2024 – 16 List the amount of cash flows from each of the three activities Operating Investing and Financing

 

16. List the amount of cash flows from each of the three activities, Operating, Investing, and Financing for the two most recent years. What was the overall $ increase or decrease in cash for each of these years (Note: Please state the overall $ increase or decrease, not the $ increase or decrease in each cash flow category)?
17. Were there any Non-cash Investing/Financing Transactions listed on the Statement of Cash Flows? If so, describe the type and amount.
18. What is the dollar difference between the company’s net income and cash provided by operating activities?
19. What investing activity provided the largest inflow of cash in the most recent year?
20. What investing activity used the largest amount of cash in the most recent year?
21. What financing activity provided the largest inflow of cash in the most recent year?
22. What financing activity used the largest amount of cash in the most recent year?
23. Does the company have sufficient cash inflows from the Operating category? Describe any problems the company may experience with cash flow from your analysis of the cash flow statement.
24. What was the $ change in Retained Earnings for the two most recent years (Note: Don’t just state the Retained Earnings balance for the two most recent years. State the $ change). What was net income for the most recent year? How much in total (not per share) was declared in dividends during the most recent year?
25. Were the dividends on common stock and/or preferred stock? What was the per share amount of each?
26. Did Retained Earnings change for any reasons other than net income or dividends in the most recent fiscal year? Explain.
27. What classes of stock does your company have?
28. How many shares of each class of stock are authorized, how many are issued, and how many are outstanding (as of the most recent Balance Sheet date)?
29. Does your company have any treasury stock? If so, how many shares and what total dollar amount?
30. What is the par or stated value of each of your company’s classes of stock?

Footnote Disclosures:
31. How many Notes to the Financial Statements does your company have?
32. How many significant accounting policies are listed under its Summary of Significant Accounting Policies?
33. What does it include as Cash and Cash Equivalents?
34. What method does it use to value Inventory?
35. What method(s) does it use to depreciate its assets?
36. Does it have any leased assets? If so, describe.
37. What policies does it have in regard to Foreign Currency Translations?
38. Describe any pending lawsuits in which it is involved (Note: Don’t just list the lawsuits. Describe them).
39. What were the basic Earnings per Share for the two most recent years?

Report of the Independent Auditor(s):
40. Who is your company’s external auditor?
41. Where are they located (List the location of the office that audits your client, not the auditor’s national headquarters)?
42. Does the auditor give a qualified opinion, an unqualified opinion, a disclaimer of opinion, or an adverse opinion? What does that opinion mean? Is it good?
43. What is the auditor’s responsibility in regard to the financial statements?
44. What is management’s responsibility in regard to the financial statements?
45. What financial statements were included in the auditor’s opinion? Please list the individual financial statements included.
46. Did the auditor believe that the statements were presented fairly?

Management’s Report:
47. Who bears the responsibility for the integrity and the objectivity of the financial statements?
48. What does management say they are doing to assure the public that the financial information is reliable?
49. What is the responsibility of the Audit Committee of the Board of Directors?

Analysis: (use Excel to complete this section)
50. Provide common-size analysis of your company’s income statement and balance sheet for the two most recent years. (Must be done using Excel with formulas.)
51. Provide horizontal analysis of your company’s income statement and balance sheet, showing the dollar amount and percent of change using the two most recent years. (You must use an Excel spreadsheet with formulas.)
52. Perform ratio analysis on your company. (These must be in an Excel spreadsheet, using formulas to calculate the ratios.) You should present them in a similar format as the text: group by category, list name of ratio, formula in words, and the ratio calculation. Give a short explanation of your conclusions about your company after each category of ratios. (i.e. How liquid is your company? How efficiently is it using its assets, etc.?) If a ratio isn’t applicable to your company, you must state that.

Conclusions:
53. Are you optimistic or pessimistic regarding the future of your corporation? Explain.
54. Would you invest in the stock of the company? Explain.
55. Would you invest in the bonds of the company Explain.

Harley-Davidson, Inc. (HOG)
Income Statement

In millions of $ 31-Dec-12 31-Dec-11
Total Revenue 5580.5 5311.7
Cost of Revenue 3440.6 3352.8

Gross Profit 2139.9 1958.9

Operating Expenses
Selling General and Administrative 1111.2 1061
Non Recurring 28.5 68
Total Operating Expenses 1139.7 1129
Operating Income or Loss 1000.2 829.9
Income from Continuing Operations
Total Other Income/Expenses Net 7.4 8
Earnings Before Interest And Taxes 1007.6 837.9
Interest Expense 46 45.3
Income Before Tax 961.6 792.6
Income Tax Expense 337.6 244.6
Net Income From Continuing Ops 624 548
Non-recurring Events
Discontinued Operations 0 51
Net Income 624 599

Harley-Davidson, Inc. (HOG)
Balance Sheet
In millions of $ 31-Dec-12 31-Dec-11

Assets
Current Assets
Cash And Cash Equivalents 1256 1757
Short Term Investments 136 153
Net Receivables 2084 2112
Inventory 394 418
Other Current Assets 182 102

Total Current Assets 4051 4542
Long Term Investments 4039 4026
Property Plant and Equipment 816 810
Goodwill 30 29
Other long term deferred assets 172 202
Other Assets 64 65
Total Assets 9171 9674
Liabilities
Current Liabilities
Accounts Payable 771 820
Short/Current Long Term Debt 732 1879
Total Current Liabilities 1503 2699
Long Term Debt 4371 3844
Other Liabilities 740 711
Total Liabilities 6613 7254
Stockholders’ Equity
Common Stock 3.4 3.4
Retained Earnings 7306 6824
Capital Surplus 1066 968
Treasury Stock -5211 -4899
Other Stockholder Equity -608 -477
Total Stockholder Equity 2558 2420
Total Liabilities and SHE 9171 9674