Current Assets Financial Statements Analysis

Current Assets Financial Statements Analysis:

Using The Boeing Company Annual Report and

answer the following questions:

1. What is the name of the outside auditing firm for The Boeing Company?
2. How long after The Boeing Company’s year-end did the auditor’s issue their opinion?
3. Who bears primary responsibility for maintaining effective internal control over financial reporting? How can you tell?
4. Does it appear The Boeing Company has adequate internal control procedures? How can you tell?
5. By how much did The Boeing Company’s cash balance change from the beginning of the year to the end of the year?
6. What type of instruments does The Boeing Company consider to be cash equivalent?
7. Calculate the cash ratio. How does this ratio compare with the Aerospace industry?
8. What is the balance of accounts receivables for The Boeing Company?
9. Compute the acid-test ratio. If the current liabilities came due immediately, could The Boeing Company pay them?
10. Calculate the accounts receivable turnover at year end for The Boeing Company.
11. Calculate days sales in receivables at year end for The Boeing Company.
12. Based on the acid-test ratio, accounts receivable turnover, and days sales in receivables, how does The Boeing Company compare to the Aerospace industry?

You may use a service such as Yahoo Finance to help research industry averages. The notes to the financial statements will also be of use in answering the discussion questions. For many of the ratios, you will need 2-3 years’ worth of financial data.