https://www.sec.gov/Archives/edgar/data/63276/000162828018002322/mat1231201710-k
ID: 2540847 • Letter: H
Question
https://www.sec.gov/Archives/edgar/data/63276/000162828018002322/mat1231201710-k.htm#s4882FA13A8275B2BA504282C9C5761B1
I am using the 2017 Annual Report for Mattel, Inc. I am having hard time finding the answers to the following questions. Can someone explain how I would find this information?
Were there any Non-Cash Investing/Financing Transactions? Describe the type and amount.
What is the dollar difference between accrual net income and Cash provided by Operations?
What investing activity provided the largest inflow of cash in the current year?
What investing activity used the largest amount of cash in the current year?
What financing activity provided the largest inflow of cash in the current year?
What financing activity used the largest amount of cash in the current year?
Does the company have sufficient cash inflows from the appropriate category? Describe any problems the company many experience with cash flow from your analysis of the cash flow statement.
Show the change in Retained Earnings for the 2 most recent years. What was net income for each year? How much was paid out in dividends each year?
How many footnote disclosures does your company have?
How many significant accounting policies are listed under its Summary of Significant Accounting Policies?
What does it include as Cash and Cash Equivalents?
What method does it use to value Inventory?
What method(s) does it use to depreciate its assets?
Does it have any leased assets? If yes, describe them.
What policies does it have in regard to Foreign Currency Translations?
Provide its Earnings per Share for the 2 most recent years?
Provide common-size analysis of your company's income statement and balance sheet for the 2 most recent years (must be done using Excel with formulas).
Provide horizontal analysis of your company's income statement and balance sheet, showing the dollar amount and percent of change using the 2 most recent years (you must use an Excel spreadsheet with formulas).
Perform ratio analysis on your company using the ratios listed in Exhibit 13.16 on page 544 of your text (these must be in an Excel spreadsheet, using formulas to calculate the ratios). You should present them in a similar format as the text: group by category, list name of ratio, formula in words, and the ratio calculation. Give a short explanation of your conclusions about your company after each category of ratios (i.e. How liquid is your company? How efficiently is it using its assets? etc.).
Graph the high and low price of the company's stock for each quarter of the last two years. What was the high and what was the low?
I have answered the other 50 questions on my own. Any help on locating the necessary information is appreciated.
Explanation / Answer
Refer to CONSOLIDATED STATEMENTS OF CASH FLOWS for part 1-5 shown below:
1. What investing activity provided the largest inflow of cash in the current year?
Proceeds from (payments for) foreign currency forward exchange contracts = $60,993
2. What investing activity used the largest amount of cash in the current year?
Purchases of other property, plant, and equipment = ($168,219)
3. What financing activity provided the largest inflow of cash in the current year?
Proceeds from short-term borrowings, net = 1,419,418
4. What financing activity used the largest amount of cash in the current year?
Payments of short-term borrowings, net = ($1,611,586)
5. Does the company have sufficient cash inflows from the appropriate category? Describe any problems the company many experience with cash flow from your analysis of the cash flow statement.
There is no cash inflow from operating activities, rather the cash is used by $27,614. It is a huge concern for the company. There is cash use in investing activities which seems reasonable as the company purchased fixed assets such as property, plant and equipment, etc. Cash has been generated from financing activities mostly due to the proceeds from long term and short term borrowings.
The main problem is the cash use in operating activities. The company should be able to generate cash from the operating activities in order to survive. This is due to the net loss during the year. If we look at the Income statement, we see that there is huge amount of money spent on selling and administrative expenses which lead to an overall loss and inefficient use of cash in operating activities.
Refer to CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Retained earnings column) for part 6:
6. Show the change in Retained Earnings for the 2 most recent years. What was net income for each year? How much was paid out in dividends each year?
Year Net income/(loss) Dividend paid
2017 ($1,053,836) $311,973
2016 $318,022 $518,529
Refer to NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
7. How many footnote disclosures does your company have? 17 Notes
8. How many significant accounting policies are listed under its Summary of Significant Accounting Policies? 20 - refer to Note 1—Summary of Significant Accounting Policies
9. What does it include as Cash and Cash Equivalents?
Cash and equivalents include short-term investments, which are highly liquid investments with maturities of three months or less when purchased. Such investments are stated at cost, which approximates market value.
10. What method does it use to value Inventory? - First-in first-out method
11. What method(s) does it use to depreciate its assets? - Straight line method
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