www.gsmer.net 1. 2. 3. 4. 5. 6. 7. The Home Depot, Inc. 1999 1 31 1998 2 1 1 62 172 2 2 3 469 556 4 4293 3602 5 109 128 6 4933 4460 7 2739 3194 8 3757 3041 9 1761 1370 10 Leasehold 419 383 improvements 11 540 336 12 206 163 13 9422 7487 gsmer
14 1262 978 8160 6509 15 15 26 27 268 140 1999 1 31 18 1998 2 1 18 63 78 13465 11229 The Home Depot, Inc. 1978 10 1999 1 31 761 2002 The Home Depot www.gsmer.net 1600 The Home Depot most admired specialty The Home Depot 112 135 20 20% Property and Equipment plant assets intangible assets goodwill The Home Depot 18 7-1 plant assets intangible assets fixed assets depreciation gsmer
7-1 7-1 Depreciation Depletion Amortization 1 cost principle land improvements The Home Depot 20 300000 Home Depot 10000 8000 5000 1000 260000 7-2 300000 gsmer
10000 8000 5000 1000 24000 324000 260000 The Home Depot 324000 300000 24000 = + +324000 = +300000 +0-2400 The Home Depot 260000 260000 land improvements The Home Depot The Home Depot Leasehold Improvements The Home Depot gsmer
10 amortization The Home Depot Construction in Progress11 Capital Leases12 The Home Depot The Home Depot Operating Lease Hertz The Home Depot capitalizing interest The Home Depot Relative-sales-value method Xerox Corporation Kansas 2 2800000 300000 2700000 gsmer
2700000+30000=3000000 300000 10% 90% 300000 3000000 =10% 2800000 =280000 2700000 3000000 =90% 2800000 =2520000 3000000 100% 2800000 7-3 280000 2520000 +280000= +2520000= -2800000= 2800000 = + 0 +0 120000 40000 95000 15000 40000 26.7%* 120000 =32040 95000 63.3% 120000 75960 15000 10.0% 120000 12000 150000 100% 2800000 *40000/150000=0.267 expenditure General Motors Chevrolet capital expenditureshome Depot major overhaul major repair extraordinary repair gsmer
revenue expenditures ordinary repairs 1000 7-2 7-2 Intel Intel Intel Intel 7-4 gsmer
3 7-3 737 7-3 737 9,000,000 32,000,000 20 1,600,000 * *32,000,000 /20 =1,600,000 / The Home Depot 4 4 The Home Depot 4 1 2 www.gsmer.net The Home Depot 4, 1 2 3 Estimated useful life gsmer
Estimated residual value Scrap value, Salvage value The Home Depot 7 7 The Home Depot depreciable cost = - 2 4 4 7-4 3 The Home Depot Straight-line method SL 7-4 The Home Depot = $41,000 $1,000 = 5 = $8,000 8,000 8,000 = + - - 8,000 = 0-8,000 20X1 1 1 The Home Depot 12 31 7-5 gsmer
carrying amount, carrying value 3 /carrying value 7-5 1,000 7-4 The Home Depot $41,000 (1,000) $40,000 5 100,000 [ ] 7-5 The Home Depot 1-1-20X1 $41,000 $41,000 12-31-20X1 0.20* * $40,000 = $8,000 $ 8,000 33,000 12-31-20X2 0.20 * 40,000 = 8,000 16,000 25,000 12-31-20X3 0.20 * 40,000 = 8,000 24,000 17,000 12-31-20X4 0.20 * 40,000 = 8,000 32,000 9,000 12-31-20X5 0.20 * 40,000 = 8,000 40,000 1,000 *1/5 = 0.20 1 1 10,000 5 2,000 $1,600 = ($10,000 - $2,000)/5 (Units-of-production method) UOP 7-4 The Home Depot = $41,000 $1,000 = 100,000 = $0.40 1 20,000 2 30,000 3 25,000 4 15,000 5 10,000 7-6 100,000 gsmer
