50.1K

Verified Solution

Link Copied!

Accounts Receivable Reporting on Financial Statements This week, we will discover how our selected companies report accounts receivable and uncollectible accounts on their financial statements. Remember that the NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS add context to the actual dollar amounts reported on the financial statements. Understanding how the dollar amounts are determined is just as important as those numbers themselves. Review the balance sheet and notes to the financial statements for one of the companies and focus on how the accounts receivable and uncollectible accounts are reported. Provide some insight on what you find out about how they report these items in accordance with GAAP (look for the principles, assumptions, valuation, etc). These comments should be in your own words, not copy/pasted from the report. NEXTERA ENERGY, INC. CONSOLIDATED STATEMENTS OF INCOME (millions, except per share amounts) Years Ended December 31, 2021 2020 2019 OPERATING REVENUES OPERATING EXPENSES Fuel, purchased power and interchange Other operations and maintenance Storm restoration costs Depreciation and amortization Taxes other than income taxes and other-net Total operating expenses-net GAINS ON DISPOSAL OF BUSINESSES/ASSETS-NET OPERATING INCOME OTHER INCOME (DEDUCTIONS) interest expense $ 17,069 $17,997 $ 19,204 4,527 3,539 4,363 3,953 3,751 3,640 28 183 2341 3,924 4,052 4,216 1,801 1,709 1,804 14,233 13,234 14,257 77 353 406 2,913 5,116 5,353 (1,270) (1,950) (2,249) Equity in earnings (losses) of equity method investees 666 (1,351) 66 Allowance for equity funds used during construction 142 93 67 Gains on disposal of investments and other property-net 70 50 55 Change in unrealized gains (losses) on equity securities held in NEER's nuclear decommissioning funds-net 267 163 238 Other net periodic benefit income 257 200 185 Other-net 130 92 121 Total other income (deductions)-net INCOME BEFORE INCOME TAXES INCOME TAXES NET INCOME NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS NET INCOME ATTRIBUTABLE TO NEE Earnings per share attributable to NEE Basic Assuming dilution $ 3,573 $ 2,919 $ 3,769 $ $ 1.82 $ 1.81 $ 1.48 $ 1.49 $ 1.95 1.94 262 (2,703) (1,517) 3,175 2,413 3,836 348 44 448 2,827 2,369 746 550 3,388 381 NEXTERA ENERGY, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (millions) NET INCOME OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX Reclassification of unrealized losses on cash flow hedges from accumulated other comprehensive income (loss) to net income (net of $2 tax benefit, $4 tax benefit and $8 tax expense, respectively) Net unrealized gains (losses) on available for sale securities: Years Ended December 31, 2021 2020 2019 2,827 $ 2,369 $ 3,388 6 12 29 Net unrealized gains (losses) on securities still held (net of $4 tax benefit, $4 tax expense and $8 tax expense, respectively) (11) 12 20 (4) (3) 223 (2) Reclassification from accumulated other comprehensive income (loss) to net income (net of $2 tax expense, $1 tax expense and $1 tax benefit, respectively) Defined benefit pension and other benefits plans: Net unrealized gain (loss) and unrecognized prior service benefit (cost) (net of $30 tax expense, $11 tax expense and $14 tax benefit, respectively) Reclassification from accumulated other comprehensive income (loss) to net income (net of $1 tax benefit, $1 tax benefit and $1 tax benefit, respectively) Net unrealized gains (losses) on foreign currency translation Other comprehensive income related to equity method investees (net of less than $1 tax expense, less than $1 tax expense and $0 tax expense, respectively) Total other comprehensive income, net of tax IMPACT OF DISPOSAL OF A BUSINESS (NET OF $19 TAX BENEFIT) COMPREHENSIVE INCOME COMPREHENSIVE LOSS ATTRIBUTABLE TO NONCONTROLLING INTERESTS COMPREHENSIVE INCOME ATTRIBUTABLE TO NEE 95 39 37 (46) (1) 22 (3) 13 22 1 91 74 21 10 2,918 747 2,453 543 3,409 380 3,665 $ 2,996 $ 3,789 ASSETS NEXTERA ENERGY, INC. CONSOLIDATED BALANCE SHEETS (millions, except par value) Current assets Cash and cash equivalents Customer receivables, net of allowances of $35 and $67, respectively Other receivables Materials, supplies and fuel inventory Regulatory assets Derivatives Other Total current assets Other assets Property, plant and equipment-net ($20,521 and $18,084 related to VIE, respectively) Special use funds Investment in equity method investees Prepaid benefit costs Regulatory assets Derivatives Goodwill Other Total other assets TOTAL ASSETS LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY Cument labies Commercial paper Other short-term debt Cument portion of long-term debt ($58 and 127 related to VIEs, respectively) Accounts payable (5752 and $1,433 maled to Villa, respectively) Customer deposits Aconued interest and taxes Derivatives Accued construction-related expe Regulatory labeties Other Total current liabilities Other labies and deferred credas Long-term debt ($1.125 and 5493 related to ViEs, respectively) Artiment obligations Deferred income taxes Derivatives Other December 31, 2021 2000 630 S 1,105 3,378 2,263 730 711 1,501 1552 1,125 377 689 570 1,166 804 9,288 7382 90,348 91,803 8,822 7,779 6,150 5,728 2,243 1,707 4,578 3,712 1,135 1,047 4,844 4254 4,395 3672 131,624 120.302 140.9125 127.684 $ 1,382 1561 700 458 1,785 4.138 6,935 4.615 485 474 525 519 1,203 311 1.378 209 245 2,085 2.250 17,437 15.558 50,960 41,944 3.082 3.057 8.310 020 11,273 10,735 1,713 1,199 2,408 2242 77.806 67.167 95.243 82.755 245 Total other liabilities and deemed credit TOTAL LIABILITIES. COMMITMENTS AND CONTINGENCIES REDEEMABLE NONCONTROLLING INTERESTS-VIE EQUITY Canon sock ($0.01 par value, authored shares-3200 outstanding shas-1960 and 100, respectively 20 Additional paid-in capital 11,271 11.222 edings 25911 21.363 Accumulated other comprehensive less 37,302 36.513 Noncontrolling is 5.217 and 58413ated to VIExpct TOTAL EQUITY TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY 45,424 44.929 140.9125

Answer & Explanation Solved by verified expert

See Answer