Accounting for Managerial Decision Making
Professor James Neuner
January 19, 2004
Table of Contents
Table of Contents 2
Consolidated Statements of Shareholders' Equity 3
Consolidated Statements of Cash Flows 4
Goals of the Organization 5
Important notes to the financial statements 6
Management's Discussion and Analysis of Operations 9
Table 1 11
Table 2 12
Table 3 13
Kmart remains one of the largest retail stores in America that must be recognized with strong financial statement and balance sheet. In accounting, balance sheets and financial statements mean a lot to a financial organization and investors. The financial support provided to any corporate or organization is based on its ability to justify its need with strong assets, cash flow and owner's equity. A financial organization and investors look at these tools to determine the viability of a business. As described by Kmart President and CEO Julian Day, Kmart continues to make good in improving profitability of the company. (www.kmart.com) Different accounting equations such as net income, assets, owner's equity, account receivables and current ratio define profitability. Using different scenarios applicable to Kmart, Team A reviewed the financial and cash flow statements of fiscal years 2002 & 2003. Company data is compared and analyzed to develop realistic company goals. The information used by investors to make good decisions is the significance of current ratios, accounts receivable turnovers and other accounting components.
Consolidated Statements of Shareholders' Equity
In the Abbreviated Statement of Shareholders' Equity (Table 1), it is obvious that Kmart is going through Chapter 11 bankruptcy proceedings and emerges from those proceedings as a viable... [continues]
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