7-6 The Home Depot 1-1-20X1 $41,000 $41,000 12-31-20X1 0.40* * $20,000 = $ 8,000 $ 8,000 33,000 12-31-20X2 0.40 * 30,000 = 12,000 20,000 21,000 12-31-20X3 0.40 * 25,000 = 10,000 30,000 11,000 12-31-20X4 0.40 * 15,000 = 6,000 36,000 5,000 12-31-20X5 0.40 * 10,000 = 4,000 40,000 1,000 *($41,000 - $1,000)/100,000 = $0.40 1 3,000 2 4,000 3 4,500 4 2,500 5 2,000 16,000 ($10,000 - $2,000)/16,000 = $0.50 1 $1,500 (3,000*$0.50) 2 $2,000 (4,000*$0.50) 3 $2,250 (4,500*$0.50) 4 $1,250 (2,500*$0.50) 5 $1,000 (2,000*$0.50) Double-declining-balance method accelerated depreciation method DDB 5 1/5 20% 10 1/10 10% 2 10 20%10%*2=20% 5 7-4 The Home Depot 40% 20%*2=40% 7-4 1 DDB = * 2 1 = * 2 5 = 20% * 2 = 40% 7-5 gsmer
7-7 DDB 5 $4,314 $5,314 $1,000 7-7 The Home Depot DDB 1-1-20X1 $41,000 $41,000 12-31-20X1 0.40 * $41,000 = $16,400 $16,400 24,600 12-31-20X2 0.40 * 24,600 = 9,840 26,240 14,760 12-31-20X3 0.40 * 14,760 = 5,904 32,144 8,856 12-31-20X4 0.40 * 8,856 = 3,542 35,686 5,314 12-31-20X5 0.40 * = *4,314 40,000 1,000 * $5,314 - $1,000 = $4,314 20X4 20X5 $3,928 7-720X3 $7,856 $8,856 $1,000 $7,856/2 =$3,928 1 2 1 $4,000 ($10,000*40%) 2 $2,400 ($6,000*40%) 3 $1,440 ($3,600*40%) 4 $160 ($10,000 - $4,000 - $2,400 - $1,440 - $2,000)* * 1 $ 8,000 $ 8,000 $16,400 2 8,000 12,000 9,840 3 8,000 10,000 5,904 4 8,000 6,000 3,542 5 8,000 4,000 4,314 $40,000 $40,000 $40,000 7-6 $40,000 GAAP gsmer
7-8 DDB X Y DDB 7-8 DDB 600 7-9 7-8 7% gsmer
Hubbard 20X3 1 1 44,000 10 100,000 4,000 3 20X3 20X4 A B C 20X3 $4,000 $4,000 $8,800 $8,800 $1,200 $1,200 20X4 4,000 8,000 7,040 15,840 5,600 6,800 : 1 1 2 20X5 20X3 20X5 20X5 12,000 1 A = $40,000 ($44,000-$4,000) $40,000/10 = $4,000 B = 1/10 * 2 = 10% * 2 = 20% 20X3 0.20 * $44,000 = $8,800 20X4 0.20 * ($44,000 - $8,800) = $7,040 C = $ 44,000 $4,000 = $0.40 100,000 20X3 $0.40 * 3,000 = $1,200 20X4 $0.40 * 14,000 = $5,600 2 A $44,000 20X3 $4,000 $4,000 40,000 20X4 4,000 8,000 36,000 20X5 4,000 12,000 32,000 B $44,000 20X3 $8,800 $8,800 35,200 20X4 7,040 15,840 28,160 20X5 5,632 21,472 22,528 C gsmer
$44,000 20X3 $1,200 $ 1,200 42,800 20X4 5,600 6,800 37,200 20X5 4,800 11,600 32,400 20X5 $40,000/10 = $4,000 0.20 * $28,160 = $5,632 $0.40 * 12,000 = $4,800 3 IRS The Home Depot $8,000 $16,400 400,000 300,000 30% 7-10 7-10 1. $400,000 $400,000 2. 300,000 300,000 3. 100,000 100,000 4. 8,000 16,400 5. 92,000 83,600 6. 30% $ 27,600 $ 25,080 7. $100,000 $100,000 8. 27,600 25,080 9. $ 72,400 $74,920 10. DDB $74,920-$72,400 $ 2,520 7-7 7-10 gsmer
