Financial Statement Analysis Project

Intermediate Accounting I

Using both links anwers the questions from 25 to 50

Link to Annual Report

http://bedbathandbeyond.gcs-web.com/static-files/553b81ca-64f9-4844-aa15-beaab917f6e7

Link to 10 K

http://bedbathandbeyond.gcs-web.com/static-files/4edcffe2-6b8b-4826-9cb0-c94de08c01aa

Stockholders Letter

25. Does the company have any preferred stock?

Income Statement

26. Using the totals for income and expenses, what is the income statement equation for the most recent year?

27. What time periods/dates does this companys income statement cover?

28. What amount of net sales is reported for each year?

29. What is the percentage change in sales for each year? Describe the trend in revenues.

30. What amount of net income is reported for each fiscal year?

31. What is the percentage change in net income for each year? Which is changing faster, sales or net income?

32. What three expenses are largest in terms of dollars on the most recent income statement?

33. Convert the income statement to into a common size income statement.

34. If the company sells products, compute the gross margin and the gross margin percentage for each fiscal year?

35. What is the amount of operating income for each year? What is the operating income as a percentage of sales for each year? Describe the trend in operating income.

36. What was the percentage return on sales for each fiscal year? What is the trend in the ratio?

Statement of Cash Flows

37. Using the totals for each category, what is the cash flows equation for the most recent year?

38. Does the company report cash flows from operating activities using the direct or the indirect method? Describe how you can tell.

39. Does the ending balance of cash and cash equivalents agree with the amount reported on the balance sheet?

40. On what statement(s) would you expect to find information regarding the declaration and payment of dividends? Did the company declare or pay dividends in any year?

41. Describe the trend in cash flows from financing activities.

Statement of Changes in Stockholders Equity

42. Using the amounts from the statement of changes in stockholders equity, what is the equation for changes in retained earnings for the most recent year?

Notes to the Financial Statements

43. How many notes to the financial statements are presented for the most recent year?

44. The first note to the financial statements lists and describes significant accounting policies. Identify and summarize two accounting policies.

45. Choose two of the notes to the financial statements and briefly summarize them.

Report of Independent Public Accountants (Auditors)

46. What accounting firm audited the companys financial statements?

47. What is the auditor firms responsibility with respect to auditing them?

48. What type of opinion did the independent auditors issue on the financial statements? What does this opinion mean?

49. The auditor firm should have investigated the internal control system of the company. Describe what is communicated in the letter reporting on this investigation. What was the auditors opinion on the internal control system?

Managements Discussion and Analysis (MD & A)

50. Provide a description (200-300 words) of the MD & A.