While many of your research projects will require you to read articles published in scholarly journals, books or other peer reviewed sources of information, there is also a wealth of
While many of your research projects will require you to read articles published in scholarly journals, books or other peer reviewed sources of information, there is also a wealth of information to be found in more popular publications. These aim to inform a wide array of readers about issues of interest and are much more informal in tone and scope. Examples include general news, business and entertainment publications such as Time Magazine, Business Weekly, Vanity Fair. Note, special interest publications which are not specifically written for an academic audience are also considered "popular" i.e., National Geographic, Scientific American, Psychology Today. (Evaluating Information Sources, n.d., What is a Popular Source? section)
The above indicates that when reading a text—especially reading to learn and rely on the content of a text—we are to exercise due diligence. We need to exercise critical thinking and not blindly accept all information that passes our way. Our researcher reputations are at stake. And we are accountable to the readers who may rely on the information we provide.
For this assignment, you will locate and download a popular journal article to analyze the author’s use of logic.
References
Evaluating information sources. (n.d.). What is a popular source? The University of British Columbia. https://guides.library.ubc.ca/EvaluatingSources/ScholarlyPopular(new tab)
Upon successful completion of this assignment, you will be able to:
- Demonstrate doctoral level writing skills.
Background Information
The Discerning Reader and Writer
As you read the sourced article for this written assignment, keep in mind the quality writing tips you have learned in your reading. One significant way to begin improving your writing skills is to improve your reading skills. By reading at-once on different levels, you will not only be taking in and processing the words (and information) that are displayed—but you will also be consciously assessing the quality of the information, the craft of the writing, and the aesthetics of the formatting. In other words, you will begin to read differently as a result—you will become a discerning reader. By reading ‘actively’, you will inherently build habits of observation that can carry over into your doctoral and professional writing through use of new words and a multitude of ways to articulate what you want to say.
As you analyze the logic of the article selected for this assignment, be on the lookout for the phrases that should be avoided at the start of a sentence. If you reviewed your most recent coursework submissions or contributions to the ADP, would any of the sentence start taboos be found?
- According to . . .
- There is a . . .
- It is [important, critical, advised, suggested, and so on] . . .
- In my opinion . . .
- The purpose of this [email, post, article] is . . .
- In 2014 [or any year] . . .
- I think [believe] that . . . (Handley, 2014, p. 26)
Instructions
- Review the rubric to make sure you understand the criteria for earning your grade.
- Read The Miniature Guide to Critical Thinking: Concepts and Tools.
- Read chapters 6–14 (pp. 27–55) in Everybody Writes.
- Download the Scholarly or Academic Journal Articles(PDF document) document.
- Download the Template for Analyzing the Logic of an Article(Word document).
- Locate a popular article (neither an academic article, nor an industry/trade journal article) suitable for your ADP research focus or a business-related topic that is of interest to you.
- Complete the template in its entirety, answering each question fully.
- Place the complete APA reference at the top of the first page.
- Include your full name in the header of the template. No cover page is needed when placing your name in the header.
- Submit your assignment by the end of the workshop.
Reference Article per APA:
1. The main purpose of this article is __________________________________________.
(State as accurately as possible the author’s purpose for writing the article.)
2. The key question that the author is addressing is _______________________________.
(Figure out the key question in the mind of the author when s/he wrote the article.)
3. The most important information in this article is _______________________________.
(Figure out the facts, experiences, data the author is using to support her/his conclusions.)
4. The main inferences/conclusions in this article are _____________________________.
(Identify the key conclusions the author comes to and presents in the article.)
5. The key concept(s) we need to understand in this article is (are) __________________.
By these concepts, the author means _____________________________.
(Figure out the most important ideas you would have to understand in order to understand the author’s line of reasoning.)
6. The main assumption(s) underlying the author’s thinking is (are) _________________.
(Figure out what the author is taking for granted [that might be questioned].)
