study the 10k of edwards and answer the following questions: these
Study the 10K of Edwards and answer the following questions:
These questions only apply to Edwards Lifesciences Corp
1. What are the products and technologies of Edwards Lifesciences Corp used for?
2. How is revenue recognized by Edwards Lifesciences Corp.
3. What is the allowance for doubtful accounts at December 31, 2012 and December 31, 2011?
4. How are inventories stated?
5. What depreciation method is used for property plant and equipment?
6. What is the weighted average interested rate under all obligations at December 31, 2012 and December 31, 2011?
7. Is Goodwill and IPR&D resulting from purchase business combinations subject to amortization on the financial statements?
8. What is the trend of their Net Sales between 2010, 2011 and 2012?
9. What advantages or disadvantages does Edwards Lifesciences have with its competitors Medtronic Inc, and St Jude Medical Inc?
10. Is Edwards Lifesciences generating enough cash from operations to pay for investing activities?
Calculate the ratios on the following page for Edwards Lifesciences, Medtronic Inc, and St Jude Medical Inc.
Calculate the ratios below for Edwards Lifesciences, Medtronic Inc, and St Jude Medical Inc.
1) Number of days inventory =
2) Number of days of receivable=
Average AR/ (annual net sales/365)
Average AR = (AR 2011+AR2012)/2
3) Number of days of payables=
Purchases = 2012COGS + 2012inventory – 2011inventory
4) Operating Cycle =
Number of days of inventory + Number of days of receivables
Number of days of inventory = Inventory/ (COGS/365)
Number of days of receivables = **Average AR** / (annual net sales/365)
**Average AR = (AR 2011+AR2012) /2**
1) Current Ratio =
Current Assets/Current Liabilities
2) Quick Ratio =
(Current Assets-Inventory)/Current Liabilities
3) Inventory turnover =
4) Accounts receivable turnover =
Net Sales/Average AR
5) Total asset turnover =
1) Gross Profit Margin =
Gross Profit/Net Sales
2) Return on Assets =
Net Income/Average Total Assets
Average Total Assets = (Total Assets 2011 + Total Assets 2012) /2