Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Question
Chapter 11, Problem 1WM
Summary Introduction
(A)
To determine:
The company Sprint Corp's recent financial data and assessing the same.
Introduction:
Initially, we derive the financial data from the mentioned website and assess the
Expert Solution
Explanation of Solution
Here is the balance sheet of Sprint Corp Company.
Balance Sheet
| Period Ending | 3/31/2018 | 3/31/2017 | 3/31/2016 | 3/31/2015 |
| Current Assets | ||||
| Cash And Cash Equivalents | 6,610,000 | 2,870,000 | 2,641,000 | 4,010,000 |
| Short Term Investments | 2,354,000 | 5,444,000 | - | 166,000 |
| Net Receivables | 3,711,000 | 4,138,000 | 2,254,000 | 3,488,000 |
| Inventory | 1,003,000 | 1,064,000 | 1,173,000 | 1,359,000 |
| Other Current Assets | 312,000 | 303,000 | 399,000 | 353,000 |
| Total Current Assets | 14,253,000 | 14,117,000 | 6,833,000 | 9,777,000 |
| Long Term Investments | 197,000 | 237,000 | 187,000 | 151,000 |
| Property Plant and Equipment | 19,925,000 | 19,209,000 | 20,297,000 | 19,721,000 |
| 6,586,000 | 6,579,000 | 6,575,000 | 6,575,000 | |
| Intangible Assets | 43,774,000 | 43,905,000 | 44,542,000 | 45,880,000 |
| Accumulated Amortization | - | - | - | - |
| Other Assets | 724,000 | 1,076,000 | 541,000 | 737,000 |
| Deferred Long Term Asset Charges | - | - | - | - |
| Total Assets | 85,459,000 | 85,123,000 | 78,975,000 | 82,841,000 |
| Current Liabilities | ||||
| Accounts Payable | 3,409,000 | 3,281,000 | 2,899,000 | 4,347,000 |
| Short/Current Long Term Debt | 3,429,000 | 5,036,000 | 4,690,000 | 1,300,000 |
| Other Current Liabilities | 2,832,000 | 2,912,000 | 3,215,000 | 3,956,000 |
| Total Current Liabilities | 10,800,000 | 12,458,000 | 11,963,000 | 10,940,000 |
| Long Term Debt | 37,463,000 | 35,878,000 | 29,268,000 | 32,342,000 |
| Other Liabilities | 10,777,000 | 17,979,000 | 17,961,000 | 17,849,000 |
| Deferred Long Term Liability Charges | - | - | 116,000 | - |
| Minority Interest | 63,000 | - | - | - |
| Negative Goodwill | - | - | - | - |
| Total Liabilities | 59,040,000 | 66,315,000 | 59,192,000 | 61,131,000 |
| Stockholders' Equity | ||||
| Misc. Stocks Options Warrants | - | - | - | - |
| Redeemable |
- | - | - | - |
| Preferred Stock | - | - | - | - |
| Common Stock | 40,000 | 40,000 | 40,000 | 40,000 |
| -1,255,000 | -8,584,000 | -7,378,000 | -5,383,000 | |
| -313,000 | -404,000 | -442,000 | -415,000 | |
| Capital Surplus | 27,884,000 | 27,756,000 | 27,563,000 | 27,468,000 |
| Other |
-313,000 | -404,000 | -439,000 | -408,000 |
| Total Stockholder Equity | 26,356,000 | 18,808,000 | 19,783,000 | 21,710,000 |
| Net Tangible Assets | -24,004,000 | -31,676,000 | -31,334,000 | -30,745,000 |
The total assets are 85,459,000 while the current assets are 14,253,000, which make 16.7% of its total. As for liabilities, the total is 59,040,000 and the current liabilities are 10,800,000, which makes 18.3%.
Conclusion:
As a conclusion, the financial statistics of a company keeps changing according to the new changes made in the operations, other new financial activities, and business development and so on.
Summary Introduction
(B)
To determine:
The company Sprint Corp's recent financial data and assessing the same.
Introduction:
Initially, we derive the financial data from the mentioned website and assess the balance sheet to find out the stand of total liabilities, assets, debts, and other financial activities including the cash flow.
