4. Over the past three years, have the companys annual net cash flows been positive or negative from:

a. Operating activities?

b. Investing activities?

c. Financing activities?

5. Has the companys cash balance increased or decreased during each of these three years?

6. a. Why do the companys fiscal years end on different dates (that is, January 28, January 29, and January 30)?

b. Are these fiscal years of equal length?

c. Upon what data will the companys next fiscal year end?

Other Notes:

- Toys R Us ends its fiscal years on unusual dates. Before answering questions about this companys financial statements, read the note Fiscal Year on page D-11 of the annual report.

- Annual reports include not only comparative financial statements, but also the following sources of information:

a. Financial highlights, a summary of key statistics for the past 5 or 10 years.

b. A letter from management addressed To Our Stockholders.

c. A discussion by management of the results of operations and the companys financial condition.

d. Several pages of Notes that accompany the financial statements.

e. Reports by management and by the independent auditors in which they express their respective responsibilities for the financial statements.

- Answer each of the following questions and briefly explain where in the statements, notes, or other sections of the annual report you located the information used in your answer.

ANNUAL REPORT OF TOYS "R" US Intended for Uise after Chapter 8. In this appendix we present the 1995 annual report of Toys "R" Us, a publicly held corporation. This report was selected to illustrate many of the financial reporting concepts discussed in this textbook. But not all of the terminology and accounting policies appearing in this report are consistent with our text discussions. This illustrates some of the diversity that exists in financial reporting. TOSUs ANNUAL REPORT YEAR END ED JANUARY 28. 1 99s