ACCT 212

Name:
INDIVIDUAL LEARNING 55 QUESTION FORM
General Information
1. What is the name of your corporation?
Jacobs n!ineerin! Group" Inc.
2. Where are the corporate hea#$uarters?
1111 %outh Arroyo &ar'(ay" &asa#ena California )11*+
,. What is the corporation-s fiscal year en#?
%eptember 2.
th
/last 0ri#ay in %eptember1
2. What are the primary pro#ucts or ser3ices of the corporation?
4il an# Gas e5ploration" chemicals an# polymers" pro!rams for 3arious national
!o3ernments inclu#in! aerospace" #efence an# en3ironmental pro!rams" 6uil#in!s"
Infrastructure" minin! an# minerals" pharmaceuticals an# biotechnolo!y" po(er"
pulp an# paper" technolo!y an# manufacturin! an# foo# an# consumer pro#ucts
+. Graph the hi!h an# lo( price of the company-s stoc' for each $uarter of the last t(o
years. What (as the hi!h an# (hat (as the lo(? 78+1.2)" 98,1.)+
%toc'
&rices
2*11:1 2*11:2 2*11:, 2*11:2 2*12:1 2*12:2 2*12:, 2*12:2
9o( ,).1, 2;... 2*.+, ,1.)+ ,..,) 22.*, ,,.;1 ,...*
7i!h 2<.)< +1.2) 2;.*; ,<.;, 2,.1* 2<.++ ,<..; 2,.)*
;. Who is the company-s transfer a!ent an# (here are they locate#?
Wells 0ar!o %hareo(ner %er3ices" 1;1 North Concor# 5chan!e %treet" %outh %t.
&aul" =innesota ++*<+:11,)
<. Who are your company-s competitors?
ACom" >?% Corp" C72= 7ill" &arsons 6rinc'erhorff" @6?" 0lour" 6echtel to
name a fe(
=ar'et Information:
.. 4n (hich stoc' e5chan!e is your corporation-s stoc' tra#e#?
Ne( Aor' %toc' 5chan!e
). What is the current mar'et price of their stoc'?
+<.22 as of 1*B2B2*1,
1*. What is the tic'er symbol use# to i#entify your corporation on the stoc' e5chan!e?
JC
Internet Information:
11. What is the Internet a##ress of your corporation? 6e sure it appears as a hyperlin'.
WWW.Jacobs.com
12. Is the corporation-s Annual ?eport online?
Aes
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1,. Are its financial statements on:line?
Aes
12. Is your company liste# on Annualreports.com?
Aes
1+. 7o( lon! is your company-s 1*:@ report at the %ecurities an# 5chan!e
Commission (ebsite /#!ar Catabase1?
%ince 1))+
Cash 0lo( an# ?etaine# arnin!s:
1;. 9ist the amount of cash flo(s from each of the , acti3ities: 4peratin!" In3estin!"
an# 0inancin! for the 2 most recent years. What (as the increase or #ecrease in
cash for each of these years? %ee table belo(" note all #ollars #isplaye# in
thousan#s
Cash 0lo(s 4peratin! In3estin! 0inancin!
2*11 )B,* 2,;"2)* :.*1".,; ++;"),,
2*12 )B2. 2))".*+ :1.1"12< :2"<22
1<. Were there any Non:Cash In3estin!B0inancin! Transactions? Cescribe the type an#
amount.
There (ere e5chan!e rate chan!es 2*11 :22"<); an# 2*12 1*".<*
1.. What is the #ollar #ifference bet(een accrual net income an# Cash pro3i#e# by
4perations?
0or 2*12 Net Income ,<.")+2 minus 2))".*+ 8 <)"12)
1). What in3estin! acti3ity pro3i#e# the lar!est inflo( of cash in the current year?
Ac$uisitions
2*. What in3estin! acti3ity use# the lar!est amount of cash in the current year?
%ale of intellectual property 12"<2;
21. What financin! acti3ity pro3i#e# the lar!est inflo( of cash in the current year?
&rocee#s of issuance of common stoc' 2,"+;.
22. What financin! acti3ity use# the lar!est amount of cash in the current year?
%hort Term ?epayments +<)")*1/sho(s as ne!ati3e1
2,. Coes the company ha3e sufficient cash inflo(s from the appropriate cate!ory?
Cescribe any problems the company many e5perience (ith cash flo( from your
analysis of the cash flo( statement.
Aes" Jacobs is sho(in! a billion #ollars on han# /1"*,2"2+<"***1" notice# a hi!h
amount of bac'lo!" (or' (hich has not been a(ar#e#. This coul# be a problem if
the (or' is not contracte#
22. %ho( the chan!e in ?etaine# arnin!s for the 2 most recent years. What (as net
income for each year? 7o( much (as pai# out in #i3i#en#s each year?
/In Thousan#s1 2*12 2*11
?etaine# arnin!s 2")2*"221 2"+;2"2.1
Net Income ,)*")+2 ,,+"221
Ci3i#en#s pai# ,<.")+2 ,,1"*2)
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ACCT 212
2+. Were the #i3i#en#s on common stoc' an#Bor preferre# stoc'? What (as the amount
of each?