7a. If we take this line of reasoning seriously, the implications are ___________________.
(What consequences are likely to follow if people take the author’s line of reasoning?)
7b. If we fail to take this line of reasoning seriously, the implications are _____________.
(What consequences are likely to follow if people ignore the author’s reasoning?)
8. The main point(s) of view presented in this article is (are) ______________________.
(What is the author looking at, and how is s/he seeing it?; Paul & Elder, 2020, p. 29)
,
Running Header: FINANCIAL STATEMENTS ANALYSIS 1
FINANCIAL STATEMENTS ANALYSIS 16
Financial Statements Analysis
Student’s Name
Institution Affiliation
Table of Contents
Cover Page 1
Table of contents 2
Introduction 3
Analysis of income statements 3
Analysis of balance sheets 4
Analysis of investing and financing activities 5
Comparison of the companies’ statements 6
Recommendation 7
References 9
Introduction
The paper below features the analysis and discussion of various financial activities done in one of the world's foremost companies; The Toyota car manufacturing company in Japan and the Samsung electronics manufacturer in South Korea. The two companies hold a vast world market share in their disciplines, and they have other revenues as well as expenditures and other transactions, which could provide material factors that could influence investments. Each company is described briefly as below.
The Toyota Company is one of the leading automotive companies globally, having its headquarters in Japan and many other assembly companies all over the world. The company's main activity is the production of various machines, although it also has several investment activities from which it derives its revenue. The company is in partnership with other companies such as IT companies, steel, communications, and glass companies, among others which supply it with different equipment that is used in the manufacture of the automotive (CORPORATION., n.d.).
The Samsung Company is a South Korean company the produces electronic devices such as media devices, appliances, memory chips, and integrated chips. Over time, the company has been able to incorporate technology to ensure that its products are up to date and satisfy the consumer needs, and therefore, similar to the Toyota Company, it has also partnered with different companies and invested in other activities that contribute to its revenue ("Samsung," n.d.).
Analysis of the Income Statements
The following is the analysis of the income statement of the Toyota Company for the last three years: 2019, 2020, and 2021. The essential things that are vital to investors and other financial information users. First is the gross profit, which shows the revenue received before deducting the expenses, secondly the costs of the company, including the cost of sales; and lastly, the net profit after removing the tax liability. Investors are interested in such since they show the trends and the profitability of the company: the profit from which their investments would be paid.
Considering the income statement of the company, the sales of the company have been deteriorating since 2019, giving a -1.18% decrease in 2020 and -8.88% in 2021. Consequently, the gross profit for the same had been reducing, with the year 2021 having the lowest. However, the net income for 2021 is highest than the two years, possibly because of the reduction of the expenses and other deductions ("TM | Toyota motor Corp. ADR annual income statement – WSJ," n.d.).
The Samsung Company has the following information regarding its statement. First, its three-year analysis starts in 2018, with higher revenue than the next year, 2019. The year 2020 has the highest income than the two years. Investors also consider the expenses of the company from which the trend is almost stable. To the net income of the company, 2018 has the highest, followed by 2019 and then 2020. The trend shows that the company has a deteriorating net income, possibly because of increased expenses and reduced sales ("Samsung (005930) income statement," n.d.).
Analysis of Balance Sheets
Considering the balance sheet, investors mainly look at the company's capitalization, which is the total amount of assets less the depreciation, the total liability, and the total debt of the firm. The three essential items provide vital information concerning the ability of the company to pay its debt, where it sourced its finances, and how prompt it pays off its obligations.
The Toyota Company has the following information relating to its balance sheet. It is dated 2021, 2020, and 2019. The value of its assets is increasing, with 2019 having the lowest asset value and 2021 having the highest value. Similarly, the firm's liabilities increase, with 2019 having the most down and 2021 having the highest. Also, capitalization amount shows an improving trend over the three years.
