https://www.thehersheycompany.com/content/dam/corporate-us/documents/annual-repo
ID: 2413197 • Letter: H
Question
https://www.thehersheycompany.com/content/dam/corporate-us/documents/annual-reports/2018_The_Hershey_Company_10_K.pdf
(a) What is the name of the company you chose?
The Hershey Company
(b) How much is the amount of cash and cash equivalent and how has this amount changed from the previous year?
On December 31, 2017, Hershey’s cash and cash equivalents totaled $380.2 million. On December 31, 2016, Hershey’s cash and cash equivalents totaled $297.0 million. Hershey’s cash and cash equivalents at the end of 2017 increased $83.2 million compared to the 2016 year-end balance.
(c) Determine that percent (rounded to one decimal) that the amount of cash and cash equivalent represents of total current assets, total current liabilities, total stockholders' equity, and total assets for the most recent year and the previous year?
(d) How much is the amount of net accounts receivables or net receivables?
The amount for net accounts receivables for the year ended December 31, 2017 is 41,792
(e) Compute the accounts receivable turnover and the average collection period. How have these figures changed from the previous year. Comment.
(f) What accounting methods/principles does the company use to determine its cash and cash equivalents and its receivables?
(in thousands, except share data) December 31, ASSETS Current assets: 2017 2016 296,967 581,381 745,678 192,752 1,816,778 2,177,248 812,344 492,737 Cash and cash equivalents 380,179$ 588,262 752,836 280,633 2,001,910 2,106,697 821,061 369,156 251,879 Accounts receivable trade, net Inventories Prepaid expenses and other Total current assets Property, plant and equipment, net Goodwill Other intangibles Other assets Deferred income taxes 56,861 5,524,333 3,023 Total assets 5,553,726 $ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: 523,229 $ Accounts payable Accrued liabilities Accrued income taxes Short-term debt Current portion of long-term debt 522,536 750,986 3,207 632,471 676,134 559,359 300,098 2,076,543 2,061,023 438,939 45,656 4,622,161 1,909,443 2,347,455 400,161 39,587 4,696,646 Total current liabilities Long-term debt Other long-term liabilities Deferred income taxes Total liabilities Stockholders' equity The Hershey Company stockholders' equity Preferred stock, shares issued: none in 2017 and 2016 Common stock, shares issued: 299,281,967 in 2017 and 2016 Class B common stock, shares issued: 60,619,777 in 2017 and 2016 Additional paid-in capital 299,281 60,620 924,978 6,371,082 299,281 60,620 869,857 6,115,961 TreasU ommon stock shares, at cost: 149,040,927 in 2017 and 147,642,009 in 2016 Accumulated other compre (6,426,877) (313,746) 915,338 16,227 931,565 5,553,726 $ (6,183,975) (375,888) 785,856 hensive loss Total-The Hershey Company stockholders' equity Noncontrolling interest in subsidiary 827,687 Total stockholders' equity Total liabilities and stockholders' equity 5,524,333 See Notes to Consolidated Financial Statements.Explanation / Answer
2017 2016
Current Asset 2001910 5524333
Current Liabilitiees 2076543 1909443
Current Ratio .96 : 1 2.89 : 1
Current Asset (except stock) 1249074 4778655
Current liabilities 2046543 1909443
Acid Test ratio .60 : 1 2.5 : 1
It shows that company have idle cash liquidity in 2016 and shortage in 2017
Stock holders Equity : 2017 2016
As given in B/S 5553726 5524333
Add: Treasury stock 6426877 6183975
Total 11980603 11708308
Company should adopt the "Accrual " system for accounting purpose.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.