Instructions

1. Review the information provided for Johnson & Johnson in the Financial Statement Analysis Case located in the Using Your Judgement section in the Chapter 10 End of Chapter Material in your eText.
2. Answer the four questions.

3. Financial Statement Analysis Case

   Johnson & Johnson

   Johnson & Johnson, the world’s leading and most diversified healthcare corporation, serves its customers through specialized worldwide franchises. Each of its franchises consists of a number of companies throughout the world that focus on a particular healthcare market, such as surgical sutures, consumer pharmaceuticals, or contact lenses. Information related to its property, plant, and equipment in its 2014 annual report is shown in the notes to the financial statements below.

   1. Property, Plant and Equipment and Depreciation

   Property, plant and equipment are stated at cost. The Company utilizes the straight-line method of depreciation over the estimated useful lives of the assets:

   Building and building equipment         20-40 years

   Land and leasehold improvements     10-20 years

   Machinery and equipment           2-13 years

   4. Property, Plant and Equipment

   At the end of 2014 and 2013, property, plant and equipment at cost and accumulated depreciation were:

   (dollars in millions)                                     2014                              2013

   Land and land improvements                   $833                              $885

   Buildings and building equipment           10,046                          10,423

   Machinery and equipment                       22,206                            22,527

   Construction in progress                          3,600                             3,298

                                                                          36,685                             37,133

         Less accumulated depreciation                20,559                             20,423

                                                                          $16,126                          $16,710

The Company capitalizes interest expense as part of the cost of construction of facilities and equipment. Interest expense capitalized in 2014, 2013 and 2012 was $115 million, $105 million and $115 million, respectively. Depreciation expense, including the amortization of capitalized interest in 2014, 2013 and 2012, was $2.5 billion, $2.7 billion and $2.5 billion, respectively.

Johnson & Johnson provided the following selected information in its 2014 cash flow statement. Johnson & Johnson 2014 Annual Report

                                                          Consolidated Financial Statements (excerpts)

                   Net cash flows from operating activities                                                   $18,471 

                   Cash flows from investing activities

                            Additions to property, plant and equipment                                     (3,714)

                           Proceeds from the disposal of assets                                                 4,631 

                           Acquisitions, net of cash acquired                                                     (2,129)

                           Purchases of investments                                                                   (34,913)

                           Sales of investments                                                                           24,119 

                           Other (primarily intangibles)                                                                 (299)

                 Net cash used by investing activities                                                         (12,305)

                 Cash flows from financing activities

                           Dividends to shareholders                                                                (7,768)

                           Repurchase of common stock                                                          (7,124)

                           Proceeds from short-term debt                                                         1,863 

                           Retirement of short-term debt                                                          (1,267)

                           Proceeds from long-term debt                                                           2,098 

                           Retirement of long-term debt                                                            (1,844)

                           Proceeds from the exercise of stock options/excess tax benefits       1,782 

                  Net cash used by financing activities                                                         (12,260)

                 Effect of exchange rate changes on cash and cash equivalents                   (310)

                Increase in cash and cash equivalents                                                          (6,404)

                Cash and cash equivalents, beginning of year (Note 1)                                20,927 

                Cash and cash equivalents, end of year (Note 1)                                          $14,523 

               Supplemental cash flow data

               Cash paid during the year for:

                              Interest                                                                                                 $603 

                              Income taxes                                                                                       3,536 

Instructions

(a)  What was the cost of buildings and building equipment at the end of 2014?

(b)  Does Johnson & Johnson use a conservative or liberal method to depreciate its property, plant, and equipment?

(c)  What was the actual interest paid by the company in 2014?

(d)  What is Johnson & Johnson’s free cash flow? From the information provided, comment on Johnson & Johnson’s financial flexibility.

 

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Instructions

Scenario: A company called Colony Nursery and Landscaping opened a new store located a few hundred miles away from its original location. The company wants to implement an award system that awards their customers with points whenever customers make a purchase, but the two stores are not able to share information. Colony Nursery and Landscaping will need to implement an enterprise resource planning (ERP) system that will solve the information silo problem by collecting and making this user data available. Colony Nursery and Landscaping is hoping that by providing customers with this award system, they will be able to maintain competitive advantage. Colony Nursery and Landscaping cannot afford to purchase, develop, or maintain this system on-site, so they are investigating cloud solutions.

In addition, for many organizations, Colony Nursery and Landscaping included, information silos make it difficult to tap into needed information. Discuss whether or not the problem of information silos can be solved by using the cloud. Some organizations do not have the resources to construct or maintain their computer infrastructure, so they utilize cloud services instead to reduce costs and improve scalability. In this assignment, you will discuss whether or not the cloud offers solutions for Colony Nursery and Landscaping and identify an application that the ERP system could provide. Compose an essay that includes the elements listed below.

• Define what an information silo is.
• Explain why information silos are a problem for organizations.
• Discuss why organizations are moving to the cloud.
• Determine whether or not using cloud services, such as a cloud-based host for data storage, would solve the ERP information silo problem at Colony Nursery and Landscaping.
• Explain how using the ERP system and awards program would provide a competitive advantage for Colony Nursery and Landscaping.
• Discuss why the implementation of an ERP system might require business process reengineering for Colony Nursery and Landscaping. Be sure to explain the business processes that will be affected (e.g., the customer awards system). Use diagrams or tables as needed, but this is not required.

Your essay must be a minimum of two pages in length (not counting the title and reference pages), and it must be formatted in APA style. You should include an introduction section that gives background and context to your reader. You must use at least two scholarly resources as references. Any information from these resources must be cited and referenced in APA format.

 

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Instructions

Sentencing

This assignment, an Article Review, will assist you in thinking critically about sentencing in the United States.  This article should be from a professional or scholarly journal. Additionally, the article selected should be no more than four years old.

Upon selecting the article, please complete an Article Review. The review should include the following,

1. A summary of the article (1/2-1 page).

a. Summarize the main points which the author discusses.

b. Identify the main argument.

c. This summary should provide background for the analysis you provide (see below).

2. An analysis of the article.

a. This is the most important part of the review and should be most of your paper.

b. In this section, you should show that you not only read the article, but also that you are thinking critically about it.

c. Think about the following when analyzing this article:

1. Is the argument clear and organized?

2. Is evidence presented, more than simply opinion?

3. Is the argument logical, does it make sense?

4. Does the argument match with what you know of the topic?

5. Who is the intended audience?

6. Is the argument convincing? Why or why not?

7. Is the argument conventional, controversial, boring, safe, etc.?

8. What suggestions do you have for the author to improve the argument? Did he/she forget to add any significant information (if so, what)?

9. Is this useful for those who study this topic? Why and how?

The completed review should be at least 4 pages in length (not including the title and references pages). All sources used must be cited and referenced according to APA style. 

 

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Instructions

Submit a two- to three-page paper discussing the three major ERP vendors: SAP, Oracle, and Microsoft Dynamics. Compare the SOA in a table format, and discuss the advantages and disadvantages of each system. Discuss which system you would recommend for your organization and your rationale and justification for your decision.

For additional details, please refer to the Milestone Two Guidelines and Rubric and the Final Project Document.

please download the attached files for  theMilestone Two Guidelines and Rubric and the Final Project Document. 

 

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