Debt Reduction- Advice On Credit Card Debt Reduction, Debt Reduction Services, And Debt Reduction Plans

ray H asked:


Executive Summary
We design and deliver the systems, software
and services that drive next-generation communications
networks. Backed by Bell Labs
research and development, we use our
strengths in mobility, optical, access, data and
voice networking technologies, as well as
services, to create new revenue-generating
opportunities for our customers, while
enabling them to quickly deploy and better
manage their networks. Our customer base
includes communications service providers,
governments and enterprises worldwide.
We have three segments organized
around the products and services we sell.
The reportable segments are Integrated Network
Solutions (“INS”), Mobility Solutions
(“Mobility”) and Lucent Worldwide Services
(“Services”). INS provides a broad range
of software and wireline equipment related
to voice networking (primarily consisting
of switching products, which we sometimes
refer to as convergence solutions, and voice
messaging products), data and network
management (primarily consisting of access
and related data networking equipment
and operating support software) and optical
networking. Mobility provides software and
wireless equipment to support radio access
and core networks. Services provides deployment,
maintenance, professional and managed
services in support of both our product
offerings as well as multi-vendor networks.
Beginning in fiscal 2001, the global
telecommunications market deteriorated,
resulting from a decrease in the competitive
local exchange carrier market and a significant
reduction in capital spending by established
service providers.This trend intensified
during fiscal 2002 and continued into fiscal
2003. Reasons for the market deterioration
included general economic slowdown, network
overcapacity, customer bankruptcies,
network build-out delays and limited availability
of capital.
We believe that the market for telecommunications
equipment has stabilized
and is starting to grow in certain areas. The
growing demands of enterprises and consumers
for additional services tailored to
their needs is creating the need for a new
convergence of networks, technologies and
applications.
Required
1. Using the Consolidated Balance
Sheets for Lucent Technologies for
September 30, 2004 and 2003, prepare
a common-size balance sheet.
2. Evaluate the asset, debt, and equity
structure of Lucent Technologies, as
well as trends and changes found on
the common-size balance sheet.
3. What concerns would investors and
creditors have based on only this
information?
4. What additional financial and nonfinancial
information would investors
and creditors need to make investing
and lending decisions for Lucent
Technologies?

LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in Millions, Except per Share Amounts)
September 30, September 30,
2004 2003
Assets
Cash and cash equivalents $ 3,379 $ 3,821
Marketable securities 858 686
Receivables 1,359 1,511
Inventories 822 632
Other current assets 1,813 1,213
Total current assets 8,231 7,863
Marketable securities 636 —
Property, plant, and equipment, net 1,376 1,593
Prepaid pension costs 5,358 4,659
Goodwill and other acquired intangibles, net 434 188
Other assets 928 1,608
Total assets $ 16,963 $ 15,911
Liabilities
Accounts payable $ 872 $ 1,072
Payroll and benefit-related liabilities 1,232 1,080
Debt maturing within one year 1 389
Other current liabilities 2,361 2,393
Total current liabilities 4,466 4,934
Postretirement and postemployment benefit liabilities 4,881 4,669
Pension liabilities 1,874 2,494
Long-term debt 4,837 4,439
Liability to subsidiary trust issuing preferred securities 1,152 1,152
Other liabilities 1,132 1,594
Total liabilities 18,342 19,282
Commitments and contingencies
8.00% redeemable convertible preferred stock — 868
Shareowners’ Deficit
Preferred stock—par value $1.00 per share; authorized shares:
250; issued and outstanding: none — —
Common stock—par value $.01 per share;Authorized shares:
10,000; 4,396 issued and 4,395 outstanding shares as of
September 30, 2004,and 4,170 issued and 4,169
outstanding shares as of September 30, 2003 44 42
Additional paid-in capital 23,005 22,252
Accumulated deficit (20,793) (22,795)
Accumulated other comprehensive loss (3,635) (3,738)
Total shareowners’ deficit (1,379) (4,239)
Total liabilities, redeemable convertible preferred stock
and shareowners’ deficit $ 16,963 $ 1591

Hannah Lewis

Ronnie Nicole asked:


Which of the following would be an external user of accounting information?

a. chief executive officer

b. vice president of finance

c. bank loan officer

d. chief financial officer

2. What is the characteristic that allows financial statement users to compare information over time?

a. reliability

b. relevance

c. consistency

d. comparability

3. Auditors are responsible for

a. preparing a company’s financial statements in accordance with GAAP

b. preparing a company’s earnings forecast in accordance with GAAP

c. determining whether a company prepared its financial statements in accordance with GAAP

d. determining whether their clients prepared their financial statements accurately

4. Companies acquire and sell property and equipment as a result of which business activity?

a. financing

b. investing

c. operating

d. auditing

5. Ace Co. has total assets in the amount of $3,000,000 and total liabilities in the amount of $2,000,000. It sold stock to new shareholders for cash of $1,000,000. As a result of this transaction:

a. the debt to assets ratio will increase

b. the assets turnover ratio will increase

c. the debt to assets ratio will decrease

d. the net profit margin ratio will decrease

6. The following information is available for Aztech:

Total assets $800,000

Net Income 120,000

Average total liabilities 400,000

Sales revenue 1,500,000

Total liabilities 500,000

Average total assets 700,000

The net profit margin ratio is

a. 8%

b. 12.5%

c. 15%

d. 17.1%

7. North Co. understated its expenses for the year. As a result

a. its debt to assets ratio will be understated

b. its net profit margin ratio will be understated

c. its debt to assets ratio will be overstated

d. its net profit margin ratio will be overstated

8. Which of the following results in an expense for a company?

a. purchase of land

b. payment of advertising for last month

c. payment of a dividend

d. purchase of supplies

9. Which of the situations results in unearned revenue?

a. collection of $100 from a customer who charged the purchase of goods a month ago

b. the receipt of an order from a customer who will purchase and pay for goods in two weeks

c. the sale of $100 of goods today with the payment due from the customer in 30 days

d. the receipt of $100 cash from a customer for an order of goods to be shipped next month

10. Which of the following is a stockholders’ equity item?

a. contributed capital

b. cash

c. accounts receivable

d. accounts payable

11. Which of the following items will reduce stockholders’ equity?

a. the purchase of equipment

b. the purchase of supplies

c. receiving a loan

d. the payment of salaries

12. If a company does not receive cash until after it delivers goods

a. it must wait to receive cash until it can record revenue

b. it must record unearned revenue at the time it delivers goods

c. it must record revenue at the time it delivers the goods

d. it must increase the amount of accounts receivable at the time it gets paid by its customer

13. Dividends paid to stockholders

a. are a reduction to retained earnings

b. appear in the cash flow from operations section of the statement of cash flows

c. appear on the income statement

d. are subtracted from contributed capital

14. Net income is

a. assets minus liabilities

b. revenues minus expenses

c. contributed capital minus dividends

d. stockholders’ equity minus liabilities

15. Which of the following statements is prepared as of a point in time?

a. income statement

b. statement of retained earnings

c. balance sheet

d. statement of cash flows

16. The Hamlet Corp has assets of $20,000, and stockholders’ equity of $12,000. The amount of liabilities is

a. $8,000

b. 12,000

c. 20,000

d. 32,000

17. Which of the following would appear in the cash flow from operations section of the statement of cash flows

a. cash paid to suppliers and employees

b. cash paid to purchase equipment

c. cash paid on notes payable

d. cash paid

Frida Hainley