Johnson and Johnson Financial Assessments

User Generated

yrmpnabwp

Business Finance

Description

The next part of your project will require you to navigate to the website of Johnson & Johnson and locate the most recent annual reports. You will use the annual reports to create financial statements. These statements will become the reference statements for your case. Annual reports for JNJ can be found on the company’s website and are usually located in a section titled Investors/SEC filings.

  • Use the annual report to find the total current assets and total current liabilities.
  • Compute the current ratio for JNJ for previous two fiscal years
  • Review reports on data for the last two years.
    • Net Cash Flows from Operating Activities
    • Net Cash used by Investing Activities
    • Net Cash used by Financing Activities
    • Cash and Cash Equivalents at the end of the Years
  • Create a Balance Sheet or Statement of Cash Flows for most recent two years
  • Identify trends with an indication of if the financial statements show a positive or negative for the organization and investors.
    • Use Microsoft Excel to create at least three (3) graphical displays to show the trends (i.e., bar graph, pivot table, histogram, etc). You should include a copy of your graphs in the body of your report.
  • Discusses which year Johnson & Johnson appear to be in a stronger financial position and big differences between the 2 years (Keep in mind that dollar amounts in ( ) are negative or cash outflows).
  • Imagine that this information represents information for your project case. Incorporate or reference financial information in your case to support the report.

Summarize your responses in a report using titles from the assignment requirements (i.e., assets and liabilities, cash flows/balance sheet, trends, financial position). This document will serve as your Financial Statements section of your project.

User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.

Explanation & Answer

Attached.

Surname 1

Student Name
Professor Name
Course Title
Date of submission
Johnson & Johnson Financial Analysis
Assets and Liabilities
According to the financial statement provided by the organization, the company has seen both its
total assets and total liabilities gradually increase for the past five years. As a result, the
company’s total asset for year 2018 was $ 152,954 and the total liabilities for year 2018 were $
93,202. In relation to the financial position of a company, there are various ratios that are used to
provide to show the healthiness of a company. In this perspective, the current ratio is calculated
by dividing the total assets by the total liabilities to understand how fast the total liabilities can
be paid up using the current assets of the company. The current asset for year 2018 and 2017
include: $ 46,033 and $ 43,088 respectively, on the other hand, the current liabilities for year
2018 and 2017 include: $ 31,230 and $ 30,537 respectively.
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 =

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐴𝑠𝑠𝑒𝑡𝑠
𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝐿𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠

𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑅𝑎𝑡𝑖𝑜 (2018) =

46033
= 1.47
312...

Related Tags