Purchase Solution

Components of financial statements in most recent annual report

Not what you're looking for?

Ask Custom Question

Can you help me get started with this assignment?

Using the company Cardinal Health, analyze the components of the financial statements (in the most recent annual report):

- Calculate the analytical information in the table
- Discuss the possible findings
- Discuss how the organization performed

In 2 pages, MS Word Doc, APA style with citations
Analytical Procedures for Revenue (Sales) and Accounts Receivable Accounts

(2-column table to complete):
Analytical Procedures Possible Misstatement Detected
Revenues
? Compare gross profit percentage (by product line if data are available) with previous years
? Compare actual revenue to budgeted revenue
? Analysis of ratio of sales to income with in first quarter to total ratio of sales to income at the end of the year
Accounts Receivable
? Comparison of receivables turnover and days outstanding in current year to previous year
? Comparison of bad-debt expense as a percentage of revenue in current to previous year
? Comparison of allowance of uncollectible accounts as a percentage of accounts receivable in current year to previous year

Purchase this Solution
Solution Summary

The components of financial statement sin the most recent annual report is examined.

Solution Preview

Running Head: ANALYTICAL PROCEDURE

Analytical Procedure for Accounts Receivable & Revenue

Analytical Procedure for Revenues
The gross profit margin of the company has decline by 1% in the year 2009 in comparison of the previous year. The decrease in the gross profit was because of the foreign exchange risk and increase in the customer in the Healthcare Supply Chain Service Segment. But the data depict an increase in the revenue by 9% from the previous year but at the same time the gross margin for the company is decreasing. The gross profit for the year 2007 was 5.99%, which was increased by 6.13% in the year 2008. But it caused a decrease in the gross margin in the year 2009 in which it is 5.55% only (Cardinal Health Inc, 2009). The possible misstatement in the gross margin computation is the change in the inventory valuation method. The change in the inventory valuation method causes a change in the overall cost of the business.

The revenue for the current year is more than the revenue from expected. The total increase in the revenue for year 2009 ...

Purchase this Solution
Free BrainMass Quizzes
Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Balance Sheet

The Fundamental Classified Balance Sheet. What to know to make it easy.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

View More Free Quizzes
Related BrainMass Solutions

  • Disclosure Analysis

    ¬¢Research your selected company and acquire the company's most recent ANNUAL REPORT financial statements using the Internet. ââ?

  • Financial statement

    I need to acquire a copy of the selected company's most recent financial statements.

  • EPS and effect of stock split on EPS

    Refer to the financial statement footnotes or financial review section of the annual report. Obtain the most recent issued annual report of a publicly owned manufacturing corporation of your choice.

  • Financial Statistics and Ratios for Johnson & Johnson, P&B, Merck

    159613 Common Size Financial Statements This is the assignment: Need common size financial statements for the most recent and the last 2 years for Proctor & Gamble and Johnson & Johnson and any relevant financial ratios for this component.

  • Analyze McDonald's Financial Statement: growth, income, sales, expenses

    Under the "Corporate" heading, select "Investors," and click on the most recent annual report (McDonalds may call it the "financial report"). We are using 2007 Annual Report Answer the following questions: 1. First open the balance sheet.

  • Financial outcomes for Walmart

    484412 Financial outcomes for Walmart Select a financial initiative from the management's message to the shareholders using its most recent annual report and other financial statements submitted to the Securities and Exchange Commission.

  • This posting addresses the contents of an annual report.

    464198 Components of an Annual Report a) What are the optional elements that are often included in an annual report? b) What are the elements of an annual report that are required by the SEC? c) Describe the contents of the Management Discussion.

  • McDonalds

    269672 Financial analysis for McDonalds: SWOT, ratio analysis, recommendations Financial Analysis 1. Locate the financial section of the organization's most recent annual report.

  • Financial Management

    276961 Verybest: Memo explaining the components and process of creating an annual report Details: You have been promoted to a member of the management team in Verybest's financial department.

View More Related Solutions