7-10 2,520 www.gsmer.net MACRS 1986 Modified Accelerated Cost Recovery System, MACRS 7-11 15 20 150% 1.50 2 20 0.05 (1/20=0.05) MACRS 0.075(0.05*1.5=0.075) 7-11 3 DDB 5 DDB 7 DDB 10 DDB 15 150%DDB 20 150%DDB 27½ SL 39 SL County Line 4 1 500,000 20 80,000 12 31 12 31 $15,750 $ 500,000 $ 80,000 = $21,000 20 $21,000 * 912 = $15,750 4 18 15 15 18 $14,000 $21,000*8/12 County Line 10 4 20 10%1/20=5%;5%*2=10% 20X1 20X2 20X3 7-12 gsmer
7-12 DDB 10-4-20X1 $500,000 $500,000 12-31-20X1 1/20*2=0.10 * $500,000 * 3/12 = $12,500 $ 12,500 487,500 12-31-20X2 0.10 * 487,500 * 12/12 = 48,750 61,250 438,750 12-31-20X3 0.10 * 438,750 * 12/12 = 43,875 105,125 394,875 7-8 5 [T] 40,000 8 5,000 $40,000/8 =$5,000 10,000 - - 30,000 $40,000-$10,000 = $30,000 10 = $3,000 3,000 3,000 = + - - 3,000 = 0-3,000 7-9 1 The Home Depot gsmer
The Home Depot a b c 2 The Home Depot The Home Depot The Home Depot 1 a bc 2 The Home Depot The Home Depot The Home Depot The Home Depot fully depreciated asset 4 6,000 6,000 6,000 6,000 + 6,000 = 0 + 0-6,000 = + Wal-Mart 4,000 3,000 1,000 3,000 1,000 gsmer
4,000 = + - + 3,000 = 0 + -1,000-4,000 Home Depot 20X4 9 30 5,000 20X1 1 1 10,000 10 20X4 1 1 20X4 9 30 $10,000/10 *9/12 6,000 6,000 = + - - 750 = 0 + - 750 6,250 $10,000-$3,750 1-1- 10,000 12-31- 1,000 20X1 20X1 12-31- 1,000 20X2 12-31- 1,000 20X3 9-30- 750 20X4 3,750 5,000 1,250 5,000 $10,000 (3,750) 6,250 ($1,250) 9 30 5,000 3,750 1,250 10,000 gsmer
- 10,000 7-10 + 5,000 = + 3,750 = 0-1,250 = + - 7,000 750 $7,000 $6,250 9 30 7,000 3,750 10,000 750 = + - + 7,000 = + 3,750 = 0 + 750-10,000 The Home Depot The Home Depot 20X2 20X1 $30.2 $28.0 www.gsmer.net 20X2 2.7 3.2 0.8 0 $ 3.5 $ 3.2 The Home Depot 20X2 20X1 20X2 20X1 20X1 20X2 20X1 20X2 5 gsmer
Mazzio 9,000 8,000 1,000 11,000 $1,000 + $10,000 7,000 3,750 10,000 750 + 11,000 = + 8,000 = 0 + 0-9,000 = + - 10,000 www.gsmer.net 5 Natural resources Depletion expense 100,000 10,000 10 $100,000/10,000 3,000 30,000 3,000 *10 / 3,000 *10 7,000 3,750 = + - - 30,000 = 0-30,000 4,500 45,000 4,500 *10 / $120,000 $800,000 160,000 960,000 (410,000) 550,000 $340,000 (70,000) 270,000 $940,000 gsmer
500,000 500,000 100,000 200,000 ($500,000-$100,000)/500,000=0.8 /*200,000 =$160,000 7-11 6 intangible assets amortization 40 20 4 80,000 20,000 $80,000/4 60,000 $80,000-$20,000 40,000 Patents 20 CD 1 1 170,000 5 34,000 $170,000/5 1 1 170,000 170,000 = + + 170,000 = 0 + 0-170,000 = 12 31 $170,000/5 170,000 170,000 = + - - 34,000 = 0-34,000 Copyrights Windows Excel gsmer
