Disclosure Analysis Paper

Individual Disclosure Analysis paper ACC 422 Intermediate Financial Accounting II February 25, 2013 toys R Us, Inc. is the company that I impart analyze. To analyze the disclosures of the companys fiscal line of reasoning is classic because it allows one to understand the position of the company. Toys R Us is one largest in the world toy retailers offering a selection of toys and baby products for families rough the world. For more than 60 socio-economic classs, Toys R Us has been an all-time favorite for kids and grown-ups with many a(prenominal) kinds of toys, games, learning aids, electronics, app atomic number 18l and furniture.Merchandise is sold in 872 Toys R Us and Babies R Us stores in the United States and Puerto Rico and in more than 645 transnational stores and over 150 licensed stores in 35 countries and jurisdictions (About Toy R Us Corporate). One category to analyze is gold and silver equivalents which are the most liquid current assets. On the statement of money feed ins, notes has a much broader definition than just seeing it as cash on hand and cash in the bank. It cash equivalents plays an important persona within. Cash equivalents are short-term investments that are easily converted to cash but treated like cash.In the third quarter, Toys R Us showed $2. 3 billion of liquidity which included cash and cash equivalents of about $399 phone cardinal and available lines of character that totals about $1. 9 billion. The amount of cash utilize in the operating activities totaled to $449 million which was lower than the previous year (About Toy R US Corporate). Toy R Us on with former(a) companies is responsible for disclosing components of cash and cash equivalents along totals from the cash flow statement with the equivalent items showing in the balance sheet.Extraordinary items, interest and dividends, taxes on income and foreign currency cash flows and non-cash transaction should be disclosed separately. Accounts receivable is another short-term liquid asset that results from credit sales to customers. confidence is offered to increase sales, uncollectible accounts associated with credit sales should be charged as expenses in the period in which the sales are made. A beautiful number of customers account for a large share of Toy R US net sales and accounts receivable. Toy R Us receivables in 2012 are $236 million. Total current receivables make up 4. 6 portion of total assets for the year.Accounts and other receivables consist primarily of receivables from vendor allowances and consumer credit card and debit card transactions. The accounts receivable turnover compares the level of receivables with sales. Its allowance for uncertain accounts reduced to 2. 9 million in fiscal year 2011 to 2012. Toy R Us capital expenditure plays a major design of it long term toy and juvenile strategy (Toys R Us, Inc. ). By the end of the quarter the company had about $2 billion of liquidity, including cash and cash equivalents of about $6 million and unused available for lines of credit totaling $1 billion.Inventory is another current asset of a company. Inventory represents items held for resale that will go into the manufacturing of goods to be sold. Toy R Us financial disclosures states that the parentage balances of $3,551 on October 27, 2012 and $2,232 million on January 28, 2012. This financial disclosure wants investors to know that muniment on this statement were at completion. Toys R Us offers customers the Toys R Us Credit Cards, both by GE Capital Retail Bank.Toy R Us maintains disclosure controls and procedures that are designed to ensure and maintain randomness that is required to be disclosed in the financial reporting. The purpose of the disclosures notes to the financial reporting presents information which cannot be presented on income statement, balance sheet and statement of cash flows. Analyzing the disclosures contained within the notes to the financial statements is m ainly conducted in order to let on the company financial performances, such as, cash and cash equivalents, receivables and its inventory.Toy R Us wants to be committed to maintaining and conducting its business with integrity ensuring that each asset, liability, expense and other transaction are disclosed accurately. The disclosure analysis defines whether or not the company under analysis is a good or baffling investment for the company interested in acquisition (ehow. com). References Kieso, D. E. , Weygandt, J. J. , & Warfield, T. D. (2010). Intermediate news report (13th ed. ). Hoboken, NJ John Wiley & Sons. About US Toy R Us Corporate, retrieved February 25, 2013 from http//www. toysrusinc. com How to Write a Disclosure Analysis Paper eHow. com