Topps Company’s Annual Report
Topps Company’s Annual Report
Name
ACC 281 Accounting Concepts for Health Care Professionals
Instructor: LaKeitha Givens date Topps Company’s Annual Report
The Topps Corporation was established in 1938 and is mainly known for their sales in sports trading cards, candy and other popular entertainment products. In this paper, I will analyze the Topps Company’s annual report. I will discuss the business's inventory turnover ratio and average days to sell their inventory for 2006 and 2005, whether the company’s management of inventory is getting better or worse and to conclude, I will discuss the cost flow method that Topps use to account for inventory. Examining the Topps financial report can help the corporation recognize exactly where they stand financially in order for the business to gain a competitive edge and stay successful in the future.
The Topps Company has maintained a successful business for several years. The company is divided into two sections, confectionary (Bazooka) and entertainment (sports products). In 2006, the company made some changes in order to improve their business. According to Edmonds (2010), “We restructured the business to focus on operating profit net of direct overhead rather than contributed margin at our two business units, Confectionery and Entertainment” (p 597). Inventory turnover ratio can be described as a percentage that shows the number of times that a businesses inventory is sold and restocked during their fiscal year. Using the inventory turnover method can calculate exactly how long it will take to sell and replace the inventory that is currently in stock.
According to the Topps Company’s annual report, the total cost of sales for 2006 was $198,054 and in 2005 the total cost of sales was $189,200. In 2006, the total inventory was $36,781 and in 2005 it was $32,936. In order to find out what the turnover ratio is, we must to divide the cost of sales by the total inventory. In 2006,
Name
ACC 281 Accounting Concepts for Health Care Professionals
Instructor: LaKeitha Givens date Topps Company’s Annual Report
The Topps Corporation was established in 1938 and is mainly known for their sales in sports trading cards, candy and other popular entertainment products. In this paper, I will analyze the Topps Company’s annual report. I will discuss the business's inventory turnover ratio and average days to sell their inventory for 2006 and 2005, whether the company’s management of inventory is getting better or worse and to conclude, I will discuss the cost flow method that Topps use to account for inventory. Examining the Topps financial report can help the corporation recognize exactly where they stand financially in order for the business to gain a competitive edge and stay successful in the future.
The Topps Company has maintained a successful business for several years. The company is divided into two sections, confectionary (Bazooka) and entertainment (sports products). In 2006, the company made some changes in order to improve their business. According to Edmonds (2010), “We restructured the business to focus on operating profit net of direct overhead rather than contributed margin at our two business units, Confectionery and Entertainment” (p 597). Inventory turnover ratio can be described as a percentage that shows the number of times that a businesses inventory is sold and restocked during their fiscal year. Using the inventory turnover method can calculate exactly how long it will take to sell and replace the inventory that is currently in stock.
According to the Topps Company’s annual report, the total cost of sales for 2006 was $198,054 and in 2005 the total cost of sales was $189,200. In 2006, the total inventory was $36,781 and in 2005 it was $32,936. In order to find out what the turnover ratio is, we must to divide the cost of sales by the total inventory. In 2006,