6200:454-181
Accounting Information Systems
e-Business Project
Revised:
10/23/00
Due date: 12/8/00
Maximum number of pages: 40 pages, 12 point font, 1 inch margins
References: List all references cited in your report.
A. What are the similarities and
differences between the following companies? Some information about each
company is provided below in the section of this exercise titled "New
Economy vs. Old Economy Entities."
B. The information provided in the section of this page titled "New
Economy vs. Old Economy Entities" show performance data for
each of the above companies as reported by MarketGuide
in January 2000. Go to MarketGuide's
web site (http://yahoo.marketguide.com/)
and compare the current performance of the e-commerce companies listed
above with the performance reported below. What have you observed? What
conclusions can you draw about B2C e-commerce? You may wish to read the
following articles, particularly "A wealth of black humor," prior to answering this question:
C. Read the following articles and write a brief report
to summarize the views of the authors regarding B2B e-business?
D. Read the following story and
write a brief report that defines internet cash and discusses how
Internet cash might facilitate B2C e-business.
E. Read the following story about knowing and attracting
e-business customers and write a two hundred word summary of the
article. Your summary should describe the methods used to collect
customer data and the role of data mining in understanding customer
preferences. From the perspective of an internal auditor, what are some
of the risks and internal control issues associated with the type of
activity described in the article?
F. What is WebTrust? Baseball star,
Roger Clemens, was the first entity to have WebTrust certification on
his official site. https://secure.competitor.net/rrstore/
With reference to Roger Clemens' e-business activities, how might the
WebTrust concept facilitate e-business? Identify two other e-business
authentication services that are similar to WebTrust and contrast them
with WebTrust. Suppose Roger Clemens contracted you to evaluate
alternative authentication services, would you recommend WebTrust?
Explain your answer.
G. Assume that you work for a
regional accounting firm, Havwe, Gotthem, Forsure & Co., and that
the senior partner, Jane Havewe, wishes to find out about XBRL so
that she may respond to a client's questions. Jane's client recently
attended a seminar on the future of financial reporting, where she heard
about a new markup language called XBRL that will revolutionize business
and financial reporting. Jane's client was particularly interested
in answers to some very fundamental questions, including:
-
What is XBRL?
-
What is a taxonomy?
-
How will XBRL work to allow
software vendors, programmers and end users who adopt it as a
specification to enhance the creation, exchange, and comparison of
business reporting information?
-
In what ways will XBRL affect
financial reporting?
-
How will XBRL affect my (Jane's
client) business processes?
In addition, to responding to her
client's questions, Jane wishes to learn about opportunities for
billable XBRL related services that her firm may offer to its clients.
Write a brief report that Jane may
use to help her client learn more about XBRL. Your report should also
include a section on billable XBRL related services that Havwe, Gotthem,
Forsure may offer to its clients.
Note: Simply
copying material from the Internet and handing it in as your own work is
unacceptable.
Go to the
following FTP site for XBRL references. Most of these articles came from
http://xbrl.org/
http://courseinfo.cba.uakron.edu/calderon/acct454/Articles/
Ebay
eBay Inc. has developed a Web-based community in
which buyers and sellers are brought together in an auction format
to buy and sell items such as antiques, coins, collectibles,
computers, memorabilia, stamps and toys. For the 9 months ended
9/30/99, revenues totalled $150.8M, up from $55.2M. Net income
rose 28% to $5.9M. Results reflect increases in total items listed
on the eBay website and in gross sales, and increased interest
income.
|
Price & Volume
|
|
Recent Price $
|
133.81
|
|
52 Week High $
|
234.00
|
|
52 Week Low $
|
55.33
|
|
Avg Daily Vol (Mil)
|
3.84
|
|
Beta
|
NA
|
|
Share Related Items
|
|
Mkt. Cap. (Mil) $
|
17,307.24
|
|
Shares Out (Mil)
|
129.34
|
|
Float (Mil)
|
34.90
|
|
Dividend Information
|
|
Yield %
|
0.00
|
|
Annual Dividend
|
0.00
|
|
Payout Ratio (TTM) %
|
0.00
|
|
Financial Strength
|
|
Quick Ratio (MRQ)
|
5.71
|
|
Current Ratio (MRQ)
|
6.07
|
|
LT Debt/Equity (MRQ)
|
0.01
|
|
Total Debt/Equity (MRQ)
|
0.02
|
|
|
Valuation Ratios
|
|
Price/Earnings (TTM)
|
2,347.60
|
|
Price/Sales (TTM)
|
103.34
|
|
Price/Book (MRQ)
|
20.93
|
|
Price/Cash Flow (TTM)
|
791.79
|
|
Per Share Data
|
|
Earnings (TTM) $
|
0.06
|
|
Sales (TTM) $
|
1.30
|
|
Book Value (MRQ) $
|
6.39
|
|
Cash Flow (TTM) $
|
0.17
|
|
Cash (MRQ) $
|
2.99
|
|
Mgmt Effectiveness
|
|
Return on Equity (TTM)
|
1.92
|
|
Return on Assets (TTM)
|
1.71
|
|
Return on Investment (TTM)
|
1.88
|
|
Profitability
|
|
Gross Margin (TTM) %
|
77.09
|
|
Operating Margin (TTM) %
|
0.27
|
|
Profit Margin (TTM) %
|
4.38
|
|
|
Mil
= Millions MRQ = Most Recent Quarter TTM =
Trailing Twelve Months
Pricing and volume data as of
01/14/2000
|
Amazon.Com
Amazon.com, Inc., is an online book, CD and video
retailer offering more than 4.7M music CDs, videos, DVDs,
computer-games, books, and other titles. For the nine months ended
9/30/99, revenues rose from $357M to $963.8M. Net loss totalled
$396.8M, up from $78.1M. Revenues reflect an increase in units
sold due to growth of the customer base and repeat customers.
