Financial Statement Homework Instructions This assignment is designed to give you some familiarity comparing and contrasting audit reports completed using different auditing standards. General: You will need to download these financial statements from Blackboard: Coca Cola Annual Report 2018 BMW Annual Report 2018 City of New Bedford, Massachusetts CAFR 2018 Cargill Annual Report 2019 Complete and submit the following 2 documents for this assignment: FS Workpaper DQ Workpaper Workpapers: Answers should be typed directly underneath the numbered questions. Use complete sentences where indicated. All student work must be in purple, blue, or green font to distinguish it from the questions. Do not change the color or font type of the questions or instructions workpapers. Grading: 2 points- Following all instructions contained in this document (Note: this includes use of specific font types and colors and sentence structure), grammar, spelling, professionalism, completeness, etc. Financial Statements & Audit Reports Coca Cola BMW New Bedford 1. Name of the Audit Firm 2. Title of Audit Report 3. Date of Audit Report 4. Location of Audit Firm 5. To whom is the Audit Report addressed? 6. Which auditing standards did the audit firm use? 7. Which accounting standard was used by the company/city2 8. Identify the type of report issued: unqualified, qualified, or adverse and how you can tell (Identify the phrase used here) Note: For New Bedford, answer all questions using the first audit report in the CAFR. Discussion Questions Answer the following 3 questions in complete sentences regarding Coca Cola's audit report: 1. Who is responsible for setting/creating the accounting standard used? 2. Who is responsible for setting/creating the auditing standards used? 3. Identify at least 2 separate phrases or words in the report that indicate to the users that the numbers in the financial statements may not be 100% accurate. Notice that some important information/statements/reports seem to be missing from Cargill's Annual Report that are found in the other 3. Answer the following question about Cargill's Annual report: 4. Name 2 items missing from the annual report that you expected to be there. 5. Why can Cargill get away with not included this information when Coca Cola, for example, cannot? (1 short sentence. You may want to go to Cargill's website and read about the company as you answer this question). Compare and contrast the 3 audit reports you downloaded by answering the following 3 questions: 6. Name 3 elements common to all of the audit reports 7. Name 1 element from each audit report unique to that audit report (Note: these cannot be the same as your answers from question 5 above, e.g. you cannot put in question 5 that they all have letterhead and as your answer to question 6 that each used a different color for their letterhead.) 8. Why did the companies use the accounting standards they did and why did the auditor use the auditing standards they did and not others? (e.g., why did Coca Cola not use IFRS?) (1-2 complete sentences) ITEM 6. SELECTED FINANCIAL DATA The following selected financial data should be read in conjunction with "hem 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and our consolidated financial statements and the accompanying notes thereto contained in "hem 8. Financial Statements and Supplementary Date of this report. Year Ended December 31.356 4 5 - 44,294 s 35.410 5 1,182 1,863 .550 45,998 7124 6 1.248 6,527 7.09 1.5 1.51 S SUMMARY OF OPERATIONS Net operating revenues Net income from continuing operations Net income attributable to shareowners of The Co-Cola Company PER SHARE DATA Basic net income from continuing operations Basie met income Dito net incontro continuing open Dilent income Cash dividends BALANCE SHEET DATA Total act Long-term delu Calculated based on net income from continuing operations les 1 69 1.69 0285 0 29 027 029 1.48 167 1.67 1.32 1.40 $ 83,216 S 25364 income from continuing operation 87,896 31,182 87,2705 29,684 19.996s 28,311 91.96 ODIO a ble to controlling The Company's results are impacted by acquisitions and divestitures. Refer to "hiem 2. Management's Discussion and Analysis of Financial Condition and Results of Open for ditonal information ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MDAA") is intended to help the reader understand The Coca-Cola Company. our operations and our present business cvironment, MD&A is provided as a supplement to should be in conjunction with our consolidated financial statements and the accompanying notes that contained in rem & Financial Sements and Supplementary of this reportThis one a s the MDEA which includes the following sections Our Business peneral description of our business and the noloholic bevege segment of the commercial beverage industry, cur objective our strategic priorities our core capabilities, and challenges and risks of our business. . Critical Accounting Policies and Estimates a discussion of accounting policies that require critical judgments and Operation Review - an analysis of our Company's consolidated results of operations for the three years presented in our consolidated financial statements. Except to the extent that differences among our