How is FLOWERS.COM’s earnings quality from ?

Slides:



Advertisements
Similar presentations
How does outfitting AMC movie theaters with recliners affect the company’s breakeven point and operating leverage? Original blog posting (July 18, 2014)
Advertisements

Copyright © 2014 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution- NonCommercial 3.0 Unported License. What is the balance.
What costs are relevant when pricing a cargo ship cruise?
Copyright © 2015 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution- NonCommercial 3.0 Unported License. What type of responsibility.
Copyright © 2014 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution- NonCommercial 3.0 Unported License. How should the cost.
Copyright © 2014 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution- NonCommercial 3.0 Unported License. What is in Urban Outfitters’
Copyright © 2014 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution- NonCommercial 3.0 Unported License. What does the 2% stock.
Copyright © 2016 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution- NonCommercial 3.0 Unported License. Would the owner of.
Copyright © 2014 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution- NonCommercial 3.0 Unported License. What is the gross.
Copyright © 2015 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution- NonCommercial 3.0 Unported License. What contributed to.
Copyright © 2014 by Dr. Wendy Tietz. This work is licensed under a Creative Commons Attribution- NonCommercial 3.0 Unported License. How is the term "depreciation"
What is the impact on Abercrombie & Fitch’s financial statements from the write-down of its logo-adorned merchandise inventory? Original blog posting.
How could the different inventory costing methods used by Best Buy, Amazon, and Target impact their respective income statements and balance sheets?
What does The Cheesecake Factory’s inventory include and where is it located on its financial statements? Original blog posting (January 17, 2017)
What information is provided in Facebook’s basic financial statements?
What is the impact of Toshiba’s credit line on its financial statements? Original blog posting (February 2, 2016)
What does Huntington’s Form 10-K disclose about its loans and leases (aka “receivables”) and the related allowance accounts? Original blog posting.
When the chocolate used in Cadbury Creme Eggs was changed to a less expensive chocolate, what variances would have been impacted? Original blog posting.
Given that Toys “R” Us has declared bankruptcy, what are its current, quick, and debt ratios? Original blog posting (October 5, 2017)
What impact does lower fuel costs and other changes have on American Airline’s net income? Original blog posting (January 16, 2015)
What does Coca-Cola’s Form 10-k communicate about its short-term investments? Original blog posting (February 16, 2015)
Do cash dividends paid affect a company's breakeven point?
What is the impact on American Apparel’s current ratio of the loan it received from Standard General? Original blog posting (July 10, 2014)
How are Adele’s financial statements impacted when tickets to her North American tour sell out within a few minutes? Original blog posting (February.
What closing entries would McDonald’s have made in 2016 based on its trial balance? Original blog posting (September 13, 2017)
What closing entries would Facebook make for fiscal year 2015?
If the AMD Ryzen 16-Core CPU saves $1,000 per computer manufactured, how would computer manufacturers’ variances be impacted? Original blog posting.
How many snow cones need to be sold for a Snowie™ snow cone cart to break even? Original blog posting (August 16, 2016)
How do Facebook and Twitter’s current and debt ratios compare?
What type of responsibility center would Mickey Thompson Performance Tires be for Cooper Tire & Rubber Company? Original blog posting (July 12, 2016)
What are the direct and indirect costs involved with manufacturing Oscars? Original blog posting (May 12, 2014)
How should AmTrust have accounted for the sales of its extended warranty plans to avoid restating three years of financial statements? Original blog.
What information is provided in McDonald’s basic financial statements?
How many Classic Moana™ dolls must Disney sell to cover its costs of developing the sustainable packaging for the doll? Original blog posting (December.
How will Black Squirrel Rentals use the relative sales value method to allocate the purchase price of a rental property it purchased? Original blog.
Which iPhone model is the most profitable for Apple?
When will Maroon 5 recognize revenue from its 2018 concerts at Madison Square Garden in New York City? Original blog posting (November 7, 2017)
What would be the impact of the polysilicon cost increase on Canadian Solar’s gross profit and on its standard variances?
What has been the accounts payable turnover trend for Hasbro and Mattel? Original blog posting (June 16, 2017)
How will Snapchat’s upcoming IPO impact its assets, liabilities, and equity? Original blog posting (February 21, 2017)
Income Statement Farwell Company has the following information available from its most recent fiscal year. Use the relevant information to determine the.
What could a Logitech staff accountant have done if he/she knew that the CFO and controller failed to write down the discontinued Revue parts inventory?
How would Apple’s financial statements be impacted by its iPhone one-year warranty and related iPhone 6s battery replacement program? Original blog.
How are Roku’s financial statements impacted by its initial public offering (IPO)? Original blog posting (November 21, 2017)
What does Best Buy’s Form 10-K disclose about its receivables?
How does replacing employees with ordering kiosks at Panera change its break even point? Original blog posting (May 3, 2016)
How does the drop in the price of eggs impact Kellogg's® variances for its Eggo® Homestyle waffles? Original blog posting (October 17, 2017)
How does cost cutting at Best Buy impact its ROI?
How can a common-size income statement help analysis of Pandora’s results of operations in 2015 compared to 2014? Original blog posting (November 12,
What quality costs will Mars incur from its recall of Snickers candy bars? Original blog posting (March 8, 2016)
Why would Boeing outsource its electronics production and then bring its manufacture back in-house? Original blog posting (September 12, 2017)
What information can be calculated from McDonald’s 2016 trial balance?
How would an investor classify an Anheuser- Busch 5 year, 2
What impact did Toys “R” Us debt have on its bankruptcy?
How will zero-based budgeting impact Unilever?
Would the costs related to the clothing vending machines that Uniqlo has installed in airports and shopping malls be expensed or capitalized? Original.
How did a cash dividend impact Lowe’s financial position?
At Lululemon, how can sales be up while gross margin is down?
How would an investor account for the receipt of a cash dividend from Microsoft? Original blog posting (April 5, 2016)
Would R.S. Owens, the manufacturer of Oscar statues, use job costing or process costing? Original blog posting (March 21, 2014)
How will Dr Pepper Snapple’s dividend impact its financial statements?
How do the sale of its Craftsman brand, a loan from a hedge fund, and the sale of real estate impact Sears’ statement of cash flows? Original blog.
What does Ford’s 2015 Form 10-K communicate about its cash flows?
How would the strike at Just Born, the maker of Peeps, impact its standard costing variances? Original blog posting (November 10, 2016)
How might Target use data analytics to help make decisions?
Does Tesla sell its cars FOB destination or FOB shipping point?
What information can be calculated from Facebook’s trial balance?
When comparing 2017 to 2008, how can Target Corporation’s EPS rise, yet its net earnings decrease? Original blog posting (November 16, 2017)
How would Square’s IPO impact its balance sheet and income statement?
What are implications of Casella Waste Systems changing its year end from April 30 to December 31? Original blog posting (July 2, 2014)
Presentation transcript:

