Needles/Powers 2002e Principles of Financial Accounting- Toys'R'Us Annual Report Activities

Needles Accounting Resource Center

Principles of Financial Accounting , 2002 Edition
Belverd E. Needles, Jr., DePaul University
Marian Powers, Northwestern University
Susan Crosson, Santa Fe Community College


	Toys'R'Us Annual Report Activities Chapter 6 Reading and Analyzing an Annual Report Refer to the Toys "R" Us Annual Report to answer the following questions. (Note that 2000 refers to the year ended February 3, 2001, and 1999 refers to the year ended January 29, 2000.) 1. Consolidated balance sheets: a. Did the amount of working capital increase or decrease from 1999 to 2000? By how much? b. Did the current ratio improve from 1999 to 2000? c. Does the company have long-term investments or intangible assets? d. Did the capital structure of Toys "R" Us change from 1999 to 2000? e. What is the contributed capital for 2000? How does it compare with retained earnings? 2. Consolidated statements of earnings: a. Did Toys "R" Us use a multistep or a single-step form of income statement? b. Is it a comparative statement? c. What is the trend of net earnings? d. How significant are income taxes for Toys "R" Us? e. Did the profit margin increase from 1999 to 2000? f. Did asset turnover improve from 1999 to 2000? g. Did the return on assets increase from 1999 to 2000? h. Did the return on equity increase from 1999 to 2000? Total assets and total stockholders' equity for 1998 may be obtained from the financial highlights. 3. Prepare a multistep income statement for Toys "R" Us down to income from operations for 1999 and 2000, and compute the ratios of gross-margin, operating expenses, and income from operations to net sales. Either print out your answers for submission or email them to your instructor.





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	Chapter Summaries

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	Learning Objectives

	Business Readings

	Internet Research Activities

	Toys'R'Us Annual Report Activities

	Fingraph Financial Reporting and Analysis Cases Using CPAnalyst(r)



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