&ai# on common stoc' 2.*< per share
2;. Ci# ?etaine# arnin!s chan!e for any reasons other than net income or #i3i#en#s?
5plain.
2<. What classes of stoc' #oes your company ha3e?
&referre# an# Common stoc'
2.. 7o( many shares of each class of stoc' are authoriDe#" ho( many are issue#" an#
ho( many are outstan#in!?
&referre# 1"***"*** issue# an# * outstan#in!" Common 22*"***"*** (ith
12).,+..1 issue# an# 12<<.2..2 outstan#in!
2). Coes your company ha3e any treasury stoc'? 7o( many shares an# (hat #ollar
amount?
No
,*. What is the par or state# 3alue of each of your company-s stoc's?
1.** state# par 3alue on each stoc' class
0ootnote Cisclosures:
,1. 7o( many footnote #isclosures #oes your company ha3e?
,
,2. 7o( many si!nificant accountin! policies are liste# un#er its %ummary of
%i!nificant Accountin! &olicies?
11
,,. What #oes it inclu#e as Cash an# Cash $ui3alents?
Cash E re3enues !enerate# by laborBsubconsultants or e5penses cash e$ui3alents are
hi!hly li$ui# in3estments lately money:mar'et mutual fun#s an# o3erni!ht ban'
#eposits
,2. What metho# #oes it use to 3alue In3entory?
0air Falue =easurement
,+. What metho#/s1 #oes it use to #epreciate its assets?
&rimarily the strai!ht line metho#
,;. Coes it ha3e any lease# assets? If yes" #escribe them.
4ffice spaces" automobiles" e$uipment
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ACCT 212
,<. What policies #oes it ha3e in re!ar# to 0orei!n Currency Translations?
In preparin! our consoli#ate# financial statements" it is necessary to translate the
financial statements of our subsi#iaries operatin! outsi#e the >nite# %tates
/G>.%.G1" (hich are #enominate# in currencies other than the >.%. #ollar" into the
>.%. #ollar. In accor#ance (ith >.%. GAA&" re3enues an# e5penses of operations
outsi#e the >.%. are translate# into >.%. #ollars usin! (ei!hte#:a3era!e e5chan!e
rates for the applicable perio#/s1 bein! translate#
(hile the assets an# liabilities of operations outsi#e the >.%. are !enerally
translate# into >.%. #ollars usin! perio#:en# e5chan!e rates. The net effect of
forei!n currency translation a#Hustments is inclu#e# in stoc'hol#ers- e$uity as a
component of accumulate# other comprehensi3e income /loss1 in the
accompanyin! Consoli#ate# 6alance %heets.
,.. Cescribe any pen#in! la(suits in (hich it is in3ol3e#.
In =arch 2**." one of JacobsI subsi#iaries" Carter J 6ur!ess Inc. /KCJ6L1"
file# suit a!ainst the City of Fictor3ille in %uperior Court in California" for
amounts #ue an# o(in! CJ6. In =ay 2**)" the City of Fictor3ille file# a
cross:complaint a!ainst CJ6 an# Jacobs alle!in! breach of contract"
professional ne!li!ence" breach of e5press an# implie# (arranty" frau#" breach
of fi#uciary #uty an# ne!li!ent misrepresentation. The CityIs frau# an#
puniti3e #ama!e alle!ations (ere #ismisse#. The case (as trie# in ?i3ersi#e
%uperior Court" California an# in Cecember 2*1*" a Hury returne# a 3er#ict
a!ainst CJ6 for appro5imately M+2 million in #ama!es. An appeal (as file#
an# is currently pen#in! before the Court of Appeal" %tate 4f California" the
0ourth Appellate Cistrict. As the Company belie3es that there is insurance
co3era!e for this matter" Jacobs #oes not e5pect it to ha3e any material
a#3erse effect on its consoli#ate# financial statements.
4n January 2*" 2*1*" Clar' County Ne3a#a file# suit a!ainst Jacobs an# t(o
of its subsi#iaries assertin! claims arisin! out of certain construction proHects
to (hich Clar' County Ne3a#a (as the o(ner an# for (hich JacobsI
subsi#iaries ser3e# as the proHect mana!ement consultant. Clar' CountyIs
la(suit a!ainst Jacobs follo(e# years of liti!ation an# arbitration bet(een
Clar' County an# its construction contractor on the applicable proHects (hich
ha# en#e# unsuccessfully for Clar' County an# resulte# in Clar' County
payin! more than M;* millionin settlement an# a(ar#s. Jacobs #enies liability
an# has been 3i!orously #efen#in! a!ainst the CountyIs claims an# (ill
continue to #o so. In %eptember 2*12" the parties a!ree# to #ismiss the
liti!ation in >.%. Cistrict Court an# procee#" in lieu thereof" in arbitration
before three arbitrators. It is anticipate# that a hearin! on the merits (ill ta'e
place in %eptember 2*1,. The Company #oes not e5pect this matter to ha3e
any material a#3erse effect on its consoli#ate# financial statements.
