1. Amount of internally generated software development costs on products for which technological feasibility had already been established?
"Capitalization of software development costs"
2003: $88.2 million
2002: $104.2 million
2001: $112.2 million
2. Total Assets and Total Stockholders' Equity for 2003
If software development costs were not capitalized as assets at the point of technological feasibility, then Total Assets decrease by $88.2 million. If treated like expenditures for other internally developed intangibles then the $88.2 million would be treated as an expense. If expenses increase by $88.2 million, then Total Stockholder's Equity decreases by $88.2 million.
3. Net Earnings for 2003
If software development costs were not capitalized as assets, then they would be treated as an expense. Specifically "Research, development and support expenses" would increase by $88.2 million to $578.1 million ($489.9 + $88.2). Net earnings would decrease to -$40.2 million ($48.0 - $88.2) and be recognized as a net loss.
4. Statement of Cash Flows for 2003
Net loss would be -$40.2 million.
Net cash from operating activities would decrease to $517.4 million ($605.6 - $88.2).
Net cash from investing activities would increase to -$161.3 million (-$249.5 + $88.2).
Net cash from financing activities would stay the same at -$186.7 million.
“Cash and cash equivalents, end of year” would stay the same at $500.1 million ($500.1 - $88.2 + $88.2).
5. Net Earnings for 2002 and 2001
If software development costs were not capitalized as assets, then they would be treated as an expense. If expense increases, then net earnings would decrease.
2001: "Research, development and support expenses" would increase to $636.0 million ($442.6 + $193.4). Net earnings would decrease to $151.0 million ($42.4 - $193.4).
2002: "Research, development and support expenses" would increase to $721.9 million ($479.2 + $242.7). Net earnings would decrease to -$426.8 million...