Obtain the financial statements of a company with which you are familiar. The Annual report or 10K report of a publicly traded company would be a great resource for this problem. Identify specific account balances for which substantive analytical procedures would be appropriate and discuss your reasoning for selecting these accounts. Describe in detail the type of substantive analytical procedures that would be used for these account balances and why this would be an effective test of the account balances E F B 0 12 Months Ended Deo. 29, 2019 Dec 30, 2018 Dec 31, 2017 Differeno Change % 10 1 Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions 2 Income Statement [Abstract] + Sales to oustomers 5 Com of products sold 5 Gross profit 7 Salling, marketing and administrative expenses . Research and development pense In-process research and development Note 51 Imerestincome 71 Interessentento portion capriced None 4 Other Income penser 12 Restructuring None 22) # Earnings before provision for tanes on income 15 Provision forson income Nose B) 18 Not earnings 17 Net earnings per share (Notes 1 and 15) Basto in dollars per share) 19 Diluted in dolors per share) 20 Average shares outstanding (Notes 1 and 15) 21 Bainshares 22 Outed in she $82,053 27.556 54.503 22.17 1135 890 (357) 310 2525 266 17326 2200 15,119 201501 27.091 54.490 22540 0,75 1.26 1870 1005 1405 251 17,999 2,702 +15.237 376,450 1478.00 -0.586% 25.439 #1465.00 -1716% 51.011 $13.001 -0.024% 21.520 $362.00 1605% 10.594 $1530.00 -53% 408 $236.00 20.959% (3851 51254.00) 415704 934 858700 58.358 (421 $11.120.001 - 79.75 300 3115.00 -5.376% 17,673 #57100 3.72% 15.373 $493.00 $1300 3176.00 1154% 15.72 $5.63 $5.70 15.61 +0.48 $0.47 10.023-0350 $10.02) -0.357% 2,645 2.684.3 26815 2,728.7 2.632 2.745.3 $36.40 $44.40 1357% 1627% Review Data View Help Formulas File Home Page Layout Insert AutoSum Fill General 12 Wrap Text 11 AA== Calibri Insert Delete Format Clear X X Cut Copy - Format Painter EEEEE Merge & Center S Conditional Format as Cell Formatting Table Styles Styles a-A- Paste BIU - Cells Editir Number Alignment Font Clipboard X L15 D E F B A 12 Months Ended Dec. 29, 2019 Dec. 30, 2018 Difference Dec. 31, 2017 Change % $ 82,059 27,556 54,503 22,178 11,355 890 (357) 318 2,525 266 17,328 2,209 $ 15,119 1 1 Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions 2 3 Income Statement(Abstract] 4 Sales to customers 5 Cost of products sold 6 Gross profit 7 Selling, marketing and administrative expenses 8 Research and development expense 9 In-process research and development (Note 5) 10 Interest income 11 Interest expense, net of portion capitalized (Note 4) 12 Other (income) expense, net 13 Restructuring (Note 22) 14 Earnings before provision for taxes on income 15 Provision for taxes on income (Note 8) 16 Net earnings 17 Net earnings per share (Notes 1 and 15) 18 Basic (in dollars per share) 19 Diluted (in dollars per share) 20 Average shares outstanding (Notes 1 and 15) 21 Basic (in shares) 22 Diluted (in shares) 23 $ 81,581 27,091 54,490 22,540 10,775 1,126 (611) 1,005 1,405 251 17,999 2,702 $ 15,297 -0.586% -1.716% -0.024% 1.606% -5.383% 20.959% 41.571% $ 76,450 $ (478.00) 25,439 S (465.00) 51,011 $ (13.00) 21,520 $362.00 10,594 S (580.00) 408 $ 236.00 (385) $ (254.00) 934 $ 687.00 (42) S (1,120.00) 309 $ (15.00) 17,673 $ 671.00 16,373 $493.00 $ 1,300 $ 178.00 68.358% 79.715% -5.976% 3.728% 18.246% 1.164% -0.351% $5.72 $5.63 $ 5.70 $ 5.61 $ 0.48 $ 0.47 $ (0.02) $ (0.02) -0.357% 2,645.1 2,684.3 2,681.5 2,728.7 2,692 2,745.3 $36.40 $ 44.40 1.357% 1.627% Sheet1 Ready 2 P B Dec. 29, 2019 Deo. 30, 2018 $17.305 1,982 14,481 9,020 2.392 94 45,274 17,658 47,643 33 639 7,819 5,695 157,728 $ 18,107 1.580 14,098 8,599 2,699 950 46,033 17,035 