50 2 3 Trademarks trade name, or brand names CBS NBC Egg McMuffinRice-a-Roni Fly the friendly skies Avis Rental Car We try harder 10 Franchises licenses Jerry Jones ConEd 50 leasehold The Home Depot goodwill - Wal-Mart Wal-Mart 10,000,000 Mexana 9,000,000 1,000,000 Wal-Mart 2,000,000 Mexana 10,000,000 Mexana 9,000,000 Mexana (1,000,000) Mexana 8,000,000 2,000,000 Wal-Mart Mexana 9,000,000 2,000,000 1,000,000 10,000,000 = + + 9,000,000 gsmer
+ 2,000,000=+1,000,000+ 0-10,000,000 7-12 Wal-Mart Mexana 1 2 40 17 Research and Development CostR&D R&D R&D R&D R&D R&D R&D R&D R&D R&D FASB R&D R&D 7-12 International Accounting Royal Dutch Shell gsmer
MACRS 6 7 7-13 The Home Depot 562 gsmer
1999 1 31 The Home Depot 2,059,000,000 5 45,000,000 6 The Home Depot 2 1 4 12 7-13 The Home Depot 1999 1 31 1 $1,614 2 373 3 (70) 4 1,917 5 (2,059) 6 45 7 (257) 8 (2,271) 9 248 10 (4) 11 / (110) 12 172 13 $ 62 7-14 1 2 A B gsmer
$44,000 $44,000 20X5 $4,000 $4,000 40,000 $8,800 $8,800 35,200 20X6 4,000 8,000 36,000 7,040 15,840 28,160 20X7 4,000 12,000 32,000 5,632 21,472 22,528 2 20X5 1 1 20X7 7 1 27,000 20X7 20X7 7 1 1 2 20X7 7 1 $5,632*1/2 2,816 2,816 7 1 27,000 $15,840+$2,81618,656 44,000 1,656 1 2 4 3 4 gsmer
gsmer 5 6 40 7 DDB MACRS SL UOP
www.gsmer.net 1 2 3 4 5 6 7 8 Kinko Kinko Kinko 9 10 11 12 13 400,000 325,000 75,000 14 15 7-1 1. The Home Depot 1The Home Depot 2The Home Depot 3The Home Depot 1999 1 31 7-2 1. 313 313 gsmer
7-3 1. 316 80,000 60,000 20,000 120,000 7-4 1. Steitz 777 1,000,000 1 2 317 Steitz 7-5 2.3 20X0 Steitz 21,000,000 737 5 6,000,000 150,000 250,000 1 Steitz a. b. c. 2 7-6 2.3 7-5 Steitz 5 a. b. c. 5 7-7 3. 7-6Steitz 1 2 Steitz 40% 7-8 2. 20X1 3 1 Steitz 21,000,000 737 5 6,000,000 20X1 12 31 100,000 20X1 12 31 gsmer
a. b. c. 7-9 2. 328 3 3 4 7-10 4. 320 7-5 321 7-7 Home Depot Home Depot 20X3 1 1 20,000 1 Home Depot a. 320 7-5 b. 321 7-7 2 7-11 5. Texaco 20X2 Texaco 22 2.4 1Texaco 2 Texaco 20X3 0.6 3 20X2 12 31 Texaco 15 Texaco 20X3 20X3 12 31 Texaco 7-12 6. The Home Depot 1The Home Depot 2The Home Depot 1999 1 31 The Home Depot 3 1998 1 31 The Home Depot 158,000,000 18,000,000 140,000,000 1999 2 a. 1999 The Home Depot b. 7-13 6. gsmer
Oracle Software 700,000 300,000 Oracle 1,300,000 200,000 400,000 20X0 Oracle 3 1 Oracle Software 20X0 12 31 2 7-14 7. 20X0 Kodan 2,000,000 Kodan 1,000,000 Kodan 4,000,000 300,000 200,000 Kodan 20X0 1,400,000 Kodan 20X0 9 30 7-1 1. Neon 90,000 150,000 Neon 2,000 2,500 5,400 50,000 1,070,000 72,000 10,400 6,000 7-2 1. 40,000 1 $12,000 2 20,000 3 16,000 7-3 1. (a) (b) (c) (d) (e) gsmer
