'Acc/230 Week 2 Assignment Lucent Technologies Case\r'

'Week 2 Individual: aglow(predicate) Technologies Case duty assignment: Read Case 2. 1: lucent Technologies on pp. 79 and 80 (Ch. 2) of the text. draw up a 500- to 750-word paper that includes your answers to questions 2-4 on p. 79. heading #2: Evalutat the asset, debt, and beauteousness anatomical structure of lucent Technologies, as well as trends and changes build on the common-size balance sheet. After reviewing the show chemise of lucent Technologies, we discover that the assets for luminous Technologies suffered a decline between 2003 and 2004.According to the entropy provided in the case revealing, the genuine assets in 2003 was 49. 4% of lambent Technologies impart assets, whereas the current assets in 2004 decreased to 48. 5%. Although, after reviewing the case the percentage of inventory rose from 4. 0% in 2003 to 4. 8% in 2004. We seat then calculate there is closely a 20% increase in the total inventory holdings. Also it is unpatterned that Lucent Techno logies entire assets in 2003 was 24% and had a decrease in 2004 to roughly 20%. This rat be calculated by the partys cash equivalents and cash.The total debt structure of Lucent Technologies decreased between 2003 and 2004. Lucent Technologies had a decrease in their current liability. In 2003 their current liability was 25. 6% and decreased to 24. 3% during 2004. According to the debts that increase from 23% in 2003 to 26. 4% a twelvemonth later in the confederations total liability, the debts of Lucent Technologies would be considered recollective term. In 2003, Lucent Technologies had decreased in the design of total liabilities and shareholders equity on the equity side for Lucent Technologies when compared to a year later.Improvements can happen and the situation of the phoner now can alter as the year progresses so the company wont facet deficit. Question #3: What concerns would investors and creditors have establish on only this teaching? ground on only this infor mation for Lucent Technologies, a concern investors and creditors would have when spirit at this balance sheet would be the debt structure. When aspect at the given information we see a decrease in the total liability, but an increase in the long term liabilities.This could caurse harm to the company since the current liabilities are decreasing from genius year to the next. Although, since there is an increase shown for the long term liabilities it balances taboo to prevent covering a loss. The equity portion is in a superior position for the company. In conclusion, with the given information, Lucent Technologies has been improving looking at 2003 and 2004 and will continue to improve steadily. Question #4: What additional monetary and non fiscal information would investors and creditors need to venture investing and lending decision for Lucent Technologies?Some additional financial information that investors and creditors would need in order to father investing and lending decisions for Lucent Technologies would be the companys financial statements. Investors and creditors would need financial statements for Lucent Technologies because the financial statements contain all the financial information that the investors and creditors would need to make phonate investing and lending decisions for Lucent Technologies. The financial statements are the inner workings in a company.The financial statements of a company can be looked at and compared with preceding years, in order to find trends in the financial statements and guide investors and creditors to figure out where the company stands and what direction the company may have facing them. Some nonfinancial information that investors and lending decisions for Lucent Technologies would be to know the operating units were created to work unneurotic in order to provide cost-efficient solutions and innovative for customers. The business structure can sometimes play a constitute roll in financial decision s.\r\n'