Just For FEET, Inc.
Case Analysis: Case 1.2 #1-3, 5
Beka Vinogradov
Seat #1
2011
1 Beka Vinogradov
ACCT 3596: Case Analysis
#1. Common-Sized Balance Sheets.
1996
Just for FEET, Inc.
Balance Sheet
Years ending Jan 31st
1997
1998
36.93%
9.04%
1.74%
35.47%
0.56%
83.75%
14.61%
18.40%
0.00%
3.53%
45.97%
1.50%
69.40%
21.08%
1.80%
0.00%
2.74%
58.01%
2.65%
65.20%
23.29%
0.00%
8.05%
10.31%
1.64%
100.00%
1.46%
100.00%
1.19%
100.00%
26.61%
10.35%
1.46%
0.11%
20.22%
11.41%
2.07%
0.30%
0.00%
14.55%
3.60%
0.13%
0.56%
0.72%
0.96%
39.09%
2.76%
41.85%
34.73%
5.48%
40.21%
19.25%
33.51%
52.75%
0.00%
50.69%
7.47%
0.00%
48.76%
11.03%
0.00%
36.20%
11.04%
58.15%
59.79%
47.25%
100.00%
100.00%
100.00%
Current Assets:
Cash & Equivalents
Marketable Securities AFS
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
Property & Equipment, net
Goodwill,
net
Other
Total Assets
Current Liabilities:
Short-Term Borrowings
Accounts Payable
Accrued Expenses
Income Taxes Payable
Current Maturities of LT
Debt
Total Current Liabilities
LT Debt & Obligations
Total Liabilities
Shareholders' Equity:
Common Stock
Paid-In Capital
Retained Earnings
Total Shareholders'
Equity
Total Liabilities & SH'
Equity
2 Beka Vinogradov
ACCT 3596: Case Analysis
#1. Common-Sized Income Statements.
1996
100.00%
Just for FEET, Inc.
Income Statement
Years ending Jan 31st
1997
100.00%
1998
100.00%
57.54%
58.46%
58.38%
Gross Profit
42.46%
0.23%
41.54%
0.23%
41.62%
0.17%
Store Operating
Store Opening Costs
Amortization of
Intangibles
General &
Administrative
Total Operating
Expenses
Operating Income
27.04%
4.38%
29.18%
1.41%
30.01%
1.76%
0.07%
0.25%
0.27%
3.07%
3.77%
3.14%
34.57%
34.60%
35.18%
8.12%
7.17%
6.61%
Interest Expense
Interest Income
EBIT & ∆ Acct. Principle
-0.32%
1.85%
9.65%
-0.30%
0.29%
7.15%
-1.04%
0.02%
5.59%
Provision for Income Taxes
Earnings prior to ∆ Acct. Principle
3.43%
6.22%
2.68%
4.47%
2.15%
3.44%
Prior Year ∆ Acct. Principle
Net Earnings
-0.80%
5.43%
0.00%
4.47%
0.00%
3.44%
Net Sales
Cost of
Sales
Other Revenues
Operating Expenses:
3 Beka Vinogradov
ACCT 3596: Case Analysis
#1. Key liquidity, solvency, activity, and profitability ratios (1997, 1998).
1997
1998
$ 172,746
$ 146,914
1.1758308
$ 179,299
$ 146,914
1.2204351
$ 314,743
$ 146,914
2.1423622
$ 82,490
$ 155,706
0.5297805
$ 98,330
$ 155,706
0.6315107
$ 311,167
$ 155,706
1.9984265
$ 256,397
$
6,553
39.12666
365
39.12666
$ 478,638
$ 15,840
30.217045
365
30.217045
A/R Turnover
9.3286778
12.079275
Days to Collect
Receivables
$ 147,526
$ 133,323
1.1065308
365
1.1065308
329.85979
$ 279,816
$ 206,128
1.3574866
365
1.3574866
268.87926
$ 157,278
$ 218,556
0.7196233
$ 20,825
$
(832)
-25.030048
$ 180,268
$ 268,084
0.672431
$ 34,296
$ (1,446)
-23.717842
Cash Ratio
Quick Ratio
Current Ratio
Inventory Turnover
Days to Sell Inventory
Debt to Equity
Times Interest Earned
4 Beka Vinogradov
ACCT 3596: Case Analysis
$
13,919
?
$
21,403
?
$ 37
EPS
$ 108,871
$ 256,397
0.4246189
$ 20,825
$ 256,397
0.0812217
$ 24,743
$ 375,834
0.0658349
$ 24,743
$ 218,556
$ 198,822
$ 478,638
0.4153912
$ 34,296
$ 478,638
0.0716533
$ 34,220
$ 448,352
0.076324
$ 34,220
$ 268,084
0.1132113
0.1276466
Gross Profit %
Profit Margin
Return on Assets
Return on Common
Equity
#1. High-risk financial statement items.
Based on the information given in the case and the data calculated (above), there are multiple high-risk financial statement items for the 1998 audit of Just for FEET, specifically