Acc/230 Week 2 Assignment Lucent Technologies Case
Week 2 Individual: Lucent Technologies Case Assignment: Read Case 2. 1: Lucent Technologies on pp. 79 and 80 (Ch. 2) of the text. Compose a 500- to 750-word cardboard that includes your answers to questions 2-4 on p. 79. Question #2: Evalutat the asset, debt, and disinterestedness anatomy of Lucent Technologies, as able-bodied as trends and changes begin on the common-size antithesis sheet. Afterwards reviewing the case of Lucent Technologies, we ascertain that the assets for Lucent Technologies suffered a abatement amid 2003 and 2004.
According to the advice provided in the case revealing, the accepted assets in 2003 was 49. 4% of Lucent Technologies absolute assets, admitting the accepted assets in 2004 decreased to 48. 5%. Although, afterwards reviewing the case the allotment of account rose from 4. 0% in 2003 to 4. 8% in 2004. We can again account there is about a 20% access in the absolute account holdings. Also it is credible that Lucent Technologies absolute assets in 2003 was 24% and had a abatement in 2004 to about 20%. This can be abstinent by the company's banknote equivalents and cash.
The absolute debt anatomy of Lucent Technologies decreased amid 2003 and 2004. Lucent Technologies had a abatement in their accepted liability. In 2003 their accepted accountability was 25. 6% and decreased to 24. 3% during 2004. According to the debts that added from 23% in 2003 to 26. 4% a year after in the company's absolute liability, the debts of Lucent Technologies would be advised continued term. In 2003, Lucent Technologies had decreased in the representation of absolute liabilities and shareholders disinterestedness on the disinterestedness ancillary for Lucent Technologies back compared to a year later.
Improvements can appear and the bearings of the aggregation now can advance as the year progresses so the aggregation won't attending deficit. Question #3: What apropos would investors and creditors accept based on alone this information? Based on alone this advice for Lucent Technologies, a affair investors and creditors would accept back attractive at this antithesis area would be the debt structure. Back attractive at the accustomed advice we see a abatement in the absolute liability, but an access in the continued appellation liabilities.
This could caurse abuse to the aggregation back the accepted liabilities are abbreviating from one year to the next. Although, back there is an access apparent for the continued appellation liabilities it balances out to anticipate assuming a loss. The disinterestedness allocation is in a above position for the company. In conclusion, with the accustomed information, Lucent Technologies has been convalescent attractive at 2003 and 2004 and will abide to advance steadily. Question #4: What added banking and non banking advice would investors and creditors charge to accomplish advance and lending accommodation for Lucent Technologies?
Some added banking advice that investors and creditors would charge in adjustment to accomplish advance and lending decisions for Lucent Technologies would be the company's banking statements. Investors and creditors would charge banking statements for Lucent Technologies because the banking statements accommodate all the banking advice that the investors and creditors would charge to accomplish complete advance and lending decisions for Lucent Technologies. The banking statements are the close apparatus in a company.
The banking statements of a aggregation can be looked at and compared with antecedent years, in adjustment to acquisition trends in the banking statements and adviser investors and creditors to amount out area the aggregation stands and what administration the aggregation may accept adverse them. Some nonfinancial advice that investors and lending decisions for Lucent Technologies would be to apperceive the operating units were created to assignment calm in adjustment to accommodate cost-efficient solutions and avant-garde for customers. The business anatomy can sometimes comedy a key cycle in banking decisions.
Order a unique copy of this paper