Expert Solution
Explanation of Solution
Here is the balance sheet of Sprint Corp Company.
Balance Sheet
| Period Ending | 3/31/2018 | 3/31/2017 | 3/31/2016 | 3/31/2015 |
| Current Assets | ||||
| Cash And Cash Equivalents | 6,610,000 | 2,870,000 | 2,641,000 | 4,010,000 |
| Short Term Investments | 2,354,000 | 5,444,000 | - | 166,000 |
| Net Receivables | 3,711,000 | 4,138,000 | 2,254,000 | 3,488,000 |
| Inventory | 1,003,000 | 1,064,000 | 1,173,000 | 1,359,000 |
| Other Current Assets | 312,000 | 303,000 | 399,000 | 353,000 |
| Total Current Assets | 14,253,000 | 14,117,000 | 6,833,000 | 9,777,000 |
| Long Term Investments | 197,000 | 237,000 | 187,000 | 151,000 |
| Property Plant and Equipment | 19,925,000 | 19,209,000 | 20,297,000 | 19,721,000 |
| Goodwill | 6,586,000 | 6,579,000 | 6,575,000 | 6,575,000 |
| Intangible Assets | 43,774,000 | 43,905,000 | 44,542,000 | 45,880,000 |
| Accumulated Amortization | - | - | - | - |
| Other Assets | 724,000 | 1,076,000 | 541,000 | 737,000 |
| Deferred Long Term Asset Charges | - | - | - | - |
| Total Assets | 85,459,000 | 85,123,000 | 78,975,000 | 82,841,000 |
| Current Liabilities | ||||
| Accounts Payable | 3,409,000 | 3,281,000 | 2,899,000 | 4,347,000 |
| Short/Current Long Term Debt | 3,429,000 | 5,036,000 | 4,690,000 | 1,300,000 |
| Other Current Liabilities | 2,832,000 | 2,912,000 | 3,215,000 | 3,956,000 |
| Total Current Liabilities | 10,800,000 | 12,458,000 | 11,963,000 | 10,940,000 |
| Long Term Debt | 37,463,000 | 35,878,000 | 29,268,000 | 32,342,000 |
| Other Liabilities | 10,777,000 | 17,979,000 | 17,961,000 | 17,849,000 |
| Deferred Long Term Liability Charges | - | - | 116,000 | - |
| Minority Interest | 63,000 | - | - | - |
| Negative Goodwill | - | - | - | - |
| Total Liabilities | 59,040,000 | 66,315,000 | 59,192,000 | 61,131,000 |
| Stockholders' Equity | ||||
| Misc. Stocks Options Warrants | - | - | - | - |
| Redeemable Preferred Stock | - | - | - | - |
| Preferred Stock | - | - | - | - |
| Common Stock | 40,000 | 40,000 | 40,000 | 40,000 |
| Retained Earnings | -1,255,000 | -8,584,000 | -7,378,000 | -5,383,000 |
| Treasury Stock | -313,000 | -404,000 | -442,000 | -415,000 |
| Capital Surplus | 27,884,000 | 27,756,000 | 27,563,000 | 27,468,000 |
| Other Stockholder Equity | -313,000 | -404,000 | -439,000 | -408,000 |
| Total Stockholder Equity | 26,356,000 | 18,808,000 | 19,783,000 | 21,710,000 |
| Net Tangible Assets | -24,004,000 | -31,676,000 | -31,334,000 | -30,745,000 |
The company seems to have issued new debt. The total cash flow in 2018 is -210,000. Total debt includes 40.68B.
Conclusion:
As a conclusion, the financial statistics of a company keeps changing according to the new changes made in the operations, other new financial activities, and business development and so on.
Summary Introduction
(C)
To determine:
The company Sprint Corp's recent financial data and assessing the same.
Introduction:
Initially, we derive the financial data from the mentioned website and assess the balance sheet to find out the stand of total liabilities, assets, debts, and other financial activities including the cash flow.
Expert Solution
Explanation of Solution
Here is the balance sheet of Sprint Corp Company.