How is 1-800-FLOWERS.COM’s earnings quality from 2013-2015? Original blog posting (April 19, 2016)

1-800-FLOWERS.COM Harry London Candies was founded by Harry London in Canton, OH Joined 1-800-FOWERS.COM, Inc. in 2006 Other brands include: Fannie May (chocolates), The Popcorn Factory, 1-800-Baskets.com, Harry & David, Cheryl’s (cookies), and FruitBouquets The company’s stock has been rated favorably by stock analysts recently

1-800-FLOWERS.COM, Inc., and Subsidiaries Consolidated Statements of Income (in thousands, except share data) Years Ended   6/28/2015 6/29/2014 6/30/2013 Net revenues 1,121,506 756,345 735,497 Cost of revenues 634,311 440,672 430,305 Gross profit 487,195 315,673 305,192 Operating expenses 449,578 291,967 279,406 Operating income 37,617 23,706 25,786 Interest expense and other 7,303 1,357 991 Income before taxes 30,314 22,349 24,795 Income tax expense 10,930 8,403 9,073 Income from continuing operations 19,384 13,946 15,722 Loss from discontinued operations - (86) (1,889) Gain (loss) on sale of discontinued operations 815 (1,512) Net income 14,675 12,321 Less: Net loss attributable to noncontrolling interest (903) (697) Net income attributable to 1-800-FLOWERS.COM 20,287 15,372 Source: 1-800-FLOWERS.COM, Inc., 2015 Form 10-K

Question 1 Calculate 1-800-FLOWERS.COM’s cost of goods sold to net sales ratio for each of the three years presented in the income statement for 2013 – 2015. (Divide the company’s cost of revenues by its net revenues.) From 2013 to 2015, did the company’s cost of goods sold to sales ratio improve, deteriorate, or remain the same?

Question 2 Calculate 1-800-FLOWERS.COM’s gross margin to net sales ratio for each of the three years presented in the income statement for 2013 – 2015. (Divide the company’s gross margin by its net revenues.) From 2013 to 2015, did the company’s gross margin to sales ratio improve, deteriorate, or remain the same?

Question 3 Calculate 1-800-FLOWERS.COM’s operating expenses to net sales ratio for each of the three years presented in the income statement for 2013 – 2015. (Divide the company’s operating expenses by its net revenues.) From 2013 to 2015, did the company’s operating expenses to sales ratio improve, deteriorate, or remain the same?

Question 4 Based on just the calculations you made, what is your opinion of 1-800- FLOWERS.COM’s earnings quality? Does your opinion agree with the analysts’ favorable ratings?

Question Recap Calculate 1-800-FLOWERS.COM’s cost of goods sold to net sales ratio for each of the three years presented in the income statement for 2013 – 2015. (Divide the company’s cost of revenues by its net revenues.) From 2013 to 2015, did the company’s cost of goods sold to sales ratio improve, deteriorate, or remain the same? Calculate 1-800-FLOWERS.COM’s gross margin to net sales ratio for each of the three years presented in the income statement for 2013 – 2015. (Divide the company’s gross margin by its net revenues.) From 2013 to 2015, did the company’s gross margin to sales ratio improve, deteriorate, or remain the same? Calculate 1-800-FLOWERS.COM’s operating expenses to net sales ratio for each of the three years presented in the income statement for 2013 – 2015. (Divide the company’s operating expenses by its net revenues.) From 2013 to 2015, did the company’s operating expenses to sales ratio improve, deteriorate, or remain the same? Based on just the calculations you made, what is your opinion of 1-800- FLOWERS.COM’s earnings quality? Does your opinion agree with the analysts’ favorable ratings?

For additional news stories to use in the accounting classroom, see the Accounting in the Headlines blog at http://accountingintheheadlines.com/ Questions or comments? Contact Dr. Wendy Tietz at wtietz@kent.edu