FIN4060 Final Project

Running head: FINANCIAL STATEMENT INFORMATION 1

FINANCIAL STATEMENT INFORMATION 3

Financial Statement Information

Sonya Hatfield

South University Online

FIN 4060

Professor Clark

March 16, 2020

Cisco Systems Inc. and Dell Technologies Inc

The issues which cannot be obtained from the Cisco Systems Inc. and Dell Technologies Inc. financial statements are the actual market value of the firms, and whether fraudulent activity took place within the business. The aforementioned issues turn out to be of concern to any investor, as well as, other stakeholders because on the side of the investors, and they do not purchase stocks on the basis of a firm’s past financials. Buyers do not purchase a firm’s interest simply because it had a great year. The past cannot be the future; thus, intelligent shareholder put their cash into the future. In that respect, they have interests in a firm’s product research, backlog, future revenue streams and other multiple things that indicate the market value of a firm but cannot be derived from the financial statement (AICPA, 2019).

These products as well as services offered through Cisco organization, Inc is also efficiently commercialized. The Cisco Systems was initially marketed throughout educational innovations as well as has extended into the industry leader. Cisco organization commercialized their products as well as services in different means. For instance, Cisco Systems provided conference companies when advertising their goods, which advertised the company as active and engaged to their consumer support. Additionally, Cisco Systems as well as marketplace their products as well as services through getting the non-restrictive way. For example, Cisco Systems also does not consider one kind of application. Rather the corporation pays also close attention to the consumers, new plus future trends, as well as offers a variety of the options to every consumer. As the result of the Cisco organization's victorious marketing method, the corporation has as well become the foremost industry leader.

Important networks also have been critical to the Cisco organization Inc. The world leader into networking for the Internet, Cisco offers the comprehensive line of the solutions for carrying information, sound, and television at double settings120 and has been regarded with a number of the strategic networks within its pursuit of the competitive success. The Cisco lately broadcasted that it was altering its organizational system. In history, the business’s system had three main business units’ venture, the service provider, as well as commercial. Also, in every chance, this would be the case, even though the development of the strategy in addition to system In Cisco would finally settle the topic.

It should also be noted that from a financial statement, the investors, together with other stakeholders, cannot establish as to whether the firms were involved in fraudulent activities. In order to unearth involvement in fraudulent activity, much effort is required in looking at business practices, as well as, procedures inclusive of routines and benchmarks.

At the early twenty-first century, Dell extended its line of products to contain TVs, digital cameras, and the kind of the computer-related products. Also, In year 2003 the company was as well renamed Dell Inc. To indicate the change into the wider consumer electronics industry. Then in 2016 the company, as well as the finance firm, developed EMC, the American firm that dedicated in information warehousing. This Union, valued in roughly $ 60 billion, was the major technology trade in this moment.

No investor or any stakeholder that has an interest in dealing with a firm that is run by a treacherously management. In the fiscal year ended February 1, 2019, Dell Technologies Inc. made a net loss of $ 2.3 Billion, had total debts of $111.5 billion and an asset turnover of 0.78%. This implies that the firm has to come up with vibrant marketing strategies and introduce highly innovative products in order to scale up its sales and thus increase its revenue. On the side of Cisco Systems Inc. in the fiscal year ended 2019, reported net profitability revenue of the U.S $51.9 billion, had total debts of $24.6 billion and an asset turnover of 0.11%. This is an indication that the firm is performing well financially.

Reference

AICPA. (2019). Codification of Statements on Auditing Standards 2019: numbers 122 to 135. S.l.: John Wiley & Sons.