Comparing Dollar General's Financial Performance with that of Family Dollar

Improving the store internally with more resourceful employees, better lighting and displays, and more organized floor plans will start to change the image of Dollar General that the average public holds. A more respectable store will lead to an increase in customers. Dollar General will then begin developing a system of a more sustainable competitive advantage among the small and large firms of the similar industry.

c. Did anything surprise you about the company's values? Why or why not? (1-3 sentences. 1.0 points)

A snapshot of the Net Margins for Wal-Mart Stores Inc. is shown below: Net Margin Wal-Mart 2010 3.90% 2011 3.50% 2012 3.60%

6) The CPA firm accounting system was flawed and this was shown when the CPA firm failed to test the system. This system was sold to district by the CPA firm performing their audit. It

Issue: Have the directors of the company breached their duties mainly related to the company’s insolvent trading.

After reviewing the financial information of the Tech Tennis, USA, there was a concerned due to some unusual changes in the company’s accounts. Financial statements play a crucial part in the determination of the progress of an organization. It assists the relevant personnel to identify whether the company is making profits or making losses. Although unethical, some companies will tend to deliberately misrepresent some of their financial statement information to create a false impression of the company’s success. There are various techniques that organizations utilize to manipulate their financial statements such as overstating their revenues (Bierstaker, Brody, & Pacini, 2006). In addition, some organization will tend to inflate their sales without considering their cash flow amount that the organization has acquired which will be a red flag to investigate. Consequently, financial statements provide vital information that helps both internal and external users to understand the position of the organization. Some companies in an attempt to continue in the market, they end up manipulating their financial statements that create an illusion of the success of the organization.

The biggest con is decreased selections. People will not have a variety of items to choose from. They will also not be able to compare which is the cheapest or the best products for their families. Even though there will not be a variety of products to choose from, consumers will have lower prices due more bargaining power that Family Dollar will have with suppliers. This will simplify its ordering and re-stocking process this will keep shelves from being empty. Even though Family Dollar is decreasing the number of brands they are carrying, they are increasing the products that are stocked by each brand.

According to Mergent “Target has had their net capital spending increase each of the three years. The chief purpose why it has increased is due to the fixed assets and depreciation expenses both increasing each year. The net fixed resources developed at a related rate each year while the devaluation expenditure developed at a higher rate from 2011 to 2012 than it did from 2012 to 2013” (Mergent Inc. 2013).

2. Evaluate Andersen’s claim that their problems on the Enron audit were due to a few “bad partners” in the organization. If you disagree with this claim, discuss what you think were the root causes of the problem. I do not believe Andersen’s claim. I believe that they had full knowledge of what was happening at Enron. I believe that Enron was paying off the auditors (staffers) in the Houston office. I believe they were

3. Considering your response to questions 1 and 2, do you believe that the going- concern uncertainty was warranted? Do you believe that Deloitte & Touche should have issued a going- concern opinion prior to 2008?

stores added in 2006, 734 new stores in 2005, and 722 new stores in 2004 (see Table A). Selling square

1) Identify audit procedures that, if employed by Ernst & Whinney during the 1981 USSC audit, might have detected the overstatement of the leased and loaned assets account that resulted from the improper accounting for asset retirements.

4. Was the Barings board of directors culpable for the losses of Nick Leeson? What is a fair way to evaluate the performance of Barings’ board of directors?

For purposes of this question, assume that the excerpts from the Powers Report shown in Exhibit 3 provide accurate descriptions of Andersen’s involvement in Enron’s accounting and financial reporting decisions. Given this assumption, do you believe that Andersen’s involvement in those decisions violated any professional auditing standards? If so, list those standards and briefly explain your rationale.

The restaurant industry “operates restaurants and other eating places, including full-service restaurants, quick-service restaurants, cafeterias, buffets, and snack bars” (Restaurants). The fast food sector has a number of popular companies like McDonald’s and Wendy’s. Fast food chains earn the majority of their success by offering quick, inexpensive meals made uniformly around the world (Nath). This project will be focused on comparing the financial ratios and statements from McDonald’s (MCD) and Wendy’s (WEN). The analysis will take an unbiased approach when comparing the companies. The comprehensive analysis will include: the company’s financial statements, including the balance sheets, income statements, and statement of cash flows, calculating the financial ratios, deciding which external factors could influence the company’s profits, and finally making a recommendation on which stock will have a positive effect on a potential investor’s portfolio.