ACCT 3201-What accounting firm audited Kellogg’s financial statements

Subject: Business    / Accounting
Question
1. What accounting firm audited Kellogg’s financial statements? _____________________________________________________

2. Find the Rule 13a-14(a)/15d-14(a) section of the financial statements and identify the names of the CEO and CFO:

CEO______________________________________________ CFO______________________________________________

3. Find the section titled “Critical Accounting Estimates”. Name two of five areas subject to critical accounting estimates.

a. ___________________________ b. ___________________________

4. What dollar of equity amounts did Kellogg report for “Noncontrolling Interests” for the following years?

a. 2015___________ b. 2014___________

5. How does Kellogg define “Cash Equivalents”?

6. What are the three main items Kellogg’s marks-to-market? a. ______________________________
b. ______________________________
c. ______________________________

7. What was Kellogg’s after-tax other comprehensive income (OCI) and comprehensive income (CI) for 2015?

OCI __________
CI ____________

8. What was the after tax effect on Kellogg’s comprehensive income (loss) from “Unrealized gain (loss) on cash flow hedges”?

a. 2015________ b. 2014________ c. 2013________

9. What amounts did Kellogg report for the following?
a. Total Net Sales 2015________ 2014__________
b. Net Accounts Receivable 2015_________ 2014__________ 2013___________ c. Allowance for Doubtful Accounts 2015__________ 2014___________

10. Using the above amounts and showing all components of the ratios, compute Kellogg’s Accounts Receivable Turnover ratio for the following years. Please use the average of ending Accounting Receivables for the denominator:

2015___________ 2014____________

11. Using the above amounts and showing all components of the ratios, compute the ratio of Allowance for Doubtful Accounts to Ending Total Accounts Receivable for the following years.

2015____________ 2014_____________

12. Evaluate the ratios from 10 and 11 above and underline the response that best reflects how adequately Kellogg has provided for the allowance for bad debts in 2015. Briefly explain your answer.

Conservative Expected Aggressive