FINANCIAL DATA FOR QUESTIONS IN THE WEB LINK BELOW http://www.zonebourse.com/DR-
ID: 2547814 • Letter: F
Question
FINANCIAL DATA FOR QUESTIONS IN THE WEB LINK BELOW
http://www.zonebourse.com/DR-PEPPER-SNAPPLE-GROUP-3017910/pdf/813894/Dr%20Pepper%20Snapple%20Group_SEC-Filing-10K.pdf
Instructions: Use the financial statements from the annual report for the year ended 12/31/2017 for Dr. Pepper Snapple Group (DPSG). The Annual Report is on MOODLE. Answer the questions after each question. Use a different font to distinguish your answer from the question. All answers should be in your own words. Do not cut and paste from the annual report. Answers will be graded for content and written communication skills. Use complete sentences in answering questions.
MAKE A NOTATION HERE IF THE DOLLAR AMOUNTS ARE STATED IN MILLIONS.
Create a table illustrating the amount DPSG for net cash flows from operating, investing, and financing activities in its statement of cash flow for the year ended 12/31/2017 (Note: Include any effect of exchange rates on cash and cash equivalents. ) Show calculations. Compare your answers to question 5.
What is DPSG’s policy for valuing inventory both in the US and outside of the US?
How much reserve for excess and obsolete inventory did DPSG have for year ended 12/31/2017? How are reserves for excess and obsolete inventory determined? How did this impact the financial statements?
What % of their total FIFO inventory is raw materials, spare parts, work in process, and finished goods as of 12/31/2017
What is the balance of their LIFO reserve account December 31, 2017?
Explanation / Answer
Question: Illustrating Net cash flows from operating, investing, and financing activities
Answer:
Question : What is DPSG’s policy for valuing inventory both in the US and outside of the US?
Answer: DPSG measures the inventory at lower of Cost or Net Realisable Value. Cost for inventories of US Subsidiaries is measured based on Last-in, First-Out (LIFO) method while cost for inventories of foreign subsidiaries is measured based First-in, First-Out (FIFO) method.
Question: How much reserve for excess and obsolete inventory did DPSG have for year ended 12/31/2017?
Answer: Outstanding balance of reserve for excess and obsolete inventory as on 12/31/2017 was $ 4 million.
Question: How are reserves for excess and obsolete inventory determined? How did this impact the financial statements?
Answer: Assessment of slow moving and obsolete inventories is done based on their historial usage and demand to determine the amount of reserves for excess & obsolete inventory. This reserve results in reduction of shareholder's equity as well as reduction in inventory value being reported in balance sheet.
Question:What % of their total FIFO inventory is raw materials, spare parts, work in process, and finished goods as of 12/31/2017
Answer:
Question: What is the balance of their LIFO reserve account December 31, 2017?
Answer: The balance of their LIFO reserve account December 31, 2017 was $ 32 million.
$ millions Net Cash Provided by Operating activities 1,038 Net cash used in investing activities (1,763) Net cash provided by (used in) financing activities (907)Related Questions
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