Balance Sheet
| Period Ending | 3/31/2018 | 3/31/2017 | 3/31/2016 | 3/31/2015 |
| Current Assets | ||||
| Cash And Cash Equivalents | 6,610,000 | 2,870,000 | 2,641,000 | 4,010,000 |
| Short Term Investments | 2,354,000 | 5,444,000 | - | 166,000 |
| Net Receivables | 3,711,000 | 4,138,000 | 2,254,000 | 3,488,000 |
| Inventory | 1,003,000 | 1,064,000 | 1,173,000 | 1,359,000 |
| Other Current Assets | 312,000 | 303,000 | 399,000 | 353,000 |
| Total Current Assets | 14,253,000 | 14,117,000 | 6,833,000 | 9,777,000 |
| Long Term Investments | 197,000 | 237,000 | 187,000 | 151,000 |
| Property Plant and Equipment | 19,925,000 | 19,209,000 | 20,297,000 | 19,721,000 |
| Goodwill | 6,586,000 | 6,579,000 | 6,575,000 | 6,575,000 |
| Intangible Assets | 43,774,000 | 43,905,000 | 44,542,000 | 45,880,000 |
| Accumulated Amortization | - | - | - | - |
| Other Assets | 724,000 | 1,076,000 | 541,000 | 737,000 |
| Deferred Long Term Asset Charges | - | - | - | - |
| Total Assets | 85,459,000 | 85,123,000 | 78,975,000 | 82,841,000 |
| Current Liabilities | ||||
| Accounts Payable | 3,409,000 | 3,281,000 | 2,899,000 | 4,347,000 |
| Short/Current Long Term Debt | 3,429,000 | 5,036,000 | 4,690,000 | 1,300,000 |
| Other Current Liabilities | 2,832,000 | 2,912,000 | 3,215,000 | 3,956,000 |
| Total Current Liabilities | 10,800,000 | 12,458,000 | 11,963,000 | 10,940,000 |
| Long Term Debt | 37,463,000 | 35,878,000 | 29,268,000 | 32,342,000 |
| Other Liabilities | 10,777,000 | 17,979,000 | 17,961,000 | 17,849,000 |
| Deferred Long Term Liability Charges | - | - | 116,000 | - |
| Minority Interest | 63,000 | - | - | - |
| Negative Goodwill | - | - | - | - |
| Total Liabilities | 59,040,000 | 66,315,000 | 59,192,000 | 61,131,000 |
| Stockholders' Equity | ||||
| Misc. Stocks Options Warrants | - | - | - | - |
| Redeemable Preferred Stock | - | - | - | - |
| Preferred Stock | - | - | - | - |
| Common Stock | 40,000 | 40,000 | 40,000 | 40,000 |
| Retained Earnings | -1,255,000 | -8,584,000 | -7,378,000 | -5,383,000 |
| Treasury Stock | -313,000 | -404,000 | -442,000 | -415,000 |
| Capital Surplus | 27,884,000 | 27,756,000 | 27,563,000 | 27,468,000 |
| Other Stockholder Equity | -313,000 | -404,000 | -439,000 | -408,000 |
| Total Stockholder Equity | 26,356,000 | 18,808,000 | 19,783,000 | 21,710,000 |
| Net Tangible Assets | -24,004,000 | -31,676,000 | -31,334,000 | -30,745,000 |
Other companies like Square Inc., Nio Inc and Morgan Stanley have been assessed. After the assessment, it is clear that no patterns as such have been followed.
Conclusion:
As a conclusion, the financial statistics of a company keeps changing according to the new changes made in the operations, other new financial activities, and business development and so on.
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Chapter 11 Solutions
Essentials Of Investments
Ch. 11.2 - Prob. 1EQCh. 11.2 - Prob. 2EQCh. 11.2 - Prob. 3EQCh. 11.3 - Prob. 1EQCh. 11.3 - Prob. 2EQCh. 11.3 - Prob. 3EQCh. 11 - Prob. 1PSCh. 11 - Prob. 2PSCh. 11 - Prob. 3PSCh. 11 - Prob. 4PS
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