47,611 30,453 7,640 4.182 152,954 41 25 Consolidated Balance Sheets - USD ($) $ in Millions 26 Current assets: 27 Cash and cash equivalents (Notes 1 and 2) 28 Marketable securities (Notes 1 and 2) 29 Accounts receivable trade, less allowances for doubtful accounts $226 (2018, 30 Inventories (Notes 1 and 3) 31 Prepaid expenses and other receivables 32 Assets held for sale (Note 20) 33 Total current assets 34 Property, plant and equipment net (Notes 1 and 4) 35 Intangible assets, net (Notes 1 and 5) 36 Goodwill (Notes 1 and 5) 37 Deferred taxes on income (Note 8) 38 Other assets 39 Total assets 40 Current liabilities: Loans and notes payable (Note 7) 42 Accounts payable 43 Accrued liabilities Accrued rebates, returns and promotions 45 Acorued compensation and employee related obligations 46 Accrued taxes on income (Note 8) 47 Total current liabilities 48 Long-term debt (Note 7) 49 Deferred taxes on income (Note 8) 50 Employee related obligations (Notes 9 and 10) 51 Long-term taxes payable (Note 81 52 Other liabilities 53 Total liabilities 54 Shareholders' equity 55 Preferred stock - without par value (authorized and unissued 2,000,000 shares) Common stock - par value $1.00 per share (Note 12) (authorized 4,320,000,000 56 shares, issued 3.119.843,000 shares) 57 Accumulated other comprehensive income lloss) (Note 13) 58 Retained earnings 59 Stockholders'Equity before Treasury Stock Less common stock held in treasury, at cost (Note 12)(487, 336,000 shares and 60 457,519,000 shares) 61 Total shareholders' equity 62 Total liabilities and shareholders' equity 44 1202 8,544 9,715 10,883 3,354 2.266 35,964 26.494 5.958 10,663 7,444 11,734 98,257 2,796 7,537 7,601 9,380 3,098 818 31,230 27,684 7,506 9.951 8,242 8,589 93,202 0 3,120 0 3,120 (15,891) 110.659 97,888 38,417 (15,222) 106,216 94.114 34,362 : 59 471 $ 157,728 59,752 $152,954 63 64 Shoot1 Obtain the financial statements of a company with which you are familiar. The Annual report or 10K report of a publicly traded company would be a great resource for this problem. Identify specific account balances for which substantive analytical procedures would be appropriate and discuss your reasoning for selecting these accounts. Describe in detail the type of substantive analytical procedures that would be used for these account balances and why this would be an effective test of the account balances E F B 0 12 Months Ended Deo. 29, 2019 Dec 30, 2018 Dec 31, 2017 Differeno Change % 10 1 Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions 2 Income Statement [Abstract] + Sales to oustomers 5 Com of products sold 5 Gross profit 7 Salling, marketing and administrative expenses . Research and development pense In-process research and development Note 51 Imerestincome 71 Interessentento portion capriced None 4 Other Income penser 12 Restructuring None 22) # Earnings before provision for tanes on income 15 Provision forson income Nose B) 18 Not earnings 17 Net earnings per share (Notes 1 and 15) Basto in dollars per share) 19 Diluted in dolors per share) 20 Average shares outstanding (Notes 1 and 15) 21 Bainshares 22 Outed in she $82,053 27.556 54.503 22.17 1135 890 (357) 310 2525 266 17326 2200 15,119 201501 27.091 54.490 22540 0,75 1.26 1870 1005 1405 251 17,999 2,702 +15.237 376,450 1478.00 -0.586% 25.439 #1465.00 -1716% 51.011 $13.001 -0.024% 21.520 $362.00 1605% 10.594 $1530.00 -53% 408 $236.00 20.959% (3851 51254.00) 415704 934 858700 58.358 (421 $11.120.001 - 79.75 300 3115.00 -5.376% 17,673 #57100 3.72% 15.373 $493.00 $1300 3176.00 1154% 15.72 $5.63 $5.70 15.61 +0.48 $0.47 10.023-0350 $10.02) -0.357% 2,645 2.684.3 26815 2,728.7 2.632 2.745.3 $36.40 $44.40 1357% 1627% Review Data View Help Formulas File Home Page Layout Insert AutoSum Fill General 