ADM 1340 Lecture Notes - Lecture 22: Retained Earnings, Financial Statement, Share Capital

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ADM 1340 Lecture Notes - Lecture 21: Initial Public Offering, Treasury Stock, Matching Principle

ADM 1340 Lecture Notes - Lecture 22: Retained Earnings, Financial Statement, Share Capital

ADM 1340 Lecture Notes - Lecture 23: Cash Flow, Financial Ratio, Accounts Receivable

Document Summary

We reviewed how to write journal entries for different types of shares. We are finishing the last two sections. Present se in the financial statements: statement financial statement: assets, liability and se, scinse: beginning balance of each account and demonstrate the change of the se in each account, get the ending balance. *(to understand this type of equity the professor suggests gaining an understanding of what other comprehensive income is): certain gains and losses bypass (take a different route) profit (re-evaluation of property, equipment etc. This can also be known as the re-evaluation of our ppe. It shows how we earn profit from revenue and other matters. The closing process is shown in the statement changes of se in returned earnings. (professor indicates we learned some of these steps in chapter 2 along with other types of financial statements) It is equal to other comprehensive income for period (includes all gains and losses) / comprehensive income.

Related Questions

Identifying Financial Statement Line Items and Accounts(lo2)
Several line items and account titles are listed below. For each,indicate in which of the following
financial statement(s) we would likely find the item or account:income statement (IS), balance sheet
(BS), statement of stockholdersâ equity (SE), or statement of cashflows (SCF).
a. Cash asset d. Contributed capital g.Cash inflow for stock issued
b. Expenses e. Cash outflow for capital expenditures h.Cash outflow for dividends
c. Noncash assets f. R etained earnings i. N et income

ultramarineferret614

QUESTION 1

The ownership of a corporation is represented by:

		shares of stock.
		the owner's capital account.
		the revenue account.
		cash in bank account.

QUESTION 2

How many classifications does a Capital Stock Account have?

		One
		Two
		Three
		Four

QUESTION 3

The equity contributed by stockholders and equity earned throughbusiness profits represent the stockholders' equity for a:

		partnership firm.
		sole proprietorship.
		corporation.
		none of these.

QUESTION 4

Retained earnings are a part of a/an:

		asset account.
		permanent account.
		stockholders' equity account.
		temporary account.

QUESTION 5

How many sections does an Income Statement have?

		Two
		Three
		Four
		Five

QUESTION 6

Net sales are related to the:

		net income section.
		gross profit on sales section.
		revenue section.
		cost of merchandise sold section.

QUESTION 7

Sales discount and sales return and allowance are:

		revenue accounts.
		contra revenue accounts.
		permanent accounts.
		contra expenses accounts.

QUESTION 8

The total cost related to merchandise purchases during anaccounting period is the:

		net purchase.
		cost of merchandise sold.
		cost of merchandise available for sale.
		beginning merchandise inventory.

QUESTION 9

The gross profit on sale is $65,000, and operating expenses is$35,000. What will be the operating profit?

		$65,000
		$35,000
		$100,000
		$30,000

QUESTION 10

A balance sheet has the following sections:

		Assets, liabilities, and stockholders' equity.
		Income, expenses, and stockholders' equity.
		Assets, liabilities, and income.
		Operating income, operating expenses, and stockholders'equity.

QUESTION 11

A cash flow statement is used to assess the:

		net increase or decrease of cash.
		net increases of cash only.
		net decrease of cash only.
		net profit or loss of business.

LULULEMON: Need the Step-by-step solutions and observations to the following ratios. Financial sheets are copied belowed.

-Receivables Turnover

-Total Asset Turnover

-Fixed Asset Turnover

- Gross profit margin

-Operating Profit margin

-Net profit margin

- Return on total assets

- return on equity

-basic earning power

- Deb/net worth ratio

- debt ratio

- DuPont System

-Times-interest-earned

Financial Statements:

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jan. 29, 2017	Jan. 31, 2016
Current assets
Cash and cash equivalents	$ 734,846	$ 501,482
Accounts receivable	9,200	13,108
Inventories	298,432	284,009
Prepaid and receivable income taxes	81,190	91,453
Other prepaid expenses and other current assets	39,069	26,987
Total current assets	1,162,737	917,039
Property and equipment, net	423,499	349,605
Goodwill and intangible assets, net	24,557	24,777
Deferred income tax assets	26,256	11,802
Other non-current assets	20,492	10,854
Total assets	1,657,541	1,314,077
Current liabilities
Accounts payable	24,846	10,381
Accrued inventory liabilities	8,601	25,451
Accrued compensation and related expenses	55,238	43,524
Income taxes payable	30,290	37,736
Unredeemed gift card liability	70,454	57,736
Other accrued liabilities	52,020	50,676
Total current liabilities	241,449	225,504
Deferred income tax liabilities	7,262	10,759
Other non-current liabilities	48,857	50,332
Total liabilities	297,568	286,595
Stockholders' equity
Undesignated preferred stock, $0.01 par value: 5,000 shares authorized; none issued and outstanding	0	0
Exchangeable stock, no par value: 60,000 shares authorized; 9,781 and 9,804 issued and outstanding	0	0
Special voting stock, $0.000005 par value: 60,000 shares authorized; 9,781 and 9,804 issued and outstanding	0	0
Common stock, $0.005 par value: 400,000 shares authorized; 127,304 and 127,482 issued and outstanding	637	637
Additional paid-in capital	266,622	245,533
Retained earnings	1,294,214	1,019,515
Accumulated other comprehensive loss	(201,500)	(238,203)
Total stockholders' equity	1,359,973	1,027,482
Total liabilities and stockholders' equity	$ 1,657,541	$ 1,314,077

