Lucet Technologies Case

lambent Technologies occurrenceP.1 bright Technologies Case Name ACC / 230 October 9, 2011 Lucent Technologies CaseP.2 2. pronounce the asset, debt, and equity body building of Lucent Technologies, as swell up as trends and changes found on the common-size balance sheet. In the Case 2.1 for Lucent Technologies, Lucents assets had an extremely large lour surrounded by the yrs of 2003 and 2004, however their inventory holdings rose during this time. accord to this case, the afoot(predicate) assets of Lucent Technologies in 2003 make up exactly 49.4% of their essence assets. During 2004, the situation got worse and the assets had gone(p) raven to 48.5%. Lucents cash and cash equivalents went down from 24% of their entire assets in 2003 to almost 20% in 2004. Lucents inventories, however, came up from 4.0% in 2003 to 4.8% in 2004, this is well-nigh a 20 percent increase in the channel inventory. Lucent Technologies had a sort of significant drop of their debt social system between the categorys of 2003 and 2004. utmost the current liability dropped from 25.6% in 2003 to 24.3% in 2004, it is app arent that this hearty club has allocated for this as a long-term debt since it rose from 23% of original liabilities in 2003 to 26.4% in 2004.

Lucent Technologies equity structure raise from a shortfall representing a negative in their total liabilities and shareholders equity in the year of 2003 when it is compared to the year of 2004. Their equity state of affairs would be considered a deficit, only when becomes less(prenominal) of an issue as the long time pass. Lucent Technologies CaseP.3 3.  What concerns would investors and creditors concord ground on only this data? Investors and creditors would be bear on that when their cash and cash equivalents are decreasing that the assets are cool off increasing. Another thing to be concerned about is that when instill is in a ancestry the inventory is elevated, which means the carrying butterfly for that company will be very high; which...If you motif to get a ample essay, order it on our website: Ordercustompaper.com

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