Microeconomics notes - Erica Nielsen 1 Sections 1 and 2...

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Erica Nielsen Sections 1 and 2 Homework 1 1- Finding Financial Information 1. What types of products does it sell? PacSun and outlet stores specialize in board sport inspired casual apparel, footwear and related accessories catering to teenagers and young adults. They sell guys and girl’s apparel, accessories, and footwear. 2. Did the Chief Executive Officer and Executive Chairman of the Board believe that the company had a good year? What do they cite as indicators of their company’s recent performance? Yes. The factor in the comparable or “same store” sales, net merchandise margins, operating margins, store sales trends, cash flow and liquidity (working capital) 3. On what date does PacSun’s most recent reporting year end? January 29, 2005 4. For how many years does it present complete a. Balance sheets? 2 b. Income statements? 3 c. Cash flow statements? 3 5. Are its financial statements audited by independent CPAs? How do you know? Yes, because it has a report of independent registered public accounting firm 6. Did its total assets increase or decrease over the last year? decrease 7. How much inventory (in dollars) did PacSun have as of January 29. 2005 (accountants would call this the ending balance)? 175,081 1. What is the amount of net income for the most recent year? 213,343 2. What amount of revenue was earned in the most recent year? 1,881,241 3. How much inventory (in dollars) does the company have as of January 29, 2005? 137,991 4. By what amount did cash and cash equivalents change during the most recent year? 137,974 5. Who is the auditor of the company? Ernst and Young 2- Finding Financial Information 1. The company shows on the balance sheet that inventories are worth $175,081,000. Does the amount represent the expected selling price? Why or why not? No, the merchandise inventories are stated at the lower of cost (FIFO) or market price. The pricing depends on current rate of sale, the age of the item, or other factors. 2. List the types of current obligations this company has. You need not provide the amounts. Accounts payable, accrued liabilities, current portion of capital lease obligations, current portion of long- term debt, income taxes payable
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Erica Nielsen Sections 1 and 2 Homework 2 3. How much cash did the company spend on purchasing property and equipment each year (capital expenditures)? Where did you find the information? 304,222 in 2005; 272,869 in 2004 1. If the company was liquidated at the end of the current year (January 29, 2005), are the shareholders guaranteed to receive $963,486,000? The payment of future dividends is determined by the board and is based on future earnings, cash flow, financial condition, capital requirements, changes in US taxation, and other relevant factors. 2. What are the company’s noncurrent liabilities?
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This note was uploaded on 01/25/2010 for the course AEM 2320 taught by Professor Little during the Spring '10 term at Cornell University (Engineering School).

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Microeconomics notes - Erica Nielsen 1 Sections 1 and 2...

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