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Annual Report final

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					Annual Report
Sprint
communications
James Hatcher IV
ACG 2021
Section 002
Executive Summary

  Overall, sprint communications had a
  terrific year. The profits increased and
  they are planning to have improved
  services and better products. They
  surpassed their goals greatly and are
  hoping to continue this success.

           http://www.sprint.com
Part A. Audit Report

  CEO Gary Forsee
  Shawnee Mission, KS
  Ending date of latest fiscal year 12/31/05
  Principal products are communication
   products, wireless and local services.
  Entire United States population
Part A . Audit Report

  Independent Auditors: Ernst & Young LLP
   Independent Auditors

  What did they say about the company ? After
   the auditors ran their tests in accordance with
   auditing standards that are accepted in
   general. They found no error in the financial
   statements of Sprint communication. The
   reports were truthful and properly arrange.
Part A. Stock Market
Information
  Most recent price of the company’s
   stock:$24.50
  Twelve month trading range of the company’s
   stock:$11.00-$28.50
  Dividend per share :$.30
  Date of above information:12/09/05
  My opinion about the company stock as an
   investment? Buy it all if possible. With sprint
   doing so well and merging with Nextel, there is
   no stopping them.
Part B. Industry Situation
and Company Plans
  Sprint is in the technology industry which is
   growing everyday. Cell phones are a huge way
   of life in today's society and the demand for
   them are great. With Sprint merging with
   Nextel There is only room to increase profits.
   The company also plans to improve
   communication by building new towers so that
   the network won’t be congested.
               http://www.sprint.com
               http://news.com
Part C. Income Statement

   Sprint uses a multistep format income
    statement.
   Gross margin, operating margin and net
    income all increased from 2003 to 2004.
                2004             2003
Gross margin    1,011,678        987,659
Operating       245,375          189,255
income
Net income      149,277          120,857
Part C. Balance Sheet
               Assets = Liabilities + Stockholders
 2004           75,689     52,891         21,657
 2003          57,783     28,245          14,008
 In 2004 assets and liabilities have almost double. Stockholder’s equity had an
       increase from 2003.
Part D. Accounting
policies
  There were no significant accounting
   policies, relating to revenue recognition,
   cash, short term investments,
   inventories, and equipment.
Notes to financial
statement
    Note 1 The company and summary of accounting policies
    Note 2 Cash ,cash Equivalents and short term investments
    Note 3 Contingencies
    Note 4 2004 stock plan
    Note 5 Information about Geographic Areas
    Note 6 Subsequent Events
Part E. Financial Analysis
Liquidity Ratios
    Working capital            4,668
    Current Ratio              1.125
    Receivable Turnover        6.012
    Days sale in A/R           0.032
    Inventory turnover         10.325
    Days in inventory           31.50
    Ratios are in millions of dollars
Part E. Financial Analysis
Profitability Ratios
    Profit margin             0.012
    Asset turnover             1.93
    Return on assets           0.023
    Return on equity           0.008
    Ratios in millions of dollars
Part E. Financial Analysis
Solvency Ratio
  Debt to equity      0.34
  Ratios in millions of dollars
Part E. Financial Analysis
Market Strength Ratios
  Price/earnings per share 39.38
  Dividend yield           0.09

				
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