Excel Applications for Accounting Principles
4th Edition
ISBN: 9781111581565
Author: Gaylord N. Smith
Publisher: Cengage Learning
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Chapter C, Problem 2C
To determine
Determine and group the ratios for all the five years, by type. Compare ratios to industry standards, and draw a 3-D area chart.
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Show-Off, Inc., sells merchandise through three retail outlets-in Las Vegas, Reno, and Sacramento-and operates a general corporate
headquarters in Reno. A review of the company's income statement indicates a record year in terms of sales and profits. Management,
though, desires additional insights about the individual stores and has asked that Judson Wyatt, a newiy hired intern, prepare a
segmented income statement. The following information has been extracted from Show-Off's accounting records:
• The sales volume, sales price, and purchase price data follow:
Reno
Sacramento
Las Vegas
37,100 units
$ 19.00
8.75
Sales volume
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Unit purchase price
41, 100 units
$ 17.50
8.75
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$ 15.25
9.75
•The following expenses were incurred for sales commissions, local advertising, property taxes, management salaries, and other
noncontrollable (but traceable) costs:
Reno
Las Vegas
5%
Sacramento
5%
Sales commissions
5%
Local advertising
Local property taxes
Sales manager…
Federal Way, Incorporated, is a major department store chain. The dominant portion of the company's business consists of providing
merchandise and services to consumers through department stores and online. In a prior annual report, Federal Way reported cost of
goods sold of $11,572 million, ending inventory for the current year of $3,260 million, and ending inventory for the previous year of
$3,638 million.
Required:
Develop a reasonable estimate of the merchandise purchases for the year.
Note: Enter your answers in millions.
Purchases
million
million
million
million
Before you begin this assignment, it will be helpful if you review Macy's, Inc. 2015 annual report
(https://www.sec.gov/Archives/edgar/data/794367/000079436716000221/m-0130201610k.htm)
Macy's, Inc. is a premier retailer in the United States, operating nearly 900 stores in 45 states. Macy's, Bloomingdale's, and Bloomingdale's Outlet are all brands that operate under Macy's, Inc. The company sells a wide range of merchandise including apparel and accessories, cosmetics, home furnishings, and other goods. Macy's, Inc. purchases its merchandise from many suppliers and also develops its own private label brands.
Read the requirements:
1. Under the new revenue recognition rules, how will Macy's record and recognize sales revenue? Which financial statement is sales revenue reported on?
2. Macy's, Inc. reported cost of sales of $16,496 million for the year ending January 30, 2016. Which financial statement is cost of sales (also known as cost of goods sold)…
Chapter C Solutions
Excel Applications for Accounting Principles
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