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Problem 1: In a typical contract, are there many obligations that are not central or ongoing obligations?
Problem 2: At a catering company, what types of inventory flows are used for physical and accounting flows, and why? Common choices for physical flows are FIFO (first-in first-out) and specific identification. Common choices for accounting flows are average cost, FIFO, specific identification and (less often) LIFO (last-in-first out). If different choices are made for different products, or different choices for physical and accounting flows, explain why.
Problem 3: What challenges might the catering company face in taking inventory at the end of the year?
Problem 4: Do you think a catering company uses a perpetual or periodic inventory system, and why? If perpetual systems for some inventory and periodic for others, why do you think this may be?
Problem 5: How might an organization like this use inventory to manage earnings or other measures?
Financial Statement Analysis and Preparation
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T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .
Computation of Free Cash Flow
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