Preview

Acc501 - Case 1

Powerful Essays
Open Document
Open Document
1513 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Acc501 - Case 1
Trident University International
ACC501: Introduction to Financial Accounting
Module 1 Case Assignment

For investors to objectively analyze and rate companies they need to have access to certain financial information in order to make informed business decisions. Key financial figures such as Statement of Income, Balance Sheet Statements, and Cash Flow Statements are used to make these comparisons. To ensure that companies are reporting the same financial information several accounting and auditing standards have been created and must be followed. In the follow paper two companies, Abercrombie and Fitch and Hennes & Mauritz, will be evaluated based on their financial statements in a goal to determine which company is more profitable. Background information about the two companies will be presented; their annual statements will be compared and contrasted; and finally their annual statements will be analyzed to determine which one is more profitable.
Background Information
Abercrombie and Fitch Abercrombie & Fitch Co. (A&F), was incorporated in 1996. They are a specialty retailer that operates stores and direct-to-consumer operations selling casual sportswear apparel, including knit and woven shirts, graphic t-shirts, fleece, jeans and woven pants, shorts, sweaters, outerwear, personal care products, and accessories for men, women and kids under the brands Abercrombie & Fitch, Abercrombie kids, Hollister and Gilly Hicks (Reuters, n.d.). A&F is known for their racy and often controversial advertising campaigns which depict semi-nude men and women. Their primary market demographic is men and women between the ages of 18 to 22 (Four Iconic Businesses, n.d.). As of January 28, 2012, A&F operates 1,045 stores in North America, Europe and Japan. Of the 1,045 stores a majority, 946 stores, are located in located in the United States, while the remaining 99 stores are located internationally.

Hennes & Mauritz The



References: Four Iconic Businesses One “BRAND”. (n.d.). Retrieved February 19, 2012, from library.corporate-ir.net/library/61/617/61701/items/249197 H & M HENNES & MAURITZ AB FULL-YEAR REPORT. (2012, January 26). About H&M. Retrieved February 21, 2012, from about.hm.com/content/dam/hm/about/documents/en/cision/1573157_en.pdf Hoovers. (n.d.). H&M Hennes & Mauritz AB | Company profile from Hoover’s Retrieved February 19, 2012, from http://www.hoovers.com/company/HM_Hennes__Mauritz_AB/rffxfri-1-1njht4-1njfaq.html Lowe, E. (2000). Edward Lowe Foundation. How to Analyze Your Business Using Financial Ratios. Retrieved February 22, 2012, from http://edwardlowe.org/index.elf?page=sserc&function=story&storyid=6335 Reuters. (n.d.). Abercrombie & Fitch Co (ANF.N) Company Profile. Retrieved February 19, 2012, from http://www.reuters.com/finance/stocks/companyProfile?symbol=ANF.

You May Also Find These Documents Helpful

  • Satisfactory Essays

    ACC 550 Case 9

    • 534 Words
    • 2 Pages

    Based on my analysis of the transcript, I believe that RedPack Beer Company should increase its reserve, specifically the reserve related to Golden Holdings. Per the discussion with Katie Henson, RedPack Beer does not currently maintain a reserve for the outstanding balance of $2,706.54. Clint Maddox mentioned that RedPack would not let this receivable go uncollected and that a collection agency would be used to collect the balance. Based on the normal arrangements with the collection agency, RedPack would receive 50% of the collection they receive from the customer. Therefore, to remain consistent with RedPack’s conservative approach, I believe that Golden Holdings reserve should be increased by $1,353.47 (half of their current outstanding balance). In regards to the reserves for Distinct Beer and Eagle Beverage, I believe that these two reserves are properly valued and should remain at their current amount. These two reserves should remain the same because RedPack has already accounted for the entire outstanding balance for Eagle Beverage in which they will be issuing a credit memo for that remaining balance. RedPack has already taken conservative steps to account for Distinct Beer’s outstanding balance by including 50% of that balance in the reserve. Based on this, Distinct Beer’s reserve should remain unchanged until new circumstances arise that force the reserve to be recalculated.…

    • 534 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Acct 504 Case 7.2.4

    • 625 Words
    • 3 Pages

    a. Oversees NAR/AIN/OHF process to ensure all applicable NAR/AIN/OHF messages are handled promptly and IAW NAVSUP P-724.…

    • 625 Words
    • 3 Pages
    Powerful Essays
  • Satisfactory Essays

    Abercrombie & Fitch’s goal is simply to ensure their identity is not weakened or devalued by the “Look” of their employees.…

    • 342 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Acc 450 Case 1

    • 972 Words
    • 4 Pages

    1. With such a difficult decision, the anonymous caller could either report the fraudulent financial statements or go along with top management and risk being caught or being blamed for the misstatements. It is possible that the caller would face legal trouble at some point in the future if she decided to sign off on the statements. If the bank were to discover the overstated financials, the extended credit would be immediately revoked. It is necessary for the caller to evaluate all of the possible scenarios and ultimately come to a decision that corresponds to the law as well as her own moral standards.…

