ACCY500 Accounting Measurement, Reporting and Control:

Module 8 Cases
Question 1: Mattel, Inc. – Cash Flows Statement
The cash flow statement for Mattel for the year ended December 31, 2008, is at the end
of the question. Using only the information on this statement, please answer the
following questions. All numbers are in thousands.

1. During the year ended December 31, 2008, how much did Mattel receive in cash
due to sales of property and equipment?

2. During the year ended December 31, 2008, Mattel increased their short-term
borrowings and long-term debt. How much did it receive in cash due to these two
financing sources, and what were the primary three uses for those funds?

3. During the year ended December 31, 2008, Mattel sold some ‘other property, plant,
and equipment.’ Assuming the original cost of this property and equipment was
$17,000, what was the accumulated depreciation on this other property, plant, and
equipment?

4. How should Mattel report a gain from the sale of used equipment for cash in the
statement of cash flows using the indirect method?
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Question 2: Anheuser Busch InBev – Cash Flows Statement
Using the financial statements provided, please answer the following questions:

1. During the year ended December 31, 2016, Anheuser Busch InBev operations
generated a positive cash flow. How much did Anheuser Busch InBev receive in
cash due to their operations?

2. What is the effect of the share of results of associated companies on the net cash
from operating activities?

3. For the year ended December 31, 2016, how much income tax expense did Anheuser
Busch InBev show on their income statement? How much cash did they pay for
taxes?

4. How much cash did Anheuser Busch InBev collect from its customers in the fiscal
year ended December 31, 2016? (Assume that Anheuser Busch InBev revenue is
presented net of bad debt expense.)

5. For the year ended December 31, 2016, what was the contribution of proceeds from
borrowings to Anheuser Busch InBev’s cash flows?

6. How much cash did Anheuser Busch InBev pay to its vendors in 2016?

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Question 3: BASF Group – Cash Flows Statement

Refer to the May 2014 annual report of BASF Group. To answer the questions in this
part, consider only the information provided in the Statement of income, Balance sheet,
and Statement of cash flows. Answer the following five questions:

1. Estimate cash collected from customers. (Assume that BASF revenue is presented
net of bad debt expense,)

2. Estimate cash paid to suppliers. (Assume that all accounts payable relate to
suppliers.)

3. Assume the company measures bad debt expenses as 2% of beginning gross

receivables. Further, assume that the allowance for doubtful accounts balance was 337
million euro as of December 31, 2014, and 326 million euro as of December 31, 2013.
Calculate the amount of bad debts written off.

4. How much did the company pay in total cash dividends during fiscal 2014?

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Question 4: The J.M. Smucker Company – Cash Flows
Statement
The cash flows statement for The J.M. Smucker Company for the year ended April 30,
2018, is at the end of the question. Using only the information on this statement, please
answer the following questions. All numbers are in millions.

1. During the year ended April 30, 2018, how much did The J.M. Smucker Company
receive in cash due to sales of property and equipment?

2. During the year ended April 30, 2018, The J.M. Smucker Company increased long-
term debt. How much did it receive in cash due to this financial source, and what
were the primary three uses for those funds?

3. During the year ended April 30, 2018, The J.M. Smucker Company sold some
property and equipment. Assuming that the original cost of this property and
equipment was $20.7 million, what was the accumulated depreciation on this
property and equipment? (Assume ‘loss on disposal of assets-net’ is related to the
property and equipment sold.)

4. How should The J.M. Smucker Company report a gain from the sale of used
equipment for cash in the statement of cash flows using the indirect method?

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Question 5: The LEGO Group – Cash Flows Statement
Using the financial statements and footnotes provided, please answer the following
questions:

1. During the year ended December 31, 2009, The LEGO Group’s operations
generated a positive cash flow. How much did Nokia receive in cash due to their
operations, and what were some main uses for those funds?

2. What is the effect financial expenses on the net cash from operating activities?

3. For the year ended December 31, 2009, how much income tax expense did The
LEGO Group show on their income statement? How much cash did they pay for
taxes?

4. How much cash did The LEGO Group collect from its customers in the fiscal year
ended December 31, 2009? (Assume that The LEGO Group’s revenue is presented
net of bad debt expense.)

5. How much cash did The LEGO Group pay to its vendors in 2009?

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Question 6: Campbell Soup Company – Cash Flows
Statement

Refer to the 2013 annual report of Campbell Soup Company, with fiscal year ended
July 28, 2013. To answer the questions in this part, consider only the information
provided in the Consolidated Statement of Earnings, Consolidated Balance Sheet, and
Consolidated Statement of Cash Flows. Answer the following five questions:

1. Estimate cash collected from customers. (Assume that Campbell Soup Company
revenue is presented net of bad debt expense.)

2. Estimate cash paid to suppliers. Assume that all accounts payable relate to suppliers.

3. Assume the company measures bad debt expenses as 2% of beginning gross

receivables. Further, assume that the allowance for doubtful accounts balance was $11
million as of July 28, 2013, and $10 million as of July 29, 2012. Calculate the amount
of bad debts written off.

4. What is the effect of “restructuring charges” on cash flows from operating activities?

5. How much did the company pay to repurchase shares during fiscal 2013?

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