International Reporting Case: Bayer, Glaxo Smith-Kline and Merck

PROJECT 1: CHAPTER TWELVE

INTERNATIONAL REPORTING CASE;

BAYER, GLAXO SMITH-KLINE and MERCK

A) ROE= net income/Stockholders’ Equity

Bayer: 603/12,268= 4.92%

Glaxo: 4,302/10,091= 42.63%

Merck: 5,813/17,288= 33.6%

B)

PROJECT 2: CHAPTER THIRTEEN

FINANCIAL STATEMENT ANALYSIS CASES

CASE ONE: NORTHLAND CRANBERRIES

A. Current Year

Working Capital= current assets-current liabilities

6,745,759-10,168,685= -3,422,926

Current Ratio= current assets/current liabilities

6,745,759/10,168,685= .66

Previous Year

Working Capital= current assets-current liabilities

5,598,054-4,484,687= 1,113,367

Current Ratio=current assets/current liabilities

5,598,054/4,484,687=1.25

It is a concern that both current ratios are low and the working capital is in the negative.

B. Using averages calculated across quarterly data may remedy this situation.

PROJECT 3: CHAPTER FIFTEEN

BRIDGE TO THE PROFESSION

PROFESSIONAL RESEARCH: FASB CODIFICATION

A) FASB ASC 505-50-10 Disclosures of information about derivative instruments entered into in connection with the issuance of the contingently convertible securities may be useful in terms of fully explaining the potential impact of the contingently convertible securities. That information might include the terms of those derivative instruments (including the terms of settlement), how those instruments relate to the contingently convertible securities, and the number of shares underlying the derivative instruments. One example of a transaction entered into in connection with the issuance of a contingently convertible security is the purchase of a call option such that the terms of the purchased call option would be expected to substantially offset changes in value of the written call option embedded in the convertible security. Derivative instruments are also...