Grain & Fiber Foods (GFF) produces granola cereal for sale to large grocery stores. As part of the production process, GFF uses large quantities of corn, oats, wheat, and soybeans. To induce local production of these grains, GFF contacts with more than 300 farmers to purchase their crops at a set price with a set delivery. A buyer representative of GFF negotiates each price with the farmer. To offset the potential swings in prices and to reduce the risk of paying a higher than market price for the grapin at the time of delivery, GFF enters several futures contracts as hedges. At the end of the year, GFF has grain inventories, purchase commitments, and some forward contracts (being used as hedges) outstanding. (Ziebart, 2002)
Guidelines on How to do this:-
Facts:
Here you present the facts of the case as given to you in complete sentences. Your citation should be for the source of the facts.
Issues:
Here you list the question(s) to be answered.
Analysis:
Here in complete sentence and paragraph format you present the applicable GAAP with respect to the issues. Your statements should be general in nature and not specific to the company you are advising. Be sure to cite your source(s) as appropriate, as least at the end of the each paragraph.
Conclusion: No Citation
Here in complete sentence and paragraph format you conclude specifically with respect to the compnay's issues. Be sure to answer each issue raised.
References:
Here you list in alphabetical order and APA format the complete references for the citations above.