operating c ents are material to an understanding of our business as a whole, we present the discussion on consolidated basis - Car Rent a l analysis ofenshows off balance shee t s and are cate or i sche the act of nation and changing prices and an overview of financial position Income Statements for Group and Segments Automotive formation) In Calon 85,762 Revenues Cost of sales Gross profit Seling and administrative expenses Other Operating income Other operating expenses Profits before faciles Result from equity accounted invest Interest and similar income 777129353 .. SEL Other Financial result Profit/loss before tax Income taxes Profit/loss from continuing operation Loss from discontinued operations Net profit/less Atributable to minority interest Attributable to shareholders of BMW AG Basic earnings per share of common stockin Basic earnings per share of preferred stock in Dilutive effects Diluted earnings per share of common stock in Diluted earnings per share of preferred stock in Statement of Comprehensive Income for Group Net profit 58 Delented as Items not expected to be res et the statement in the fut Va r through the comes and e d for the purposes Costs of hedgang Other comprehensive income account invest Deferred taxes Currency translation for a portions Items that can be reclassified to the income statement in the future Other comprehensive income for the period ofertas Total comprehensive Income Total comprehensive income attributable to minority interests Total comprehensive Income attributable to shareholders of BMW AO *Pler year guessed us to r e latie RS 15, the Group Facial Statements 318185 Financial Services (united supplementary Information) 2018 Other Entities audited supplementary Information) Eliminations united supplementary Information 2018 2017 2017 2018 28,165 -24,541 27,567 -23,986 3,581 -18,710 19,273 563 -17,306 16,857 -449 -185 210 Revenues Cost of sales Gross profit Selling and administrative expenses Other operating income Other operating expenses Profit/loss before financial result Rostrom acuity accounted investments Interest and similar income 1.110 -1,360 -1246 Interest and similar expenses Other financial Profit loss Profit/loss from continuing operations Loss from discontinued operations Net profit loss Attributable to minority interest Attributable to shareholders of BMW AG Basic earnings per share of common stock in Basic earnings per share of preferred stock in Dilutive effects Diluted earnings per share of common stock in C Diluted earnings per share of preferred stock in Financial Statement Homework Instructions This assignment is designed to give you some familiarity comparing and contrasting audit reports completed using different auditing standards. General: You will need to download these financial statements from Blackboard: Coca Cola Annual Report 2018 BMW Annual Report 2018 City of New Bedford, Massachusetts CAFR 2018 Cargill Annual Report 2019 Complete and submit the following 2 documents for this assignment: FS Workpaper DQ Workpaper Workpapers: Answers should be typed directly underneath the numbered questions. Use complete sentences where indicated. All student work must be in purple, blue, or green font to distinguish it from the questions. Do not change the color or font type of the questions or instructions workpapers. Grading: 2 points- Following all instructions contained in this document (Note: this includes use of specific font types and colors and sentence structure), grammar, spelling, professionalism, completeness, etc. Financial Statements & Audit Reports Coca Cola BMW New Bedford 1. Name of the Audit Firm 2. Title of Audit Report 3. Date of Audit Report 4. Location of Audit Firm 5. To whom is the Audit Report addressed? 6. Which auditing standards did the audit firm use? 7. Which accounting standard was used by the company/city2 8. Identify the type of report issued: unqualified, qualified, or adverse and how you can tell (Identify the phrase used here) Note: For New Bedford, answer all questions using the first audit report in the CAFR. Discussion Questions Answer the following 3 questions in complete sentences regarding Coca Cola's audit report: 1. Who is responsible for setting/creating the accounting standard used? 2. Who is responsible for setting/creating the auditing standards used? 3. Identify at least 2 separate phrases or words in the report that indicate to the users that the numbers in the financial statements may not be 100% accurate. Notice that some important information/statements/reports seem to be missing from Cargill's Annual Report that are found in the other 3. Answer the following question about Cargill's Annual report: 4. Name 2 items missing from the annual report that you expected to be there. 5. Why can Cargill get away with not included this information when Coca Cola, for example, cannot? (1 short sentence. You may want to go to Cargill's website and read about the company as you answer this question). Compare and contrast the 3 audit reports you downloaded by answering the following 3 questions: 6. Name 3 elements common to all of the audit reports 7. Name 1 element from each audit report unique to that audit report (Note: these cannot be the same as your answers from question 5 above, e.g. you cannot put in question 5 that they all have letterhead and as your answer to question 6 that each used a different color for their letterhead.) 