Toys R Us and Subsidiaries Essay -- GCSE Business Marketing Coursework

Toys R Us and SubsidiariesRunning Head Toys R Us Financial Analysis raze Consistent with the financial report, all amounts are expressed in millions except per dower data.Ernst & Young, LLP, independent auditors for Toys R Us Inc. and Subsidiaries issued an bungling opinion on the confederations financial statements as of February 1, 1997 and on the consolidated results of operations and cash flows for the three years ending February 1, 1997, February 3, 1996 and January 28, 1995. The report by the independent auditors and their issuance of an unqualified opinion serves to provide reasonable assurance to production lineholders, management, regulatory agencies and the public, that the financial statements are materially correct. Materiality is interpreted to mean that there are no live(a) adjustments which would impact the decisions or opinions of the readers of these financial statements. The inclusion of the auditors report in the year-end financial report lends credibility t o the presentation and allows the users including investors and potential investors to rely on the instruction as presented. Common Stock & Treasury StockThe company does not have preferred stock and has not declared or paid dividends on its common stock. As of February 1, 1997, Toys R Us, Inc. and subsidiaries had authorized 650 shares of par value $.10 common stock, of which 300.4 shares were issued. 12.6 shares were held in treasury stock leaving 287.8 shares issued and outstanding. The book value of the common stock issued and outstanding was $14.56 which is down from February 3, 1996 at which time the book value was $18.8. The total paid-in capital for common stock was $ 518.8 as of February 1, 1997 and $572.8 as of February 3, 1996. The average price per share received by the company for all common stock issued since inception of the corporation as of February 1, 1997 was $ 1.73.Ratio AnalysisTheres a reflection that the nice thing about standards is that there are so many of them to choose from. (Maciag, 1998) It is important to choose carefully the ratios to be analyzed to be legitimate that there is relevance between the data and the conclusions drawn from it. When choosing industry standards, it is important to select like industries with commonalties that support comparison of results. It would not be appropriate to equivalence the financial statement of t... ... beating the industry averages for inventory turns. In addition their receivables consistently exceed industry standard by a significant amount. Referencesenhance Analytics. (May 16, 1999). S&P Personal Wealth. open http//www.personalwealth.com.Industry Info. (May 16, 1999). S&P Personal Wealth. Available http//www.personalwealth.com.Maciag, Gregory, A. (April 13, 1998). A wake-up cal for industry standards. National Underwriter. P29.Meigs, Robert F. Williams, Jan R. Haka, Susan F. Bettner, Mark S., (1999) Accounting. p 619.Mills, posterior R. Yamamura, Jeanne H. (October 1998). The power of cash flow ratios. Journal of Accountancy. V186 n4 p53(7).Stocksheet Media General Quick Source Data-One Wev PageToys R Us INC. (5/16/99) Available http//www.stocksheet.com.Thomson Investors Network Company delineate Toys R Us Inc. (5/15/99). Available http//www.thomson.com.Vital Stats. (May 16, 1999). S&P Personal Wealth. Available http//www.personalwealth.com.Wallstreet Research Net Report Toys R Us Inc. (May 7, 1999). Available http//www.wsrn.com.Berry, Donna Gorski. (Mid-Oct 1998). Mouths of the millennium. Dairy Foods. 73.74.