Accounting, can some one help?
BTN 17-1 Refer to Krispy Kreme’s financial statements in Appendix A to answer the following:
1. Using 2001 as the base year, compute trend percents for 2001, 2002, and 2003 for revenues, operating
expenses (cost of sales), general and administrative expenses, income taxes, and net income.
(Round to the nearest whole percent.)
2. Compute common-size percents for 2003 and 2002 for the following categories of assets: (a) total
current assets, (b) property and equipment, net, (c) intangible assets, and (d) accrued expenses.
(Round to the nearest tenth of a percent.)
3. Comment on any significant changes across the years for the income statement trends computed
in part 1 and the balance sheet percents computed in part 2.
Larson?Wild?Chiappetta:
Fundamental Accounting
Principles, Seventeenth
Edition
Back Matter Appendix A: Financial
Statement Information
© The McGraw?Hill
Companies, 2004
A
A-1
Appendix
Financial Statement
Information
This appendix includes financial information for (1) Krispy Kreme, (2) Tastykake, and
(3) Harley-Davidson. This information is taken from their annual reports. An annual report
is a summary of a company’s financial results for the year along with its current financial
condition and future plans. This report is directed to external users of financial information,
but it also affects the actions and decisions of internal users.
A company uses an annual report to showcase itself and its products. Many annual reports
include attractive photos, diagrams, and illustrations related to the company. The primary
objective of annual reports, however, is the financial section, which communicates much
information about a company, with most data drawn from the accounting information system.
The layout of an annual report’s financial section is fairly established and typically
includes the following:
Letter to Shareholders
Financial History and Highlights
Management Discussion and Analysis
Management’s Report
Report of Independent Accountants (Auditor’s Report)
Financial Statements
Notes to Financial Statements
List of Directors and Officers
This appendix provides the financial statements for Krispy Kreme (plus selected notes),
Tastykake, and Harley-Davidson. The appendix is organized as follows:
Krispy Kreme A-2 through A-17
Tastykake A-18 through A-24
Harley-Davidson A-25 through A-30
Many assignments at the end of each chapter refer to information in this appendix. We encourage
readers to spend time with these assignments; they are especially useful in showing
the relevance and diversity of financial accounting and reporting.
Special note: The SEC maintains the EDGAR (Electronic Data Gathering, Analysis, and Retrieval)
database at www.SEC.gov. The Form 10-K is the annual report form for most companies. It
provides electronically accessible information. The Form 10-KSB is the annual report form filed by
“small businesses.” It requires slightly less information than the Form 10-K. One of these forms must
be filed within 90 days after the company’s fiscal year-end. (Forms 10-K405, 10-KT, 10-KT405, and
10-KSB405 are slight variations of the usual form due to certain regulations or rules.)
Larson?Wild?Chiappetta:
Fundamental Accounting
Principles, Seventeenth
Edition
Back Matter Appendix A: Financial
Statement Information
© The McGraw?Hill
Companies, 2004
A-2 Appendix A Financial Statement Information
KRISPY KREME
Larson?Wild?Chiappetta:
Fundamental Accounting
Principles, Seventeenth
Edition
Back Matter Appendix A: Financial
Statement Information
© The McGraw?Hill
Companies, 2004
Appendix A Financial Statement Information A-3
KRISPY KREME
SELECTED FINANCIAL DATA
The following table shows selected financial data for Krispy Kreme. The selected historical statement of operations data for each
of the years ended, and the selected historical balance sheet data as of January 31, 1999, January 30, 2000, January 28, 2001,
February 3, 2002 and February 2, 2003 have been derived from our audited consolidated financial statements. Please note that
our fiscal year ended February 3, 2002 contained 53 weeks.
Systemwide sales include the sales by both our company and franchised stores and exclude the sales by our KKM&D business
segment and the royalties and fees received from our franchised stores. Our consolidated financial statements appearing
elsewhere in this annual report exclude franchised store sales and include royalties and fees received from our franchisees. The
consolidated financial statements also include the results of Freedom Rings, LLC, the area developer in Philadelphia, and
Golden Gate Doughnuts, LLC, the area developer in Northern California, in which Krispy Kreme has a majority ownership
interest, as well as the results of Glazed Investments, LLC, the area developer in Colorado, Minnesota and Wisconsin, for
periods subsequent to August 22, 2002, the date the
