Question

Amazon was the company

Items for Analysis:

Criteria for Requirement 1, Part 1 Submission (Choose item A or B).

A. Review your company’s current and long-term liabilities section of the most recently published balance sheet. Explain the details of the current and long-term debt based on the disclosures found in the financial statements. Do not complete a ratio analysis. Instead, focus on the details in the notes and determine how well the company presented the information to an informed reader. What did the company provide about its debts in the notes, and why is that information important? How does each company comply with the rules as provided in the FASB Codification?

B. Review your company’s stockholders’ equity section of the balance sheet. Explain the details of the stock transactions, including treasury stock (if applicable) or stock compensation, based on the disclosures found in the financial statements. Do not complete a ratio analysis. Instead, focus on the details in the notes and determine how well the company presented the information to an informed reader. What did the company provide about its equity in the notes and why is that information important? How does each company comply with the rules as provided in the FASB Codification?

Project Requirements

Prepare a comparative paper using the companies your team members selected for analysis. The first submission is a draft of your findings for item A or B, above. Remember, all team members must analyze the same item. Since this is a team paper, it needs to have one voice. Compare your writing styles and items included about each company so that it appears one person wrote the paper. The first portion of the assignment submission should include:

• An introductory paragraph about the industry in which your companies compete. Provide this summary in approximately 200-250 words. Note – only one industry overview is provided, not one per company.
• Body of the paper consisting of a comparative analysis of Item A or B for each company as well as an application of the FASB Codification to “prove” the items are reported properly by your project companies. The discussion for each company should be approximately 250 words. For example, if there are four students per group, the total for all four companies would be 1,000 words.

Answer 1

Manufacturing Industry overview:

Manufacturing is the process of converting Raw materials into finished products that can be sold in wholesale or retail or exported to other markets

US manufacturing industry remains as one of the worlds leader and offer some opprotunities in engineer and technicians etc. Manufacturing industries are major contributors of wealth in an economy. They adopt various technologies such as Manufacturing process management . In contrast services industri is wealth consuming.

The manufacturing alliance for productivity and innovation foundation predicts 3.9% growth for 2019 and then 2.4% and 1.9% in 2020 and 2021 accordingly

Debts and current Liability and stock section

Company clearly indicated their long term borrowings and debts, these are generally due beyond a year and they mention it in Notes in Balance sheet. It also states information on stock section like common stock and preferred stock

Notes can be of several pages but they are not to be undervalued while analysing financial statement of business as it clearly gives pictures to shareholders on financial position of the business. Therefore a good way to read financial statement is from bottom to up and back to front

These are in line with FASB codification --These are done to clarify that company accounts per accounting procedure . Notes read in financials statements as follows:

All Liabilities are recognized and at fair value for loans. the measurement of financial liability depend on their s classification. The XXX company liabilities include Trade payables, overdraft and other liabilties

Financial Liability is derecognized when the liability is discharged

Hence the Notes to financials is summary of company accounting policy , depreciation , valuation and subsequent of events etc