Higher loss reflects a $175.3M merger and acquisition related
charge.
|
Price & Volume
|
|
Recent Price $
|
64.25
|
|
52 Week High $
|
113.00
|
|
52 Week Low $
|
41.00
|
|
Avg Daily Vol (Mil)
|
13.06
|
|
Beta
|
2.76
|
|
Share Related Items
|
|
Mkt. Cap. (Mil) $
|
21,895.57
|
|
Shares Out (Mil)
|
340.79
|
|
Float (Mil)
|
132.90
|
|
Dividend Information
|
|
Yield %
|
NA
|
|
Annual Dividend
|
NM
|
|
Payout Ratio (TTM) %
|
0.00
|
|
Financial Strength
|
|
Quick Ratio (MRQ)
|
2.53
|
|
Current Ratio (MRQ)
|
3.02
|
|
LT Debt/Equity (MRQ)
|
3.48
|
|
Total Debt/Equity (MRQ)
|
3.51
|
|
|
Valuation Ratios
|
|
Price/Earnings (TTM)
|
NM
|
|
Price/Sales (TTM)
|
16.86
|
|
Price/Book (MRQ)
|
51.90
|
|
Price/Cash Flow (TTM)
|
NM
|
|
Per Share Data
|
|
Earnings (TTM) $
|
-1.37
|
|
Sales (TTM) $
|
3.81
|
|
Book Value (MRQ) $
|
1.24
|
|
Cash Flow (TTM) $
|
-1.25
|
|
Cash (MRQ) $
|
2.67
|
|
Mgmt Effectiveness
|
|
Return on Equity (TTM)
|
-159.76
|
|
Return on Assets (TTM)
|
-29.08
|
|
Return on Investment (TTM)
|
-33.98
|
|
Profitability
|
|
Gross Margin (TTM) %
|
21.07
|
|
Operating Margin (TTM) %
|
-33.77
|
|
Profit Margin (TTM) %
|
-36.42
|
|
|
Mil
= Millions MRQ = Most Recent Quarter TTM =
Trailing Twelve Months
Pricing and volume data as of
01/14/2000
|
Beyond.com
Beyond.com is a online reseller of commercial
off-the-shelf computer software to the consumer, small business
and large enterprise markets. For the 9 months ended 9/30/99,
revenues totalled $82M, up from $23.5M. Net loss totalled $90.8M,
up from $16.7M. Revenues reflect new U.S. government contracts and
higher sales to consumers and corporate customers. Higher loss
reflects increased goodwill and deferred compensation
amortization.
|
Price & Volume
|
|
Recent Price $
|
6.38
|
|
52 Week High $
|
37.00
|
|
52 Week Low $
|
6.00
|
|
Avg Daily Vol (Mil)
|
1.93
|
|
Beta
|
NA
|
|
Share Related Items
|
|
Mkt. Cap. (Mil) $
|
231.09
|
|
Shares Out (Mil)
|
36.25
|
|
Float (Mil)
|
14.10
|
|
Dividend Information
|
|
Yield %
|
0.00
|
|
Annual Dividend
|
0.00
|
|
Payout Ratio (TTM) %
|
0.00
|
|
Financial Strength
|
|
Quick Ratio (MRQ)
|
2.59
|
|
Current Ratio (MRQ)
|
3.42
|
|
LT Debt/Equity (MRQ)
|
0.40
|
|
Total Debt/Equity (MRQ)
|
0.40
|
|
|
Valuation Ratios
|
|
Price/Earnings (TTM)
|
NM
|
|
Price/Sales (TTM)
|
2.12
|
|
Price/Book (MRQ)
|
1.45
|
|
Price/Cash Flow (TTM)
|
NM
|
|
Per Share Data
|
|
Earnings (TTM) $
|
-3.21
|
|
Sales (TTM) $
|
3.00
|
|
Book Value (MRQ) $
|
4.39
|
|
Cash Flow (TTM) $
|
-2.25
|
|
Cash (MRQ) $
|
2.40
|
|
Mgmt Effectiveness
|
|
Return on Equity (TTM)
|
-95.88
|
|
Return on Assets (TTM)
|
-54.96
|
|
Return on Investment (TTM)
|
-65.58
|
|
Profitability
|
|
Gross Margin (TTM) %
|
13.89
|
|
Operating Margin (TTM) %
|
NM
|
|
Profit Margin (TTM) %
|
NM
|
|
|
Mil
= Millions MRQ = Most Recent Quarter TTM =
Trailing Twelve Months
Pricing and volume data as of
01/14/2000
|
Goodyear
GT, through its U.S. and international
subsidiaries, develops, manufactures, distributes and sells tires,
and rubber products. GT also provides automotive repair
services. For the 9 months ended 9/30/99, net sales fell 1% to
$9.33B. Net income from cont. ops. fell 66% to $200.3M. Revenues
reflect the adverse effects of currency translations. Earnings
reflect $163.9M in rationalization charges and higher foreign
currency exchange expense.
