The J.M. Smucker Company was founded in 1897 by Jerome Monroe Smucker and was incorporated in 1921. The J.M. Smucker Company manufacturers and markets fruit spreads, peanut butter, baking mixes, frostings, fruit and nut snacks, shortening and oils, sweetened condensed milk, coffee, and sauces.
The J.M. Smucker Company makes adjustments to their accounting records towards the end of their fiscal year (April 30) in order to bring their accounts up to date and in-order to portray an accurate representation of the true value of their accounts. Such adjustments are made to accounts that are reclassified from accumulated other comprehensive loss to net income, their Foreign currency translation account, and to reconcile the net income…show more content… The J.M. Smucker Company follows these objectives as in their 2015 10K report page 44 is a section for a message from an independent accounting firm, Ernst & Young LLP, validating the honesty and accuracy of the financial statements and that they (Ernst & Young LLP) believe that the information represents the J.M. Smucker Company’s financial position.
Income Statement The J.M. Smucker Company uses the FIFO method when determining the cost of inventory and they use a multi-step income statement. Over the past fiscal year, the J.M. Smucker Company’s net sales have dropped compared to the previous fiscal year and the cost of their goods sold has increased in the past fiscal year meaning that the company’s gross profit has decreased compared to the previous fiscal year.
Accounts Receivables The Accounts Receivables account is named the Trade receivables, less allowance for doubtful accounts and has increased by over $100 million from fiscal year 2014 onto fiscal year 2015. For accounts that are deemed uncollectible, the J.M. Smucker Company labels them as bad debt and there is a separate account, Allowance for bad debts that represents the value of the uncollectible accounts