$1/2$

Hershey Company December $2022$ to Dec $2023$

Objective: Analyze your company$$s Annual Report$/10-$K to draw conclusions about the quality of Accounts Receivable, Inventory and Property, Plant and Equipment using the company$$s most recent financial statements.

I. Analyze Accounts Receivable

$1.$ Find the Note that breaks down Accounts Receivable and complete the following table for the past $2$ years:

$20\_\_$

$20\_\_$

Gross Accounts Receivable

Less: Allowance for Doubtful Accounts

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 items below for the most recent $2$ fiscal years. Show your work.

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 Analysis

$1.$ Which inventory method does the company use?

$2.$ Compute the items below for the most recent $2$ fiscal years. Show your work.

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.

$2/2$

III. Property, Plant, and Equipment

$1.$ What depreciation method is used?

$2.$ Examine the Balance Sheet and the Notes to the Financial Statements. Complete the following table:

$20\_\_$

$20\_\_$

Property, Plant & Equipment

Less: Accumulated Depreciation

Net PP&E

$3.$ Calculate the items below for the most recent $2$ fiscal years. Show your work.

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.

I

Note: Assignment should be professionally prepared and well$-$written with no spelling$/$grammatical errors.

Review the Assignment Rubric to see how you will be graded.