    • 972 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Acct 504 Case Study 2

    • 1024 Words
    • 5 Pages

    First, I would like to thank you for hiring my accounting firm to evaluate LJB’s internal controls system. This report will inform you of any new internal control requirements required for LJB to go public, advise you of what the company is doing right, recommend that LJB purchase an indelible ink machine, and advise you what areas the company can improve.…

    • 1024 Words
    • 5 Pages
    Better Essays
  • Best Essays

    Acct 504 Case Study 2

    • 1108 Words
    • 5 Pages

    Internal controls are vital to any company’s business and financial sustainability. Internal controls consist of measures taken by a company safeguarding against fraud, and theft. Internal controls ensure accuracy and reliability in accounting data, and secure policies within the organization. Further, internal controls evaluate all levels of performance. These are addressed with five principles of internal control: Establishment of responsibility, Segregation of duties, Documentation procedures, Physical controls, Independent internal verification, and Human resource controls.…

    • 1108 Words
    • 5 Pages
    Best Essays
  • Powerful Essays

    Founded in 1977, American Eagle Outfitters (NYSE: AEO) is a retailer that designs and develops fashionable girls’ and boys’ apparel and accessories. The company’s target audience is boys and girls between the ages of 15 and 25 years old. The target audience seeks trendy and fashionable apparel product that meets a high standard of quality at an affordable price point. As of the most recent fiscal year, ended January 30, 2010, American Eagle held 1,103 retail stores in total, operating under the “American Eagle”, “Aerie”, and “Martin+Osa” brand names respectively. In addition to the retail stores, American Eagle also operates an online store in which customers can ship product from all AEO brand names direct to their home or to a specified retail store. The various brand names used by AEO are segregated by the intended target market. For example “Aerie” is the brand name, which supplies underwear and fragrance products to the female market whereas Martin+Osa is the brand name which supplies apparel for men aged 25+. The main operating name “American Eagle Outfitters” is the brand name most of the retail stores operates under which supplies apparel and accessories to boys and girls age 15-25.…

    • 1218 Words
    • 5 Pages
    Powerful Essays
  • Best Essays

    Aeropostale Inc. Corporate website. (n.d.). Management. Board of Directors. Retrieved July 7, 2012 from http://phx.corporate-ir.net/phoenix.zhtml?c=131103&p=irol-govManage…

    • 1221 Words
    • 5 Pages
    Best Essays
  • Good Essays

    A&F Case Analysis

    • 597 Words
    • 3 Pages

    A&F has a certain image that it is trying to sell, they have a certain buyer group to target.…

    • 597 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Missouribusiness.net. (2012, June 20). Financial ratios. Curators of the University of Missouri. Retrieved 2014, Feb 23 from: http://www.missouribusiness.net/sbtdc/docs/financial_ratios.asp…

    • 1201 Words
    • 4 Pages
    Better Essays
  • Powerful Essays

    The first step in this analysis process is to review the financial statements and determine both companies return on assets (ROA), profit margin, and asset utilization. The ROA is computed by taking the net income and dividing it by the total assets. First we will look at the ROA for Verizon. The company reported $10,198B in net…

    • 1187 Words
    • 5 Pages
    Powerful Essays
  • Satisfactory Essays

    AnF questions

    • 279 Words
    • 2 Pages

    What kind of image do you think Abercrombie is trying to portray in its brand?…

    • 279 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Founded by Frank Toskan of Canada in 1984, Makeup Art Cosmetics company is one of the few companies which has used innovative PR and unconventional marketing to create a niche for itself without spending millions of pounds in advertising. The company began by giving away their cosmetics to makeup artists that worked with top models and actresses. MAC developed products that helped artists achieve the right look for stage lighting conditions. It is one of the few brands on the market which has colours to match every skin tone and colour. Working on a simple all encompassing Brand Positioning of Makeup for All ages, all races, all sexes, its brand values project MAC Makeup as attitudinally hip, artfully irreverent, dedicated fully to the art of self-decoration and the realization of the Individual. The brand personality is cosmopolitan, innovative, irreverent, Original, which has almost created a Cult like following. Loved by women of all ages, it is one of the few fashion brands which truly transcend age. (Viral Marketing, November 9, 2007).…

    • 10699 Words
    • 43 Pages
    Powerful Essays
  • Powerful Essays

    David A. Aaker and Erich Joachimsthaler. Brand Leadership, The Free Press, New York, NY. 2000…

    • 3491 Words
    • 14 Pages
    Powerful Essays
  • Powerful Essays

    Cited: Sacks, Danielle. "Mac Cosmetics." Fast Company 108 (2006): 62-63. Business Source Complete. Web. 2…

    • 3007 Words
    • 9 Pages
    Powerful Essays