Accounting Assignment
350 words per question.
Use the 2016 Form 10-K for Snap-on Inc. to complete the requirements below. To obtain the Form 10-K, you can search EDGAR system at sec.org (follow the instructions in our text, Appendix A), or search "Corporate Information" on the company's corporate website. Read carefully the following portions of the document:
Notes to Financial Statements:
• Note 1 -> Summary of Accounting Policies
o "Shipping and handling"
o "Advertising and promotion"
• "Note 4: Inventories"
Questions:
1. Does Snap-on treat shipping and handling costs as product or period costs (or both)? How can you tell?
2. Does Snap-on treat advertising and promotion costs as product or period costs (or both)? How can you tell?
3. What are the three main categories of inventory does Snap-on report in its annual report?
4. After browsing the annual report, comment on two other interesting things that you learned about Snap-On Inc. during your research. Explain why you found these to be particularly interesting.
Required:
• Answer each of the above questions in complete sentences.
• Be sure to fully cite your sources used for each of your answers in 1-4. One source per item.