Cases in Financial Reporting : An Integrated Approach with an Emphasis on Earnings and Persistence

by ;
Edition: 3rd
Format: Paperback
Pub. Date: 2001-01-01
Publisher(s): PRENTICE HALL
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Summary

For intermediate and financial accounting courses at the MBA and undergraduate level, or a supplement to financial statement analysis texts. This collection of financial accounting cases is designed to help students become financial statementusers. Each case utilizes financial statement information (balance sheet, income statement, statement of cash flow and/or footnotes) and a number of topical questions. Students use the financial statement information to infer and interpret the economic events underlying the numbers. Related articles taken from business publications accompany some cases, and information from the articles is incorporated into the case question material. Also available the Pearson Custom Case Program.

Table of Contents

I. BECOMING FAMILIAR WITH FINANCIAL REPORTING: BASICS, TOOLS, AND THE PERSISTENCE OF EARNINGS.

1. Basics—Interpretation and Preparation of Financial Statements.
Maytag Corp.—Understanding Financial Statements. Nike—Basic Ratio Analysis. Yokohama Rubber and Goodyear Tire—Comaring Ratios. Fuji Photo Film and Eastman Kodak—Inferring Transactions. Club Méditerranée S.A.—International GAAP. Food Lion, Inc.—Preparation of Financial Statements. Diageo plc— Adjusting Journal Entries. Abercrombie and Fitch—Transactions and Financial Statements.

2. Tools—Discounted Cash Flow.
Maya—Return on Investment. Hydron Technologies Corporation—Lease or Buy.

3. Tools—Basic Valuation and the Persistence of Earnings.
Maple Leaf Gardens—Valuation. GTE—Persistence of Earnings.

4. Tools—Cash Basis versus Accrual Basis Reporting.
Frederick's of Hollywood—Statement of Cash Flows. Weis Markets, Inc.—Statement of Cash Flows. Jan Bell Marketing, Inc.—Statement of Cash Flow.

II. EVALUATING FINANCIAL REPORTING DISCLOSURES: BALANCE SHEET COMPONENTS AND ISSUES IN THE QUALITY OF EARNINGS.

5. Assets.
L.A. Gear, Inc.—Cash and Balance Sheet Issues. Analog Devices, Inc.—Revenue Recognition. The Warnaco Group Inc.—Accounts Receivable. Lands' End, Inc.—Inventory. Callaway Golf Company—Manufacturing Inventory. Frederick's of Hollywood—Property and Equipment. Merck & Co., Inc.—Research and Development. eBay—Acquired in-Process Research and Development. America Online, Inc.—Deffered Costs.

6. Liabilities.
E.I. du Pont de Nemours—Environmental Matters. Maytag Corporation—Warranties and Deferred Taxes. Eastman Kodak and Polaroid—Contingencies. Bally Entertainment Corporation—Long-Term Debt. The Home Depot—Long-Term Debt. AMR Corporation—Leases. The Robert Mondavi Corporation—Deferred Taxes. Bethlehem Steel—Pension Obligations. Black Clawson—OtherPost-Employment Benefits.

7. Owners' Equity.
The Dow Chemical Company—Treasury Stock.

8. Intercorporate Investments.
Wachovia—Marketable Securities. BCE Inc.—Investments in Other Companies. The Seagram Company—Investments in Common Stock.

9. Financial Statement Analysis.
Boston Beer & Lion Brewery—Financial Statement Analysis.

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