12 Wrap Text 11 AA== Calibri Insert Delete Format Clear X X Cut Copy - Format Painter EEEEE Merge & Center S Conditional Format as Cell Formatting Table Styles Styles a-A- Paste BIU - Cells Editir Number Alignment Font Clipboard X L15 D E F B A 12 Months Ended Dec. 29, 2019 Dec. 30, 2018 Difference Dec. 31, 2017 Change % $ 82,059 27,556 54,503 22,178 11,355 890 (357) 318 2,525 266 17,328 2,209 $ 15,119 1 1 Consolidated Statements of Earnings - USD ($) shares in Millions, $ in Millions 2 3 Income Statement(Abstract] 4 Sales to customers 5 Cost of products sold 6 Gross profit 7 Selling, marketing and administrative expenses 8 Research and development expense 9 In-process research and development (Note 5) 10 Interest income 11 Interest expense, net of portion capitalized (Note 4) 12 Other (income) expense, net 13 Restructuring (Note 22) 14 Earnings before provision for taxes on income 15 Provision for taxes on income (Note 8) 16 Net earnings 17 Net earnings per share (Notes 1 and 15) 18 Basic (in dollars per share) 19 Diluted (in dollars per share) 20 Average shares outstanding (Notes 1 and 15) 21 Basic (in shares) 22 Diluted (in shares) 23 $ 81,581 27,091 54,490 22,540 10,775 1,126 (611) 1,005 1,405 251 17,999 2,702 $ 15,297 -0.586% -1.716% -0.024% 1.606% -5.383% 20.959% 41.571% $ 76,450 $ (478.00) 25,439 S (465.00) 51,011 $ (13.00) 21,520 $362.00 10,594 S (580.00) 408 $ 236.00 (385) $ (254.00) 934 $ 687.00 (42) S (1,120.00) 309 $ (15.00) 17,673 $ 671.00 16,373 $493.00 $ 1,300 $ 178.00 68.358% 79.715% -5.976% 3.728% 18.246% 1.164% -0.351% $5.72 $5.63 $ 5.70 $ 5.61 $ 0.48 $ 0.47 $ (0.02) $ (0.02) -0.357% 2,645.1 2,684.3 2,681.5 2,728.7 2,692 2,745.3 $36.40 $ 44.40 1.357% 1.627% Sheet1 Ready 2 P B Dec. 29, 2019 Deo. 30, 2018 $17.305 1,982 14,481 9,020 2.392 94 45,274 17,658 47,643 33 639 7,819 5,695 157,728 $ 18,107 1.580 14,098 8,599 2,699 950 46,033 17,035 47,611 30,453 7,640 4.182 152,954 41 25 Consolidated Balance Sheets - USD ($) $ in Millions 26 Current assets: 27 Cash and cash equivalents (Notes 1 and 2) 28 Marketable securities (Notes 1 and 2) 29 Accounts receivable trade, less allowances for doubtful accounts $226 (2018, 30 Inventories (Notes 1 and 3) 31 Prepaid expenses and other receivables 32 Assets held for sale (Note 20) 33 Total current assets 34 Property, plant and equipment net (Notes 1 and 4) 35 Intangible assets, net (Notes 1 and 5) 36 Goodwill (Notes 1 and 5) 37 Deferred taxes on income (Note 8) 38 Other assets 39 Total assets 40 Current liabilities: Loans and notes payable (Note 7) 42 Accounts payable 43 Accrued liabilities Accrued rebates, returns and promotions 45 Acorued compensation and employee related obligations 46 Accrued taxes on income (Note 8) 47 Total current liabilities 48 Long-term debt (Note 7) 49 Deferred taxes on income (Note 8) 50 Employee related obligations (Notes 9 and 10) 51 Long-term taxes payable (Note 81 52 Other liabilities 53 Total liabilities 54 Shareholders' equity 55 Preferred stock - without par value (authorized and unissued 2,000,000 shares) Common stock - par value $1.00 per share (Note 12) (authorized 4,320,000,000 56 shares, issued 3.119.843,000 shares) 57 Accumulated other comprehensive income lloss) (Note 13) 58 Retained earnings 59 Stockholders'Equity before Treasury Stock Less common stock held in treasury, at cost (Note 12)(487, 336,000 shares and 60 457,519,000 shares) 61 Total shareholders' equity 62 Total liabilities and shareholders' equity 44 1202 8,544 9,715 10,883 3,354 2.266 35,964 26.494 5.958 10,663 7,444 11,734 98,257 2,796 7,537 7,601 9,380 3,098 818 31,230 27,684 7,506 9.951 8,242 8,589 93,202 0 3,120 0 3,120 (15,891) 110.659 97,888 38,417 (15,222) 106,216 94.114 34,362 : 59 471 $ 157,728 59,752 $152,954 63 64 Shoot1