"Company A" Classification
Not what you're looking for?
I need to know if "Company A" a merchandising entity, service business or both? How would I be able to tell?
I would need to list the items on "Company A's" financial statements that influence the answer.
I would also need to compute "Company A's" gross profit for fiscal years 2001 and 2000. Can you tell if the gross profit increased or decreased in 2001? Would this be a good sign or a bad sign about the company?
How would I go about writing a brief memo to the investors advising them of "Company A's" trend of sales, gross profit, and net income. Would the long term outlook for "Company A" be favorable or unfavorable, based on the this trend.
The following information is what Company A reported, and what we will use to get our information.
Statement of Earnings
(in millions)
Fiscal years ended
Jan. 31st 2001 Jan. 31st 2000
net sales $11,862 $11,170
cost and expenses:
cost of sales $8,321 $8,191
other expenses $3,262 $3,111
net earnings (net loss) $ 279 $(132)
BALANCE SHEET
(in millions) Jan. 31st 2001 Jan. 31st 2000
Current Assets:
cash and equivalents $584 $ 410
accounts and other receivables $ 182 $204
merchandise inventories $2,027 $1,902
prepaid expenses and other
current assets $ 80 $81
TOTAL CURRENT ASSETS $2,873 $2, 597
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer the request of the assignment of more than 200 words of text.
Solution Preview
I need to know if "Company A" a merchandising entity, service business or both? How would I be able to tell?
I would need to list the items on "Company A's" financial statements that influence the answer.
I would also need to compute "Company A's" gross profit for fiscal years 2001 and 2000. Can you tell if the gross profit increased or decreased in 2001? Would this be a good sign or a bad sign about the company?
How would I go about writing a brief memo to the investors advising them of "Company A's" trend of sales, gross profit, and net income. Would the long term outlook for "Company A" be favorable or unfavorable, based on this trend.
The following information is what Company A reported, and what we will use to get our information.
Statement of Earnings
(in millions)
Fiscal years ended
Jan. 31st 2001 ...
Purchase this Solution
Free BrainMass Quizzes
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Situational Leadership
This quiz will help you better understand Situational Leadership and its theories.