Chester Inc Executive Summary

Chester, Inc is a large publicly traded company that operates in the consumer goods sector in the textile apparel clothing industry. Primary competitors are the growing Columbia Sportswear Company (Columbia) and the struggling Under Armour (Armour) Inc. Chester is primarily based in the United States and is exploring markets internationally to maintain their growth due to the significant increase in online sales as opposed to customers visiting the traditional brick and mortar establishments. Chester’s Board of directors has contracted with our firm to review their last three years financial statements and provide them with our views of historical factors and insight to future changes necessary. Additionally, due to Chester contemplating sales abroad, we will provide the financial reporting differences of Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). The United States has long considered joining the over one hundred other countries that employ IFRS practices. However, that has not yet come to fruition. Therefore, we will briefly highlight the differences

For example, Chester’s appendix highlights three years’ worth of data about their company in twelve-month increments. The income statement can also be further broken down into smaller time periods such as monthly or weekly to distinguish anomalies of increases or decreases in sales or expenses. For example, if there was a noticeable increase in Chester’s ski jackets last fall, they can plan accordingly for the upcoming year. Additionally, when there are noted decreases in net income pinpointing the area that may be over budget allows for proactive measures to be taken promptly. Furthermore, yearly net income is transferred to the balance sheets retained earnings to increase or decrease the equity section. Please note Appendix