Managerial Accounting 5e- Research Activities

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Managerial Accounting , Fifth Edition
Belverd D. Needles, Jr., DePaul University
Marian Powers, Northwestern University
Sherry K. Mills, New Mexico State University
Henry R. Anderson, University of Central Florida


	Research Activities Projecting Revenues and Costs Instructions: Visit the five annual reports listed below, or choose others from the annual reports list included at this site. Locate the Letter to Stockholders and identify at least three initiatives or actions that you believe were part of the company's planning activities for the year that affected sales or costs. Also identify one initiative or action that the company is planning for the coming year that you would expect to affect revenues or expenses for the next year. A sample Letter to Stockholders is shown below. Five Annual Reports: Dupont (12/31/97) IBM (12/31/97) Intel (12/27/97) Kodak (12/31/97) National Semiconductor (5/25/97) Sample Letter to Shareholders: Sun Annual Report To our stockholders: Fiscal 1997 has been another outstanding year for Sun and its stockholders. Driven by a vision of seamless access to information--and backed by 15 years of consistent execution--Sun is now recognized as one of the premier providers of open network computing solutions. While the dramatic growth of the Internet has forced many high-technology companies to try to reinvent themselves, Sun has been moving straight ahead at full speed. We were connected to the Internet from the beginning, and all of our products are designed with the network in mind. The network is in our DNA. So today we're able to capitalize on years of Internet experience and hard-won expertise. That expertise has enabled us to join our business partners in new product arenas where network access extends to everything from cellular phones to self-service kiosks to diesel engines. In other words, our MARKET OPPORTUNITIES are now larger than ever before. At the same time we've strengthened our position in our traditional markets with a product line that extends from embedded microprocessors to technical workstations, from data storage to enterprise servers, from software development tools to enterprise management products, and from system support to integration services. While the Internet has drawn a great deal of attention, we currently see a larger market for our products and services in corporate intranets and business-to-business extranets. Organizations accumulate vast amounts of information--demographics, customer purchasing and investment patterns, corporate financials-and more of it is going on-line than ever before. That information can provide a competitive advantage, but only when collected, organized, and analyzed in real time--and retrievable on demand. To make all that possible, Sun offers proven products based on industry standards. Our goal is to provide network connectivity as dependable as it is seamless. We call it WebTone. Like the dial tone on your telephone, it's always there. It provides the connection you need, anytime, anywhere, through any number of easy-to-use devices--smart cards, screen phones, hand-held computers, enhanced-function teller machines, interactive kiosks. Why is continuous WebTone so important? Because even a few minutes of network downtime can cost a company thousands, or even millions, of dollars in lost revenues and customer goodwill. To help prevent that, we established a research and development program focused on providing uninterrupted access to network resources through automated fault detection, disaster recovery software, and a variety of innovative technologies. It's all based on a solid foundation--our SolarisTM system software. The newest release features notable enhancements in reliability, performance, and the software's already-exceptional scalability--the ability to handle growing numbers of simultaneous users and vast amounts of data without a significant loss in performance. In fact, with more than 100 enhancements, this release substantially increases Solaris' Internet performance. All of which, we believe, makes Solaris a highly attractive platform for delivering continuous WebTone. Our widely adopted JavaTM technology also plays an important role. Because Java applications will run on virtually any computer and many network devices, Java provides a universal computing platform that is used in a full spectrum of products, from smart cards to data center servers. As a result, organizations are simplifying their information systems. In fact, our customers are discovering that developing, distributing, and updating software is far easier, safer, and more cost-effective with Java. The bottom line: total cost of ownership is reduced. This year also marked the advent of a new kind of user interface--the Webtop. It's changing the way we think about computing in a corporate environment, because a Webtop--such as our HotJavaTM ViewsTM environment--allows people to access their files, e-mail, calendar, and other tools from any desktop device on thenetwork. We see the Webtop as a key enabler of the "thin-client" computing model--a breakthrough that greatly reduces an organization's total cost of ownership for information systems. That's because thin clients such as our JavaStationTM systems cost less to buy--and far less to maintain--than PCs in a business environment. This enables us to compete in a whole new market segment. The momentum behind Java has grown steadily since its introduction just two years ago, bolstered by the more refined and robust programming interfaces we introduced this year--PersonalJava, EmbeddedJava, Java