Need help with ratios and Pro-Forma Financial Statements for Salesforce.com vs. Siebel Case Study

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ahonaqm

Business Finance

BUSI 690

Liberty University

Description

This is part of a case study that ask us to prepare Pro-Forma Financial Statements ad ratios. See below: Attached are the data provided in the case study.

  • Need Pro-Forma Financial Statements (I/S, B/S and Statement of Cash Flows) with deltas out 3 years and analysis
    Each year must have 2 columns: 1 with your strategy and 1 without your strategy.
  • Ratios from the most current and available 3 years with deltas and analysis

Include Pro-Forma ratios for the first year out with deltas contrasting from the most current year’s ratios.

A formal, in-depth case study analysis is required

Assume your group is a consulting team asked by Saleforce.com to analyze its external/internal environment and make strategic recommendations.

Unformatted Attachment Preview

Exhibit 7a Salesforce.com, Inc. - Consolidated Statements of Operations (in thousands, except per share data) Fiscal Year Ended January 31, 2005 2004 2006 2003 Revenues: Subscription and support Professional services and other Total Revenues $280,639 29,218 309,857 $157,977 18,398 176,375 $85,796 10,227 96,023 $47,656 3,335 50.991 34,457 34,669 69,126 12,727 20.727 33,454 7,782 9.491 17,273 7,199 3,164 10,363 Cost of revenues: Subscription and support Professional services and other Total Cost of Revenues Gross profit Operating expenses: Research and development Marketing and sales General and administrative Lease abandonment (recovery) Total Operating Expenses 240,731 142,921 78,750 40,628 23,330 149,598 47.986 (285) 220,629 9,822 96,311 30.268 6,962 54,600 16,915 (3,445) 75,032 4,648 33,522 12,958 136,401 51,128 20,102 7,657 6.520 2,621 (37) 12 3,718 379 (22) 164 (10.500) 471 (77) 98 439 Income from operations Interest income Interest expense Other income (expense) Income before provision for income taxes and minority interest Provision for income taxes 28,198 1,310 9,153 1,217 4,239 541 (10,008) 29,508 (1.034) 7,936 (590) 3,698 (184) (10,008) (292) Income before minority interest Minority interest in consolidated joint venture Net income $28.474 $7,346 $3,514 $(9,716) Source: Salesforce.com 10-K, March 25, 2005, 2006 data is based on results announced on February 22, 2006. Exhibit 7b Salesforce.com, Inc. Condensed Consolidated Balance Sheets (in thousands) January 31, 2005 (unaudited) January 31, 2006 (unaudited) $35,731 83,087 48,874 7,556 3,467 $178,715 $99,842 107,723 76,128 13,186 6,338 $303,217 87,120 3.191 7,637 2,057 0 1.779 $280,499 89,227 0 24,216 3,889 10,416 3,784 $434,749 ASSETS Current assets: Cash and cash equivalents Short-term marketable securities Accounts receivable Deferred commissions Prepaid expenses and other current assets Total Current Assets Marketable securities, noncurrent Restricted cash Fixed assets, net Deferred commissions, noncurrent Deferred income taxes, noncurrent Other assets Total Assets LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable Accrued expenses and other current liabilities Income taxes payable Deferred income tax liabilities Deferred revenue Current portion of capital lease obligation Total Current Liabilities Capital lease obligations, net of current portion Long-term lease abandonment liability and other Minority interest Total Liabilities Commitments and contingencies Convertible preferred stock Stockholders' Equity (Deficit): Common stock Additional paid-in capital Deferred stock-based compensation Notes receivables from stockholders Accumulated other comprehensive income Accumulated deficit $2.525 32.467 216 0 95.900 563 $131,671 $10,212 48,782 2,650 3,191 169,175 615 $234,625 721 1,596 1,380 $135,368 184 1,155 2,414 $238,378 105 217.248 (5.908) (727) (999) (64,588) 111 237,010 (2.531) 0 (2,105) (36,114) Deferred commissions Prepaid expenses and other current assets Total Current Assets 7.556 3.467 $178,715 13,186 6,338 $303,217 87.120 3.191 7,637 2.057 0 1,779 $280,499 89,227 0 24,216 3,889 10,416 3,784 $434,749 $2.525 32.467 216 0 95.900 563 $131,671 $10,212 48,782 2,650 3,191 169,175 615 $234,625 Marketable securities, noncurrent Restricted cash Fixed assets, net Deferred commissions, noncurrent Deferred income taxes, noncurrent Other assets Total Assets LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY (DEFICIT) Current liabilities: Accounts payable Accrued expenses and other current liabilities Income taxes payable Deferred income tax liabilities Deferred revenue Current portion of capital lease obligation Total Current Liabilities Capital lease obligations, net of current portion Long-term lease abandonment liability and other Minority interest Total Liabilities Commitments and contingencies Convertible preferred stock Stockholders' Equity (Deficit): Common stock Additional paid-in capital Deferred stock-based compensation Notes receivables from stockholders Accumulated other comprehensive income Accumulated deficit Total Stockholders' Equity (Deficit) Total Liabilities, Convertible Preferred Stock and Stockholders' Equity (Deficit) 721 1,596 1,380 $135,368 184 1,155 2,414 $238,378 105 217.248 (5.908) (727) (999) (64,588) $145,131 111 237,010 (2.531) 0 (2,105) (36,114) $196,371 $280,499 $434,749 Source: Salesforce.com 10-K, March 25, 2005, 2006 data based on salesforce.com press release, February 22, 2006. 15 Exhibit 6 Siebel Income Statement (2002-2005) Year Ended December 31, 2003 2002 2004 2005 Revenues: Software license Professional services, maintenance and other Total revenues $700,344 934,963 1,635,307 $482,274 871,954 1,354,228 $487,127 852,666 1,339,793 $480,493 948,647 1,429,140 Cost of revenues: Software license Professional services, maintenance and other Total cost of revenues Gross margin 21,612 542,938 564,550 1,070,757 18,357 490,006 508,363 13,316 443,585 456,901 22,809 478,072 500,881 928,259 845,865 882,892 368,387 478,816 119,783 202,398 310,686 358,318 106,594 102,310 5,312 883,220 (37,355) 299,051 337,690 106,541 6,789 6,000 754.071 128,821 285,941 382,351 107,806 82,629 10,890 1,169,384 (98,627) 869,617 58,642 Operating expenses: Product development Sales and marketing General and administrative Restructuring and related expenses Purchased in-process product development Total operating expenses Operating income (loss) Other income, net: Interest and other income, net Loss on early extinguishment of debt Interest expense Total other income, net Income (loss) before income taxes Income tax provision (benefit) Net income (loss) 58,491 47.765 64,216 (20,016) 38,475 (60,152) (21,345) $(38,807) 54,071 (10,711) (14.927) 28,433 (8.922) (3.731) S(5.191) (1,019) 46,746 175,567 64,899 $110.668 122,858 53,330 $69,528 Source: Siebel Systems, Inc. 10-K, March 11, 2005. 2005 numbers announced January 25, 2006.
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Explanation & Answer

