Incorporated in Virginia in 1924, Hooker Furniture Corporations (NASDAQ: HOFT; Martinsville, VA; hereafter, Hooker or the Company) is ranked among the nations top 10 largest publicly traded furniture sources, based on 2013 shipments to U.S. retailers, according to a 2014 survey published by Furniture Today. Answer the following questions based on Hookers 10-K for the year ended February 1, 2015 (hereafter, fiscal 2015 or 2015). Show computations for your responses to quantitative questions.

The 10-K is available online at: http://investors.hookerfurniture.com/secfiling.cfm?filingID=1185185-15-947&CIK=1077688

1. What are the Companys operating segments? In what section did you find that information? Hooker identified: Casegoods, Upholstery, & All other in the Segments section (pg.4)

2. At what point in the Companys operating cycle does it recognize revenue?

Our sales revenue is recognized when title and the risk of loss pass to the customer, which typically occurs at the time of shipment. In some cases however, title does not pass until the shipment is delivered to the customer. Sales are recorded net of allowances for trade promotions, estimated product returns, rebate advertising programs and other discounts (F-12)

3. What was the journal entry that the Company recorded during 2015 to (a) accrue bad debt expense, and (b) write-off uncollectible accounts? (HINT: Refer to related footnotes!) (a) Non-cash charges to cost and expenses 928

(b) Less uncollectible receivables written off, net of recoveries (842)

4. What was the amount of cash collected from customers during 2015? Assume that any cash received related to the "Receivable from factor" account is also "cash collected from customers" for purposes of this question. (HINT: Review the similar calculation that we completed during our live session!)

38663 Cash and Cash equivalents + 32245 Receivables from factor =

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ACCT 607 Applied Case Assignment #4 (Chapters 6 and 7) Continued

5. What is the Companys Inventory Turnover ratio for 2015?

Inventory Turnover = cost of goods sold/inventory = 181550/44973 = 4.04

6. What inventory cost flow assumption does the Company apply for 2015?

Hooker states, We value all of our inventories at the lower of cost (using the last-in, first-out (LIFO) method) or market

7. What would each of the following items have been if all inventories had been recorded using the FIFO cost flow assumption?

(a) Ending inventory for 2015 and for 2014?

(b) Cost of Goods Sold for 2015?

(c) Inventory Turnover Ratio for 2015?

What was the amount of cash collected from customers during 2015? Assume that any cash received related to the "Receivable from factor" account is also "cash collected from customers" for purposes of this question