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ACC 601 Final Project - Running Head: ACC 610 Final Project...

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Running Head: ACC 610 Final ProjectACC 601 Final ProjectRebecca WendtSouthern New Hampshire University
ACC 610 Final ProjectConceptual FrameworkThe Kroger company has based their conceptual framework on the Generally Accepted Accounting Principles (GAAP) that are the Accounting Standard in the United States of America.The Kroger company is a for profit company and as such has used GAAP as a framework for their financial statements and reports. These are used for Quarterly and annual public reports as well as all SEC filings. One of the points of interest when reading these reports are the disclosures. The disclosures tell why some of the financial reports may or may not be reading as someone would expect. There are disclosures that would be of interest to creditors for example: A creditor may find it interesting that The Kroger Company has entered into mergers in 2015. The creditor would want to see if the company looks to be over extending themselves or if the merger has caused profits to dip. These times of items may cause a creditor to reevaluate if they would be willing to extend the company more credit if approached. These items may also help a potential creditor know if they should be adjusting the allowance for doubtful accounts to a higher rate or flagging the account for review as thy may find that they need to lessen the line of credit that a company has had extended.One the other had there are disclosures that would be of interest to investors. An example would be again what mergers has the company gone through in the last year to five years, also aninvestor will want to look at the company’s historic rate of return to shareholders and all relevantdisclosures. Is there a pattern that the company give high returns to shareholders or does the company regularly forgo paying shareholders to finance new ventures? An investor is looking to see how the company is growing as they want the investment to grow where as a creditor is looking to see if the company will be able to meet its obligations. 2
ACC 610 Final ProjectAnalysis of Financial StatementsThe Kroger Company has strong financial ratios as the company has experienced 46 straight periods of continual and measured growth. [The15] The financial statements from 2013 to 2015 did not show any significant changes other than the companies continued success and measured growth. The reasoning behind these lack of changes can be attributed to the continued success that the Kroger Company is enjoying currently. Based on the information given in the Kroger Proxy Statement & 2013 Annual report andthe Proxy Statement & 2015 Annual Report. The Kroger Company’s Cash account has continuedto rise from 2013 to 2015. The Kroger Company also has seen their Account balance rise in over the same period. However, the Kroger company is continuing to expand and grow even in the face of a slowing economy.

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Term
Winter
Professor
DL
Tags
Accounting, Balance Sheet, Kroger Company, The Kroger Company

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