Toy Central Corporation Case Study

makes it easy to navigate, and identify which skills the toy strengthens. They sell several toy brands that have award winning products. Making them an ideal place to purchase toys for any special needs children. There is a Toys R Us ware house in almost every state, and there are over 683 stores nation wide. Making them easily accessible, and shipping has minimal difficulties, for those who have busy schedules. Walmart super centers are very popular for housing name brand toys as well, and even more accessible than Toys R Us.

An assessment of inherent risk is important for determining the possibility of material misstatement before considering internal control effectiveness (259). Obtaining an understanding of internal control is the basis for determining control risk (410). This understanding helps the auditor determine areas of weakness, which may require more attention. Analytical procedures indicate possible misstatements and unusual fluctuations requiring substantive tests of transactions or tests of details of balances for proof of misstatement occurrence. Substantive analytical procedures can also help reduce the sample sizes needed or certain tests of details of balances (406). Assessment of planned detection risk is the risk that material misstatements will not be discovered by the audit as planned and involves either disregarding internal control in the substantive approach resulting in more evidence being gathered or considering internal control in the reducing risk approach resulting in less evidence being gathered. Performing tests of controls is only necessary if one is following a reducing control risk approach. If following a substantive approach, the auditor can ignore testing controls

David Brandon, the CEO said that once the initiatives have been implemented, Toys ‘R’ Us stores will be a more interactive spaces with live product demonstrations put on by trained employees, rooms to use for parties and freedom for employees to remove products from boxes to allow kids to play with the latest toys. The plan includes the creation of augmented-reality video games that

Toys “R” Us has been around for as long as most of us can remember. In recent news, their company has taken in a 1-billion-dollar loss. Toys “R” Us has been doing everything in their power to try to recoup all of their losses and have made some progress but they are still not out of the hole just yet. According to PR Newswire, Toys “R” Us have raised more than 5.4 million in their efforts to climb back up. This was a fundraising campaign called “The Marine Toys for Tots Foundation”. This is not only a great stepping stone for the company but also great publicity for their company. On the other hand, Toys” R” Us has also aimed to public after going private in 2005, which is predicted to raise 800 million for their company. Unfortunately, because

but for the 40 kids who got the chance to shop with the Mayor, well chrismas came early..

From Figure 1, we know that the critical path is Activity 1-2-5-7-10-13-15. It is because if there is any change of time in the Activities on the critical path, the whole progress time of the project will change. Therefore, we choose to crash the activities on the critical path with the lowest crash cost in order to lower the time used with minimum additional cost. Activity 7 has the lowest crash cost within the Activities on the critical path. So, we choose to crash Activity 7 first.

Next, another key internal control weaknesses in the Huntington unit’s operations is the failure to coordinate an up-to-date accounting system used to provide an actual or accurate account of inventory because we was identify that each goodner sales outlet maintaining a computerized accounting system. These systems also typically made according to a standardized format and not develop for specialized for the company. These systems is ready made. Beside this, we also found that the unit’s sales manager and two representatives had unrestricted access to the accounting system. So, since the large volume of sales and purchase transactions always swamped the bookkeeper . Then, sales representatives also frequently entered transactions directly into system. Furthermore, another key internal control weaknesses in the Huntington unit’s operations is the lack of security needed to safeguard the assets sold. Company failure to restricted the security. We have identify that the sales representative (Woody Robinson) taking an advantage and routinely stole the inventory and kept the proceeds. Woody Robinson also continuing stole in various ways. In some cases, Woody Robinson charged merchandise that he was sold for his own benefit to the accounts of large volume customers. So, this techniques makes inventory balance in the Huntington facility’s accounting records. We also identify that Woody

The company has total debt in the billions, which was largely incurred in connection with a buyout in 2005. Repaying that debt has become increasingly difficult as business has been declining. Boomey (2017) has noted that Toys R Us recently had to shut down some of its stores and let go some of its corporate employees. The company’s competition, which includes Amazon and Walmart, have had an advantage over Toys R Us because they mark down toy prices to attract their customers. But the competition was only part of their problem. The main cause of the company’s debt was the inability to transform its company digitally. In 2009, the company’s e-commerce sales amounted to only 4% of its gross revenues. The company’s failure to properly set up a digital strategy was their main downfall (Lashinsky, 2017).

In this report the discussion and analysis about the toy industry and mainly focuses on Lego and its competitors. This report shows where Lego stands against its competitors in the market. And what are the difficulties that it faces. It also has recommendations on how Lego should operate in regards to get its business where it was and be successful.

The cases describe the growth of Toys "R" Us (TRU) as the leading U.S. toy retailer to its

1. The primary task of Miami Toy Company (MTC) is making for stock a standardized line of high quality, unique toys that “last from pablum to puberty”

1. The primary task of Miami Toy Company (MTC) is making for stock a standardized line of high quality, unique toys that “last from pablum to puberty”

Deduced of its annual report for 2013, the company Hasbro is in a discerning situation. Revenues and earnings fell for the last three years (see Exhibit 1) and the company started to repurchase stock at the end of 2013[1]. Three important challenges Hasbro has to face will be introduced and solutions suggested. The first paragraph will focus on the problems of toy and game companies with its buyers. After that Hasbro’s increasing costs will be reviewed and the vast competition in the toy and game market will be outlined. Lastly suggestions to overcome those problems will be presented.

[pic]s a senior in a professional services firm, you have been assigned to plan the financial statement audit of a private company named Toy Central Corporation (TCC). In addition, the partner on the engagement has asked you to identify business risks that could adversely affect TCC’s sustained profitability, so that they can be brought to the attention of the company’s board of directors. These tasks will require you to draw on your knowledge of supply chain management, marketing, internal controls, audit assertions, and financial accounting.

Executive Summary………………………………………………2 1. Introduction………………………………………………………...3 2. Terms of Reference……………………………………………….3 3. Prioritization of Issues……………………………………………..4 4. Discussion of Issues & Recommendations……………………..5 4.1 Faults in New Flying Spaceship Toy………………………...5 4.2 Late Delivery of Christmas Product………………………….7 4.3 Launch of New Range of Toys 9-11 Age Groups…………10 4.4 Near-Shoring Proposal in Voldania………………………...13 5. Ethical Issues……………………………………………………...16 6.