a. 1. What is the balance in receivables at February 26, 2011 and February 27, 2010?
2. What is the gross receivables at February 26, 2011 and February 27, 2010?
b. Merchandise Inventories “Our inventory valuation reflects adjustments for anticipated physical inventory losses (e. g., theft) that have occurred since the last physical inventory.” Why make this adjustment?
c. 1. What does it mean to have a consolidated balance sheet?
2. Comment on the consolidation policy with regard to Europe, China, Mexico and Turkey.
d. Comment on the use of estimates.
e. Comment on the fiscal year.
f. Cash and cash equivalents – are they presented conservatively?
g. 1. What depreciation methods are generally used for income tax purposes?
2. What depreciation method is used for financial reporting?
3. Why the difference in depreciation between financial reporting and tax purposes?