Max Marks 60 (To be finally prorated to a scale of 3)
All the questions pertain to financial statements of Walgreens for the fiscal year 2020. This project is designed to familiarize you with the Annual Report and Financial Statements of a company called Walgreens Boots Alliance. The webpage of the company is always a good place to start when you are looking for information. If the stock is publicly traded it usually has a link for investors and sometimes you can find a link there to recent financial statements.
Otherwise, Edgar is the place to find all the filings that a company has made with the SEC. This is the website address:
http://www.sec.gov/edgar.shtml
Follow these steps:
Search for company filings then,
Search information collected by the SEC by Company or fund name, ticker symbol, etc.
Company name Walgreens Boots Alliance Inc, Ticker Symbol: WBA CIK number: 0001618921
Go to the Form 10-K, filed with the SEC for the fiscal year ended Aug. 31, 2020.
Use the Excel file for any questions that ask you to make a comparison. Please answer the questions relating to the 10-K of WALGREENS BOOTS ALLIANCE Inc.
What is the title of the Form 10-K document (just below the Form 10-K line)? (5)
What date was the 10-K filed with the SEC? (5)
What business is Walgreens in? (5)
What depreciation method does Walgreens use? (5)
List four acquisition activities the Walgreens did in the past 5 years. (5)
Who is the auditor for Walgreens in 2020? What is the auditor’s opinion about the company’s 2020 consolidated financial statements? To whom the auditor’s report is addressed? (10)
What inventory costing method does Walgreens use for most of its inventories? (5)
What is the activity in the allowance for doubtful accounts receivable for the years ended August 31? (5)
Discussion Questions:
Discuss which of the financial ratios (Financial Leverage Ratio, Accounts Receivable Turnover Ratio, Net Profit Margin, Return on Assets (ROA), quick ratio, diluted earnings per common share) can be relevant to analyze Walgreens’s ability to cope with the current global crisis (i.e. COVID-19) and explain why. (no more than 200 words) (10)
Discuss the businesses of Walgreens in terms of what can be done better in response to a sudden health care crisis (e.g. COVID-19) both socially and financially? (no more than 200 words)(10)
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