REPORT TO SUN MICROSYSTEMS SHAREHOLDERS
The report that we have prepared for Sun Micro Systems will cover the annual percentage in change in the net income, net revenue for four years, the differences in net revenue to net income, stockholders equity for 2000 and 2001, reason for changes, average stock prices for four years, and any dramatic shifts in shares. Our finding will show the overall outcome of Sun Micro Systems shareholders.
Sun Microsystems’s annual percentage change in net income per common share-diluted is as follows: 1998 – 1999 = 29%, 1999 – 2000 = 77%, and 2000 – 2001 = -50% (Block and Hirt, 2005).
Sun Microsystems’s net revenue was $9,862 in 1998, $11,806 in 1999, $15,721 in 2000, and $18, 250 in 2001 (Block and Hirt, 2005).
Sun Microsystems had a net revenue difference of 2,529 between 2000 and 2001. The difference was detailed through the following data: 2000 Cost of Sales 7,549, Research and Development 1,630, Selling, General and Administrative 4,072 and Provision for Income Tax 917. 2001 data included: Cost of Sales 10,041, Research and Development 1,630, Selling, General and Administrative 4,544 and Provision for Income Tax 603. The data illustrated above outlines the reason for having the increase in net revenue from 2000 to 2001. This increase was due to a difference in line items cost of sales, research and development, selling, general and administrative and provision of sales tax. There was an increase in all line items excluding the provision of income tax which had a decrease.
To calculate the return on stakeholder’s equity in 2000 and 2001 the net income was divided by the total stakeholder’s equity.
2001: 927/10,586 = 0.08756
2000: 1,854/7,309 = .2536
As a result of these calculations for every dollar that was invested in the company, Sun Microsystems earned 8.76% in 2001 and 25.36% in 2000.
After analyzing the stockholders equity for 2000 and...