1 / 10

Mod 11 Adjusting enterprise operations

Mod 11 Adjusting enterprise operations. SPECIALTY RETAIL - AMAZON Sophie Yu Section 2. INVENTORY METHOD. From 10-k Notes: Inventories

nemo
Download Presentation

Mod 11 Adjusting enterprise operations

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Mod 11Adjustingenterpriseoperations SPECIALTY RETAIL - AMAZON Sophie Yu Section 2

  2. INVENTORY METHOD • From10-kNotes: • Inventories • Inventories,consistingofproductsavailableforsale,areprimarilyaccountedforusingthefirst-infirst-out(“FIFO”)method,andarevaluedatthelowerofcostormarketvalue. • NoNeedtoadjustinventory

  3. OPERATINGLEASES • NospecificNotesforLeases,butpaymentsscheduleisincludedin“CommitmentsandContingencies”,andpresentvalueiscalculatedin“OtherLong-termLiabilities”.

  4. implicit DISCOUNT RATE =117

  5. CAPITALIZATIONOFOPERATINGLEASES AdjustmentstoBalanceSheet AdjustmentstoIncomeStatement

  6. Share-based compensation IncomeTaxesNote: …Taxbenefitsrelatingtoexcessstock-basedcompensationdeductionsarepresentedasfinancingcashflows.Cashinflowsfromtaxbenefitsrelatedtostock-basedcompensationdeductionswere$78million…in2013.

  7. Historical prices $398.79 $257.31

  8. Share-based compensation • 1.Valueofoptionsexercisableatbeginningofyear:$110million(givenbythenote) • 2. Valueofoptionsexercisableatbeginningofyearusingendofyearprices:$1674.92million(4.2*398.79) • 3.Estimatedvalueofexercisedoptions:$222.86million($78/35%) • 4.Valueofoptionscancelledduringtheyear:$209 million(givenbythenote) • 5. Value of options exercisable at end of year: $160million(givenbythenote) • 6.ShareBasedCompensation(5)-(2)+(3)+(4)=$(1083)million

  9. adjustment • Adjustments Adjusted • IncreasebeginningNFLby(1) $(7,032) • IncreaseendingNFLby(5) $(3,618) • Decrease EPAT by (6) $(610) • IncreaseFEATby[(2)-(1)]-[(3)-(4)] $1,750

  10. Questions?

More Related