Objective: Analyze Levi Strauss & Co’s most recent Annual Report/10-K for Fiscal year ended November 29, 2020, to draw conclusions about the quality of Accounts Receivable, Inventory and PP&E using the company’s most recent financial statements. Show all of your calculations
I. Analyze Accounts Receivable (35 points)
1. Find the footnote that breaks down A/Receivable and complete the following table for the past 2 years:
2020
2019
| Gross Accounts Receivable | | $782,846 |
| Less: Allowance for Doubtful Accounts | | $16,209 |
| Net Accounts Receivable | | |
2. Over the last 2 years, what percentage of Gross Accounts Receivable does the Allowance for Doubtful Accounts represent?
3. Compute the following for the most recent 2 fiscal years:
a. Accounts Receivable Turnover
b. Days sales outstanding
4. What general conclusions can you draw about the quality of Accounts Receivable based on your above computations?
II. Inventory (36 points)
1. Which inventory method does the company use?
2. Compute the following for the most recent 2 fiscal years:
a. Inventory Turnover
b. Average Inventory Days Outstanding
c. Days Payable Outstanding
d. Cash Conversion Cycle
3. Comment on the company’s inventory quality and operating cycle efficiency.
III. PP&E (29 points)
1. What depreciation method is used?
2. Complete the following table:
20
20
| Property, Plant & Equipment | | |
| Less: Accumulated Depreciation | | |
| Net PP&E | | |
3. Calculate the following for the most recent 2 fiscal years:
a. PP&E Turnover
b. Percent Used Up
4. Comment on the company’s capital intensiveness & the age of the company’s PP&E assets.
Note: Assignment should be professionally prepared and well-written with no spelling/grammatical errors. Points will be deducted for unprofessional submissions.