Introduction
This paper will analyze the financial statements of Lockheed Martin Corporation for the fiscal years 2015 and 2014. Lockheed Martin Corporation is a Fortune 500 company, currently at number 60 (Lockheed Martin) that is a global security and aerospace company that is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services (Who We Are). The customer base for Lockheed Martin Corporation is primarily with the U.S. Department of Defense and U.S. federal government agencies. The annual report, Form 10-K, provides a comprehensive overview of the company’s business and financial condition (Fast Answers), …show more content…
Current assets and total assets both increased from fiscal year 2014 to 2015, current assets increased by $3,876 million and to total assets increased by $12,082 million. One of the most important parts of the consolidated balance sheet for Lockheed Martin Corporation is the net receivables because this is the amount of money owed to the corporation. There was an increase from 2014 to 2015, $5,877 million and $8,061 respectively. The net receivables increase was $2,184 million over the duration of a year. The net receivables is very large for Lockheed Martin Corporation due to the fact that they are a defense contract company (Form …show more content…
These changes should be implemented in the fiscal year 2016 financial statements for Lockheed Martin Corporation.
An independent registered public accounting firm conducted an audit of Lockheed Martin Corporations internal control as of December 31, 2015. The results of the audit were in favor of the internal control processes that the corporation has implemented. Report of Ernst & Young LLP stated “In our opinion, Lockheed Martin Corporation maintained, in all material respects, effective internal control over financial reporting as of December 31, 2015, based on the COSO criteria.” The report from the audit of the internal control of Lockheed Martin Corporations internal control was published February 24, 2016 (Form 10-K).
Allowance of Bad Debts Note 6 – Receivables, net (Form 10-K, pg.