7. What was Smucker's current ratio for 2019? Did the company's ability to pay its current liabilities improve in 2019 when compared to 2018?
8. Compute Smucker's days sales in inventory for 2019. Based on this ratio, is the company improving on the management of its inventory from 2018 to 2019? (Note: total inventory is the sum of the Raw Materials and Finished Products inventories.)
9. Did day-to-day operations at Smucker's result in a positive or a negative cash flow in 2019?
10. What was Smucker's largest use of cash in 2019?
11. Item 1 in the Annual Report is a description of Smucker's business (page 2). In fiscal year 2019, Smucker's bought another business ("Ainsworth"). How did Smucker's get the money to purchase this business?
12. Management's Discussion and Analysis (MD&A) section of the annual report is found on pages 19-33. In this section, the management of Smucker's provides their explanation of the company's financial results. On page 21 under the section on Operating Income, management explains why Operating Income decreased in 2019 even though sales increased. According management, what is the primary reason(s) for the decrease in Operating Income in 2019?
13. In 2019, Smucker's Operating Income dropped 11%, but Net Income fell by almost 62%. The income statement shows that drop in Net Income (which is an after-tax amount) occurred because Smucker's had a huge tax benefit in 2018 that did not happen in 2019. On pages 21 & 22 in the section on Income Taxes, what was the primary reason given for the tax benefit that boosted 2018 Net Income?
14. The footnotes to Smucker's statements follow the consolidated statement of stockholder's equity from pages 43 through 73. In footnote 1 (on pages 43-48), Smucker's discloses the accounting policies used by the company. Which inventory method does Smucker's use? (Hint: look for the section on Inventories.)
15. According to footnote 1, which method is used to depreciate Property, Plant & Equipment?
16. According to footnote 1, how much did Smucker's spend on advertising in 2019?
17. Scroll through the footnotes looking at the major headings until you find information on Reportable Segments. Based on the data presented, what is Smucker's most profitable business segment?
18. Page 73 shows data on quarterly dividends. If a shareholder owned one share of Smucker's stock for the entire 2019 fiscal year, what would be the total that shareholder would receive in dividend payments?
19. Page 37 presents the Independent Auditor's report. The accounting firm of Ernst and Young was the group of Certified Public Accountants (CPAs) that audited Smucker's financial statements. Which of the following statements best describes the opinion of the CPAs regarding the financial statements? (1) Smucker's financial statements are correct. (2) Smucker's financial statements are free from both fraud and errors. (3) Smucker's financial statements are correct for transactions based in US currency but cannot be audited for transactions based in foreign currencies. (4) Smucker's financial statements fairly present the company's financial position and results of operations, at least related to material transactions and events.
20. Page 38 presents the Report of Management on Responsibility for Financial Reporting. For stock markets to work efficiently, shareholders and other investors must be able to place their trust in the financial statements and other financial reporting of public companies. Who is ultimately responsible for the integrity and accuracy of financial reporting at Smucker's?
THE J.M.SMUCKER COMPANY STATEMENTS OF CONSOLIDATED INCOME Year Ended April 30 2019 2018 2017 7.838.0 7.357.1 7.392.3 4,922.3 4,521.0 4,557.0 2,915.7 2,836.1 2,835.3 1,508.6 1,362.9 1,379.6 240.3 206.8 207.3 97.9 145.0 107.2 61 133.2 64.1 45.4 76.9 (31.0) 0.1 (4.3) 928.6 1,044.0 1,042.6 (207.9) (174.1) (163.1) (19.1) (8.9) (1.1 701.6 0198 878.4 187.2 (477.6) 286.1 S 514.4 1.338.6 592.3 (Dollars in millions except per share data Net sales Cost of products sold Gross Profit Selling, distribution, and administrative expenses Amortization Goodwill impairment charges Other intangible assets impairment charges Other special project costs Other operating expense income)-net Operating Income Interest expense-net Other income(expense)-net Income Before Income Taxes Income tax expense (benefit Net Income Earnings per common share Net Income 4.52 11.79 Net Income-Assuming Dilution S 4.52 S 11.78 S Ahr spec projct costs includes integration and restructuring costs. For more information see Note 3: Integration and Restructuring Costs. See notes to consolidated financial statements ur's 5.10