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Fossil Inc. Financial Statement Analysis

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FOSSIL INC. FINANCIAL STATEMENT ANALYSIS

PART 1

10/16/2011

Table of Contents6
Introduction 1
Chosen Policies and Quality of Numbers 1
Part 1: Overview of Balance Sheet 1 1.1 Major types of assets and unusual amounts of components 1 1.2 Major types of liabilities and unusual amounts of components 2 1.3 Major types of Equities and unusual amounts of components 2
Part 2: Overview of the Income Statement 3 2.1 Major sources of revenues, expenses, gains and losses 3 2.2 Unique Items for Income Statement for recreational goods 3 2.3 Unusual amounts changes in the Income Statement 3
Part 3: Overview of Statement of Cash Flow 4 3.1 Analysis for operating cash flows 4 3.2 Analysis for investing cash flows 4 3.3 Analysis for financing cash flows 4 3.4 Direct method of statement of cash flow 5 3.5 Noncash investing and financing activities 6
Part 4: Discussion of CPA’s audit report 6 4.1 Auditor 6 4.2 Type of Audit opinion 6 4.3 Meaning of the Audit Report 7
Part 5: Revenue Recognition and Matching Principles 7 5.1 Types of Revenue Transactions 7 5.2 Revenue Recognition 7 5.3 Concentration of Revenues of Receivables 8
Part 6: Ratio analysis 8 6.1 required Ratios 8 6.2 Ratio analysis 9
Summary 10

Introduction Fossil is a Delaware corporation formed in 1991 which succeeded to a Texas corporation formed in 1984. Fossil specializes in consumer fashion accessories and offers an extensive line of men’s and women’s fashion watches and jewelry, handbags, small leather goods, shoes and clothing. Meanwhile, Fossil sells products through a diversified distribution network, which includes 121 retail stores and 70 outlet stores in the US and 23 Company- owned foreign sales subsidiaries over 120 countries worldwide. Fossil is a leader in the design, development, marketing and distribution of

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