Net sales..... Costs and expenses: Cost of sales Other expenses. TOYS A US, INC. Statements of Earnings
Question:
Net sales..... Costs and expenses: Cost of sales Other expenses. TOYS "A" US, INC. Statements of Earnings (adapted) (In millions) Net earnings (net loss).. Fiscal Years Ended January 31, January 31, 2000 1999 $11.862 $11.170 TOYS "A" US, INC. Balance Sheets (partial, adapted) 8.321 3.262 8,191 3.111 $ 279 5 (132) Assets (In millions) January 31, 2000 January 31, 1999 Current Assets: Cash and cash equivalents... S 584 Accounts and other receivables. Merchandise inventories. 182 2.027 $ 410 204 1,902 Prepaid expenses and other current assets. 80 81 Total Current Assets...... $2,873 $2.597 Required 1. Is Toys "" Us a merchandising entity, a service business, or both? How can you tell? List the items in the Toys "R" Us financial statements that influence your answer. 2. Compute Toys "R" Us's gross profit for fiscal years 2000 and 1999. Did the gross profit increase or decrease in 2000? Is this a good sign or a bad sign about the company? 3. Write a brief memo to investors advising them of Toys "R" Us's trend of sales, gross profit. and net income. Indicate whether the outlook for Toys "R" Us is favorable or unfavor- able, based on this trend. Use the following memo format:
Step by Step Answer:
Accounting
ISBN: 9780130906991
5th Edition
Authors: Charles T. Horngren, Walter T. Harrison, Linda S. Bamber, Betsy Willis, Becky Jones