Question Details

(solution) MGT 3101 Case III Due on December 10, 2015 G SHOES LTD. G Shoes


Good Afternoon, I am working on this assignment for my intermediate financial course, I was wondering if you can help me with issues 2,3 and 5. I need to analyze the accounting issues, prepare revised EPS calculations if required. I have attached the documents. Thank you.


MGT 3101 Case III Due on December 10, 2015 G SHOES LTD.

 

G Shoes Ltd. (GSL) is an integrated manufacturer and retailer of moderately priced

 

high-fashion footwear, leather goods, and accessories. GSL is a public company listed

 

on the Toronto Stock Exchange. GSL has stores in over 180 major Canadian shopping

 

malls, and operates over 50 ?boutiques? in larger retail stores. Until the current year,

 

GSL had three retail stores in the United States. In general, operating results in 20X9

 

have been disappointing, with lower same-store sales trends and higher costs across

 

the board.

 

Preliminary operating results for 20X9 are shown in Exhibit 1. Details of accounting

 

issues that must be resolved before the financial statements can be finalized are in

 

Exhibit 2. In particular, the company is discussing with the auditor whether the closure

 

of the three U.S. retail stores, which occurred in March 20X9, can be accounted for as a

 

discontinued operation. Company management has asked that any quantitative analysis

 

reflect two alternatives?treating the closure as an unusual item, and then as a

 

discontinued operation. Draft financial statements reflect the unusual item treatment. In

 

addition, no accounting recognition has been given to stock options outstanding or

 

granted during the year, as valuation estimates were not complete when the draft

 

financial statements were prepared. This information has recently been provided.

 

Finally, EPS calculations for 20X9 have not yet been made.

 

Required:

 

Analyze the accounting issues as identified, and prepare revised draft statement of

 

comprehensive income, and EPS calculations. At the end of the year, the market price of subordinated voting shares was $11.25,

 

and had been stable for most of the year. Any recorded compensation cost is a

 

permanent difference for tax purposes and will not change recorded tax amounts.

 

5. In March 20X9, GSL announced that it would close its U.S. retail operation,

 

consisting of three retail stores. The store had been a separate division of the

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Jan 30, 2021

PRICE: $15

Solution~0001017863.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Jan 30, 2021

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now