Can you help me understand this Accounting question?
Here are the instructions for this discussion. Since it’s just for a discussion board, there is no need for a title page.
Using the Annual Report of your selected company, answer the following questions in the discussion:
- What is the name of the outside auditing firm for your company?
- How long after the company’s year-end did the auditors issue their opinion?
- Who bears primary responsibility for maintaining effective internal control over financial reporting? How can you tell?
- Does it appear the company has adequate internal control procedures? How can you tell?
- By how much did the company’s cash balance change from the beginning of the year to the end of the year?
- What type of instruments does the company consider to be cash equivalent?
- Calculate the cash ratio. How does this ratio compare with the industry?
- What is the balance of accounts receivables for the company?
- Compute the acid-test ratio. If the current liabilities came due immediately, could the company pay them?
- Compute the accounts receivable turnover at year-end.
- Compute days sales in receivables at year-end.
- Based on the acid-test ratio, accounts receivable turnover, and days sales in receivables, how does the company compare to the industry?
Post the name of your selected company and the link to the statement with your discussion post. You may use a service such as Yahoo Finance to help research industry averages. The notes to the financial statements will also be of use in answering the discussion questions. For many of the ratios in the discussion, you will need 2-3 years’ worth of financial data.