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Prepared by:
Daniel Munoz
Accounting 101
Spring 2010
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5,495.2 = 5,495.2
IX. Operations
Investing Activities
Largest Amount Received : Cash Inflow from Hedging Activities : 196.0 (In
Millions)
Financing Activities
Largest Amount Received : Proceeds from issuance of long term debt: 393.1 ( In
Millions)
A. Introduction
The Black and Decker Corporation are headquartered out of Towson, Maryland in a building
located at 701 East Joppa Rd. The Chief Executive Officer is 66 year old Nolan D. Archibald
whose annual salary was 3.38 Million in 2008. The Company manufactures tools and accessories
in all sectors of the tool industry from Household Tools, Heavy Power tools, technologically based
fastening and assembly systems worldwide. The Main household tool brand is Black and Decker
with its inexpensive power tools to get countless household tasks done with no problem. As for its
Industrial Power tool brands Black and Decker carries powerhouse Dewalt Tools which is and
industry leader in power tools and accessories with its unbeatable array of accessories for every
possible situation. They also carry Stanley which specialize in tool box tools like tape measure and
levels, and many other tools that aid in making the best possible work. Porter Cable is a brand that
specializes in Air Compressors and Nail guns, a brand that solely owns this portion of the market
with the nearest competitor being dewalt which as you already now is produced by the same parent
company. Black and Decker also has under its belt, Kwikset and Sotitrol Security systems which
have a hold and the door lock systems sector with there array of different security levels to please
both residential and industrial needs. The Companies independent public accountants are none
other than Ernst and Young LLP based out of Baltimore, Maryland. On March 14, 2010 Black and
Decker ended the day at 74.05 Dollars a Share as well as 1.31 Dollars Dividend per Share.
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B. Industry Situation
Black and Decker is in the Industrial Goods Sector with it Industry being Small Tools and
Accessories. The company continues to show net earnings and no net losses so it is certain that
the Black and Decker Corporation is showing no signs of slowing down with its stable cash
flow. Black and Deckers recent merger with Stanley works on 3/12/2010 brings together 2
ionic brands with highly complimentary products and services that will enhance both
companies’ strengths and provide great growth opportunities. The combined company will
have a greater presence in the Tools Industry and create a great investment opportunity with
it’s “…highly diversified revenue base across geographies and business lines, stable earnings
and long history of paying consecutive dividends” (Baltimore Sun 3-14-10 “Black and Decker
and asset efficiency, as well as complexity reduction”. The combination is expected to generate
approximately $1.0 billion in free cash flow annually by the third year after closing”. With
both companies showing great outlook it is certain that 2010 will be a great year for the newly
services/our brand).
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