Annual Report Analysis: Who Are The Firm’s Auditors? Essay Sample
1. Who are the firm’s hearers? Do they supply a clean sentiment on the fiscal statements?
On page 53 of the Green Mountain Coffee Roasters. Inc 10-K Annual Report. they province that PricewaterhouseCoopers LLP. an independent registered public accounting house. has audited the effectivity of the Company’s internal control over fiscal coverage. They provide a clean sentiment on the fiscal statements. On page F-2. the hearer had written a note saying. “In our sentiment. the attach toing amalgamate fiscal statements present reasonably. in all material respects. the fiscal place of Green Mountain Coffee Roasters. Inc. and its subordinates at September 24. 2011 and September 25. 2010. and the consequences of the operations and their hard currency flows for each of the twelvemonth old ages in the period ended September 24. 2011 in conformance with accounting rules by and large accepted in the United States of America. ”
2. Have at that place been any subsequent events. mistakes and abnormalities.
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illegal Acts of the Apostless. or related-party minutess that have a material consequence on the fiscal statements?
On page F-48. subdivision 24 of the Green Mountain Coffee Roasters. Inc 10-K Annual Report. they list the Subsequent Events. There was a “Form 8-K dated August 24. 2011 saying the Company entered into an understanding to see all the outstanding portions of Van Houtte USA Holdings. Inc to ARAMARK Refreshment Services. LLC and later. on October 3. 2011. completed the sale for an aggregative hard currency purchase monetary value of about $ 145 million. ”
3. Describe the tendency in entire assets and entire liabilities for the old ages presented.
Harmonizing to the Green Mountain Coffee Roasters. Inc. ’s Consolidated Balance Sheet on page F-3. Entire Assets ( Dollars in 1000s ) for 2010 were $ 1. 370. 574 and in 2011. Entire Assets were $ 3. 197. 887. Entire liabilities for 2010 were $ 671. 329 and in 2011. Entire liabilities were $ 1. 285. 672. Entire liabilities was found by deducting “Total Stockholders’ Equity” from “Total liabilities and stockholders’ equity. ”
4. What are the company’s three largest assets for the most recent twelvemonth presented?
Harmonizing to Green Mountain Coffee Roasters. Inc. ’s Consolidated Balance Sheet for the 2011 financial twelvemonth. the company’s three largest assets are “Goodwill” . “Inventories” . and “Fixed Assetss. cyberspace. ” With the dollars in 1000s. “Goodwill” had a balance of $ 789. 305. “Inventories” had a balance of $ 672. 248 and “Fixed Assetss. net” had a balance of $ 579. 219.
5. What are the company’s three largest liabilities for the most recent twelvemonth presented?
Harmonizing to Green Mountain Coffee Roasters. Inc. ’s Consolidated Balance Sheet for the 2011 financial twelvemonth. the company’s three largest liabilities are “Long-term Debt” . “Accounts Payable” . and “Deferred Income Taxes. cyberspace. ” With dollars in 1000s. “Long-term Debt had a balance of $ 575. 969. “Accounts Payable” had a balance of $ 265. 511 and “Deferred Income Taxes. net” had a balance of $ 189. 637.
6. What types of stock does the company hold? How many portions are at that place outstanding for each type of stock for the most recent twelvemonth presented?
On page F-3. Green Mountain Coffee Roasters. Inc. ’s Consolidated Balance Sheet. they list both Preferred Stock and Common Stock in their Stockholders’ equity subdivision. They were authorized for 1. 000. 000 portions of Preferred Stock. nevertheless there are none outstanding. They were besides authorized for 200. 000. 000 portions of Common Stock. with 154. 466. 463 portions outstanding at September 24. 2011. and 132. 823. 585 portions outstanding at September 25. 2010.
7. Does the company utilize the single-step or multiple-step income statement
or a fluctuation?
On page F-4 is the Amalgamate Statement of Operations. you can see that Green Mountain Coffee Roasters. Inc uses a multiple-step income statement. After reexamining it. you see that they have the subtotals of the Gross Profit. Operating Income. and Income before Income Taxes.
8. Does the income statement contain any individually reported points in any twelvemonth presented. included discontinued operations or extraordinary points? If it does. depict the event that caused the point. Hint: there should be a related footer.
On page F-4. the Amalgamate Statements of Operations. there was a Patents Litigation Settlement on the 2009 Annual Report. On October 23. 2008 ( pg. F-46 ) . “Keurig entered into a Settlement and License Agreement supplying for a complete colony of Keurig’s antecedently filed case against Kraft. ” On the 2011 Annual Report. there was a loss on foreign currency and besides Net income attributable to noncontrolling involvements.
9. Describe the tendency in net income over the old ages presented.
On page 2 of the Green Mountain Coffee Roasters. Inc 10-K Annual Report there is a saloon graph picturing the tendency in Net Income over the past 5 old ages. Between 2010 and 2011. there was a major leap in the net income ( in 1000s ) from $ 79. 506 in 2010 to $ 199. 501 in 2011. which is a 151 % growing. Between 2009 and 2010. there was a 46 % growing. with the 2009 net income at $ 54. 439.
10. Does the company have other comprehensive income? If yes. what is the nature of the dealing ( s ) ?
On page F-5. the Amalgamate Statements of Comprehensive Income. they have a entire comprehensive income of $ 186. 556 on September 24. 2011. This figure came from both a foreign currency interlingual rendition accommodation and derived functions designated as hard currency flow hedges.
11. Does the company utilize the indirect or direct method of the hard currency flow statement?
Green Mountain Coffee Company uses the indirect method of the hard currency flow statement. This is realized because. on page F-7 is the Amalgamate Statement of Cash Flows. it starts with the Net Income and it works backwards to change over that sum to a hard currency footing.
12. What is the tendency in hard currency from operations for the old ages presented?
On page F-7. the Amalgamate Statement of Cash Flows with dollars in 1000s. you can see that in 2009. the net hard currency provided by runing activities was $ 38. 617. In 2010 that figure moved to a negative $ 2. 297 and in 2011. the net hard currency provided by operating activities went back to a positive $ 785.
13. What are the 2 largest points included in hard currency from puting activities? On page F-7 is the Amalgamate Statement of Cash Flows. you can see that the two largest points included in hard currency from puting activities are “Change in restricted cash” and “Proceeds from disposal of fixed assets. ” With dollars shown in 1000s. “Change in restricted cash” balances out at $ 2. 074 and the balance of “Proceeds from disposal of fixed assets” is $ 1. 192.
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