Assignment

 Instructions

1. Review the Weekly Activities for Week 2.
2. Write a brief report with at least two paragraphs.
3. Submit this as a Word document.

The report should address:

• What areas did I have difficulty with and what areas did I find easy to understand?
• Was I successful in my time management or did I run out of time to complete my work to a high-quality level?
• Are there any changes I should make in my approach to the class for future weeks?
• Questions remaining after reading discussions related to weekly learning activities.

  

Johnson and Johnson

https://www.investor.jnj.com/annual-meeting-materials/2020-annual-report

What are the Description and Dollar Value of the first line on the Income Statement (it may be net sales)?

The revenue of Johnson & Johnson, according to the consolidated statements of comprehensive income, was positive, meaning the company made a profit. This income statement being a multi-step it shows the after-tax effects of the operations. The total comprehensive income for the year ended in 2020 was $15,363 million. The dollar value of the net earning for 2020 is $14714 million. The company's performance is good, and the operations of the company lead to profits. The income statement shows that the company is profitable and also it is compliant with tax requirements. The team member benefits are adequately compensated, and risks hedged. The summarized sales in 2020 amount to $82584 million. This is an increase from 2019, which shows that the company's performance is increasing hence its profitability. The expenses such as the interest expense and income expenses are allotted and calculated to show their effect on the company's profitability. This information is essential because the company can restrategize to minimize the expenses to increase profitability.

The company's management can use this income statement to focus on the areas that increase the company's profitability. For example, the income statement shows expenses such as research and development, selling and marketing, and administrative expenses, among others. Using sales, it is possible to realize which expense is more important in the company and its ability to produce outputs. Expenses such as selling and marketing are significant because they contribute to sales. Therefore, when looking for costs to minimize or cut off, it is critical to ensure that the impact of the expense is known through sales in the income statement.

Locate the Balance Sheet (it may have a different heading, such as the Statement of Financial Position).

The balance sheet, found on page 41, contains the following line assets and their dollar values. The cash and equivalents have a dollar value of $13985 million, marketable securities $11200 million, inventories $9344 million; there are also the noncurrent assets, including property plant and equipment with a dollar value of $18766, goodwill $36393, intangible assets $53402 among others.

The balance sheet is used to show the assets and liabilities of Johnson & Johnson's company. The company has liabilities such as loans with a dollar value of $2631, accounts payable of $9505, among other current liabilities. There are also noncurrent liabilities such as long-term debt, which amounts to $32635 deferred taxes with a dollar value of $7214. the company obligations are lower than its assets. The total assets amount to $174894, while the total liabilities are $111616. This means that the company can meet its obligations when and if they fall due without constraints. It is also well leveraged, and it can undertake new ventures. With this kind of balanced operations and constant cashflows, Jonson & Johnson can carry out essential activities like rolling out vaccines which require a lot of research and development. The company also can access financing because of its good balance sheet. The company's liabilities can support the operations, which allow the company to undertake new ventures such as coming up with new medical interventions or undertaking research. The shareholder equity, which amounts to $63278, shows that the shareholders in the company have invested adequately in the company giving it a good financial position that allows it to expand. The shareholder equity and the total liabilities, which have a dollar value of $174894, show that the firm is well-financed, and its capital structure is sound. A good capital structure boosts the performance and the financial position of a company. A good capital structure also ensures that the company does not struggle to meet its financial obligations in times of financial constraints or when risks arise. In this case, the company can continue with operations even in a financial crisis, such as the crisis brought by the covid 19 pandemic.

Statement of Owner’s Equity: Post the line items and dollar values in the "Equity" section of the balance sheet

In the shareholder's equity, the following items are given with their dollar value. Common stock amounts to $3120, accumulated other comprehensive income loss amounting to $15242, and retained earnings amount to $113890. The company's equity shows its obligation to the shareholders to pay dividends. However, dividends are produced according to the company's type of shareholders and the profits made by the company. Some shareholders are paid first. They are called the preference shareholders. The advantage of equity is that dividends cannot be reimbursed from the capital, but for creditors, for instance, loans they can be paid from the money, which might affect the company's performance. This company has good equity, which boosts its financial position.

What is the Net Income (or Net Loss) for your SEC 10-K company?

The net income shows that Jonson & Jonson company's profitability is increasing, and therefore the company is gaining an increased competitive advantage in the market. The company's net earnings were $14714 in 2020; it is an increase from the previous year, meaning its performance is increasing. A positive net income also shows that the company made profits hence showing good performance.

 

WK2: SEC 10-K Financial Statements

Contains unread posts

Overview

Answer all of the following questions and do not cut and paste from your company SEC report.

1. What is the Description and Dollar Value of the first line on the Income Statement (it may be net sales)?
2. Locate the Balance Sheet (it may have a different heading, such as the Statement of Financial Position).
3. What are the names of the assets and their values (if more than five line items, report only the first five line items and dollar values)?
4. Statement of Owner’s Equity: Post the line items and dollar values in the "Equity" section of the balance sheet. You will likely find line items including Common Stock, Retained Earnings (or Deficit), and Treasury Stock.
5. What is the Net Income (or Net Loss) for your SEC 10-K company?

Discussion Requirements

1. The comments/responses should include at least four sentences (if you create a separate answer for each of the items in the list you will meet this requirement).
2. Locate the Income Statement (may have a different heading such as Statement of Consolidated Operations). Hint: First line should relate to Revenue.
3. Take care with the concept of $ dollars. Many financial statements are expressed in millions of $. You would report $895 million for the value $895,000,000. Be a very careful reader.
4. Include the name of your SEC 10-K company in the subject line and the link to your SEC 10-K financial statement when posting

 

WK2: SEC 10-K Financial Statements

Contains unread posts

Overview

Answer all of the following questions and do not cut and paste from your company SEC report.

1. What is the Description and Dollar Value of the first line on the Income Statement (it may be net sales)?
2. Locate the Balance Sheet (it may have a different heading, such as the Statement of Financial Position).
3. What are the names of the assets and their values (if more than five line items, report only the first five line items and dollar values)?
4. Statement of Owner’s Equity: Post the line items and dollar values in the "Equity" section of the balance sheet. You will likely find line items including Common Stock, Retained Earnings (or Deficit), and Treasury Stock.
5. What is the Net Income (or Net Loss) for your SEC 10-K company?

Discussion Requirements

1. The comments/responses should include at least four sentences (if you create a separate answer for each of the items in the list you will meet this requirement).
2. Locate the Income Statement (may have a different heading such as Statement of Consolidated Operations). Hint: First line should relate to Revenue.
3. Take care with the concept of $ dollars. Many financial statements are expressed in millions of $. You would report $895 million for the value $895,000,000. Be a very careful reader.
4. Include the name of your SEC 10-K company in the subject line and the link to your SEC 10-K financial statement when posting