Please help me answer the questions below. :( ANNUAL REPORT OF TOYS \"R\" US Int

Question

Please help me answer the questions below. :(

ANNUAL REPORT OF TOYS "R" US Intended for Uise after Chapter 8. In this appendix we present the 1995 annual report of Toys "R" Us, a publicly held corporation. This report was selected to illustrate many of the financial reporting concepts discussed in this textbook. But not all of the terminology and accounting policies appearing in this report are consistent with our text discussions. This illustrates some of the diversity that exists in financial reporting. TOSUs ANNUAL REPORT YEAR END ED JANUARY 28. 1 99s

Explanation / Answer

Current ratio Current assets / Current liabilities

$2530713 / $2136943 = 1.18

Quick Ratio Quick assets / Current liabilities

Where quick assets includes only cash & cash equivalents and accounts receivable.

($369833 + $115914) / $2136943 = 0.23

Working capital amount is calculated as a difference between current assets over current liabilities.

WC = $2570713 - $2136943 = $433770

Working capital in the last year: $2708396 - $2075051 = $633345

Percentage change in the working capital from the prior year:

($633345 - $433770) / $633345 x 100 = 31.51% or 32%

Working capital has dropped by 32% from the last year.

Percentage change in cash and cash equivalents

Cash & Cash equivalents in the prior year: $791893

Cash & Cash equivalents in the current year: $369833

Change in Cash & Cash equivalents = $791893 - $369833 = $422060

%age change: $422060 / $791893 x 100 = 53.29% or 53%

Percentage change in net sales:

Sales in the prior year: $7946067

Sales in the current year: $8745586

Changes in sales: $8745586 - $7946067 = $799519

%age change in sales: $799519 / $7946067 x 100 = 10%

Percentage change in net income:

Income in the prior year: $482953

Income in the current year: $531767

Changes in net income: $531767 - $482953 = $48814

%age change in net income: $48814 / $482953 x 100 = 10%

Year I Year II Net Sales 8745586 7946067 Cost of sales 6007958 5494766 Gross profit 2737628 2451301 GP rate 31 31

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