nearest whole number, e.g., 1,234,567.)
b. Under which form of financing is Tom likely to work harder?
a. Debt issue and 50-hour week
a. Debt issue and 60-hour week
a. Equity issue and 50-hour week
a. Equity issue and 60-hour week
b. Which form…
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Assignment [25 Marks]
Important Warning: Do not use artificial intelligence to answer assignment questions. If our
system detects AI-generated responses, you will not receive any marks. Make sure to complete
the assignment answers on your own.
Good luck, students!
A corporation holds assets worth five times the value of its owner's equity, with a real estate
investment valued at $750,000. The firm's sales are seven times its owner's equity, and the
profit margin is 6%. What is the firm's ROA? Consider the average returns of the following
investments:
Average Return
Investment
Small Stocks 23.1%
S&P 500
13.7%
Corporate Bonds
7.2%
Treasury Bonds
6.5%
Treasury Bills 4.4%
What is the excess return for Treasury Bonds after spending $20 on management fees? %?
Case Study Question
GreenFoods, a mid-sized organic food company, has seen steady growth over the last decade due
to increasing consumer interest in organic and sustainable products. The company has built a
loyal customer base in urban…
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Finance
In Class Assignment 2 April 13, 2023 Case Study Cable & Moore With the company expanding into several new markets in the coming months, Cable & Moore was anticipating a large increase in sales revenue. The future looked bright for this provider of television, telephone, and Internet services. However, management of Cable & Moore was well aware of the importance of customer service in new markets. If customers had problems with new service and could not quickly and efficiently have their problems solved, demand would quickly erode, and it might take years to recover from the bad publicity. Therefore, management was adamant that there be enough well-trained customer service representatives to handle the calls from new customers and from potential customers. Based on experience in other markets, the anticipated number of phone calls to customer service was projected. Given the average call-length, the number of hours of customer-service time from April to August was…
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octoring Enable x +
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octoring Enabled: Chapter 4 Required Homework (G... i
03:48:29
5
The Home Depot is the largest home improvement retailer in the United States. Home Depot financial statements for 2024 are shown
below (in thousands):
2024 Income Statement
Net sales
Cost of goods sold
Gross profit
Operating expenses
Interest expense
Income tax expense
Net income
Assets
Cash
$ 10,000
(6,550)
3,450
(2,350)
(300)
(320)
$ 480
Comparative Balance Sheets
Accounts receivable
Inventory
Property, plant, and equipment (net)
Bonds payable
Common stock
Retained earnings
Liabilities and Shareholders' Equity
Current liabilities
December 31
2024
Saved
$ 700
700
900
3,000
$ 5,300
1,700
1,900
700
1,000
$ 5,300
2023
$ 600
500
700
3,100
$ 4,900
$ 1,450
1,900
700
850
$ 4,900
Help
Required:
Calculate Home Depot ratios for 2024.
Note: Consider 365 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places.
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