|
Price & Volume
|
|
Recent Price $
|
27.50
|
|
52 Week High $
|
66.75
|
|
52 Week Low $
|
25.50
|
|
Avg Daily Vol (Mil)
|
1.26
|
|
Beta
|
0.87
|
|
Share Related Items
|
|
Mkt. Cap. (Mil) $
|
4,299.10
|
|
Shares Out (Mil)
|
156.33
|
|
Float (Mil)
|
120.40
|
|
Dividend Information
|
|
Yield %
|
4.36
|
|
Annual Dividend
|
1.20
|
|
Payout Ratio (TTM) %
|
58.20
|
|
Financial Strength
|
|
Quick Ratio (MRQ)
|
0.65
|
|
Current Ratio (MRQ)
|
1.25
|
|
LT Debt/Equity (MRQ)
|
0.46
|
|
Total Debt/Equity (MRQ)
|
0.94
|
|
|
Valuation Ratios
|
|
Price/Earnings (TTM)
|
13.45
|
|
Price/Sales (TTM)
|
0.35
|
|
Price/Book (MRQ)
|
1.17
|
|
Price/Cash Flow (TTM)
|
5.09
|
|
Per Share Data
|
|
Earnings (TTM) $
|
2.05
|
|
Sales (TTM) $
|
79.46
|
|
Book Value (MRQ) $
|
23.54
|
|
Cash Flow (TTM) $
|
5.40
|
|
Cash (MRQ) $
|
1.49
|
|
Mgmt Effectiveness
|
|
Return on Equity (TTM)
|
8.80
|
|
Return on Assets (TTM)
|
2.89
|
|
Return on Investment (TTM)
|
4.23
|
|
Profitability
|
|
Gross Margin (TTM) %
|
20.12
|
|
Operating Margin (TTM) %
|
3.23
|
|
Profit Margin (TTM) %
|
2.57
|
|
|
Mil
= Millions MRQ = Most Recent Quarter TTM =
Trailing Twelve Months
Pricing and volume data as of
01/14/2000
|
TRW, Inc.
TRW, Inc. designs, manufactures, and sells products
& systems in two industry segments: Automotive (automotive
systems and components); and Space and Defense (spacecraft,
software and systems engineering support, and electronic systems).
For the 9 months ended 9/30/99, sales increased 38% to $12.34B.
Net income decreased 32% to $245M. Revenues reflect sales from
LucusVarsity, offset by a $85M in purchased in-process research
and development charge.
|
Price & Volume
|
|
Recent Price $
|
48.44
|
|
52 Week High $
|
57.94
|
|
52 Week Low $
|
41.19
|
|
Avg Daily Vol (Mil)
|
0.36
|
|
Beta
|
0.73
|
|
Share Related Items
|
|
Mkt. Cap. (Mil) $
|
5,890.55
|
|
Shares Out (Mil)
|
121.61
|
|
Float (Mil)
|
83.90
|
|
Dividend Information
|
|
Yield %
|
2.73
|
|
Annual Dividend
|
1.32
|
|
Payout Ratio (TTM) %
|
44.05
|
|
Financial Strength
|
|
Quick Ratio (MRQ)
|
0.37
|
|
Current Ratio (MRQ)
|
0.70
|
|
LT Debt/Equity (MRQ)
|
2.79
|
|
Total Debt/Equity (MRQ)
|
4.58
|
|
|
Valuation Ratios
|
|
Price/Earnings (TTM)
|
16.24
|
|
Price/Sales (TTM)
|
0.38
|
|
Price/Book (MRQ)
|
2.97
|
|
Price/Cash Flow (TTM)
|
5.34
|
|
Per Share Data
|
|
Earnings (TTM) $
|
2.98
|
|
Sales (TTM) $
|
126.05
|
|
Book Value (MRQ) $
|
16.31
|
|
Cash Flow (TTM) $
|
9.08
|
|
Cash (MRQ) $
|
2.42
|
|
Mgmt Effectiveness
|
|
Return on Equity (TTM)
|
19.93
|
|
Return on Assets (TTM)
|
2.70
|
|
Return on Investment (TTM)
|
4.88
|
|
Profitability
|
|
Gross Margin (TTM) %
|
18.53
|
|
Operating Margin (TTM) %
|
4.03
|
|
Profit Margin (TTM) %
|
2.38
|
|
|
Mil
= Millions MRQ = Most Recent Quarter TTM =
Trailing Twelve Months
Pricing and volume data as of
01/14/2000
|