Attached.

SIEBEL INCOME STATEMENT (2002-2005)
Year Ended December, 31
Revenues
Software license
Professional services, maintenance and other
Total revenues

2002
2003
2004
2005
$700,344
$482,274
$487,127
$480,493
934963
871954
852666
948647
$1,635,307 $1,354,228 $1,339,793 $1,429,140

Cost of revenues
Software license
Profesional services, maintenance and other
Total cost of revenues
Gross margin

21612
542938
564550
$1,070,757

18357
490006
508363
$845,865

13316
443585
456901
$882,892

22809
478072
500881
$928,259

368387
478816
119783
202398

310686
358318
106594
102310
5312
883220
($37,355)

299051
337690
106541
6789
6000
754071
$128,821

285941
382351
107806
82629
10890
869617
$58,642

54,071
-10711
-14927
28,433
-8922
-3731
($5,191)

47,765

64,216

-1019
46,746
175567
64899
$110,668

122858
53330
$69,528

Operating expenses
Product development
Sales and marketing
General and administrative
Restructuring and related expenses
Purchased in-progress product develipmnet
Total operating expenses
Operating income (loss)
Other income, net:
Interest and other income, net
Loss on early extinguishment of debt
Interest expense
Total income, net
Income (loss) before income taxes
Income tax provision (benefit)
Net income (loss)

1169384
($98,627)

58,491
-20016
38,475
-60152
-21345
($38,807)

RATIOS
Change (2003- Change Change
2004)
(2004-2005) Average $ Average
1.0%
-1.4%
-0.2% $...


Anonymous
I was having a hard time with this subject, and this was a great help.

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