On the other hand, the Samsung Company shows the following information on its balance sheet regarding its last three years; 2018, 2019, and 2020. The value of the company's assets offers an improving trend, with 2018 having the lowest value and 2020 having the highest. To the liabilities and obligations, including long-term debts, the amount reduced in 2019 and then increased in 2020. Similar to its long-term debt, the debt reduced in 2019, which then expanded in 2020. To the company's capitalization, the company shows an improving trend in equity, with 2018 having the lowest amount and 2020 having the highest ("Financial Statements│ financial information │ investor relations │ Samsung global," 2021).
Analysis of Investment and Financing Activities
As seen earlier, both companies have invested in different activities that add up to the total revenue of the company. For instance, the Toyota Company has made several investments, both financial and non-financial investments. The value of the company's assets shows an improving trend; however, 2019 has a higher investment value than 2021. The main two investment activities of the company are vehicle and equipment leases and investments in other companies as well.
The company is financed by several sources of finance. There are long-term debts of the company whose value is constant or showing a stable trend. The company is also funded by other financial liabilities, which are also challenging. The company has shares, common stock, and treasury stock as some of its financing activities.
To the Samsung Company, several investment activities contribute to the total revenue of the company. However, the two most significant and central investments are the short-term financial instruments and investment in the Samsung Next project according to its income statements. The trend from the three years shows investment improvement hence the company is earning more from its investments.
The company also has different sources of finances, according to the statements. Some of the financing sources include short-term and long-term debts, debentures, long-term payables as well as shares. The trend shows that the obligation of the company is reducing with the following year having a lower debt amount than the previous year; hence the company is paying off its debts, financers, and creditors at the same time retaining its profits.
Comparison of the Two Companies’ Statements
Some items have been omitted in both companies' statements. The Toyota Company's income statement lacks the proper information regarding the investments and other income-generating activities. For example, the Toyota Motor Company only gives the totals of the investment activities and the financial services that generate revenue. Nevertheless, the statement doesn't show the amount that arose from each activity and the description of each exercise. The balance sheet also omits the same information.
Similarly, the Samsung income statements also lack detailed information concerning the number and the details of the other investments; the words only give the total revenue from the investment activities. Also, the balance sheet omits the information regarding the type of shares granted to shareholders. The omitted information by the two companies can be crucial in decision-making by the investor if available since it could influence the decision made by the investor.
Although the companies are different, producing different products and located in other locations, some of their data can be compared, such as the revenue, debt, liability, and performance. Now comparing the information from the two companies, the Samsung Company shows a higher income than the Toyota Company due to the diversification of its products and improved technology. The Samsung Company also has a higher amount of sales than its counterpart. However, Toyota Motor Company has a lower debt than Samsung Company, as shown in the statements. It has fewer financers than those of Samsung and smaller amounts than those of Samsung.
Recommendation
I would recommend investing in the Samsung Company over the Toyota Company. The company has a higher net income; hence for investors, this would result in a higher dividend payout than the Toyota Company. Also, Samsung has a higher debt than Toyota, and this shows that the company is capable of paying off its debts. Additionally, Samsung has diversified its products; hence an investor can choose his desired area of investment. Therefore, I would select investing in the Samsung Company.
