The discussion for the week focuses on current liabilities. The discussion deals with all types of current liabilities that may be included in a company’s balance sheet. For this discussion, you are required to select any company of your choice. The requirement of is discussion is to obtain and review the annual report of the company you have selected and use the report to respond to the following questions with respect to its current liabilities:
- How does the company value its current liabilities and is this valuation justified?
- What were the company’s total current liabilities at the end of the fiscal year?
- What was the largest current liability? Describe other significant current liabilities as well.
- Is the company you selected involved in litigation? If so, what can be concluded from its disclosures regarding this litigation?
This should have at least one source APA.
Then respond to two of your classmates’ postings in any of the following ways:
- Build on something your classmate said
- Explain why and how you see things differently
- Share an insight from having read your classmate’s posting
- Offer and support an opinion
- Expand on your classmate’s posting
I choose Kroger to evaluate for this discussion. I was able to access their 2017 financial statements and have answered the questions using those.
- Kroger values its current liabilities at present value of the required future payments (McMullen, 2018, P. A-58). This valuation is justified and represents an accurate amount owed in current liabilities.
- Fiscal year ending February 3, 2018, Kroger reported a total of $14,197 million in current liabilities (McMullen, 2018, P. A-32).
- Kroger’s largest current liability is their “trade accounts payable” account, reported at a total $5,585 million (McMullen, 2018, P. A-32). Following close behind that is both two other accounts, “current portion of long-term debt including obligations under capital leases and financing obligations” and their “other current liability account.” Both of these accounts are reported at $3,560 million and $3,421 million respectively (McMullen, 2018, P. A-32).
- Yes, Kroger is involved in what appears to be a lot of litigation cases. So many that they are unable to evaluate and list each one on their financial statement. Their financial statement indicates that although there is a significant amount, they do not believe any of them will have any material effect on the company’s financial position, results of operations, or cash flows (McMullen, 2018, P. A-64). This doesn’t seem alarming considering the company’s size and notes included on the financial statement.
McMullen, R. (2018, May 15). The Kroger Co. 2017 Annual Report[PDF]. Kroger.
Post #2: ( I will add the post #2 soon).
All responds should be at least 7 sentences. APA.