Need some help with these 2 assignments please ATC 43 Resear

Need some help with these 2 assignments please.

ATC 4-3 Research Assignment Investigating cash and management issues a Smucker\'s Using the most current Form 10-K available on EDGAR, or the company\'s website, answer the following questions about the J. M. Smucker Company. Instructions for using EDGAR are in Appendix A. Note: In some years the financial statements, footnotes, etc., portion of Smucker\'s annual report have been located at the end of the Form 10-K, in or just after \"Item 15.\" Required a. Instead of \"Cash,\" the company\'s balance sheet uses the account name \"Cash and cash equiva- lents.\" How does the company define cash equivalents? b. The annual report has two reports in which management clearly acknowledges its responsibility for the company\'s financial reporting and internal controls. What are the names of these reports and on what pages are they located?

Solution

ATC 4-3

a) J.M. Smucker Company uses cash and cash equivalents as the name in the balance sheet for cash account. the company defines cash and cash equivalents all short term, highly liquid investments with a maturity of less than three months when purchased for cash as cash and cash equivalents.

b) The reports in the annual report in which the management clearly acknowledges its responsibility of financial reporting and internal controls are:

i)\'Report of Management on internal control over financial reporting\', given on page number 37 of the annual report.

ii) \'Report of management on responsibility of financial reporting\' given on page number 40 of the annual report.

ATC 5-3

a) The accounts receivables as a percentage of revenue for companies Starbucks and Whirlpool are as follows:

b) Whirlpool is making more of its sales on account. this is becuase the company has a higher percentage of receivables to sales. 13% of the company\'s sales is on account whereas for Starbucks only 3.6% of sales is on account, signifying Starbucks is making majority of sales in cash.

c) Whirlpool is making more sales on account becuase it deals in electronic appliances which are of high value and provides these items to various dealers. The company makes sales to delaers on account as the dealers are not expected to pay upfront, rather a credit period is allowed to them. However, Starbucks is a sells coffee in its coffee shops and thus is in a retail business. The customers buy coffee for cash and as such there are sales on account.

	Starbucks	Whirlpool
Revenue	21315.9	20718
Accounts receivables	768.8	2711
% of revenue	3.6%	13.1%