References
CORPORATION., T. M. (n.d.). Profile. Retrieved from https://global.toyota/en/company/profile/
Samsung. (n.d.). Retrieved from https://www.britannica.com/topic/Samsung-Electronics
TM | Toyota Motor Corp. ADR annual income statement – WSJ. (n.d.). Retrieved from https://www.wsj.com/market-data/quotes/TM/financials/annual/income-statement
Samsung (005930) income statement. (n.d.). Retrieved from https://www.investing.com/equities/samsung-electronics-co-ltd-income-statement
Financial Statements│ financial information │ investor relations │ Samsung global. (2021, May 31). Retrieved from https://www.samsung.com/global/ir/financial-information/audited-financial-statements/
Attachments
TOYOTA MOTORS COMPANY Consolidated Financial Statements
1. Consolidated Statement of Financial Position
Yen in millions
Transition date
April 1, 2019
March 31, 2020
March 31, 2021
Assets
|
Cash and cash equivalents |
3,602,805 |
4,098,450 |
5,100,857 |
|
Trade accounts and other receivables |
2,954,617 |
2,648,360 |
2,958,742 |
|
Receivables related to financial services |
6,657,367 |
6,621,604 |
6,756,189 |
|
Other financial assets |
2,640,392 |
2,143,602 |
4,215,457 |
|
Inventories |
2,731,040 |
2,533,892 |
2,888,028 |
|
Income tax receivable |
84,574 |
237,609 |
112,458 |
|
Other current assets |
507,654 |
679,804 |
745,070 |
|
Total current assets Non-current assets |
19,178,450 |
18,963,320 |
22,776,800 |
|
Investments accounted for using the equity method |
3,467,242 |
4,297,564 |
4,160,803 |
|
Receivables related to financial services |
10,281,028 |
10,417,797 |
12,449,525 |
|
Other financial assets Property, plant and equipment |
7,769,740 |
7,901,517 |
9,083,914 |
|
Land |
1,359,271 |
1,318,964 |
1,345,037 |
|
Buildings |
4,833,278 |
4,741,451 |
4,999,206 |
|
Machinery and equipment |
11,956,773 |
11,979,449 |
12,753,951 |
|
Vehicles and equipment on operating leases |
6,139,163 |
5,928,833 |
6,203,721 |
|
Construction in progress |
656,067 |
517,460 |
675,875 |
Current assets
Total property, plant and equipment, at cost 24,944,551 24,486,156 25,977,791
Less – Accumulated depreciation and impairment losses (14,260,446) (13,952,141) (14,566,638)
Total property, plant and equipment, net 10,684,105 10,534,016 11,411,153
|
Right of use assets |
396,830 |
337,335 |
390,144 |
|
Intangible assets |
908,737 |
1,000,257 |
1,108,634 |
|
Deferred tax assets |
446,383 |
326,364 |
336,224 |
|
Other non-current assets |
283,889 |
194,192 |
549,942 |
Total non-current assets 34,237,955 35,009,043 39,490,339 Total assets 53,416,405 53,972,363 62,267,140
Yen in millions
Transition date
April 1, 2019
March 31, 2020
March 31, 2021
Liabilities
|
Trade accounts and other payables |
3,856,133 |
3,498,029 |
4,045,939 |
|
Short-term and current portion of long-term debt |
9,701,813 |
9,906,755 |
12,212,060 |
|
Accrued expenses |
1,350,252 |
1,256,794 |
1,397,140 |
|
Other financial liabilities |
475,302 |
538,740 |
763,875 |
|
Income taxes payable |
321,316 |
212,276 |
350,880 |
|
Liabilities for quality assurance |
1,769,514 |
1,552,970 |
1,482,872 |
|
Other current liabilities |
1,008,032 |
1,176,645 |
1,207,700 |
|
Total current liabilities Non-current liabilities |
18,482,362 |
18,142,209 |
21,460,466 |
|
Long-term debt |
11,342,315 |
11,434,219 |
13,447,575 |
|
Other financial liabilities |
189,957 |
360,588 |
323,432 |
|
Retirement benefit liabilities |
1,002,710 |
1,022,161 |
1,035,096 |
|
Deferred tax liabilities |
1,227,292 |
1,198,005 |
1,247,220 |
|
Other non-current liabilities |
516,560 |
476,169 |
465,021 |
Current liabilities
Total non-current liabilities 14,278,833 14,491,142 16,518,344
Total liabilities 32,761,195 32,633,351 37,978,811
|
Shareholders’ equity |
|||
|
Common stock |
397,050 |
397,050 |
397,050 |
|
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