(f) (g) (h) (i) (j) (k) 7-4 1.2. 20X4 100,000 1,000 10,000 530,000 39,000 20X4 12 31 20X4 6 30 40 100,000 1 a. b. c. 2 20X4 12 31 3 20X4 7-5 2. Frank Becker Barshevski Becker Emily Stein Stein Becker Mark HaverhillMark Clay Sherman Becker Haverhill Sherman 7-6 2.3. 20X1 1 2 15,000 4 100,000 3,000 34,000 28,000 18,000 20,000 3 Rambler Rambler 7-7 1.2.7 20X2 1 20,000 80,000 50,000 30,000 gsmer
9,000 20 40,000 5 0 2,000 7-8 2. Gold s 100,000 Nautilus Gold s www.gsmer.net 2,000 1,200 Nautilus Gold s 50,000 50,000 10,000 20X1 4,600 Gold s 7-9 3. 20X1 6 30 Elaine Penn 210,000 7 10% 100,000 60,000 MACRS Penn 20X1 MACRS 40% 7-10 2. 900,000 30 100,000 15 40 16 40 50,000 15 16 7-11 4. (DDB) 20X0 1 2 8,700 5 1,000 20X1 9 30 3,000 20X1 7-12 1.2.4 (UOP) gsmer
Branson (UOP) Mack 20X2 285,000 10 1,000,000 85,000 20X2 75,000 20X3 120,000 20X4 210,000 20X5 40,000 Mack 50,000 7-13 5. Bryce Canyon 298,500 200,000 Bryce Canyon 500 1,000 60,000 40,000 (a) (b) (c) www.gsmer.net 7-14 6. Hillcrest Dental 800,000 X 20 Hillcrest 8 (a) (b) 4 Hillcrest Hillcrest 2 6 5 7-15 6. Campbell Soup 20X1 20X1 $(1,255) Campbell 15 20X1 20X0 $1,716 $542 (133) (90) gsmer
Campbell Soup 1 Campbell Soup Campbell 2 Campbell Soup 20X1 7-16 6. 7,000,000 O Chip O Chip 14,000,000 11,000,000 1 2 3 10 7-17 7. Sara Lee 19X8 Sara Lee 19X86 30 $523 427 191 474 (393) 140 451 1 2 7-18 1. Mirage Sportswear L.L.Bean Lands End gsmer
Mirage 2,000,000 5 Mirage Mirage 5 1 2 3 4 7-19 2.4 12 31 19X9 19X8 $35,726.3 $34,825.1 (19,422.0) (18,486.8) 16,304.3 16,338.3 6,218.0 5,869.5 $22,522.3 22,207.8 19X9 $2,455.8 1,822.1 1 19X9 2 19X9 92,000,000 9,000,000 3 2 19X9 7-1A 1.2 McLennan a. 3.5 $720,000 gsmer
700,000 100,000 b. McLennan 3,700 c. 3,550 d. 1,000 e. 44,100 f. 200 g. 45,000 h. 53,550 i. 23,800 j. 414,000 k. 734,000 l. 3,400 m. 17,450 n. 8,900 o. 90% 6% 4% 55,000 p. 123,500 q. 1,300 r. 9,100 McLennan 40 20 8 0 1 2 3 19 3 www.gsmer.net 7-2A 2. Terrell 20X2 12 31 $ 80,000 110,000 (40,000) 620,000 (170,000) 20X3 7 Terrell 180,000 Terrell 20 30,000 10 0 gsmer
1 20X3 Terrell 2 20X3 12 31 7-3A 1.2.4 Neilson & Associates Neilson 1 2 11,000 96,000 88,000 Neilson 15,000 Neilson 8 31 475,000 12 31 353,500 30 47,500 Neilson 150,000 450,000 11 4 80,000 75,000 25,000 12 31 5 0 1 2 11 4 Neilson & Associates 7-4A 2. Ben Morris www.gsmer.net 5 10 1 2 Ben Morris 7-5A 2.3 20X1 1 2 Marlin Credit 63,000 2,200 800 4,000 4 Marlin 6 16,000 4 18,000 2 14,000 Lisa Malasavas gsmer
1 2Marlin 3 150,000 30% 2 7-6A 2.4.7 Curtiss-Wright Curtiss-Wright 19X5 12 31 CURTISS-WRIGHT. 19X5 12 31 19X4 12 31 $ 8,865 $ 4,245 69,898 72,200 36,277 32,467 7,149 8,204 29,111 24,889 2,325 2,338 153,625 144,343 4,504 4,655 79,352 78,680 114,195 119,653 198,051 202,988 (141,782) (142,550) 56,269 60,438 31,128 28,092 5,179 5,821 gsmer
