Running Head: Toys "R" Us Financial Analysis Toys "R" Us and Subsidiaries Financial Statement Analysis MC500 Management Accounting ThomasCity University, TacomaMay 22, 1999 Toys "R" Us and Subsidiaries Financial AnalysisNote: Consistent with the financial report, all amounts are expressed in millions except per share data.Ernst & Young, LLP, independent auditors for Toys "R" Us Inc. and Subsidiaries issued an unqualified opinion on the company’s financial statements as of February 1, 1997 and on the consolidated results of operations and cash flows for the three years ending February 1, 1997, February 3, 1996 and January 28, 1995. The report by the independent auditors and their issuance of an unqualified opinion serves to provide reasonable assurance to stockholders, management, regulatory agencies and the public, that the financial statements are materially correct. Materiality is interpreted to mean that there are no unrecorded adjustments which would impact the decisions or opinions of the readers of these financial statements. The inclusion of the auditors’ report in the year-end financial report lends credibility to the presentation and allows the users including investors and potential investors to rely on the information as presented. Common Stock & Treasury StockThe company does not have preferred stock and has not declared or paid dividends on its common stock. As of February 1, 1997, Toys "R" Us, Inc. and subsidiaries had authorized 650 shares of par value $.10 common stock, of which 300.4 shares were issued. 12.6 shares were held in treasury stock leaving 287.8 shares issued and outstanding. The book value of the common stock issued and outstanding was $14.56 which is down from February 3, 1996 at which time the book value was $18.8. The total paid-in capital for common stock was $ 518.8 as of February 1, 1997 and $572.8 as of February 3, 1996. The average price per share received by the company for all common...
