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Assets

2012

2011

Cash and cash equivalents (Notes 1 and 2)

$14,911

24,542

Marketable securities (Notes 1 and 2)

6,178

7,719

Accounts receivable trade, less allowances for doubtful accounts $466 (2011, $361)

11,309

10,581

Inventories (Notes 1 and 3)

7,495

6,285

Deferred taxes on income (Note 8)

3,139

2,556

Prepaid expenses and other receivables

3,084

2,633

Total current assets

46,116

54,316

Current Liabilities

Loans and notes payable (Note 7)

$4,676

6,658

Accounts payable

5,831

5,725

Accrued liabilities

7,299

4,608

Accrued rebates, returns and promotions

2,969

2,637

Accrued compensation and employee related obligations

2,423

2,329

Accrued taxes on income

1,064

854

Total current liabilities

24,262

22,811

Review on Net Cash Flows from Operating Activities.

The net cash flow from operating activities increased from the year 2011 to the year 2012 by a margin of one thousand. This is because there was an increase in the net earnings in the year 2012 and moreover the was also a significant increase in the Depreciation and amortization of property and intangibles. This implicates that the company sold more that’s why there was a significant increase, which otherwise means there was a huge stock turnover. My recommendations is that the company should watch out on the increase of the current and noncurrent liabilities so that it should not have a negative effect on the net cash flow.

Review on Net Cash used by Investing Activities.

The net cash used by investing activities decreased from the year 2011 to the year 2012 by a margin of $100. This was because of a decrease in the purchase of investments and the acquisition of net cash acquired. This resulted to the negative deviation all through in the Net cash used in investing activities. All this implicated that less investing was made in the financial year 2012 than in the year 2011.I do recommend that the company should watch over its purchase of investments so that it can have a positive deviation always.

Review on Net Cash used by Financing Activities

The net cash generally used by financing activities increased from the year 2011 to the year 2012 by a margin of $15000. This was due to a significant increase in the purchase of common stock and a reduction in the retirement in the short-term debt. This occurrence caused a positive deviation which resulted to the general increase in the financial activities meaning it was a good year for financial activities. My recommendations is that the company should work towards reducing both short-term and long-term activities.

Review on Cash and Cash Equivalents at the end of the Years.

There was a decrease by a margin of $10000 from the year 2011 to the year 2012. This was because there was an increase in the Cash and Cash Equivalents at the beginning of the Year and a decrease in the cash and cash equivalents as the year proceeded. My recommendation is that the company should watch over its cash and cash equivalents.

Comparison of the two financial years.

The year 2012 stands to have a better financial year compared to the year 2011as you consider the selected quarterly Financial data results we see that the net earnings per share increase. For example, there was a tax gain of $106 million in the year 2012 The second quarter of 2012 includes after-tax charges of $717 million for asset write-downs, $611 million from net litigation, $564million associated with the acquisition of Scythes, Inc. and $344 million from impairment of in-process research and development.