module 5 case

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Brian Nieves Baker College BUS3110-C1 Module 5: Case Application ATC 8-3 pg. 323 a. What is the book value of Skecher’s stockholders’ equity that is shown on the company’s balance sheet? According to the most recent form 10-k, the book value of Skecher’s stockholders’ equity is $2,189,275, which is listed as the total stockholder’s equity on the balance sheet. It is calculated by subtracting the total liabilities from total assets. Total assets $3,228,255 – total liabilities $1,038,980 = $2,189,275 b. What is the par value of Skecher’s common stock? It is listed in multiple locations that, the par value of Class A & B common stocks have a par value of $0.001. c. Does Skechers have any treasury stock? If so, how many shares of treasury stock does the company hold? On page 65 section (13) earnings per share it states, Skechers uses the treasury stock method. However, it is listed as simply repurchased shares. The company currently has 3,656,277 of repurchased shares. d. Why does the stock of a company such as Skechers have a market value that is higher than its book value? The market value is based on investors’ estimate of a company’s current value, whereas, book value is measured in historical dollars. Book value is calculated by dividing total stockholders’ equity by the # of shares that are already owned by investors. ATC 10-1 pg. 402-403 a. Explain whether each line of information in the table would be best described as being primarily financial

Financial Accounting Managerial Accounting Revenue- required under GAAP to be reported on all financial records. Number of Employees – used in planning, coordinating, operations assistance, and human resource. Not related to financial reporting Total Assets- used in numerous financials trends and ratios. Required by GAAP to be reported on financial statements Properties- number of properties not required in financial reporting only their value. Location and size are needed for reasons such as resource management Net Earnings- required for reporting to investors and government agencies. For example, the IRS Units Shipped- this number would be used for computing gross margin and revenue. It is not required on financial statements b. Provide some additional examples of managerial and financial accounting information that could apply to GoPro. Some additional examples of managerial accounting information would be: 1. Competitor statistics 2. All inventory categories 3. Cost of products 4. Services purchased 5. Budgets 6. Margin analysis Some additional examples of financial accounting information would be: 1. Balance sheet 2. Income statement 3. Statement of cash flows 4. Statement of retained earnings c. If you analyze only the data you identified as financial in nature, does it appear that GoPro’s 2014 fiscal year was better or worse than its 2013 fiscal year? Explain. Yes. If I only analyze the financial data, it does appear that 2014 was a better year than 2013. Revenue increased by $408,468, total assets increased by $478,020, and net earnings increased by 67,510. 2014 2013 Revenue $1,394,20 5 $985,737 Total assets $917, 691 $439,671 Net earnings $128,088 $60,578 d. If you analyze only the data you identified as managerial in nature, does it appear that GoPro’s 2014 fiscal year was better or worse than its 2013 fiscal year? Explain.

Yes. The items I identified as only managerial are the number of employees, properties, and units shipped. If you solely analyze these items it would appear that fiscal year 2014 was better than fiscal year 2013. While property size stays the same, the number of employees increased by 213 and units shipped increased by 1,331. It would seem that the company hired more employees to produce more finished products for shipment to meet some level of demand. 2014 2013 # of Employees 970 757 Properties 200,000 sqft 200,000 sqft Units shipped 5,180 3,849 e . Did GoPro appear to be using it facilities more efficiently or less efficiently in 2014 than in 2013? Since there was no change in property size from 2014 to 2013, I would assume they found more efficient ways to use the current property owned to produce more finished product for shipment.

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