Solution
Khushboo answered on
Oct 22 2021
Your Company
Color coding: fill-in / change as needed Student Name Here Version : 9/30/20
Step 1: Done in the class discussion page, you already know the auditor so enter it below.
Before Step 2: Add your name on row 1, rename this file by replacing a short company name and your initials after "10-K_SEC", and replace the Your Company tab below as appropriate.
Step 2: Complete the rest of this header, the yearends for the 3 years, and the consolidated income statement. Do not use the Comprehensive Income Statement.
Start the income statement with the net income from the 10-K on row 59 to be used as a check figure.
Step 3: Complete the rest of the financials including other extracted information and PP&E detail.
Step 4: Complete the ratios and at least 5 footnotes with explanations for the significant differences.
Step 5: Starts the group part of the project where you submit your Excel to the Group page in Canvas.
Color coding: LEAVE ALONE - programmed and don't delete or add rows.
Color coding: Additional instruction or hint
Color coding: Use appropriate formula with an "=" and pointing to the items. Not used until the Ratio Section in Step 4.
Color coding: see footnote (fn) regarding this item used in Step 4. For examples see the Thor tab.
Company Name
The Boeing Company
Short Name for Comparision
Boeing
What is the primary industry of the company? Aerospace
The monetary unit of the financial statement? USD or other? US Dollars
Is the monetary unit in thousands, millions, or other? Enter below as stated in F/S.
Show as it appears on your 10-K financials
Paul's Laptop: Paul's Laptop:
Choose one, in thousands or millions. (in millions except per share amounts)
Date of issuance / filing of the SEC 10k report. 2/15/20 Usually about 45 days after the yearend.
How many pages of notes are there?
Paul's Laptop: Paul's Laptop:
Notes follow the financial statements and are usually about 20 pages long. Do not give me the number of pages in the 10-K report. 62
What is the name of the first note? Summary of significant accouting policies
Name of the Independent CPA auditor? Deloitte & Touche LLP
What type of auditor's opinion was issued? Presented fairly
The Boeing Company Remember Gold: Leave alone - programmed Horizontal Analysis Ch02
Consolidated Statements of Operations
Paul R StJohn: Paul R StJohn: What does your company call the income statement as there are a few variations? Thor uses Consolidated Income Statement. Only the income statement is to be done. Ignore the Comprehensive Income Statement in your Financial Statements. With Vertical Analysis %'s based on Revenues / Sales Increase / % Increase / %
(in millions except per share amounts) Newest Yr End Middle Yr End Oldest Yr End (Decrease) Change (Decrease) Change
Years ended
Paul R StJohn: Paul R StJohn: Place the yearends for the newest to oldest year in columns C, E, & G. 12/31/19 12/31/18 12/31/17 Bet. Newest/Middle Yr. Bet. Middle/Oldest Yr.
Sale of products
Paul R StJohn: Paul R StJohn: Replace operating revenue #1 with the terminology used for your most important revenue item. Some companies will only have one.
Most companies only use revenue #1 and its associated cost of revenue #1. $ 66,094 85.6% $ 90,229 89.2% $ 83,740 89.1% $ (24,135) -26.7% $ 6,489 7.7%
Cost of products
Paul R StJohn: Paul R StJohn:
Cost of revenue #1 should go here and not in Operating Expenses. Change the wording in description line as it may be Cost of Product, Cost of Service, Cost of Sales, etc. 62,877 95.1% 72,922 80.8% 68,879 82.3% (10,045) -13.8% 4,043 5.9%
Gross profit on revenue #1 ckfigure $ 3,217 4.9% $ 17,307 19.2% $ 14,861 17.7% $ (14,090) -81.4% $ 2,446 16.5%
Sale of services
Paul R StJohn: Paul R StJohn:
Use revenue #2 only if there is a second operating revenue with associated costs. If the second revenue item has no associated costs then list it under Operating revenue #3. $ 10,465 13.5% $ 10,898 10.8% $ 10,265 10.9% $ (433) -4.0% $ 633 6.2%
Cost of services 9,154 87.5% 8,499 78.0% 7,663 74.7% 655 7.7% 836 10.9%
Gross profit on revenue #2 $ 1,311 12.5% $ 2,399 22.0% $ 2,602 25.3% $ (1,088) -45.4% $ (203) -7.8%
