Discuss the current direction of the business regarding working capital management.

• Keep in mind that financial statements reflect a specific moment or period of time and the value of the business's working capital during that period. To get a better understanding of the direction in which a business is going, use the business's balance sheets from Mergent Online to compare the business's value today against its value from one year ago.

 

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Assets Current assets CONSOLIDATED BALANCE SHEETS At January 3, 2021 and December 29, 2019 (Dollars in Millions Except Share and Per Share Amounts) (Note 1) 2020 2019 Cash and cash equivalents (Notes 1 and 2) $ 13,985 17,305 Marketable securities (Notes 1 and 2) 11,200 1,982 Accounts receivable trade, less allowances for doubtful accounts $293 (2019. $226) 13.576 14,481 Inventories (Notes 1 and 3) 9.344 9,020 Prepaid expenses and other receivables 3,132 2,392 Assets held for sale (Note 18) Total current assets Property, plant and equipment, net (Notes 1 and 4) Intangible assets, net (Notes 1 and 5) Goodwill (Notes 1 and 5) Deferred taxes on income (Note 8) Other assets Total assets Liabilities and Shareholders' Equity Current liabilities 94 51,237 45,274 18,766 17,658 53.402 47,643 36,393 33,639 8.534 7,819 6,562 5,695 $ 174,894 157,728 Loans and notes payable (Note 7) Accounts payable Accrued liabilities Accrued rebates, returns and promotions Accrued compensation and employee related obligations Accrued taxes on income (Note 5) Total current liabilities Long-term debt (Note 7) Deferred taxes on income (Note 8) Employee related obligations (Notes 9 and 10) Long-term taxes payable (Note 1) Other liabilities $ 2,631 1,202 9,505 8,544 13,968 9,715 11,513 10,883 3,484 3,354 1,392 2,266 42,493 35,964 32,635 26,494 7,214 5,958 10,771 10,663 6,559 7,444 11,944 11,734 111,616 98,257 Total liabilities Commitments and Contingencies (Note 19) Shareholders' equity Preferred stock-without par value (authorized and unissued 2,000,000 shares) Common stock-par value $1.00 per share (Note 12) (authorized 4,320,000,000 shares; issued 3,119,843,000 shares) 3.120 3.120 Accumulated other comprehensive income (loss) (Note 13) (15.242) (15,891) Retained earnings 113,890 110,659 101,768 97,888 Less: common stock held in treasury, at cost (Note 12) (487,331,000 shares and 487,336,000 shares) 38,490 38,417 Total shareholders' equity 63,278 59,471 Total liabilities and shareholders' equity 174,394 157,728 Assets Current assets CONSOLIDATED BALANCE SHEETS At January 3, 2021 and December 29, 2019 (Dollars in Millions Except Share and Per Share Amounts) (Note 1) 2020 2019 Cash and cash equivalents (Notes 1 and 2) $ 13,985 17,305 Marketable securities (Notes 1 and 2) 11,200 1,982 Accounts receivable trade, less allowances for doubtful accounts $293 (2019. $226) 13.576 14,481 Inventories (Notes 1 and 3) 9.344 9,020 Prepaid expenses and other receivables 3,132 2,392 Assets held for sale (Note 18) Total current assets Property, plant and equipment, net (Notes 1 and 4) Intangible assets, net (Notes 1 and 5) Goodwill (Notes 1 and 5) Deferred taxes on income (Note 8) Other assets Total assets Liabilities and Shareholders' Equity Current liabilities 94 51,237 45,274 18,766 17,658 53.402 47,643 36,393 33,639 8.534 7,819 6,562 5,695 $ 174,894 157,728 Loans and notes payable (Note 7) Accounts payable Accrued liabilities Accrued rebates, returns and promotions Accrued compensation and employee related obligations Accrued taxes on income (Note 5) Total current liabilities Long-term debt (Note 7) Deferred taxes on income (Note 8) Employee related obligations (Notes 9 and 10) Long-term taxes payable (Note 1) Other liabilities $ 2,631 1,202 9,505 8,544 13,968 9,715 11,513 10,883 3,484 3,354 1,392 2,266 42,493 35,964 32,635 26,494 7,214 5,958 10,771 10,663 6,559 7,444 11,944 11,734 111,616 98,257 Total liabilities Commitments and Contingencies (Note 19) Shareholders' equity Preferred stock-without par value (authorized and unissued 2,000,000 shares) Common stock-par value $1.00 per share (Note 12) (authorized 4,320,000,000 shares; issued 3,119,843,000 shares) 3.120 3.120 Accumulated other comprehensive income (loss) (Note 13) (15.242) (15,891) Retained earnings 113,890 110,659 101,768 97,888 Less: common stock held in treasury, at cost (Note 12) (487,331,000 shares and 487,336,000 shares) 38,490 38,417 Total shareholders' equity 63,278 59,471 Total liabilities and shareholders' equity 174,394 157,728

Answer rating: 100% (QA)

Analyzing Working Capital Management Direction at CURSOLIWATED BA Based on the provided balance shee... View the full answer