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Sales $Mil 1,750 2,093 2,128 2,487 2,688 2,633 Operating Income $Mil 309 329 359

ID: 2350667 • Letter: S

Question

Sales $Mil

1,750

2,093

2,128

2,487

2,688

2,633

Operating Income $Mil

309

329

359

405

397

329

Income Tax $Mil

124

104

116

127

129

109

Net Income $Mil

186

214

243

290

266

232

Earnings/Share $

1.99

2.25

2.61

3.11

2.86

2.57

EPS (Cont Ops) $

2.00

2.30

2.60

3.10

2.90

2.60

Dividends/Share $

0.28

0.36

0.45

0.68

0.80

0.60

Total Shares Mil

94

93

92

92

92

90

Cash Flow $Mil

Fiscal year-end: 1

TTM = Trailing 12 Months

2010

2011

2012

TTM

Operating Cash Flow

358

346

364

321

- Capital Spending

82

125

125

116

= Free Cash Flow

276

221

240

205

Balance Sheet

Assets

$Mil

Cash

272.0

Other Current Assets

811.0

Long-Term Assets

598.0

Total

1,681.1

Liabilities and Equity

$Mil

Current Liabilities

386.8

Long-Term Liabilities

243.4

Shareholders' Equity

1,050.8

Total

1,681.1

These are the questions that need to be answered base on the financial statement above.

1. Does the company use job order or process costing?

2.What are the direct materials for the company? List

3.What would the company's manufacturing overhead be comprised of? List

4. What are the company's period expenses? List

Sales $Mil

1,750

2,093

2,128

2,487

2,688

2,633

Operating Income $Mil

309

329

359

405

397

329

Income Tax $Mil

124

104

116

127

129

109

Net Income $Mil

186

214

243

290

266

232

Earnings/Share $

1.99

2.25

2.61

3.11

2.86

2.57

EPS (Cont Ops) $

2.00

2.30

2.60

3.10

2.90

2.60

Dividends/Share $

0.28

0.36

0.45

0.68

0.80

0.60

Total Shares Mil

94

93

92

92

92

90

Explanation / Answer

1.Products like clothing, repair shops and hospitals all use a form of job-order. 2.A direct materials inventory is a count of how much of a component of a product the company has on hand. For example, a clothing company may count how much of each type of fabric it uses or each type of thread it has available 3. the property tax on the factory building

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