7. a. What was the amount of net sales during the 4^th quarter of the fiscal year ended January 28, 1995?

b. What was the percentage change in this 4^th quarters net sales relative to sales in the 4^th quarter of the prior year?

c. Comment upon the pattern of quarterly sales within the year, and offer your own explanation for this pattern.

8. What does management point out as evidence of the companys strong financial position (liquidity)?

9. a. How many stores did the company operate at the end of the fiscal year ended January 28, 1995?

b. How many stores does it plan to open during 1995 (the next fiscal year)?

10. a. In how many foreign countries did the companys International Division operate during 1994?

b. In what specific countries did the company begin operations in 1994?

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