Pier 1 Balance Sheet

Bed Bath and Beyond

1. Operating liabilities arise from ordinary operations and provide a less expensive source of financing. Answer the following questions:

a. Identify the current operating liabilities(only include liabilities that will impact operating expenses) for each company and the applicable common-size percentage for each operating liability in the current year using your common-size balance sheet from part 2 of the financial analysis case. Explain why you picked these as the current operating liabilities. Operating liabilities were discussed in Module 4, but relates to module 7 with the continuation of the discussion on liabilities. List current operating liabilities and applicable common-size percentage for each account for the most recent year.

Explanation:

b. Identify the largest current operating liability for each company and explain why this current operating liability is so large compared to the other current operating liabilities.

c. What current liabilities did you not include in your analysis of current operating liabilities? Make sure you list out each of the current liabilities that were not included in a. Explain why you did not include them.

Explanation:

CONSOLIDATED BALANCE SHEETS in thousands except share amounts) March 3, 2018 February 25, 2017 ASSETS Current assets S 154.460 22,945 Cash and cash equivalents, including temporary investments of $115,456 and $149,375, respectively Accounts receivable, net of allowance for doubtful accounts of $236 and 5338, respectively Inventories S 135,379 22,149 Prepaid expenses and other current assets Total current assets 48,794 553,762 178,767 39,790 31,607 609,988 191.476 41.618 Properties and equipment, net Other noncurrent assets 772,319 ITIES AND SHAREHOLDERS' EQUITY Current liabilities S 68.981 60.398 26,058 2,000 133,866 Accounts payable Gift cards and other deferred revenue S 71.279 55,281 2,301 Accrued income taxes payable Current portion of long-term debt Other accrued liabilities 2,000 106,268 237,129 197,906 9,714 Total current liabilities 291.303 199,077 60,674 Long-term debt Other noncurrent liabilities Shareholders' equity Common stock, $0.001 par, 500,000,000 shares authorized, 125,232,000 issued Paid-in capital 125 125 168,424 191,501 Retained eamings Cumulative other comprehensive loss Less-41,974,000 and 42,050,000 common shares in treasury, at cost, respectively Total shareholders equity (7.414) 349 7.477) 734 277,570 292,028 843,082 BED BATH& BEYOND INC. AND SUBSIDIARIES Consolidated Balance Sheets in chousands, axceptpar share data) March 3 15, Assets Currant assats Cash and cash equiralents Shoct tam tment securties 346,140 S 378,039 2,730,874 488,329 2,905,660 Prepaid expenses and other current assets Ictal currant assat: 9.517 1.909,28 716,283 Longtm investment securities Property and equipment, net Goodnill Other assets 1,837,129 97,055 Tctal assets Liabilities and Shareholders' Equity Currant liabilities Accounts payable 1,197,504 633,100 335,081 1.179,088 34.114 309,478 Merchandise credit and gift card liabilities Curest income taxes payable Total currat liabiliti 65.682032 501 Deferred rent and other liabilities Income tares payable Lons tanm dabt 431,592 62.823 57,971 Total liabilities 52,178 4.103,37 Shareholders equity Prefarmed stock- $0.01 parvalaa authorizad-1,000 r no sharas isued or outstanding Coemmon stock $0.01 par valuautborizad 900,000 kr; isvand 341,195 d 339,333 ar, respectively; outstanding 140,498 and 146,274 share, reupectiraly Additional paid-in capital 3,418 3,395 ,057,975 11.003,890 10215,539 aaary stok at cost 10,467.97) Iotal shareholders' equity 8,628 Iotal liabilitias and shzrsholdar aquity 7.040.806