Answer the following questions using the information obtained from one of X, Inc.'s financial statements:
Amounts are in millions December 31,
2012 2011
Cash and equivalents $2,808 $1,815
Receivables:
Notes and accounts receivable (less allowance for bad debts
of $127 and $175) 2,873 2,909
Insurance for asbestos- and silica-related liabilities 1,066 96
a. On which financial statement is the above information found?
b. What is meant by cash equivalents?
c. Where could you look in the annual report to find more information about cash equivalents?
d. Does X, Inc. have significant credit sales? How can you tell?
e. Where could you look in the annual report to find more information about the receivables from insurance companies?
f. Did the receivables from insurance companies result from sales to insurance companies?
a. Balance sheet
b. Cash equivalents are highly liquid investments with a maturity of three months or less that a firm can easily convert into a known amount of cash.
c. Notes to the financial statements
d. Yes. It has accounts receivable.
e. Notes to the financial statements
f. No
You might also like to view...
Identity thieves that obtain your information from the magnetic strip on your credit card are using a technique known as
A) shoulder surfing. B) dumpster diving. C) pretexting. D) skimming.
The average annual return over the period 1926-2009 for small stocks is 21.2%, and the standard deviation of returns is 21.2%. Based on these numbers, what is a 95% confidence interval for 2010 returns?
A) -10.6%, 31.8% B) 0%, 42.4% C) -21.2%, 42.4% D) -21.2%, 63.6%