Financial Reporting Problem The Procter Gamble Company (P G) The financial statements of P G are presented in appendix 5B The company s complete annual report including the notes to the financial statements, can be accessed at the book s companion website, www wiley com college kieso Instructions Refer to P G financial statements and accompanying notes to answer the following questions Which method of computing net cash provided by operating does P G use What were the amounts of net cash provided by operating activities for the years 2009, 2010, and 2011 Which two items were most responsible for the decrease in net cash provided by operating activities in 2011 What was the most significant item in the cash flows used for investing activities section in 2011 What was the most significant item in the cash flows used for financing activities section in 2011 Where is deferred income taxes reported in P G s statements of cash flows Why does it appear in that section of the statement of cash flows Where is depreciation reported in P G s statement of cash flows Why is depreciation added to net income in the statement of cash flows 2 Financial Statement Analysis Case Vermont Teddy Bear Co Founded in early 1980s, the Vermont Teddy Bear Co designs and manufatures American made teddy bears and markets them primarly as gits called Bear Grams or Teddy Bear Grams Bear Grams are personalized teddy bears delivered directly to the recipient for special occasions such as birthdays and anniversaries The Shelburne, Vermont, company s primary markets are New York, Boston and Chicago Sales have jumped dramatically in recent years Such dramatic growth has significant implications for cash flows Provided below are the cash flow statements for two recent years for the company SEE PICTURE ATTACHED Instructions Note that net income in the current year was only $17,523 compared to prior year income of $838,955, but net cash flow from operating activities was $236,480 in the current year and a negative $700,957 in the prior year Explain the causes of this apparent paradox Evaluate Vermot Teddy Bear s liquidity, solvency, and profitability for the current year using cash flow based ratios 3 Financial Reporting Problem The Procter Gamble Company (P G) As started in the chapter, notes to the financial statements are the means of explaining the items presented in the main body of the statements Common note disclosures relate to such items as accounting policies, segmented information, and interim reporting The financial statements of P G are presented in Appendix 5B The company s complete annual report, including the notes to the financial statements, can be accessed at the book s companion website, www wiley com college kieso Instructions Refer to P G s financial statements and the accompanying notes to answer the following questions What specific item does P G discuss in its Note 1 Summary of Significant Accounting Policies (List the headings only) For what segments did P G report segmented information Which segment is the largest Who is P G s largest customer What interim information was reported by P G 1) Financial Reporting Problem The Procter Gamble Company (P G) The financial statements of P G are presented in appendix 5B The company's complete annual report including the notes to the financial statements, can be accessed at the book's companion website, www wiley com college kieso Instructions Refer to P G financial statements and accompanying notes to answer the following questions a) Which method of computing net cash provided by operating does P G use What were the amounts of net cash provided by operating activities for the years 2009, 2010, and 2011 Which two items were most responsible for the decrease in net cash provided by operating activities in 2011 b) What was the most significant item in the cash flows used for investing activities section in 2011 What was the most significant item in the cash flows used for financing activities section in 2011 c) Where is deferred income taxes reported in P G's statements of cash flows Why does it appear in that section of the statement of cash flows d) Where is depreciation reported in P G's statement of cash flows Why is depreciation added to net income in the statement of cash flows 2 Financial Statement Analysis Case Vermont Teddy Bear Co Founded in early 1980s, the Vermont Teddy Bear Co designs and manufatures American made teddy bears and markets them primarly as gits called Bear Grams or Teddy Bear Grams Bear Grams are personalized teddy bears delivered directly to the recipient for special occasions such as birthdays and anniversaries The Shelburne, Vermont, company's primary markets are New York, Boston and Chicago Sales have jumped dramatically in recent years Such dramatic growth has significant implications for cash flows Provided below are the cash flow statements for two recent years for the company Instructions a) Note that net income in the current year was only $17,523 compared to prior year income of $838,955, but net cash flow from operating activities was $236,480 in the current year and a negative $700,957 in the prior year Explain the causes of this apparent paradox b) Evaluate Vermot Teddy Bear's liquidity, solvency, and profitability for the current year using cash flow based ratios 3 Financial Reporting Problem The Procter Gamble Company (P G) As started in the chapter, notes to the financial statements are the means of explaining the items presented in the main body of the statements Common note disclosures relate to such items as accounting policies, segmented information, and interim reporting The financial statements of P G are presented in Appendix 5B The company's complete annual report, including the notes to the financial statements, can be accessed at the book's companion website, www wiley com college kieso Instructions Refer to P G's financial statements and the accompanying notes to answer the following questions a) What specific item does P G discuss in its Note 1 Summary of Significant Accounting Policies (List the headings only) b) For what segments did P G report segmented information Which segment is the largest Who is P G's largest customer c) What interim information was reported by P G

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Jun 22, 2024

Financial Reporting Problem The Procter & Gamble Company (P&G) The financial statements of P&G are presented in appendix 5B. The company?s complete annual report including

Financial Reporting Problem

The Procter & Gamble Company (P&G)

The financial statements of P&G are presented in appendix 5B. The company?s complete annual report including the notes to the financial statements, can be accessed at the book?s companion website, www.wiley.com/college/kieso.

