We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

See Pricing

What's Your Topic?

Hire a Professional Writer Now

The input space is limited by 250 symbols

What's Your Deadline?

Choose 3 Hours or More.
Back
2/4 steps

How Many Pages?

Back
3/4 steps

Sign Up and See Pricing

"You must agree to out terms of services and privacy policy"
Back
Get Offer

Topps Company Annual Report

Hire a Professional Writer Now

The input space is limited by 250 symbols

Deadline:2 days left
"You must agree to out terms of services and privacy policy"
Write my paper

Topps Company, Inc Annual Report “Founded in 1938, The Topps Company, Inc. is the preeminent creator and brand marketer of sports cards, entertainment products, and distinctive confectionery. Topps leading sports and entertainment products include Major League Baseball, National Football League, and other trading cards, sticker album collections, and collectible games. The Company’s top confectionery brands include “Ring Pop,” “Push Pop,” “Bazooka” bubble gum, and “Juicy Drop Pop” products.

On October 12, 2007, Topps was acquired and taken private by Michael Eisner’s Tornante Company and Madison Dearborn Partners.

Don't use plagiarized sources. Get Your Custom Essay on
Topps Company Annual Report
Just from $13,9/Page
Get custom paper

” (The Topps Company, 2012). In this paper, the discussion will concentrate on the inventory turnover ratio, the company’s inventory management, and which method was used to account for their inventory. These facts and figures will be gathered from Topps Company’s annual report in Appendix B. Inventory turnover ratio are defined as the ratio of cost of goods sold divided by inventory (Edmonds, et al., 2007).

It measures the amount of times a company sells its inventory throughout their fiscal year.

To compute the turnover ratio for 2006 and 2005 we will take the Cost of Goods Sold / Inventory = Inventory Turnover Ratio: 198,054 / 34,844 = 5. 68 times. Inv. Turnover Ratio 2006 189,200 / 32,973 = 5. 74 times. Inv. Turnover Ratio 2005 To compute the average number of days to sell inventory in 2006 and 2005 we will use: Average Inventory = (Beginning Inventory + Ending Inventory) / 2 (36,751 + 32,936) / 2 = 34,844 Avg. Inv. 2006 (32,936 + 33,009) / 2 = 32,973 Avg.

Inv. 2005 To compute the number of days to sell inventory in 2006 and 2005 we will use 365 / Turnover Ratio = Avg. Days to sell inventory: 365 / 5. 68 = 64. 26 Days 2006 365 / 5. 74 = 63. 59 Days 2005 In 2006, The Topps Company, Inc. had a turnover ratio of 5. 38, compared to 5. 74 in 2005. The average inventory in 2006 was 34,844 compared to 32,973 in 2005. The average number of days to sell inventory was 64. 26 days in 2006 compared to 63. 59 days in 2005. Unfortunately, this is an indication that the company’s management of inventory is getting worse.

The inventory turned over 5. 74 times in 2005, but only 5. 68 times in 2006. Topps Company, Inc used the first-in-first-out (FIFO) cost flow method to account for inventory. This method “Requires that the cost of the items purchased first be assigned to cost of goods sold. ” (Edmonds, et al., 2007, p. 134).

References

Edmonds, T, Olds, P, McNair, F, Tsay, B (2007). Survey of Accounting. (Ashford University Custom Edition). United States: McGraw-Hill. Topps Company History. Retrieved August 4, 2012 from: http://www. topps. com/company-history

Cite this Topps Company Annual Report

Topps Company Annual Report. (2016, Dec 19). Retrieved from https://graduateway.com/topps-company-annual-report/

Show less
  • Use multiple resourses when assembling your essay
  • Get help form professional writers when not sure you can do it yourself
  • Use Plagiarism Checker to double check your essay
  • Do not copy and paste free to download essays
Get plagiarism free essay

Search for essay samples now

Haven't found the Essay You Want?

Get my paper now

For Only $13.90/page