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TEST YOUR UNDERSTANDING AA Comprehensive Analysis urpose:Analyze the income stat

ID: 2340077 • Letter: T

Question

TEST YOUR UNDERSTANDING AA Comprehensive Analysis urpose:Analyze the income statement, the balance sheet, and the statement of cash flows. Prepare a statement of retained carnings. LUCENT TECHNOLOGIES INC. Balance Sheet 9/30/2002 9/30/2001 9/30/2000 9/30/1999 $ 2,.894 2,390 1467 1,686 Cash and cash equivalents Short-term investments Receivables Inventories Other current assets 1,526 8,799 4,594 3,646 5.473 16,103 8,782 5,100 5,191 4,240 19,240 6,219 Total current assets 9,155 20,540 Property, plant, and equipment, net Goodwill and other intangibles Other long-term assets 1,977 224 4,416 1,466 5,046 6,463 TOTAL assets Accounts payable Accrued expenses Current portion of long-term debt Other current liabilities 1,844 1,500 1,135 3,8145.690 10,169 1,298 1,094 120 2,583 1,010 3,468 2,537 1,788 1,705 3,120 9,150 10,160 3,030 11,180 Total current liabilities 6,326 3,274 4,162 Long-term debt Other long-tenn liabilities 3,236 11.283 Total long-term liabilities 14,519 10,638 12,286 20,45 20,80721340 21.436 TOTAL liabilities Preferred stock, redeemable Common stock, par Additional paid-in capital Retained earnings Other equity 1,680 35 20,606 1,834 34 21,702 34 20,374 6,130 7,994 6,188 (3.350)(441)(366)277) (3,054) 12,857 26,172 13,936 (22,025) (10,272) TOTAL equity TOTAL laities and stockholders'equity $17,791 $33,664 47.512 $35.372 Page 119 Review Interpreting and Analyzing 3e

Explanation / Answer

Statement of Retained Earnings 15 Net income reported for the fye 2001 totals $(16,198)million and is initially reported on the income statement. Dividends paid during fye 2001 total $(204)million and are initially reported on the Statement of Cash Flows. Beginning and ending amount for retained earnings are initially reported on the balance sheet. Retained Earnings, 9/30/2000 $6,130 Add: Net Profit ($16,198) Less: Dividends ($204) Retained Earnings, 9/30/2001 ($10,272)