$246,201 $328,694 CURTISS-WRIGHT ( ) 19X5 12 31 19X4 12 31 $18,169 $19,303 9,512 10,883 3,290 1,326 (6,985) (4,609) Curtiss-Wright 1 19X5 Curtiss-Wright 19X5 12 31 2 19X5 12 31 3 19X5 T 4 19X5 1,642,000 7-7A 5.6 $640,000 920,000 405,000 www.gsmer.net 1 2 800,000 3 5 7,000,000 500,000 350,000 110,000 gsmer
65,000 82,000 18 185,000 40% 1 2 7-8A 7 19X5 Sprint 15,200,000,000 10,500,000,000 19,900,000,000 10,200,000,000 Sprint 19X6 13,900,000,000 13,200,000,000 1,500,000,000 2,100,000,000 300,000,000 600,000,000 400,000,000 1 Sprint 2 Sprint 19X6 12 31 3 Sprint 19X6 7-1B 1.2 Tipton a. 4 280,000 40,000 $250,000 b. 8,100 c. 17,650 d. 600 e. Tipton 5,900 f. 1,800 g. 350 h. 19,800 i. 709,000 gsmer
j. 214,000 k. 41,800 l. 9,000 m. 6,400 n. 52,300 o. 7,300 p. 85% 9% 6% 40,000 q. 107,100 r. 1,800 Tipton 40 20 8 0 4 5 5 4 6 7-2B 2. Texas 20X012 31 $ 60,000 200,000 (40,000) 1,200,000 (260,000) 20X1 7 Texas 500,000 Texas 20 80,000 10 0 3 20X1 Texas 4 20X1 12 31 7-3B 1.2.4 Sykora Texas Sykora 1 2 47,000 130,000 176,000 Neilson 70,000 Neilson gsmer
7 3 550,000 12 31 247,500 30 55,000 Neilson 100,000 400,000 10 29 300,000 160,000 200,000 12 31 5 5% 40 10% Sykora 7-4B 2. 20X2 20X0 200,000 20X2 172,000 1 2 7-5B 2.3 20X0 1 3 SavOn 224,000 6,200 6,700 3,100 SavOn 6 20,000 50,000 4 5,000 20X1 45,000 20X2 40,000 1 2SaveOn 3 200,000 40% 2 gsmer
www.gsmer.net 7-6B 2.4.7 IBM IBM 19X5 IBM. 19X5 12 31 19X4 12 31 $ 1,746 $ 1,240 5,513 6,682 442 2,632 16,450 14,018 5,961 6,351 991 1,164 6,323 6,334 3,265 2,971 40,691 41,338 43,981 44,820 (27,402) (28,156) 16,579 16,664 19X5 2,419 2,963 11,276 19X4 10,793 20,603 20,126 $80,292 $81,091 IBM ( ) 19X5 12 31 19X4 12 31 $4,178 $3,021 3,955 4,197 gsmer
1,647 2,098 (4,744) (3,078) 1,561 900 IBM 119X5 IBM 19X5 12 31 2 19X5 12 31 19X5 319X5 T 4 19X5 874,000,000 5 19X5 7-7B 5.6 Collins Sizzler $2,400,000 3,100,000 2,200,000 1 2Collins 1,800,000 3 Collins 5 Georgia-Pacific Georgia-Pacific 3,800,000 100,000 60,000 45,000 30,000 35,000 67 240,000 40% 1 Georgia-Pacific gsmer
2 7-8B 7 19X5 15,000,000,000 9,600,000,000 6,700,000,000 2,300,000,000 www.gsmer.net 19X6 19,100,000,000 15,200,000,000 500,000,000 1,100,000,000 500,000,000 600,000,000 400,000,000 1 2 19X6 12 31 3 19X6 1 2.3 360 1 4 10,000 * 4 = $ 40,000 4 6 5,000 * 5 25,000 8 9 7,000 * 6 42,000 11 27 10,000 * 7 70,000 32,000 $ 177,000 25,000 1 150,000 10 20,000 360 12 31 $370,000 50,000 40%. gsmer
1 2 2 1.6 a www.gsmer.net GAAP b GAAP c 1 0 4,300,000 80% 20% 60% 40% 1 2 2.3.6.7 1 A The Gap a The Gap b 1999 1 30 1999 1 30 c The Gap. d 2 2.6.7 a gsmer
gsmer b c d 700,000 1 2 3 4 Sears, Kmart, J.C.Penney 3,000 Sam 1 Http://www.wal-mart.com 2 3 4 5 6 7 www.gsmer.net