Describe Carter's INC revenue recognition policy.

From what sources does the company earn most of its revenue?

Do any customers account for at least 10 % of the company's business?

Explain Carter's INC policy for recognizing each type of revenue that is included in the income statements. Explain Carter's INC policy for determining the collectability of accounts receivable that are included in the balance sheets. Determine how Carter's INC values its inventories. What costing method does the company use?

Evaluate Carter's INC trends in the six ratios. Did the ratios improve, deteriorate, or hold steady during the most recent fiscal year?

Do the company's ratios indicate relative financial strength or weakness?

Evaluate Carter's INC accounting practices and financial performance based solely on these six ratios. What are the areas of strength and areas of weakness?

What are the concerns?

Answer rating: 100% (QA)

1 Revenue Recognition Policy Review the companys financial statements specifically the notes to the financial statements to understand its revenue rec... View the full answer