Card, and a new Java Development Kit. We have also seen strong support for our 100% Pure JavaTM initiative, with IBM, Netscape, Oracle, and more than a hundred other companies backing the drive to safeguard the "Write Once, Run AnywhereTM" nature of Java. We have licensed Java technology--including the Java Virtual Machine, the JavaOSTM operating system, and specially tuned JavaChipTM microprocessors--to leading companies in a variety of industries, including telecommunications, systems and software manufacturers, and consumer electronics. These companies are embedding Java in products aimed at both consumers and corporate customers. We also made a major thrust into the market for high-end data center servers. Using breakthrough technology, we have been able to combine the power and flexibility of the network with the capacity, reliability, and security of the mainframe. Our new data center servers, including the 64-processor UltraTM EnterpriseTM 10000, and mass storage systems, such as the SunTM RSMTM Array 2000, set new standards for power, throughput, and reliability. This year, thanks to our Enterprise server family, Sun became the first systems company ever to demonstrate the best TPC-C performance on all four leading database platforms: Oracle, Informix, Sybase, and IBM. We also set records in a number of other benchmark tests, including Internet performance. We also extended our workstation line with the Sun Ultra 4000, a deskside system with up to 14 microprocessors. For high-end visual computing -- simulation, modeling, design automation, medical imaging, animation -- it gives our technical computing customers the price/performance they demand. What's more, we nearly doubled the performance of our microprocessors with the introduction of our 300-MHz UltraSPARCTM-II CPU. While we believe that Sun offers some of the best solutions in the business, we recognize that our products must work in complex environments that include diverse computing platforms. Our strategy is to provide cost-effective solutions that not only interoperate with products from Apple, IBM, Microsoft, Novell, and others, but can also monitor and manage those products as part of a cohesive network. Our SunLinkTM interoperability products, for example, enable users to perform tasks shared among different systems, such as file/print, single network sign-on, and mixed-client e-mail support. We added more than 4000 employees at Sun this year, many of them in sales and demand-creation roles as well as professional services. We opened 44 new service facilities, including 5 solution centers for a total of 27 worldwide, providing mission-critical support, 24 hours a day, seven days a week. We also introduced new educational services, including a Java certification program for software developers. These investments--along with our ongoing commitment to research and development--have contributed to the market perception that Sun is a premier provider of network computing solutions. But we are not resting on our laurels. We expect that the market will continue to be intensely competitive, and we are aggressively investing to reduce our cost structure. Current reengineering projects focus on streamlining manufacturing processes, shortening quote-to-collect and procure-to-pay cycle times, and improving asset management. At Sun we have always flown our own airplanes, so to speak, and we are doing the same with our JavaStation network computers. As of summer 1997, about 3000 employees are using these low-cost, low-maintenance desktops, and by this time next year our goal is to increase internal JavaStation users to 10,000. Many of our current applications are now being reengineered to take advantage of Java, and we expect to see future savings in our operating costs as this cost-effective solution becomes widely deployed. By remaining true to our founding vision--and continuing to innovate--we achieved record revenues and earnings per share infiscal 1997. Looking ahead, we see great opportunities as we focus on our CORE COMPETENCIES. Our challenge will be to execute well on our strategies, with timely delivery of innovative, high-quality products, services, and technologies to our customers. At the same time, we will invest in increasing our brand awareness, as we did this year, through international television and print advertising. Finally, I would like to acknowledge Sun's 21,000 employees for the role they've played in making fiscal 1997 so successful. They are our most valuable asset. Their dedication, initiative, teamwork, and quality focus are why Sun stockholders are being rewarded. We have based the compensation plan for Sun executives and managers--as well as the profit-sharing plan for U.S.employees--on meaningful growth in revenue, earnings, quality, and customer satisfaction. And we will continue to align these factors with employee compensation to improve stockholder value. Thank you for your continued support. Scott G. McNealy Chairman of the Board, President, and Chief Executive Officer scottg.mcnealy@corp.sun.com Extended Research Activity Search one of the business periodical www sites to find a recent article on one of the following topics: Strategic plans Revenue planning Update the Sun Microsystems Letter to Stockholder's information for the current fiscal year (ie. 6/30/98 or later). Either print out your answers for submission or email them to your instructor.





	ACE Practice Tests

	Research Activities

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	SMARTHINKING

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	Business Readings

Projecting Revenues and Costs

Extended Research Activity