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FINC600 W4 DQ

Answer with a substantive post at least three of these questions in two different days.
Remember that the first post should be before Wednesday at 11.59 pm and the last post before
Saturday at 11.59 pm MT.
Important: choose one question and make comments in a single post. Do not answer several
questions in one post. Questions 1, 2 or 3 should be between your three answers. All the students
should answer Question 4.

1. Web Field-Trip / Document Sharing


Learners are encouraged to increase the references provided by the instructor and share knowledge
amongst themselves.
Visit the Web and search for interesting references related to Cash Flows.
Indicate the complete URL and a five-line comment of the content. Write the reference following APA style.

2. Around the World: Web-Adventure


In this unit, the need of having an international perspective is mentioned.
Non-US organizations related to the management field are producing interesting materials in this field
and Internet makes easier to access them.

Web-trip around the world: look for articles, videos and podcasts

Question: What other interesting sources have you discovered in your trip? (Share with the class the
complete URL and a five-line comment of the content. Write the reference following APA style.)

3. Podcasts
Visit the US Securities and Exchange Commissions site, CCN and universities. For example.
Harvard University has podcasts.
Use that information in your discussion questions and assignments. What kind of information can you
get?

4. Nordstrom
Do you find any difference between these balance sheets? Which one do you understand better?
BalanceSheet1

Jan.29 Jan.30
$inmillions 2011 2010
Assets
Currentassets:
Cashandmarketablesecurities Cashandcashequivalents $1,506 $795
Accountsreceivable Accountsreceivable,net 2,026 2,035
Inventory Merchandiseinventories 977 898
Othercurrentassets Currentdeferredtaxassets,net 236 238
Othercurrentassets Prepaidexpensesandother 79 88
Totalcurrentassets 4,824 4,054
Longtermtangibleassets Land,buildingsandequipment(net 2,318 2,242
ofaccumulateddepreciationof
$3,520and$3,316)
Longtermintangibleassets Goodwill 53 53
Otherlongtermassets Otherassets 267 230
Totalassets $7,462 $6,579
LiabilitiesandShareholders
Equity
Currentliabilities:
Accountspayable Accountspayable $846 $726
Othercurrentliabilities Accruedsalaries,wagesand 375 336
relatedbenefits
Othercurrentliabilities Othercurrentliabilities 652 596
Shorttermdebt Currentportionoflongtermdebt 6 356
Totalcurrentliabilities 1,879 2,014
Longtermdebt Longtermdebt,net 2,775 2,257
Otherlongtermliabilities Deferredpropertyincentives,net 495 469
Otherlongtermliabilities Otherliabilities 292 267
Commitmentsandcontingencies
Shareholdersequity:
Commonshareholderequity Commonstock,noparvalue: 1,168 1,066
1,000sharesauthorized;218.0
and217.7shareissuedand
outstanding
Commonshareholderequity Retainedearnings 882 525
Commonshareholderequity Accumulatedother (29) (19)
comprehensiveloss
Totalshareholdersequity 2,021 1,572
Totalliabilitiesandshareholders $7,462 $6,579
equity
Nordstrom Balance Sheet 2


$ in millions January 29, 2011 January 30, 2010
ASSETS
Cash and Marketable Securities $ 1,506 $ 795
Accounts Receivable 2,026 2,035
Inventory 977 898
Other Current Assets 315 326
Total Current Assets 4,824 4,054

Long-Term Tangible Assets 2,318 2,242


Long-Term Intangible Assets 53 53
Other Long-Term Assets 267 230
Total Long-Term Assets 2,638 2,525
Total Assets $ 7,462 $ 6,579

LIABILITIES
Accounts Payable $ 846 $ 726
Short-Term Debt 6 356
Other Current Liabilities 1,027 932
Total Current Liabilities 1,879 2,014

Long-Term Debt 2,775 2,257


Other Long-Term Liabilities 787 736
Total Long-Term Liabilities 3,562 2,993
Total Liabilities $ 5,441 $ 5,007

Shareholders Equity
Preferred Stock 0 0
Common Shareholders Equity 2,021 1,572
Total Shareholders Equity 2,021 1,572
Total Liabilities and Shareholders Equity $ 7,462 $ 6,579

5. CFO Report
The cigarette industry is subject to litigation for health hazards posed by its products. The industry
has been in an ongoing process of negotiating a settlement of these claims with state and federal
governments. As the CFO for Altria Group, the parent company of Philip Morris, one of the larger
firms in the industry, what information would you report to investors in the annual report on the firms
litigation risks? How would you assess whether the firm should record a liability for this risk, and if so,
what approach would you use to assess the value of this liability? As a financial analyst following
Philip Morris, what questions would you raise with the CEO over the firms litigation liability?
Hint: look at the website of the company.

6. NICKEL INDUSTRIE
Nickel Industries reported the following amounts on its balance sheet on December 31, 2014:
Cash $180,000

Notes payable 100,000

Inventory 325,000

Contributed Capital 750,000

Net Property, Plant & Equipment 600,000

Accounts Receivable 30,000

Accounts Payable 75,000

Retained Earnings ?

Questions:
1. What is the amount of Nickels total assets at the end of 2011?
2. Identify the items listed above that are liabilities.
3. What is the amount of Nickels retained earnings at the end of 2011?
4. Prepare a balance sheet for Nickel Industries using U.S. GAAP as of December 31, 2011.
5. Nickel Industries wishes to purchase merchandise from your company on account. The amount of the
purchases would probably be about $11,000 per month, and the terms would require Nickel to make payment
in full within 30 days. Would you recommend that your company grant credit to Nickel under these terms?
Explain the reasoning for your response.