4 Over the past three years have the companys annual net cas

4. Over the past three years, have the company’s annual net cash flows been positive or negative from:

a. Operating activities?

b. Investing activities?

c. Financing activities?

5. Has the company’s cash balance increased or decreased during each of these three years?

6. a. Why do the company’s fiscal years end on different dates (that is, January 28, January 29, and January 30)?

b. Are these fiscal years of equal length?

c. Upon what data will the company’s next fiscal year end?

Other Notes:

- Toys “R” Us ends its fiscal years on unusual dates. Before answering questions about this company’s financial statements, read the note Fiscal Year on page D-11 of the annual report.

- Annual reports include not only comparative financial statements, but also the following sources of information:

a. Financial highlights, a summary of key statistics for the past 5 or 10 years.

b. A letter from management addressed To Our Stockholders.

c. A discussion by management of the results of operations and the company’s financial condition.

d. Several pages of Notes that accompany the financial statements.

e. Reports by management and by the independent auditors in which they express their respective responsibilities for the financial statements.

- Answer each of the following questions and briefly explain where in the statements, notes, or other sections of the annual report you located the information used in your answer.

ANNUAL REPORT OF TOYS \"R\" US Intended for Uise after Chapter 8. In this appendix we present the 1995 annual report of Toys \"R\" Us, a publicly held corporation. This report was selected to illustrate many of the financial reporting concepts discussed in this textbook. But not all of the terminology and accounting policies appearing in this report are consistent with our text discussions. This illustrates some of the diversity that exists in financial reporting. TOSUs ANNUAL REPORT YEAR END ED JANUARY 28. 1 99s

Solution

4: The company’s annual net cash flows been positive or negative from:

a: operating activities : 1993: positive ; 1994: positive ; 1995: positive

b: investing activities : 1993: negative ; 1994: negative ; 1995: negative

c: financing activities : 1993: negative ; 1994: positive ; 1995: positive

5: The company’s cash balance has :

1993: increased from $437524 to $763721 ;

1994: increased from $763721 to $791893 ;

1995: decreased to $369833 from $791893

6: a) The company’s fiscal years ended on different date because the company is ending its fiscal year on the last Saturday of January month every year.

6: b) Yes, all of these fiscal years are of equal length except leap years.

6: c) The company’s next fiscal year ends on Saturday, 27^th January, 1996.