ACCT PROJECT (2)

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University Of Arizona *

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Accounting

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Feb 20, 2024

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Annual Report Williams-Sonoma Team #23 Poras Shokeen, Hailey Balekian, Amber Quinn, Finn Thomas
1. Find the Management Discussion and Analysis section of your annual report (Item 7 of Form 10-KAnnual Report). Select one fact anywhere in this section that would be interesting to an investor. Please copy and paste the fact to your report and explain why you think an investor would find it notable. Include the page number where you found this fact. -To answer this question I have chosen the go over the liquidity and capital resources from pages 39-40 of the item 7 of annual report and it states as following:
- I chose the liquidity and capital resources section of the annual report as I believe it helps provide answers investors often look for. Any individual before investing in a company likes to know how the company manages its cash flow and capital to support its operations and growth. I think this section provides the investor with exactly those things which further enables the investor to assess his investment based on the company’s record of financial stability, growth and expansion and capital allocation which is why I believe they would find this section of the report very interesting. 2. Find the Risk Factors section of your annual report (Item 1A of Form 10K Annual Report). There are many risk factors; select one risk factor. Please copy and paste the topic sentence of the risk factor (you don’t need to include the entire verbiage) and explain why you think it was important the company included it as a risk. Include the page number where you found the risk factor. -The risk I have chosen is found on page 12 from Item A of the annual report and it says as follows- “If we are unable to effectively manage our e-commerce business and digital marketing efforts, our reputation and operating results may be harmed” I have chosen this risk because I believe e-commerce dominates the market because of its convenience and after covid its popularity has only boosted. I think it is even more important for a company like Williams-Sonoma as its 70% of net revenue and profits in fiscal year 2020 came from its e-commerce channel. If they do not maintain their e-commerce business effectively they could lose a lot of potential customers.
3. Each company states their policy for recognizing revenue, cost of goods sold, and gift cards (not every company will have all 3 of these policies). Choose only one of these policies (revenue, cost of goods sold, or gift cards), copy and paste the policy, and include the page number from the Notes to Financial Statements where you found it. Note that Williams-Sonoma has their rev enue information in Note A, under Merchandise Sale. I chose Williams-Sonoma’s policy on recognizing gift card revenue. The policy regarding this was found on page 54 .
4. What method of depreciation (i.e. straight-line, double-declining balance, etc.) does the company use for Property, Plant & Equipment? Copy and paste the policy and include the page number from theNotes to Financial Statements where you found it. -Depreciation is computed using the straight-line method over the estimated useful lives of the assets. This is found on the page 42 under the long-lived assets section of the report which I have pasted below- x==
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