Response to the following :
1. What is the campany's revenue recongnition policy? (hint: look in the notes to the financial statements.)
2.Assuming that $50 million of cost of sales was due to non inventory purchase expenses (distribution and occupancy cost ), how much inventory did the company buy during the year? (hint use a T-account of the inventory in infer how much was purchased .)
3. Calculate general administrative , and selling expenses of sales for the years ended January 31, 2009, and January 31, 2008, By what percent did these expenses increase or decrease from fiscal year 2007 and 2008? The company's fiscal year ends on January 31, 2009
(hint: Percentage = [Current Year Amount- Prior Year Amount}/Prior Year Amount )
4. Compute the company's total assets turnover for the year ended January 31, 2009, explain its meaning