1. Annual Report Corning Incorporation John Harkins ACG 2021 Section 002

2. Executive Summary Corning Incorporation is one of a few manufactures of the LCD screens. This is a new invention that will not go away. The results of this glass product has changed the way people watch TV. Their sales will continue to increase. Corning Incorporation is one of a few manufactures of the LCD screens. This is a new invention that will not go away. The results of this glass product has changed the way people watch TV. Their sales will continue to increase. Corning Inc Financial Reports Corning Inc Financial Reports Corning Inc Financial Reports Corning Inc Financial Reports

3. Part A. Introduction CEO: James R. Houghton CEO: James R. Houghton Main Headquarters is in Corning, New York. Main Headquarters is in Corning, New York. Ending date of last fiscal year was December 31,2004 Ending date of last fiscal year was December 31,2004 Corning Incorporation is a primary supplier of LCD screens for Televisions and Computer screens. Corning Incorporation is a primary supplier of LCD screens for Televisions and Computer screens. Corning has research centers in North America, Europe and Asia Corning has research centers in North America, Europe and Asia

4. Part A. Audit report Independent Auditors: PricewaterhouseCoopers LLP. Independent Auditors: PricewaterhouseCoopers LLP.

5. Part A. Stock Market Information Most recent price of Corning Inc. stock is $26.64. Most recent price of Corning Inc. stock is $26.64. Twelve month range of the stock $10.77- $27.35 Twelve month range of the stock $10.77- $27.35 Dividend per share: Dividend per share: Date of Information: March 3, 2006 Date of Information: March 3, 2006 My opinion of Corning Inc. stock is to buy! The number of LCD screens in computers and televisions is on the rise. Most of the modern television are made with LCD screens. The future is going to be bright. My opinion of Corning Inc. stock is to buy! The number of LCD screens in computers and televisions is on the rise. Most of the modern television are made with LCD screens. The future is going to be bright.

6. Part B. Industry Situation and Company Plans Corning Inc. has a bright future. They are the leaders of technology in the LCD business. The company has employees all over the world. They have reduced their debt by seven hundred thousand dollars over the past year. Corning exceeded their hopes with 1.9 billion in cash and short term investments. Corning Inc. has a bright future. They are the leaders of technology in the LCD business. The company has employees all over the world. They have reduced their debt by seven hundred thousand dollars over the past year. Corning exceeded their hopes with 1.9 billion in cash and short term investments. http://www.corning.com/ http://www.corning.com/ http://www.corning.com/

7. Part C. Income Statement Corning Inc. has a multi-step format Income Statement. Corning Inc. has a multi-step format Income Statement. The increases in gross profit, net income and income from operations shows that Corning Inc. advance in technology with the LCD screens for computers and televisions. The demand for LCD screens is increasing. The increases in gross profit, net income and income from operations shows that Corning Inc. advance in technology with the LCD screens for computers and televisions. The demand for LCD screens is increasing. (In millions) 20032004 Gross Profit 1,6492,341 Income from operations 1331,009 Net income 5051,036

8. Part C. Balance Sheet ( In millions) Assets = Liabilities + Stockholders Equity 200310,7525,2525,464 20049,7105,8653,816 Assets decreased by about one thousand. Liabilities increased by about 600, and Stockholders Equity decreased by about 1500. Stockholders Equity and Liabilities accounts changed the most.

9. Part C. Statement of Cash Flows Net income is more than cash flow from operations for the past two years. Net income is more than cash flow from operations for the past two years. Corning Inc. is growing through buying property, plant and equipment. They currently have research centers on three continents. Corning Inc. is growing through buying property, plant and equipment. They currently have research centers on three continents. The primary source of financing is long term loans. The primary source of financing is long term loans. Cash has increased over the past two years. Cash has increased over the past two years.

10. Part D. Accounting policies Topics of Notes Topics of Notes DebtDebt ReceivablesReceivables Income taxesIncome taxes

11. Part E. Financial Analysis Liquidity Ratios Working Capital: 531 million Working Capital: 531 million Current ratio: 2.11 Current ratio: 2.11 Receivable turnover:6.94 Receivable turnover:6.94 Average days’ sales uncollected:52.59 days Average days’ sales uncollected:52.59 days Inventory turnover:23.5 Average days’ inventory on hand:15.53 days Inventory turnover:23.5 Average days’ inventory on hand:15.53 days

12. Part E. Financial Analysis Profitability Ratios Profit Margin:.268 Profit Margin:.268 Asset Turnover:.373 Asset Turnover:.373 Return on Assets:.1 Return on Assets:.1 Return on Equity:.223 Return on Equity:.223

13. Part E. Financial Analysis Solvency Ratio Debt to Equity: 1.53 =2004 Debt to Equity: 1.53 =2004 0.96=2003 0.96=2003 The Bank owns Corning Incorporation due to the fact that most of their business is done on credit. The Bank owns Corning Incorporation due to the fact that most of their business is done on credit.

14. Part E. Financial Analysis Market Strength Ratios Dividend yield:.005 Dividend yield:.005