StudentShare solutions
Triangle menu

Analysis of Annual Audited Report for Boeing Corporation - Assignment Example

Nobody downloaded yet

Extract of sample
Analysis of Annual Audited Report for Boeing Corporation

Over its eventful history, the company has been responsible for a number of innovations like the Boeing B-1, B-8 and Monomail, Model C, Boeing 80 and the 737. Boeing earned a profit of $4.018 billion for the year ended December 30, 2011 and had total assets of $79.986 billion on the same date. Since 2005, the company’s Chairman, President and CEO have been W. James McNerney Jr. The company has a total of 164,545 employees worldwide and the top 1.5 % of them go through the Technical Fellowship program, which sets the technical direction for the company. We will now move on to the analysis of Boeing’s financial statements as given in their Audited Annual Reports for 2011. Their accounts have been audited by Deloitte & Touche LLP, one of the Big Four accounting firms in the world. The report is unqualified and this means that Boeing Company has met the financial standards for record keeping and presentation as required by the FASB and other relevant authorities. Analysis of Net Income and Cash Flows According to the financial statements for the year ended 30 December 2011, Boeing has reported net income from sales of products and services for fiscal year 2011 of $ 4.018 billion. According to their Consolidated Statement of Cash Flows, cash provided from operating activities for 2011 was $5.844 billion (Boeing Annual Report 2011, 55). The difference between the two numbers can be explained on the basis of accrual accounting principles where revenue is recognized when it is earned and expenses are recognized when they are incurred (Porter & Curtis, 2013). Meigs, Meigs and Meigs further distinguish the importance of assessing operating activities through the measure of operating cash flow. Using accrual-based net earnings can lead to ambiguous performance indications, unless a company can convert its revenues/profits into cash (Meigs et al., 1995). Thus from a comparison of Boeing’s net earnings and net cash from operating activities in 2011, it can be concluded that the company is effectively converting their profits into cash. Ratio of Net Income to Net Revenue Looking further at the Consolidated Statement of Earnings, the following figures give a comparison of Boeing’s Net earnings to Net sales for the three years ending in December 2009, 2010 and 2011 respectively. All dollar amounts have been shown in millions: 2011 2010 2009 Net Earnings $4,018 $3,307 $1,312 Net Sales 68,735 64,306 68,281 Ratio 5.84% 5.14% 1.92% (Source: Boeing Annual Report, 2011) Wood and Sangster (2008) state that an efficient business is one who can keep the costs of providing their products or services relatively low compared to their selling price of those products or services. That said, the numbers in the above table are indicative of a fairly efficient business. While Boeing’s net sales had decreased from $68 billion in 2009 to $64 billion in 2010, yet the company managed to increase its net earnings from $1.3 billion to $3.3 billion over 2009-2010. The net sales and net earnings both show an increase in 2011 being $68 billion and $4 billion respectively so the company has once again done well Company Assets A further inspection of the Boeing Company’s Consolidated Balance Sheet for 2011 shows that their three largest assets are Inventories ($32.24 billion), Cash and cash equivalents ($10.049 billion), ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Analysis of Annual Audited Report for Boeing Corporation Assignment”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/66306-financial-accounting-annual-report-project
(Analysis of Annual Audited Report for Boeing Corporation Assignment)
https://studentshare.net/finance-accounting/66306-financial-accounting-annual-report-project.
“Analysis of Annual Audited Report for Boeing Corporation Assignment”, n.d. https://studentshare.net/finance-accounting/66306-financial-accounting-annual-report-project.
  • Cited: 0 times

Summary

Analysis of Annual Audited Report for Boeing Corporation Name of the Writer Professor T. Saracina MGMT 210 Financial Accounting Embury Riddle Aeronautical University Date Submitted Analysis of Annual Audited Report for Boeing Corporation Introduction Boeing is one of the world’s largest aerospace companies, defense contractors and aircraft manufacturers…
Analysis of Annual Audited Report for Boeing Corporation
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the assignment on your topic
"Analysis of Annual Audited Report for Boeing Corporation"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Annual Report for Firm F
The rationale used to make choices on the customer segment include the attractiveness of the segment, synergies, and market gaps and whether the segment fits with the resources. The chosen segments are quite attractive as they all need vehicles for style, transport or as an indication of their success in life.
3 pages (750 words) Assignment
Boeing 787 debacle
Some might even argue that this necessity is of paramount importance even compared to the overall quality of the good or service offered. As such, being able to integrate with the consumer and fulfill a specific need in an above average way oftentimes defines the narrow differential between success and failure.
4 pages (1000 words) Assignment
Financial Accounting Annual Report Project
Boeing has a number of separate business divisions dealing with commercial aircraft, defense and security, operations, capital and shared services. Over its eventful history, the company has been responsible for a number of
6 pages (1500 words) Assignment
Key Elements in Annual Report Memo
You are familiar with the annual report; however, to ensure investors satisfaction, we are listing down some most essential elements of the report along
1 pages (250 words) Assignment
Annual reporting
This increase in profits shows that the company has increased its efficiency and viability. Finally, the basic and diluted EPS have both increased from the previous years. The shareholders are currently earning more per share than they previously earned an
1 pages (250 words) Assignment
Companys annual report and accounts
Employees are treated here as colleagues, whereas the customers are the heart of the company. The Motive of the company is to satisfy the customers with best shopping
6 pages (1500 words) Assignment
Analysis Report
Therefore it is of high significance to make the students understand the relevance of internet in their lives. The students know that internet is a crucial part of their life just because it ensures
2 pages (500 words) Assignment
Annual report Project
This company is perceived as among the largest health care provider in the US through its perceived caring for the world by the embracing of research and science. This has helped the company to bring to the market various
7 pages (1750 words) Assignment
Boeing Porter's Five Forces Industry analysis
Furthermore, this industry is characterized by very high oil prices, which makes it difficult for airlines to post profits (Mouawad, 2). This is because they will have to travel when their capacity is full, that when the companies will be guaranteed of some profits. It
2 pages (500 words) Assignment
BOEING
There are six business segments through which the Boeing Company operates: (1) commercial airplanes; (2) Boeing military aircraft; (3) global services and
15 pages (3750 words) Assignment
Comments (0)
Click to create a comment
Let us find you another Assignment on topic Analysis of Annual Audited Report for Boeing Corporation for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us