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Gardner Denver Annual Report

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Read 10-K Report Gardner Denver Inc. 2008 (pages 46-61) and answer:

1. How many shares are authorized and how many are outstanding on 12/31/2008?

2. Why did earnings per share decrease? Was it a decrease in earnings or an increase in the number of shares?

3. What percentage does the combination of goodwill and intangibles represent of total assets in 2007 and 2008? Why might this be important to the analyst?

4. What accounts for the big decrease in the other comprehensive income between 2007 and 2008?

5. How much cash did Gardner generate from operations in 2008? What two items account for most of this?

6. How much cash did Gardner use on investing activities in 2008? What single item accounted for most of the cash used?

7. How much cash was used to repurchase treasury stock in 2008? Why might this be important to the analyst?

8. By generally accepted accounting principles, the first footnote details the accounting policies of any corporation. Does Gardner use straight line or accelerated methods to depreciate equipment?

9. How does Gardner determine if it needs to write down goodwill?

10. How long is the typical warranty for Gardner's products?


Solution Preview

10 - The typical warranty is for one year.

9 - Gardner performs the impairment test at the operating division level during the 3rd quarter of each fiscal year using balance as of June 30. The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair value of applicable operating divisions with their aggregate carrying values, including goodwill. The company determines the fair value of its operating divisions using assumptions based upon available information regarding expected future cash flows and a discount rate is based upon the cost of capital of specific to the Company reflective of the market transaction between market participants. The company believes that these assumptions are reasonable and comply with GAAP. If carrying ...

Solution Summary

The solution answers questions Gardner Denver Inc 10K Report.