Financial statements related to cash and cash equivalents


Select a publicly held company to use as the basis for this assignment.

Research your selected company and acquire the company's most recent financial statements using the Internet.

Write a 700- to 1,050-word paper analyzing the disclosures contained within the notes to the financial statements related to cash and cash equivalents, receivables, and inventories. Include a list identifying the components of the organization's cash and cash equivalents.

Format your paper consistent with APA guidelines.

Special instructions: The SEC.gov website under the EDGAR section is the most reliable source for financial reports on US based publicly traded companies. Be sure to use the 10-K, not the 10-Q. The information for this assignment is in the notes to the financial statements and on the balance sheet. Choose a company that has all 3 elements. A substantial grade deduction will be imposed for using a company that does not have cash, accounts receivables and inventory.

Choose a company that reports in US GAAP. Foreign companies are not going to use US GAAP so they should not be used.

Choose a company that has all 3 of the current assets - cash, AR and Inventory. Service companies are not likely to have one or more of these elements. For example - banks may not have inventory. There is a substantial penalty for choosing a company that does not have all 3 elements. Students don't learn anything about the financial disclosures when there are not any for one of the elements.

The majority of the information needed can be found in the Notes to the Financial Statements. The information is not in the Management Disclosures and Analysis (MD&A). Usually the information on current assets is under the first note which is often labeled something like Accounting Policies and Procedures.

Stick to the assigned topic. Information on such topics as cash flow, a detailed description or history of the company, payables, long term assets, notes payable are off topic.

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Accounting Basics: Financial statements related to cash and cash equivalents
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