Q INSTRUCTIONS: Attached is the contingency footnote for the Walt Disney Company. Included in footnote is a note about a lawsuit from Beef Products. There is a statement that the company is the defendant in other cases. The Beef Products case is the only case mentioned in detail. This lawsuit was settled in 2017 as the court case was starting. No settlement details were made public. Review the Kroger balance sheet included in the Kroger financials file. Review the section of Kroger footnote 1 section regarding inventory. Review the section of Intel footnote 1 regarding plant property and equipment Submit a paper providing the following: • For the Disney Company, provide a brief detail of the lawsuit. Because the Beef lawsuit is included in the footnote, what does this tell you about the company belief regarding the merit of the lawsuit? • For Kroger deposits in transit: What is the account titled Store deposits in-transit (refer to footnote 1)? This is not an account you will find on the majority of company financial statements. Why does Kroger include this account? Is it odd that this account is larger than the cash balance? How do you explain this? • For Kroger footnote 1: What cost flow assumption method does Kroger use for food? Does this match the actual flow of goods through the stores? What is the explanation for this? • For the Intel footnote 1: what do you believe is the motivation for the change described in this note? This changed provided a significant change to the company net income; since depreciation is a non cash expense, do you believe this makes a significant change in the valuation of the company? FILES: • Disney Contingencies.docx Actions • Kroger Download Kroger • kroger footnote 1.docx Actions • Intel PPE.docx Actions Rubric Some Rubric (1) Some Rubric (1) Criteria Ratings Pts This criterion is linked to a Learning OutcomeBeef lawsuit contingency 15 pts provides explanation beyond a statement of facts 8 pts list but no discussion 0 pts No Marks 15 pts This criterion is linked to a Learning OutcomeKroger deposits in transit 10 pts provides explanation beyond a statement of facts 5 pts list but no discussion 0 pts No Marks 10 pts This criterion is linked to a Learning OutcomeKroger cost flow assumption 10 pts provides explanation beyond a statement of facts 5 pts list but no discussion 0 pts No Marks 10 pts This criterion is linked to a Learning OutcomeIntel PPE change footnote 15 pts provides explanation beyond a statement of facts 8 pts list but no discussion 0 pts No Marks 15 pts Total Points: 50