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ACCT 212
,). &ro3i#e its arnin!s per %hare for the 2 most recent years?
arnin!s &er %hare 2*11 2*12
6asic 2.;, 2.)<
Cilute# 2.;* 2.)2
?eport of the In#epen#ent Au#itor/s1:
2*. Who isBare your company-s au#itor/s1?
rnst J Aoun!" 99&
21. Where are they locate#?
9os An!elas" CA
22. Coes the au#itor/s1 !i3e a $ualifie# opinion" an un$ualifie# opinion" a #isclaimer of
opinion" or an a#3erse opinion? What #oes that opinion mean? Is it !oo#?
A $ualifie# opinion. It means the opinion is base# on their actual au#it fin#in!s" yes
it is !oo#
2,. What is the au#itor-s responsibility in re!ar# to the financial statements?
3aluate the KfairnessL of the financial statements
22. What is mana!ement-s responsibility in re!ar# to the financial statements?
nsure the internal controls o3er financial reportin! lea# to accurate financial
reportin!
2+. What financial statements (ere inclu#e# in the au#itor-s opinion?
Consoli#ate# balance sheets
2;. Ci# the au#itor belie3e that the statements (ere presente# fairly?
yes
=ana!ement-s ?eport:
2<. Who bears the responsibility for the inte!rity an# the obHecti3ity of the financial
statements?
Chief 5ecuti3e 4fficer" Crai! =artin" Chief 0inancial 4fficer" John W. &rosser
2.. What #oes mana!ement say they are #oin! to assure the public that the financial
information is reliable?
The re!istrant-s other certifyin! officer/s1 an# I are responsible for establishin! an# maintainin! #isclosure
controls an# proce#ures /as #efine# in 5chan!e Act ?ules 1,a:1+/e1 an# 1+#:1+/e11 an# internal control o3er
financial reportin! /as #efine# in 5chan!e Act ?ules 1,a:1+/f1 an# 1+#:1+/f11 for the re!istrant an# ha3e:
a. Cesi!ne# such #isclosure controls an# proce#ures" or cause# such #isclosure controls an# proce#ures to be
#esi!ne# un#er our super3ision" to ensure that material information relatin! to the re!istrant" inclu#in! its
consoli#ate# subsi#iaries" is ma#e 'no(n to us byothers (ithin those entities" particularly #urin! the perio# in
(hich this report is bein! prepare#N
b. Cesi!ne# such internal control o3er financial reportin!" or cause# such internal control o3er financial
reportin! to be #esi!ne# un#er our super3ision" to pro3i#e reasonable assurance re!ar#in! the reliability of
financial reportin! an# the preparation of financial statements fore5ternal purposes in accor#ance (ith
!enerally accepte# accountin! principlesN
c. 3aluate# the effecti3eness of the re!istrant-s #isclosure controls an# proce#ures an# presente# in this report
our conclusions about the effecti3eness of the #isclosure controls an# proce#ures" as of the en# of the perio#
co3ere# by this report base# on such e3aluationN an#
#. Cisclose# in this report any chan!e in the re!istrant-s internal control o3er financial reportin! that occurre#
#urin! the re!istrant-s most recent fiscal $uarter /the re!istrant-s fourth fiscal $uarter in the case of an annual
report1 that has materially affecte#" or is reasonably li'ely to materially affect" the re!istrant-s internal control
o3er financial reportin!N
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ACCT 212
2). What is the responsibility of the Au#it Committee of the 6oar# of Cirectors?
?e3ie( an# appro3e the fin#in!s of the au#itor. ?eport the fin#in! to the
sharehol#ers
Analysis: /use 5cel to complete this section1
+*. &ro3i#e common:siDe analysis of your company-s income statement an# balance
sheet for the 2 most recent years /must be #one usin! 5cel (ith formulas1.
+1. &ro3i#e horiDontal analysis of your company-s income statement an# balance sheet"
sho(in! the #ollar amount an# percent of chan!e usin! the 2 most recent years /you
must use an 5cel sprea#sheet (ith formulas1.
+2. &erform ratio analysis on your company usin! the ratios liste# on pa!e <*+ of your
te5t /these must be in an 5cel sprea#sheet" usin! formulas to calculate the ratios1.
Aou shoul# present them in a similar format as the te5t: !roup by cate!ory" list
name of ratio" formula in (or#s" an# the ratio calculation. Gi3e a short e5planation
of your conclusions about your company after each cate!ory of ratios /i.e. 7o(
li$ui# is your company? 7o( efficiently is it usin! its assets? etc.1.
Conclusions:
+,. Are you optimistic or pessimistic re!ar#in! the future of your chosen corporation?
5plain. 4ptimistic" Jacobs has sho(n increase# re3enues for consectuti3e years
an# ha3e !ro(n #urin! a slo( !lobal economy.
+2. Woul# you in3est in the stoc' of the company? 5plain.
Aes" as an employee you !et a #iscount on the purchase of the the shares" an# the
returns ha3e been soli# o3er the years
++. Woul# you in3est in the bon#s of the company? 5plain.
Aes" e3en throu!h only a3ailable throu!h 2*1@
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