Balance sheet of Freeport McMoRan :- -What are the company’s total assets? -What

Question

Balance sheet of Freeport McMoRan :-

-What are the company’s total assets?

-What are the company’s total current assets?

-Look at account receivable; calculate the percentage of changes in account receivable from 2014 to 2015? As an investor why would you want to compare these changes?

-Look at inventory: what inventory cost flow method does the company use? Where is this information recorded, be specific?

-What are the company’s total property, plant & equipment (net)?

-What method of depreciation company use? Where is this information recorded, be specific?

-Does the company have intangible asset? If so, identify them.

-What are the company’s total liabilities?

-What are the company’s total current liabilities?

-What are the company’s total non-current liabilities?

-What is the company’s total contributed capital (includes common stock, preferred stock and additional paid in capital in excess of par)

-Calculate the liquidity ratios for both company and compare which one is better.

-Look at balance sheet presentation, which method does company follow: IASB or GAAP? How can you tell, be specific. Which balance sheet is better IASB or GAAP?

* NOTE* THE INFORMATION IS ON THE ANNUAL REPORT OF THE COMPANY FOR 2016

THANKS TO ALL OF YOU :)

FREEPORT-McMoRan INC. CONSOLIDATED BALANCE SHEETS December 31 (In millions, except par value) ASSETS Current assets: Cash and cash equivalents Trade accounts receivable Income and other tax receivables Other accounts receivable 4,245 S 645 89 1,306 1,338 998 1,575 Materials and supplies, net Mill and leach stockpiles Product 161 920 7,462 23,986 Other current assets Assets held for sale 344 10.435 23,219 Total current assets Property, plant, equipment and mine development costs, net Oil and gas properties, net full cost method: Subject to amortization, less accumulated amortization and impairment 2,262 4,831 $27,433 and $22,276, respectively Not subject to amortization Long-term mill and leach stockpiles Other assets Assets held for sale Total assets 1,633 1,956 1,987 4,386 46,577 LIABILITIES AND EQUITY Current liabilities: 2.393 $ 3,232 649 Accounts payable and accrued liabilities Current portion of debt Current portion of environmental and asset retirement obligations Accrued income taxes Liabilities held for sale 1,232 369 205 4.265 14.795 3,768 3.487 1.745 23 131 4,307 19,675 3,567 3,714 1,641 865 33,769 Total current liabilities Long-term debt, less current portion Deferred income taxes Environmental and asset retirement obligations, less current portion Other liabilities Liabilities held for sale Total liabilities 28,060 Redeemable noncontrolling interest Equity Stockholders' equity: Common stock, par value $0.10, 1,574 shares and 1,374 shares issued, respectively Capital in excess of par value Accumulated deficit Accumulated other comprehensive loss Common stock held in treasury 129 shares and 128 shares, 157 26.690 (16,540) (548) 137 24,283 (12,387) (503) respectively, at cost (3,702) Total stockholders' equity 3,206 9.257 Total equity 2,044 46,577 Total liabilities and equity The accompanying Notes to Consolidated Financial Statements are an integral part of these consolidated financial statements.

Explanation / Answer

1. Total Assets of Company

Particulars

2016

2015

Total Assets

37,317

46,577

2. Total Current Assets

Particulars

2016

2015

Total Current Assets

10,435

7,462

3. Change in Accounts Receivable

Accounts Receivable changes = $(1,126 - 645) / 645 = 74.57%

There is 74.57% increase in Accounts Receivables of the company in 2016 as compared to 2015. As an investor, accounts receivable is a crucial balance sheet item which reflects how much money company is required to collect from it's debtors. Moreover, a high percentage increase in receivables reflects that company's credit sales is rising on per year basis. At the same time, it may also reflect that huge amount of working capital will be clogged up due to credit sales.

Particulars

2016

2015

Total Assets

37,317

46,577

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