Quang Pham
11/18/2008
Financial Accounting
Poject II
Project II
1. Foot Locker Inc., is a merchandiser for the reasons that they market and sells tangible products which are manufactured by a third party manufacturer such as Nike and Adidas.
2.
a. A. The company’s net income form operations for the current year was $409,000,000.
b. The company’s final net income for the current year was $264,000,000
c. There is a difference between questions 2A and 2B because operation net income does not include other revenue and expenses that aren’t part of operation.
3.
a. The company’s balance in “Cash and Cash equivalents” for the current year was $289,000,000 & $225,000,000 for the prior year.
b. There was an increase of $64,000,000 in cash & Cash equilvalents for the current year compare to the previous.
c. The $64,000,000 appeared on the cash flow statement for the reason that it effect the statement of cash flow.
4. The company consider all highly liquid investments with original maturities of three months or less including commercial paper and money market funds to be cash equivalents.