ACTG 4650 Assignment 5 Due March 14 Hawkins Incorporated ("the Company"), incorporated in Tennessee, i principally engaged in the manufacture and sale of clothing. The Company has three lines of business: (1) outerwear, (2) t-shirts, and (3) tank tops years when it partnered with colleges and universities to create outerwear, t-shirts, and tank tops for athletes, students, and alumni. This partnership also enabled Hawkins to hire a group of college graduates with a proven track record and a passion for investing in the stock market. Together, Hawkins and these graduates created a new investment department in 2017. Hawkins management s aside a portion of the previous years' profits for the investment department to invest in equity and debt securities for the Company. Hawkins has three investments remaining in the department's portfolio as of December 31 2017. Hawkins classified all equity and debt securities as either available for sale or held to maturity under the Company's investment policy. The accounting department is preparing financial statements for the fiscal year ended December 31, 2017, and the auditors have asked Hawkins whether any of its investments are other-than-temporarily impaired. The CFO of Hawkins needs to present the investment department's financial results at the next operating committee meeting so the committee can decide whether to continue the investment program and if so, determine the amount of funds that should be allocated. In looking at the accounting records provided by the accounting department, the CFO is beginning to question the investment department's expertise because all investments have declined in value relative to each investment's original purchase price The accounting manager compiled the following information about each of the investments in order to determine whether the investment is other-than- temporarily impaired as of December 31, 2017. Each investment is classified as long term in the December 31, 2017 balance sheet. Hawkins purchased 50 shares of Willis Co. common stock on April 5, 2017, at $100 a share and classified its investment as available for sale. In July, the share price dropped to $75, and from August through November, the price fluctuated between $70 and $80 per share. On December 31, 2017, the price was $82. On February 18, 2018, the date Hawkins' financial statements are issued, the price of the stock was ACTG 4650 Assignment 5 Due March 14 Hawkins Incorporated ("the Company"), incorporated in Tennessee, i principally engaged in the manufacture and sale of clothing. The Company has three lines of business: (1) outerwear, (2) t-shirts, and (3) tank tops years when it partnered with colleges and universities to create outerwear, t-shirts, and tank tops for athletes, students, and alumni. This partnership also enabled Hawkins to hire a group of college graduates with a proven track record and a passion for investing in the stock market. Together, Hawkins and these graduates created a new investment department in 2017. Hawkins management s aside a portion of the previous years' profits for the investment department to invest in equity and debt securities for the Company. Hawkins has three investments remaining in the department's portfolio as of December 31 2017. Hawkins classified all equity and debt securities as either available for sale or held to maturity under the Company's investment policy. The accounting department is preparing financial statements for the fiscal year ended December 31, 2017, and the auditors have asked Hawkins whether any of its investments are other-than-temporarily impaired. The CFO of Hawkins needs to present the investment department's financial results at the next operating committee meeting so the committee can decide whether to continue the investment program and if so, determine the amount of funds that should be allocated. In looking at the accounting records provided by the accounting department, the CFO is beginning to question the investment department's expertise because all investments have declined in value relative to each investment's original purchase price The accounting manager compiled the following information about each of the investments in order to determine whether the investment is other-than- temporarily impaired as of December 31, 2017. Each investment is classified as long term in the December 31, 2017 balance sheet. Hawkins purchased 50 shares of Willis Co. common stock on April 5, 2017, at $100 a share and classified its investment as available for sale. In July, the share price dropped to $75, and from August through November, the price fluctuated between $70 and $80 per share. On December 31, 2017, the price was $82. On February 18, 2018, the date Hawkins' financial statements are issued, the price of the stock was
