Interpreting Equity Method Investment Footnotes
AT&T reports the following footnote to its 20 12 I 0-K report ($ millions).
a. At what amount is the equity investment in affiliates reported on AT&T's balance sheet?
b. Did affiliates pay dividends in 2012? How do you know?
c. How much income did AT& T report in 20 12 re lating to this investment in affiliates?
d. Interpret the AT&T statement that “und istributed earnings from equity affiliates were $6,375 and $5,760 at December 31, 20 12 and 20 1 I.”
e. How does use of the equity method impact AT &T’s ROE and its RNOA components (net operating asset turnover and net operating profit margin)?
f AT&T accounts for its investment in affiliates under the equity method. Why?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more