Acc 230 Week 2 Lucent Technologies Case

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Lucent Technologies Kristin Barker ACC 230 March 12, 2013 Lucent Technologies financial report is for September 2003 and September of 2004. The report shows that the assets are in an upward trend. This shows a good trend for the company as they are building assets and not losing them over a year’s time. The goal for any company is to create a profit and gain assets for their company to help raise their profit. Total current liabilities have decreased within the year. This shows that the company is paying off some of their debt and gaining more assets. Although it every business requires debt to get started and continue, a company never wants to be overwhelmed with debt that they cannot pay, because this will lead to bankruptcy. Their long term debt has increased over the year, but the total debt has decreased. The shareowner’s deficit has decreased over the year substantially. This is very good news for shareholders because they do not want to be in a deficit but in a surplus so that they can being receiving dividend payouts. Concerns that investors and creditors may have just by looking at this statement are that it only shows one year of information. They may require more information to see a real trend over a period of time. Although from 2003 to 2004 was a positive year, before that there could have been negative trends. If this is the case, it does show in favor that during the positive trend that Lucent Technologies paid down debt and gained more assets in good time instead of just developing more debt because they were doing well. This would show positive for both investors and creditors because it shows that the company takes care of its financial responsibilities first. This statement, although shows assets and liabilities, does not show the income or cash flow for the company, overall it appears that the company is on a positive trend,

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