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
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.