Instructions

Refer to P&G financial statements and accompanying notes to answer the following questions.

Which method of computing net cash provided by operating does P&G use? What were the amounts of net cash provided by operating activities for the years 2009, 2010, and 2011? Which two items were most responsible for the decrease in net cash provided by operating activities in 2011?
What was the most significant item in the cash flows used for investing activities section in 2011? What was the most significant item in the cash flows used for financing activities section in 2011?
Where is ?deferred income taxes? reported in P&G?s statements of cash flows? Why does it appear in that section of the statement of cash flows?
Where is depreciation reported in P&G?s statement of cash flows? Why is depreciation added to net income in the statement of cash flows?

2- Financial Statement Analysis Case

Vermont Teddy Bear Co.

Founded in early 1980s, the Vermont Teddy Bear Co. designs and manufatures American-made teddy bears and markets them primarly as gits called Bear-Grams or Teddy Bear-Grams. Bear-Grams are personalized teddy bears delivered directly to the recipient for special occasions such as birthdays and anniversaries. The Shelburne, Vermont, company?s primary markets are New York, Boston and Chicago Sales have jumped dramatically in recent years. Such dramatic growth has significant implications for cash flows. Provided below are the cash flow statements for two recent years for the company.

SEE PICTURE ATTACHED

Instructions:

Note that net income in the current year was only $17,523 compared to prior year income of $838,955, but net cash flow from operating activities was $236,480 in the current year and a negative $700,957 in the prior year. Explain the causes of this apparent paradox.
Evaluate Vermot Teddy Bear?s liquidity, solvency, and profitability for the current year using cash flow-based ratios.

3- Financial Reporting Problem

The Procter & Gamble Company (P&G)

As started in the chapter, notes to the financial statements are the means of explaining the items presented in the main body of the statements. Common note disclosures relate to such items as accounting policies, segmented information, and interim reporting. The financial statements of P&G are presented in Appendix 5B. The company?s complete annual report, including the notes to the financial statements, can be accessed at the book?s companion website, www.wiley.com/college/kieso.

Instructions

Refer to P&G?s financial statements and the accompanying notes to answer the following questions.

What specific item does P&G discuss in its Note 1 ? Summary of Significant Accounting Policies? (List the headings only)
For what segments did P&G report segmented information? Which segment is the largest? Who is P&G?s largest customer?
What interim information was reported by P&G?

1) Financial Reporting Problem The Procter & Gamble Company (P&G) The financial statements of P&G are presented in appendix 5B. The company's complete annual report including the notes to the financial statements, can be accessed at the book's companion website, www.wiley.com/college/kieso. Instructions Refer to P&G financial statements and accompanying notes to answer the following questions. a) Which method of computing net cash provided by operating does P&G use? What were the amounts of net cash provided by operating activities for the years 2009, 2010, and 2011? Which two items were most responsible for the decrease in net cash provided by operating activities in 2011? b) What was the most significant item in the cash flows used for investing activities section in 2011? What was the most significant item in the cash flows used for financing activities section in 2011? c) Where is \"deferred income taxes\" reported in P&G's statements of cash flows? Why does it appear in that section of the statement of cash flows? d) Where is depreciation reported in P&G's statement of cash flows? Why is depreciation added to net income in the statement of cash flows? 2- Financial Statement Analysis Case Vermont Teddy Bear Co. Founded in early 1980s, the Vermont Teddy Bear Co. designs and manufatures American-made teddy bears and markets them primarly as gits called Bear-Grams or Teddy Bear-Grams. Bear-Grams are personalized teddy bears delivered directly to the recipient for special occasions such as birthdays and anniversaries. The Shelburne, Vermont, company's primary markets are New York, Boston and Chicago Sales have jumped dramatically in recent years. Such dramatic growth has significant implications for cash flows. Provided below are the cash flow statements for two recent years for the company. Instructions: a) Note that net income in the current year was only $17,523 compared to prior year income of $838,955, but net cash flow from operating activities was $236,480 in the current year and a negative $700,957 in the prior year. Explain the causes of this apparent paradox. b) Evaluate Vermot Teddy Bear's liquidity, solvency, and profitability for the current year using cash flow-based ratios. 3- Financial Reporting Problem The Procter & Gamble Company (P&G) As started in the chapter, notes to the financial statements are the means of explaining the items presented in the main body of the statements. Common note disclosures relate to such items as accounting policies, segmented information, and interim reporting. The financial statements of P&G are presented in Appendix 5B. The company's complete annual report, including the notes to the financial statements, can be accessed at the book's companion website, www.wiley.com/college/kieso. Instructions Refer to P&G's financial statements and the accompanying notes to answer the following questions. a) What specific item does P&G discuss in its Note 1 - Summary of Significant Accounting Policies? (List the headings only) b) For what segments did P&G report segmented information? Which segment is the largest? Who is P&G's largest customer? c) What interim information was reported by P&G