Question

The following are questions for discussion assignment. Could you please assist me with these questions? Thank you.

Rite Aid Corporation; NYSE: RAD

Income Statement: Listed as Consolidated of Operations, page 76

Balance Sheet: Listed as Consolidated Balance Sheets, page 75

Statement of Stockholder's Equity: Listed as Consolidated Statements of Stockholders' Equity, page 78

Statement of Cash Flows: Listed as Consolidated Statements of Cash Flows, page 79

https://www.sec.gov/Archives/edgar/data/84129/000104746918003207/a2235393z10-k.htm

SEC 10K Project: Income Statement

Respond to one or more question(s) from each of the three categories below. Category: Revenue and Net Income 1. What were the company's revenues for the most recent fiscal year? Comment on the trend in total revenue. Is it increasing or decreasing during the past two years? 2. Compare net income over the past two years. How much and by what percentage did Net Income change? 3. Comment on individual revenue or expense items that had significant percentage changes (changes as a percentage of total revenue or total expenses) over the most current three years. Category: Irregular Items 1. Identify and describe any irregular items reported on the Income Statement, such as discontinued operation or extraordinary items,? 2. Did your company change any accounting principles that would have required a retrospective adjustment to the financial statements? 3. Were there any prior-period adjustments (PPA)? If so, what caused the PPA's? Category: Analysis 1. Prepare a horizontal analysis of your company's Income Statement over the past two years. 2. Calculate the following ratios for the most recent two years and comment on the results of your ratio analysis. How do the results for your company compare to industry averages?      a. Accounts receivable turnover      b. Profit margin      c. Return on assets      d. Times interest earned

Answer 1

What were the company's revenues for the most recent fiscal year? Comment on the trend in total revenue. Is it increasing or decreasing during the past two years?

Answer: Company's revenue as on march 2018 is $21528968 that has come down from 2017 but increased as compare to 2016.

Compare net income over the past two years. How much and by what percentage did Net Income change?

Answer: Net Income is $943470 in 2018 that increased very much from 2017 ($4053) and 2016 ($165465).

Change(Increase) in Net Income from previous year: (943470-4053) / 4053 = 231%

Ratios Analysis for 2018 & 2017:

Accounts receivable turnover- AR turnover ratio tells how soon company receives the payment of its sales. It is calculated by dividing net credit sales by average account receivables. In March 2018 this ratio was 11.81 and in December 2017, it was 16.33 that clearly shows decrease in ratio in the current year as compare to previous year.

Profit margin- This is a profitability measure and calculated by dividing net profit margin by net sales. This year, profit margin is 4% while in 2017, it was almost 0%, it means there was no profit last year, this year profit margin has increased.

Return on assets- This ratio tells how efficiently overall assets and resources are used to generate return. This is calculated by dividing net income by total assets. This year ROA is 9.17% while in previous year, it was .04%. This year ratio has increased and it indicates assets are being utilized to generate return.