Individual Financial Statement Analysis
2. Income from operations (1,949 m), maturities of short-term investments (779 m), and sales of short term investments (325 m).
3. Purchases of short-term investments (1,241 m), Dividends paid (694m), and repurchases of common stock (1,075m).
5. Net income differs from net operating cash flows for several reasons, One reason is noncash expenses, such as depreciation and the amortization of intangible assets. These expenses, which require no cash outlays, reduce net income but do not affect net cash flows. Another reason is the many timing differences existing between the recognition of revenue and expense and the occurrence of the underlying cash flows. Finally, non-operating gains and losses enter into the determination of net ...view middle of the document...
Additionally, in November 2013, our Board of Directors authorized the repurchase of up to an additional $2.0 billion of our outstanding common stock. At December 31, 2013, we had approximately $2.3 billion available under these repurchase programs. Stock repurchases will take place from time to time at management’s discretion depending on market conditions.
Stock repurchases also include shares surrendered by employees to satisfy tax withholding obligations in connection with restricted stock awards, restricted stock units and stock options issued to employees.
1. Cash and cash equivalents consist of cash and highly liquid investments with original maturities of 90 days or less at the date of purchase. The estimated fair value of cash and cash equivalents approximates the carrying value due to their short maturities.
1. An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets. By maintaining accounts receivable, firms are indirectly extending interest-free loans to their clients. A high ratio implies either that a company operates on a cash basis or that its extension of credit and collection of accounts receivable is efficient.
2. Materials and purchased parts, work in process, finished goods.
1. First in, first out for both
2. Inventory turnover ratio change. Decreasing inventory turnover often means sales are decreasing below expected levels (U.S DoD budget cuts).
1. Maintaining the right amount of inventory is an important part of managing your small business’ resources and cash flow. Too much inventory takes up valuable resources and cash that cannot be used for other purposes, while too little might not be enough to meet customer demand.