Homework Assignment

I’m trying to study for my Accounting course and I need some help to understand this question.

Discipline:
Accounting

Type of service:
Case Study

Spacing:
Double spacing

Paper format:
Not applicable

Number of pages:
1 page

Number of sources:
0 source

Paper detalis:

This assignment involves the financial statements and SEC filings for San Diego company Resmed, Inc. (ticker symbol RMD) for the year ended June 30, 2019 – the annual filing on Form 10-K which was filed with the SEC on August 8, 2019. The company’s audited financials and footnotes begin on page 48 of the 10-K.
(SEC filings are at www.SEC.gov . There is a link on web home page to company filings – use the ticker symbol to locate the listing of various Resmed documents on file – locate the 10-K. This can be located also at the company’s home page – usually SEC filings are linked through an “Investor Relations” or similar title link on company web sites.)
Also note beginning on page 37 is a section titled “Management’s Discussion and Analysis” – where results of operations are described in detail, with comparisons between years.

Four questions:
1. Look at the balance sheets for both years – what current asset or liability had the biggest % change from one year to the next, either positive or negative?
2. What do you think about the trend in earnings over the past three years?
3. Does the company have any obvious cash flow problems?
4. Realizing that we are only in the first weeks of the class, what do you think would be the most difficult balance sheet account to audit?
Supplemental point to consider – note the date of the opinion of auditors and the fiscal year-end of the company – what does this tell you about the environment for the audit team of KPMG?