Use the 2011 Form 10-K for Snap-on Inc. to complete the requirements below. To obtain the Form
Question:
■ “Products and Services” on page 5.
“Consolidated Statement of Earnings” on page 64.
The following parts of Note 1 on page 71:
• “Shipping and handling”
• “Advertising and promotion”
■ “Note 4: Inventories” on page 79.
■ “Note 5: Property and equipment” on page 79.
Required
a. Does the level of detail that Snap-on provides regarding costs incurred to manufacture its products suggest the company’s financial statements are designed primarily to meet the needs of external or internal users?
b. Does Snap-on treat shipping and handling costs as product or period costs?
c. Does Snap-on treat advertising and promotion costs as product or period costs?
d. In the first accounting course, you learned about a class of inventory called merchandise inventory. What categories of inventory does Snap-on report in its annual report?
e. What is the cost of the land owned by Snap-on? What is the cost of its machinery and equipment?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078025655
7th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old
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