A major part of being a finance professional is mastering excel and assessing financial statements. For this assignment, you must apply what you have learned from the following module’s:
- Financial Statements
- Working with Financial Statements
- Long Term Planning and Financial Growth
In the blackboard assignment you will find an excel file labeled, “Assignment 2”.
The file has been populated by IBM’s historical financials. There are multiple tables including an Answer’s Tab, Income Statement, Balance Sheet, and Cash Flow tabs.
Use all the data found in the file to answer the questions in the “Answer’s Tab”. You will find that I have already started to fill out partial answers. It’s up to you to answer the remainder of the questions.
Answer's Tab 1.) Provide the following from 2014 - 2018 using IBM's financial statements a.) EBITDA 20142015201620172018 Revenue$ 90,736 b.) Net Working Capital 20142015201620172018 Current Assets$ 47,377 c.) Free Cash Flow 20142015201620172018 Cash from Ops.$ 16,868 d.) Gross Margin 20142015201620172018 Revenue$ 90,736 e.) Debt to Equity Ratio 20142015201620172018 Long-Term Debt$ 34,991 Income Statement International Business Machines Corporation (NYSE:IBM) > Financials > Income Statement Income Statement For the Fiscal Period Ending Reclassified 12 months Dec-31-2014Reclassified 12 months Dec-31-2015Reclassified 12 months Dec-31-2016Reclassified 12 months Dec-31-201712 months Dec-31-2018 CurrencyUSDUSDUSDUSDUSD Revenue90,736.079,878.078,210.077,424.077,991.0 Finance Div. Revenue2,057.01,864.01,710.01,715.01,599.0 Other Revenue-(1.0)(1.0)-1.0 Total Revenue92,793.081,741.079,919.079,139.079,591.0 Cost Of Goods Sold45,346.040,046.040,358.040,986.041,523.0 Finance Div. Operating Exp.1,040.01,011.01,044.01,210.01,132.0 Gross Profit46,407.040,684.038,517.036,943.036,936.0 Selling General & Admin Exp.21,549.019,589.020,225.020,900.020,325.0 R & D Exp.5,437.05,247.05,726.05,590.05,379.0 Depreciation & Amort.----- Other Operating Expense/(Income)(708.0)(669.0)(1,604.0)(1,445.0)(998.0) Other Operating Exp., Total26,278.024,167.024,347.025,045.024,706.0 Operating Income20,129.016,517.014,170.011,898.012,230.0 Interest Expense(484.0)(468.0)(630.0)(615.0)(723.0) Interest and Invest. Income90.072.0108.0144.0264.0 Net Interest Exp.(394.0)(396.0)(522.0)(471.0)(459.0) Currency Exchange Gains (Loss)(80.0)449.0(144.0)(64.0)(7.0) Other Non-Operating Inc. (Exp.)1,687.0249.0(79.0)156.062.0 EBT Excl. Unusual Items21,342.016,819.013,425.011,519.011,826.0 Restructuring Charges(1,472.0)(587.0)(1,038.0)(199.0)(598.0) Merger & Related Restruct. Charges(12.0)(26.0)(5.0)(52.0)(15.0) Impairment of Goodwill----- Gain (Loss) On Sale Of Invest.26.0(47.0)(23.0)20.0101.0 Gain (Loss) On Sale Of Assets236.013.027.021.028.0 Legal Settlements(148.0)(233.0)(56.0)91.0- Other Unusual Items13.06.0--- EBT Incl. Unusual Items19,985.015,945.012,330.011,400.011,342.0 Income Tax Expense4,234.02,581.0449.05,642.02,619.0 Earnings from Cont. Ops.15,751.013,364.011,881.05,758.08,723.0 Earnings of Discontinued Ops.