Based on the information provided, what do you think are some key success factors for successfully competing in the cannabis industry? How would you assess Canopy’s performance thus far?

Canopy Growth Corporation- Accounting Problems in the Cannabis Industry: Case Questions

1. Based on the information provided, what do you think are some key success factors for successfully competing in the cannabis industry? How would you assess Canopy’s performance thus far?

2. Using the financial statements provided in Exhibit #1, assess the overall financial health of the company.

3. Why should the company be recognizing and adjustment for returns and exchanges? Where are these adjustments recognized on the financial statements?

4. Consider the $17 million charge recognized by Canopy in the first six months of fiscal 2020 related to inventory of oil and softgel products. Whey did Canopy recorded this adjustment, and what were the circumstances that led to it? Where are these adjustments recognized on the financial statements?

5. What other key financial statement items do you see driving the financial results and health of the company?

6. List any risks, both financial and non-financials, that you see in the future reporting periods

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