1. General Information
A. The company’s corporate office is headquartered in Little Rock, Arkansas. I found this information on Dillard’s website in the non-selling location directory.(F-3) B. The fiscal year for Dillard’s ends on the last Saturday of January. This information was found in the 2010 annual report.(F3) C. The types of products and services that it sells are retail clothing and merchandise. I found this information on the company website. D. The next annual stockholder’s meeting is on the 3rd Saturday of May. So may 19th, 2012 at the corporate headquarters in Little Rock, Arkansas. This information was found on allbusiness.com 2. Report of Independent External Auditor
A. The corporation’s independent auditor is Price Waterhouse Coopers LLP. They are located in Dallas, Texas.(37) B. The auditor believes that the financial statements were presented fairly as a result of them issuing a report on the effectives of their internal control over financial reporting as of January 29, 2011.(F2) 3. It provides complete balance sheets for two years, cash flow statements for 3 years, and 3 years of income statements. 4. Income statement(23)
A. Its revenues over the last year have increased. The percentage increased was .42%. (6120961-609498)/609498X100=.42 B. The company’s revenue recognition policy is the revenue “point of sale”. This information was found in Dillard’s 10k. C. The costs of goods sold have decreased over the last year by -3.10%. (3976063-4102892)/4102892X100=-3.10 Some ways to decrease cost of goods sold are to redesign products and making them simpler so less money is put into the cost of production. An example of this could be using the same material throughout the shirt instead of adding two types of shirt materials together. D. The percentage change in revenue to the change in cost of goods sold is that they are not similar due to the fact that the percent change in revenue is only .42% while the percent of change in cost of goods sold is down by -3.10%. The management talks about the revenue and net income increasing from $179.6 million compared to the $68.5 million in 2009. Costs of sales have also gone down from $4102892 thousands in 2009 to $3976063 thousands in 2010.(16 &23) E. Dillard’s net income increased from $68531 thousand in 2010 to $179,620 thousand in 2011. The percentage change was 162%. To find the percent change you subtract 68531 from 179620 and divide it by 68531= 1.62 (23) F. The method of depreciation that the company uses is the straight-line method over estimated useful lives. I found this information in the section of “notes to Consolidated Financial Statements”-“Description of business and summary of significant Accounting Policies.” A reason as to why this company uses this method could be that it splits the cost equally over its useful life in set amounts. (F9) G. The amount reported for depreciation expense for the fiscal year 2010 was $262 million. I found this in the Notes to Consolidated Financial Statement.(F9) 5. Balance Sheet(F13)
A. The total assets decreased for the current year when compared to the past year. The percent change was -4.25 (4332262-4524694)/4524694X100=-4.25. The largest asset was the company’s consolidated operations. B. The balance sheet accounts that were most significant in explaining the changes in total assets for the corporation were that buildings under construction increased by about $50,000. Accounts receivable has also increased by about $37,000. Furthermore, buildings and equipment under capital leases had also increased by almost double. A reason as to why account receivable increased could be that more people are spending and buying more. I found this information in the company’s consolidated balance sheet on page F-4. 6. Cash Flow Statement(F7)
A. The company has a cash outflow from operating activities. I used the company’s...