(3,729.0)(174.0)(9.0)(5.0)5.0 Extraord. Item & Account. Change----- Net Income to Company12,022.013,190.011,872.05,753.08,728.0 Balance Sheet International Business Machines Corporation (NYSE:IBM) > Financials > Balance Sheet Balance Sheet Balance Sheet as of: Restated Dec-31-201412/31/1512/31/1612/31/1712/31/18Jun-30-2019 CurrencyUSDUSDUSDUSDUSDUSD ASSETS Cash And Equivalents8,476.07,686.07,826.011,972.011,379.045,399.0 Short Term Investments-508.0701.0608.0618.0874.0 Trading Asset Securities5.0--2.09.05.0 Total Cash & ST Investments8,481.08,194.08,527.012,582.012,006.046,278.0 Accounts Receivable9,090.08,333.09,182.09,399.07,853.08,008.0 Other Receivables2,906.01,201.01,057.0981.0743.01,781.0 Total Receivables11,996.09,534.010,239.010,380.08,596.09,789.0 Inventory2,103.01,551.01,553.01,583.01,682.01,745.0 Prepaid Exp.4,216.03,912.04,032.01,203.01,572.01,611.0 Finance Div. Loans and Leases, ST19,835.019,020.019,006.021,721.022,388.015,543.0 Restricted Cash---262.0225.0135.0 Other Current Assets746.0293.0532.02,004.02,677.02,416.0 Total Current Assets47,377.042,504.043,889.049,735.049,146.077,517.0 Gross Property, Plant & Equipment39,034.029,343.030,133.032,331.032,460.036,841.0 Accumulated Depreciation(28,263.0)(18,616.0)(19,303.0)(21,215.0)(21,668.0)(21,641.0) Net Property, Plant & Equipment10,771.010,727.010,830.011,116.010,792.015,200.0 Long-term Investments1,222.01,131.0659.0581.0439.02,120.0 Goodwill30,556.032,021.036,199.036,788.036,265.035,284.0 Other Intangibles3,104.03,487.04,688.03,742.03,087.02,728.0 Finance Div. Loans and Leases, LT11,109.010,013.09,021.09,550.09,148.08,441.0 Deferred Tax Assets, LT6,675.04,822.05,224.04,862.05,216.05,274.0 Deferred Charges, LT1,524.01,626.01,496.02,136.02,676.02,662.0 Other Long-Term Assets4,933.04,164.05,464.06,846.06,613.05,426.0 Total Assets117,271.0110,495.0117,470.0125,356.0123,382.0154,652.0 LIABILITIES Accounts Payable6,864.06,028.06,209.06,451.06,558.04,724.0 Accrued Exp.9,593.07,499.07,860.07,474.06,778.07,802.0 Short-term Borrowings1,130.01,190.01,274.01,772.03,156.08,057.0 Curr. Port. of LT Debt4,601.05,271.06,239.05,215.07,055.06,530.0 Curr. Port. of Cap. Leases-----1,326.0 Curr. Income Taxes Payable5,084.02,847.03,235.04,219.03,046.02,439.0 Unearned Revenue, Current12,131.011,259.011,299.011,829.011,436.011,261.0 Other Current Liabilities178.0175.0159.0403.0198.0212.0 Total Current Liabilities39,581.034,269.036,275.037,363.038,227.042,351.0 Long-Term Debt34,991.033,431.034,663.039,871.035,681.058,381.0 Capital Leases-----4,011.0 Unearned Revenue, Non-Current3,691.03,771.03,600.03,746.03,445.03,474.0 Pension & Other Post-Retire. Benefits18,261.016,504.017,070.016,720.017,002.016,471.0 Def. Tax Liability, Non-Curr.129.0253.0424.0545.03,696.0- Other Non-Current Liabilities8,604.07,843.07,046.09,386.08,401.012,188.0 Total Liabilities105,257.096,071.099,078.0107,631.0106,452.0136,876.0 Common Stock52,666.053,262.053,935.054,566.055,151.055,404.0 