Cisco Essay

821 WordsJul 26, 20134 Pages
Cisco Systems, Fiscal Year 20 1. Identify and explain the main sections of the annual report. The main sections and explanation of the Cisco Systems, Inc., annual report for fiscal year two thousand and eleven, summarizes current data with the past for comparison. According to Cisco Systems-Annual Financial Statements the following are presented: a. Balance Sheet – Listed in millions of dollars for Cisco are the current and past quarter assets with total, and liabilities and equity with total (2011). These totals give a snapshot of any quarter, during the year reported of Cisco’s financial position. The balance sheet adheres to the basic accounting formula, assets equal liabilities plus equity. b. Statement of Cash Flows – Also reported in millions of dollars, this statement shows the receipts and payments of the company during the reporting period. This statement also shows Cisco’s operational, financial and investment actions (Cisco Systems-Annual Financial Statements, 2011). c. Revenue by Product Category and Service by Quarter – This illustration shows Cisco’s revenue of each product it provides, and the percentage of service utilized. This statement can easily be used to ascertain the cost of support of a certain product, and to provide information to identify if the product is too costly to maintain. (Cisco Systems-Annual Financial Statements, 2011). d. Revenue and Gross Margin by Geographic Segment – This illustration shows the revenue and gross margin of each geographic theater that Cisco occupies. Broke down by the Americas, EMEA and APJC, it is very easy to see that Cisco is global and would need this information to ascertain its profitability in each location listed. (Cisco Systems-Annual Financial Statements, 2011). e. Income Statement and GAAP Reconciliation – This statement shows “A reconciliation between net income on a

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