Refer to Krispy Kreme’s financial statements in Appendix A to answer the following:

Required 

1. What amount of inventories did Krispy Kreme hold as a current asset on February 2, 2003^ On February 3, 2002?

2. Inventories represent what percent of total assets on February 2, 2003? On February 3, 2002?

3. Comment on the relative size of Krispy Kreme’s inventories compared to its other types of assets.

4. What accounting method did Krispy Kreme use to compute inventory amounts on its balance sheet?

5. Compute inventory turnover for fiscal year ended February 2, 2003, and days’ sales in inventory as of February 2, 2003.

6. Access Krispy Kreme’s financial statements for fiscal years ended after February 2, 2003, from its Website (KrispyKreme.com) or the SEC’s EDGAR database (www.SEC.gov). Answer questions 1 through 5 using the current Krispy Kreme information and compare results to those prior years.