ACC 207 Pacific Sunwear

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ACC 207Pacific Sunwear

• CASE STUDY CP1-1, p.43
• Professor Rose Martin
• Group members
• Kartik Patel
• Danielle Fuentes
• Steven Tuazon
• Erick Valencia

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1. What types of products does it sell?

• Types of products are as follows
• Board-sport inspired casual apparel
• Footwear
• Hip-hop inspired casual apparel
• Accessories catering to teens and young adults

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2. Did the C.E.O and executive chairman of the
board believe that the company had a good year?
What do they cite as indicators of their
companys recent performance?

• Yes, the C.E.O and executive chairman of the
  board believe that the company had a good year.
• They cite that sales grew by 188 million to
  1.23 billion, an increase of 18 percent.
• And, in 2004 they ended with 990 stores vs., 2005
  they opened 120 new stores in 2005, which
  brought the grand total to 1110.

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3. On what date does PacSuns most recent
reporting year end?

• January 29th, 2005

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4. For how many years does it present complete

• A. Balance sheets
• January 31st, 2004 (1) and January 29th , 2005
  (2)
• B. Income statements
• February 1st, 2003,January 31st, 2004 and
  January 29th 2005 (3)
• C. Cash Flow statements
• February 1st 2003, January 31st, 2004 and
  January 29th, 2005 (3)

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5. Are its financial statements audited by
independent CPAs? How do you know?

• Yes, the financial statements are audited by
  independent CPAs.
• We know that because, clarifications contained in
  the February 7th, 2005 letter from the office of
  the chief accountant of the securities and
  exchange commissions to the center for public
  company audit firms to the America institute of
  CPAs.

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6. Did its total assets increase or decrease over
the last year?

• Total assets increased from 644,487,000 to
  677,778,000.

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7. How much inventory (in dollars) did Pac Sun
have as of January 29, 2005 (accountants would
call this the ending balance)?

• 175,081,000

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8. Write out its basic accounting (balance sheet)
equation and provide the values in dollars
reported by the company as of January 29, 2005.

• Basic accounting equation is
• ASSETS LIABILITIES STOCKHOLDERS EQUITY
• 677,778,000 219,744,000 458,034,000