8. Why did the companies use the accounting standards they did and why did the auditor use the auditing standards they did and not others? (e.g., why did Coca Cola not use IFRS?) (1-2 complete sentences) ITEM 6. SELECTED FINANCIAL DATA The following selected financial data should be read in conjunction with "hem 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and our consolidated financial statements and the accompanying notes thereto contained in "hem 8. Financial Statements and Supplementary Date of this report. Year Ended December 31.356 4 5 - 44,294 s 35.410 5 1,182 1,863 .550 45,998 7124 6 1.248 6,527 7.09 1.5 1.51 S SUMMARY OF OPERATIONS Net operating revenues Net income from continuing operations Net income attributable to shareowners of The Co-Cola Company PER SHARE DATA Basic net income from continuing operations Basie met income Dito net incontro continuing open Dilent income Cash dividends BALANCE SHEET DATA Total act Long-term delu Calculated based on net income from continuing operations les 1 69 1.69 0285 0 29 027 029 1.48 167 1.67 1.32 1.40 $ 83,216 S 25364 income from continuing operation 87,896 31,182 87,2705 29,684 19.996s 28,311 91.96 ODIO a ble to controlling The Company's results are impacted by acquisitions and divestitures. Refer to "hiem 2. Management's Discussion and Analysis of Financial Condition and Results of Open for ditonal information ITEM 7. MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Overview The following Management's Discussion and Analysis of Financial Condition and Results of Operations ("MDAA") is intended to help the reader understand The Coca-Cola Company. our operations and our present business cvironment, MD&A is provided as a supplement to should be in conjunction with our consolidated financial statements and the accompanying notes that contained in rem & Financial Sements and Supplementary of this reportThis one a s the MDEA which includes the following sections Our Business peneral description of our business and the noloholic bevege segment of the commercial beverage industry, cur objective our strategic priorities our core capabilities, and challenges and risks of our business. . Critical Accounting Policies and Estimates a discussion of accounting policies that require critical judgments and Operation Review - an analysis of our Company's consolidated results of operations for the three years presented in our consolidated financial statements. Except to the extent that differences among our operating c ents are material to an understanding of our business as a whole, we present the discussion on consolidated basis - Car Rent a l analysis ofenshows off balance shee t s and are cate or i sche the act of nation and changing prices and an overview of financial position Income Statements for Group and Segments Automotive formation) In Calon 85,762 Revenues Cost of sales Gross profit Seling and administrative expenses Other Operating income Other operating expenses Profits before faciles Result from equity accounted invest Interest and similar income 777129353 .. SEL Other Financial result Profit/loss before tax Income taxes Profit/loss from continuing operation Loss from discontinued operations Net profit/less Atributable to minority interest Attributable to shareholders of BMW AG Basic earnings per share of common stockin Basic earnings per share of preferred stock in Dilutive effects Diluted earnings per share of common stock in Diluted earnings per share of preferred stock in Statement of Comprehensive Income for Group Net profit 58 Delented as Items not expected to be res et the statement in the fut Va r through the comes and e d for the purposes Costs of hedgang Other comprehensive income account invest Deferred taxes Currency translation for a portions Items that can be reclassified to the income statement in the future Other comprehensive income for the period ofertas Total comprehensive Income Total comprehensive income attributable to minority interests Total comprehensive Income attributable to shareholders of BMW AO *Pler year guessed us to r e latie RS 15, the Group Facial Statements 318185 Financial Services (united supplementary Information) 2018 Other Entities audited supplementary Information) Eliminations united supplementary Information 2018 2017 2017 2018 28,165 -24,541 27,567 -23,986 3,581 -18,710 19,273 563 -17,306 16,857 -449 -185 210 Revenues Cost of sales Gross profit Selling and administrative expenses Other operating income Other operating expenses Profit/loss before financial result Rostrom acuity accounted investments Interest and similar income 1.110 -1,360 -1246 Interest and similar expenses Other financial Profit loss Profit/loss from continuing operations Loss from discontinued operations Net profit loss Attributable to minority interest Attributable to shareholders of BMW AG Basic earnings per share of common stock in Basic earnings per share of preferred stock in Dilutive effects Diluted earnings per share of common stock in C Diluted earnings per share of preferred stock in