Additional Paid In Capital------ Retained Earnings137,793.0146,124.0152,759.0153,126.0159,206.0160,467.0 Treasury Stock(150,715.0)(155,518.0)(159,050.0)(163,507.0)(168,071.0)(169,385.0) Comprehensive Inc. and Other(27,876.0)(29,606.0)(29,398.0)(26,591.0)(29,490.0)(28,841.0) Total Common Equity11,868.014,262.018,246.017,594.016,796.017,645.0 Minority Interest146.0162.0146.0131.0134.0131.0 Total Equity12,014.014,424.018,392.017,725.016,930.017,776.0 Total Liabilities And Equity117,271.0110,495.0117,470.0125,356.0123,382.0154,652.0 Cash Flow International Business Machines Corporation (NYSE:IBM) > Financials > Cash Flow Cash Flow For the Fiscal Period Ending 12 months Dec-31-2014Restated 12 months Dec-31-2015Restated 12 months Dec-31-2016Restated 12 months Dec-31-201712 months Dec-31-2018 CurrencyUSDUSDUSDUSDUSD Net Income12,022.013,190.011,872.05,753.08,728.0 Depreciation & Amort.3,145.02,662.02,837.03,021.03,127.0 Amort. of Goodwill and Intangibles1,347.01,193.01,544.01,520.01,353.0 Depreciation & Amort., Total4,492.03,855.04,381.04,541.04,480.0 (Gain) Loss From Sale Of Assets(1,535.0)481.062.014.0123.0 Stock-Based Compensation512.0468.0544.0534.0510.0 Net Cash From Discontinued Ops.3,381.071.0--- Other Operating Activities(238.0)1,386.0(1,132.0)(931.0)852.0 Change in Acc. Receivable1,270.0812.0712.01,297.01,006.0 Change In Inventories(39.0)133.0(14.0)18.0(127.0) Change in Acc. Payable(456.0)81.0197.047.0126.0 Change in Other Net Operating Assets(2,541.0)(3,222.0)462.05,451.0(451.0) Cash from Ops.16,868.017,255.017,084.016,724.015,247.0 Capital Expenditure(3,740.0)(3,579.0)(3,567.0)(3,229.0)(3,395.0) Sale of Property, Plant, and Equipment404.0370.0424.0460.0248.0 Cash Acquisitions(656.0)(3,349.0)(5,696.0)(496.0)(139.0) Divestitures2,357.0(401.0)(454.0)(205.0)- Sale (Purchase) of Intangible assets(443.0)(572.0)(583.0)(544.0)(569.0) Invest. in Marketable & Equity Securt.155.0(231.0)(161.0)(1,039.0)(554.0) Net (Inc.) Dec. in Loans Originated/Sold(1,078.0)(398.0)(891.0)(2,028.0)(503.0) Other Investing Activities-1.0--(1.0) Cash from Investing(3,001.0)(8,159.0)(10,928.0)(7,081.0)(4,913.0) Short Term Debt Issued-101.026.0620.01,341.0 Long-Term Debt Issued8,180.05,540.09,132.09,643.06,891.0 Total Debt Issued8,180.05,641.09,158.010,263.08,232.0 Short Term Debt Repaid(1,753.0)---- Long-Term Debt Repaid(4,644.0)(5,622.0)(6,395.0)(6,816.0)(8,533.0) Total Debt Repaid(6,397.0)(5,622.0)(6,395.0)(6,816.0)(8,533.0) Issuance of Common Stock709.0322.0--- Repurchase of Common Stock(13,679.0)(4,857.0)(3,628.0)(4,533.0)(4,614.0) Common Dividends Paid(4,265.0)(4,897.0)(5,256.0)(5,506.0)(5,666.0) Total Dividends Paid(4,265.0)(4,897.0)(5,256.0)(5,506.0)(5,666.0) Special Dividend Paid----- Other Financing Activities--204.0174.0112.0 Cash from Financing(15,452.0)(9,413.0)(5,917.0)(6,418.0)(10,469.0) Foreign Exchange Rate Adj.(655.0)(473.0)(51.0)937.0(495.0) Misc. Cash Flow Adj.---(1.0)- Net Change in Cash(2,240.0)(790.0)188.04,161.0(630.0)