Notes On Cash And Cash Equivalents

958 Words Apr 7th, 2016 4 Pages
Cash & Cash Equivalents:
• Macy’s defines it as including cash and liquid investments with original maturities of three months or less (short-term investments). They also include amounts due in respect of credit card sales transactions which are settled early in the following period, and for this company equaled out to $101 million on February 2, 2014 fiscal year end.

Accounts Receivable
• Percent Uncollectible:
 Current Year:
 Previous Year:
• Receivable Turnover:
 Current Year: $28,105,000,000/(371,000,000 + 438,000,000)/2)) = 70 times
 Previous Year: $27,931,000,000/(368,000,000 + 371,000,000)/2)) = 76 times
 The receivable turnover ratio decreased slightly from 2013 to 2014 due to the increase of 67 million in receivables compared to the increase of $245 million in Sales. This ratio for Macy’s implicates that they collect on what customers, vendors, and suppliers owe to them quite often throughout the year.
• Macy’s classifies their inventory as Merchandise Inventory only. The Company separates their merchandise, which have similar characteristics, into departments. The use of the LIFO retail inventory method is the purpose behind the segregation of similar merchandise inventory.
• Inventory Flow Method is the same for both Domestic and Foreign Inventories. They both use the Last in, First out Method (LIFO).
• Inventory using LIFO:
 $5,557 million
• LIFO Reserve:
 $41,000

• Inventory…

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