Income statement:

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended								12 Months Ended
	Jan. 29, 2017	Oct. 30, 2016	Jul. 31, 2016	May 01, 2016	Jan. 31, 2016	Nov. 01, 2015	Aug. 02, 2015	May 03, 2015	Jan. 29, 2017	Jan. 31, 2016	Feb. 01, 2015
Income Statement [Abstract]
Net revenue	$ 789,940	$ 544,416	$ 514,520	$ 495,516	$ 704,276	$ 479,693	$ 453,010	$ 423,544	$ 2,344,392	$ 2,060,523	$ 1,797,213
Cost of goods sold	362,041	265,990	260,359	256,385	349,809	254,896	240,985	217,667	1,144,775	1,063,357	883,033
Gross profit	427,899	278,426	254,161	239,131	354,467	224,797	212,025	205,877	1,199,617	997,166	914,180
Selling, general and administrative expenses	231,270	185,451	180,202	181,542	188,184	156,619	145,446	137,841	778,465	628,090	538,147
Income from operations	196,629	92,975	73,959	57,589	166,283	68,178	66,579	68,036	421,152	369,076	376,033
Other income (expense), net	857	628	578	(486)	938	(2,890)	842	529	1,577	(581)	7,102
Income before income tax expense	197,486	93,603	74,537	57,103	167,221	65,288	67,421	68,565	422,729	368,495	383,135
Income tax expense	61,351	25,318	20,912	11,767	49,805	12,135	19,753	20,755	119,348	102,448	144,102
Net income	136,135	68,285	53,625	45,336	117,416	53,153	47,668	47,810	303,381	266,047	239,033
Other comprehensive income (loss):
Foreign currency translation adjustment	15,941	(24,748)	(28,052)	73,562	(47,369)	(665)	(39,368)	22,606	36,703	(64,796)	(105,339)
Comprehensive income	$ 152,076	$ 43,537	$ 25,573	$ 118,898	$ 70,047	$ 52,488	$ 8,300	$ 70,416	$ 340,084	$ 201,251	$ 133,694
Basic earnings per share (in dollars per share)	$ 0.99	$ 0.50	$ 0.39	$ 0.33	$ 0.85	$ 0.38	$ 0.34	$ 0.34	$ 2.21	$ 1.90	$ 1.66
Diluted earnings per share (in dollars per share)	$ 0.99	$ 0.50	$ 0.39	$ 0.33	$ 0.85	$ 0.38	$ 0.34	$ 0.34	$ 2.21	$ 1.89	$ 1.66
Basic weighted-average number of shares outstanding (in shares)									137,086	140,365	143,935
Diluted weighted-average number of shares outstanding (in shares)									137,302	140,610	144,298

Cash Flow Sheet:

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jan. 29, 2017	Jan. 31, 2016	Feb. 01, 2015
Cash flows from operating activities
Net income	$ 303,381	$ 266,047	$ 239,033
Items not affecting cash
Depreciation and amortization	87,697	73,383	58,364
Stock-based compensation expense	16,822	10,356	8,269
Derecognition of unredeemed gift card liability	(4,548)	(3,647)	(1,468)
Deferred income taxes	(17,563)	11,142	2,087
Tax benefits from stock-based compensation	(1,273)	1,202	(413)
Changes in operating assets and liabilities
Inventories	(5,403)	(83,286)	(26,806)
Prepaid and receivable income taxes	11,537	(52,110)	(15,234)
Other prepaid expenses and other current assets	(6,730)	(3,816)	(6,444)
Accounts payable	14,080	1,247	(2,198)
Accrued inventory liabilities	(18,900)	5,198	8,276
Accrued compensation and related expenses	9,943	14,937	11,561
Income taxes payable	(10,020)	19,470	19,304
Unredeemed gift card liability	16,010	16,574	11,326
Other accrued liabilities	467	19,563	3,788
Other non-current assets and liabilities	(10,381)	2,480	5,004
Net cash provided by operating activities	385,119	298,740	314,449
Cash flows from investing activities
Purchase of property and equipment	(149,511)	(143,487)	(119,733)
Net cash used in investing activities	(149,511)	(143,487)	(119,733)
Cash flows from financing activities
Proceeds from settlement of stock-based compensation	6,907	4,704	2,913
Tax benefits from stock-based compensation	1,273	(1,202)	413
Taxes paid related to net share settlement of stock-based compensation	(3,268)	(2,857)	(4,972)
Repurchase of common stock	(29,327)	(274,193)	(147,431)
Registration fees associated with prospectus supplement	0	(145)	0
Deferred debt financing costs	(923)	0	0
Net cash used in financing activities	(25,338)	(273,693)	(149,077)
Effect of exchange rate changes on cash	23,094	(44,557)	(79,809)
Increase (decrease) in cash and cash equivalents	233,364	(162,997)	(34,170)
Cash and cash equivalents, beginning of period	501,482	664,479	698,649
Cash and cash equivalents, end of period	$ 734,846	$ 501,482	$ 664,479

ADM 1340 Lecture Notes - Lecture 22: Retained Earnings, Financial Statement, Share Capital

ADM 1340 Lecture Notes - Lecture 21: Initial Public Offering, Treasury Stock, Matching Principle

ADM 1340 Lecture Notes - Lecture 22: Retained Earnings, Financial Statement, Share Capital

ADM 1340 Lecture Notes - Lecture 23: Cash Flow, Financial Ratio, Accounts Receivable

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