Access the 2012 annual report for Toyota Motor Corporation, which is a company incorporated in Japan and
Question:
In Problem 1
(a) In what currency are the financial statements presented?
(b) GAAP from what country or jurisdiction was used in preparing the financial statements? See the notes to the financial statements.
(c) Is there a reconciliation of net income as reported to net income under U.S. GAAP? If so, identify the three major differences. If not, explain why the reconciliation was not provided.
(d) Calculate the current ratio for each of the last two years. Did the liquidity position of the company improve or weaken during the year? Briefly explain.
(e) Calculate the total debt to equity ratio for each of the last two years. Did the solvency position of the company improve or weaken during the year? Briefly explain.
(f) Did income increase or decrease from the previous year? What item on the income statement had the biggest impact on the change in income?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Solvency
Solvency means the ability of a business to fulfill its non-current financial liabilities. Often you have heard that the company X went insolvent, this means that the company X is no longer able to settle its noncurrent financial... GAAP
Generally Accepted Accounting Principles (GAAP) is the accounting standard adopted by the U.S. Securities and Exchange Commission (SEC). While the SEC previously stated that it intends to move from U.S. GAAP to the International Financial Reporting Standards (IFRS), the...
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Related Book For
Modern Advanced Accounting In Canada
ISBN: 9781259066481
7th Edition
Authors: Hilton Murray, Herauf Darrell
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