Gain on disposition
Paul R StJohn: Paul R StJohn:
Only use revenue #3 for revenues with no associated costs. If there is more than one you may combine and relabel. $ 691 0.9% $ 75 0.1% $ 21 0.0% $ 616 821.3% $ 54 257.1%
Total revenue (operating #1 - #3) $ 77,250 100.0% $ 101,202 100.0% $ 94,026 100.0% $ (23,952) -23.7% $ 7,176 7.6%
Blended Gross Profit for both revenue #1 & #2 $ 4,528 5.9% $ 19,706 19.5% $ 17,463 18.6% $ (15,178) -77.0% $ 2,243 12.8%
Operating expenses:
Boeing capital interest expenses
Paul R StJohn: Paul R StJohn:
Do not put cost of revenue/sales here as it belongs above. $ 62 0.1% $ 69 0.1% $ 70 0.1% $ (7) -10.1% $ - 0 0.0%
General and administrative expense 3,909 5.1% 4,567 4.5% 4,095 4.4% (658) -14.4% 472 11.5%
Research and development expenses net 3,219 4.2% 3,269 3.2% 3,179 3.4% (50) -1.5% 90 2.8%
Loss from operating investment 4 0.0% (111) -0.1% (204) -0.2% 115 -103.6% 93 -45.6%
Additional operating expense - 0 0.0% - 0 0.0% - 0 0.0% - 0 0.0% - 0 0.0%
If you have more than 6, combine the rest here - 0 0.0% - 0 0.0% - 0 0.0% - 0 0.0% - 0 0.0%
Total operating expenses $ 7,194 9.3% $ 7,794 7.7% $ 7,140 7.6% $ (600) -7.7% $ 654 9.2%
Net Operating Income ckfigure $ (1,975) -2.6% $ 11,987 11.8% $ 10,344 11.0% $ (13,962) -116.5% $ 1,643 15.9%
Non-operating revenues or (expenses):
Other income $ 438 0.6% $ 92 0.1% $ 123 0.1% 346 376.1% (31) -25.2%
Other non-operating revenues - 0 0.0% - 0 0.0% 0.0% - 0 0.0% - 0 0.0%
Interest and debt expenses (722) -0.9% (475) -0.5% (360) -0.4% (247) 52.0% (115) 31.9%
Other non-operating (expense) - 0 0.0% - 0 0.0% - 0 0.0% - 0 0.0% - 0 0.0%
Income before income taxes ckfigure $ (2,259) -2.9% $ 11,604 11.5% $ 10,107 10.7% $ (13,863) -119.5% $ 1,497 14.8%
Provision for income taxes (benefit
ecovery) (1,623) -2.1% 1,144 1.1% 1,649 1.8% (2,767) -241.9% (505) -30.6%
Net income before minority/discontinued $ (636) -0.8% $ 10,460 10.3% $ 8,458 9.0% $ - 0 0.0% $ - 0 0.0%
Minority/noncontrolling interest income - net
Paul R StJohn: Paul R StJohn:
This is not always used and can be replaced with any other post income tax item. - 0 0.0% - 0 0.0% 0.0% - 0 0.0% - 0 0.0%
Discontinued operation - net of tax
Paul R StJohn: Paul R StJohn:
This is not always used and can be replaced with any other post income tax item. - 0 0.0% - 0 0.0% - 0 0.0% - 0 0.0% - 0 0.0%
Net income (loss) and profitability % $ (636)
Paul's Laptop: Paul's Laptop:
Net income (loss) or net earnings needs to agree with the 10-K. -0.8% $ 10,460 10.3% $ 8,458 9.0% $ (11,096) -106.1% $ 2,002 23.7%
Net income (loss) on the 10-K for comparision $ (636) $ 10,460 $ 8,458
start here with net income from the 10-K
Calculated (Gold) net income agrees with 10-K Yes Yes Yes Stop here for Step 2!
Earnings per common share - basic (include pennies) $ (1.12) $ 18.05 $ 14.03
Basic average outstanding shares
Paul's Laptop: Paul's Laptop:
Convert to millions or thousands so that it is in agreement with net income. This is an average during the year and may be different than the end of the year outstanding. 565.40 579.20 602.50
Common Dividends per Share, if any (include pennies) $ 8.22 $ 7.19 $ 5.97
Retained Earnings - Statement of Equity:
Paul R StJohn: Paul R StJohn:
The retained earnings information is usually found as a column in the Statement of Shareholders' Equity. 12/31/19 12/31/18 12/31/17
Accumulated Deficit or other name variation place here. 12/31/16
Paul's Laptop: Paul's Laptop:
This date should be one year before the ending retained earnings for this year.
Date of Beg. RE
Beginning Retained Earnings $ 55,941 $ 49,618 $ 41,754
Start here
Add: Net income /(loss) (636) 10,460 8,458
Impact of ASU 2018-02
Paul's Laptop: Paul's Laptop:
Cash Common Dividends are entered below. Prefe
ed and Stock Dividends entered here with other increases and decreases to Retained Earnings. (33) - 0 2,997
Share based compensation - 0 (36) (35)
Others - 0 - 0
Sub-total $ 55,272 $ 60,042 $ 53,174
Cash Common dividends, if any [enter as negative] (4,628) (4,101) (3,556)
Ending Retained Earnings calculated ckfigure $ 50,644 $ 55,941 $ 49,618
Ending...