Kroger estimates that approximately 95% of their inventories in 2015 were valued using the LIFO method. Cost for the remainder of their inventories, including almost all fuel inventories, was determined using the First in First Out (FIFO) method. Kroger utilizes the Item Cost Method to determine its inventory cost before the LIFO adjustment for their store inventories. The reason Kroger employs the item-cost method of accounting is that it allows Kroger a more accurate reporting strategy for periodic inventory balances. Another reason Kroger uses this method is most of their inventory is finished goods and can recorded items at actual purchase costs.
This chapter it talks about the profitability analysis and interpretation, Target is the main focus of what the chapter is comparing its information to. Profitability analysis and interpretation is an important factor for any company to be effective. For Target to continuing being one of the biggest department stories, they are having to perform several financial procedures to evaluate the company’s overall performance and financial circumstances. These procedures are ratios in order to identify the profitability and asset revenue and invested capital return.
Current Strategies: Kohl’s Department Store plan is to operate many stores as possible after 5 years. Additionally they planning to have the “Lowest Prices of the Season” sale for the every customer. Kohl’s will still continue their coupon and discount cards to attract more customers. Kohl’s strategy is to have many sales as possible by having low prices of their products (Cadence, 2010). Macys on the other hand strategy plan is to attract customers by offering superior selections of products with reasonable value.
a) Accounting policies and comparison with international accounting standards: Net sales, cost of sales, gross margin, expense, operating income, interest income, taxes, cash, assets, long-term and short-term liabilities, Properties, common stock dividends, total shareholder’s equity are all the accounting policies. All of those and other financial data be used in preparing the Macy’s financial reports. In the section of the common stock. The company’s Board of Directors has the discretion of the declaration and payment of future dividends.
The company selections for this project were based on company history and the type of products and services they provide. Each of these companies, (General Motors Company, Target Corporation and Werner Enterprises, Inc.) officers a different type of product or service and manages inventory, if any, using different accounting methods. General Motors Company is a car manufacturer that designs, builds, and sells various vehicle models as well as vehicle parts and financial services available to customers during and after a vehicle is purchase (10-K Report, Page 1-5). On the merchandiser side, Target Corp. has managed to become one of the most popular retailers selling a variety of products at affordable prices. Part of its strategy is to differentiate itself from other competitors, provide a unique shopping experience and effectively
Companies all over the globe will experience some sales and profit decrease. Home Depot in the growing housing industry benefited greatly from the houses being built. The accounting concept portrayed in this situation for home depot is called operating leverage. Operation leverage is when managers view a small change in revenue and magnify it to dramatic changes in revenue (Edmonds, Tsay, & Olds, 2011). With a decrease in the market for construction materials, Home Depot is experiencing a 3% decrease revenue and a 21% decrease in profitability.
Target Corporation is the second largest discount store retailer in the United States following Walmart. Target provides high-quality, trendy merchandise at logical prices. As of today, Target has more than 1800 retail stores and 38 distribution centers in the United States. The first official store was opened in 1962 in Roseville Minnesota and have thrived every since. I will be analyzing Target’s financial statements and communicating the results to our decision makers (Target 2017).
To begin, we need to determine Target’s average inventory by taking their beginning inventory, adding the ending inventory, and dividing both by two. Once again, our beginning inventory was $8,309 (millions), ending inventory $8,601 (millions), and once divided by two we get an average inventory of $8,455 (millions). Next, to get to our magic number we will take Target’s costs of goods sold and divide by the average inventory. The cost of goods sold is $51,997 (millions) divided by the average inventory of $8,455, which provides a final number of 6.1 in inventory turnover. Finally, to determine the days’ sales in inventory, we take our 6.1 inventory turnover and divide by sales in a year which is 365 for a final number of 59.8 days.
At what point will This Store Break Even? This is the question that comes to mind when conducting break even analysis. This concept is used my managers and small business owners to determine what price they must give their goods in order to earn revenue (Gallo, 2014). There is a well thought out equation that will help bring the business owner closer to answering the preceding question. T BEQ =
After depreciation these parts are assumed to have an estimated value of 5% of the original
The first step is to create a set of base-case cash flow scenarios. After calculating cash flow, free cash flow of the company will be discounted in the valuation process. Moreover, the operating income will have two adjustments which are working capital adjustment and capital expenditures. The second step is to obtain the appropriate discount rate by determining cost of debt, cost of equity and weight average cost of capital. As for cost of debt, it is included cash and paid-in-kind (PIK) securities with floating interest rates based upon various base rates.
The Lottery Theme Analysis Rules are made to be followed. That is why they are set in place, but what happens when the rules cause unneeded harm? In Shirley Jackson’s short story The Lottery A village has a lottery, but it is not a typical one.
Throughout history, migrants had to meet a specific standard of living, particularly satisfying the means of society, in this case, assimilation. However, throughout time, assimilation developed numerous critiques which allowed integration to overtake this basis. Assimilation, according to the straight line classic assimilation theory, is the ongoing fact that individuals need to assimilate into the receiving country to a core culture of white Anglo Protestant, which will allow them for uncomplicated movement. Under these circumstances, assimilation is unidirectional. On the other hand, integration states that assimilation is not necessary for manageable movement in the receiving country.
Throughout the years, several different methods have been developed, which are dependent on the respective regulations of countries and institutions, such as the Internal Revenue Service (IRS). The most common inventory methods include FIFO (first-in, last-out), LIFO (last- in, first-out), HIFO (highest-in, first-out), FEFO (first-expired, first-out), as well as the average costing method (AVCO). Each of them has their specific advantages and disadvantages, and comes with certain restrictions and regulations (Lee and Hsieh, 1983, p.7). This paper is going to take a look at the choice of inventory accounting methods of FIFO and LIFO, and is therefore not going to consider the other inventory accounting methods, as that goes beyond the topic of this
The Terezin concentration camp was part of the holocaust. Holocaust is a word of Greek meaning "sacrifice by fire". The Germans and their associates killed around two out of every three Jews as part of the "final solution". The holocaust is mainly thought of the genocide of 6 million Jewish people during World War 2. Gypsies, physically disabled people and poles were also picked out for demolition for national reasons.
