Questions from Financial Accounting

Q: When luxury automaker BMW recently released earnings, the Wall Street Journal

When luxury automaker BMW recently released earnings, the Wall Street Journal reported that it compared poorly to the prior year for a number of reasons, including the following: • rising raw material...

Q: An article in Business Week described how Bob Olstein, a successful

An article in Business Week described how Bob Olstein, a successful stock analyst, predicts that the prices of stocks issued by firms that "engage in aggressive accounting practices" will go down, sta...

Q: You can review the Disney SEC Form 10-K by searching

You can review the Disney SEC Form 10-K by searching for "Disney Annual Report" online. INSTRUCTIONS: Review the 2019 10-K, and answer the following questions: a. What are the major sources of cash fo...

Q: The 2019 balance sheet of The Walt Disney Company includes a long

The 2019 balance sheet of The Walt Disney Company includes a long-term asset account called "Investments" in the amount of $3.2 billion. Most of this account is comprised of investments where Disney o...

Q: Loan officer Han Blackford once commented that cash flow analysis has risen

Loan officer Han Blackford once commented that cash flow analysis has risen in importance due to a "trend over the past twenty years toward capitalizing and deferring more and more expenses. Although...

Q: The financial press often uses the term cash flow to refer to

The financial press often uses the term cash flow to refer to a company's "net income + depreciation." In a well-known article in Barron's titled "No Substitutions, Please," Intel was criticized for r...

Q: A 2018 balance sheet of Royal Dutch Shell, a huge oil

A 2018 balance sheet of Royal Dutch Shell, a huge oil and gas company that prepares financier statements using IFRS, reported the following dollar amounts (in millions). First, format these balance sh...

Q: In May, 2019, Uber Technologies, Inc., went public

In May, 2019, Uber Technologies, Inc., went public. Selected information from its 2020 statement of cash flows is provided below (dollars in billions). INSTRUCTIONS: a. What has happened to Uber's cas...

Q: The following information was taken from the 2019 annual report and statement

The following information was taken from the 2019 annual report and statement of cash flows of Eli Lilly, a major pharmaceutical (dollars in millions):* INSTRUCTIONS: a. Discuss the cash management pr...

Q: Starbucks is a relatively young, fast-growing company that is

Starbucks is a relatively young, fast-growing company that is a pioneer and leader in its industry. Excerpts from its 2019 statement of cash flows are as follows (dollars in millions): INSTRUCTIONS: a...