CP5-8 1. What formats are used to present the a. Balance Sheets? b. Income Statements? c.

Operating Activities section of the Statement of Cash Flows? 2. Find one footnote for each of the following and describe its contents in brief: a. An accounting rule applied in the company s statements. i. Information in this table is stated as reported. Changes in accounting policies arising from changes in International Financial Reporting Standards are not applied retrospectively. (Roche Ltd, 2011) b. Additional detail about a reported financial statement number. i. Dividend 2010 as proposed by the Board of Directors. (Roche Ltd, 2011) c. Relevant financial information but with no number reported in the financial statements. i. European Union information is based on members of the EU as at 31 December 2010. The comparative information has been restated to include new EU members for the whole five-year period. (Roche Ltd, 2011) 3. Using electronic sources, find one article reporting the company s annual earnings announcement. When is it dated and how does that date compare to the balance sheet date? i. http://www.chem.info/News/Feeds/2011/03/sectionssupplier-news-roche-annual-general-meeting-dividend-raisedby-1/ ii. The article is dated March 1, 2011, while the balance sheet is dated December 31, 2010. 4. (6.) Ratio Analysis: a. What does the return on total assets ratio measure in general? i. In general The ratio analysis measures the financial performance of a company as compared to competing companies and/or past years performances. b. Compute the ROA ratio for the last three years. i.
Year Net income Total assets Net Sales ROA ratio Net profit margin Total assets turnover 2008 10,844 76,089 45,617 0.140417212 0.237718394 0.590687195 2009 8,510 74,565 49,051 0.1129741 0.173492895 0.651174214 2010 8,891 61,020 47,473 0.131150201 0.187285404 0.700269204

ii. c. What do your results suggest about the company? i. d. If available, find the industry ratio for the most recent year, compare it to your results, and discuss why you believe your company differs from or is similar to the industry ratio.

5. (7.) Use the ROA profit driver analysis to determine the cause(s) of any differences in the ROA ratio over the last three years. (Remember that you computed the three profit ratios in the last three chapters.)