Here is the synopsis of our sample research paper on Footstar Inc. Bankruptcy. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 9 page paper that provides information and data about this company beginning with a brief background report including the company's SIC number, CIK code, Ticker, and Fiscal year. The writer then explains what CR, QR, DEBT, WCAP, CAPM and WACC are and provides these ratios where they were available. Executive biographies are then provided followed by additional information on the company. The writer then discusses the apparent reasons for the necessity to file Chapter 11 and concludes by commenting on whether or not the writer would purchase stock in this company. Statistical data included. Bibliography lists 19 sources.
Page Count:
9 pages (~225 words per page)
File: MM12_PGftstr.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
you requested is explained.] III. Body a. Introduction i. Background Footstar Inc., headquartered in Mahwah, New Jersey, is a discount footwear company (Cornell, 2004). Through its Meldisco division, the
company "operates leased footwear departments" (Cornell, 2004) in almost 6,000 stores in the U.S., including Wal-Mart and K-Mart (Cornell, 2004; NYSSCPA.org News Staff, 2004). In March 2004, Footstar and its
subsidiaries filed Chapter 11 bankruptcy (NYSSCPA.org News Staff, 2004). Accounting discrepancies were discovered for the Fall 2003 reports and, in fact, discrepancies were found in earlier reports (NYSSCPA.org News Staff,
2004). Carr reported: "Footstar [is] unable to produce audited results for more than two years" (2004, p. 14). Their last quarter reported was September 2002 (Money Central, 2004). The
company is restating financial results for the years of 1997 through 2002, estimated earnings were dropped by $29 million (NYSSCPA.org News Staff, 2004; Ryan, 2003). For this reason, a great
deal of financial data are not currently available. The reasons for Chapter 11 Restructuring are not found exclusively in the fiscal data. There are numerous external conditions that can devastate
a company. For example, in this case, K-Mart, the companys most profitable outlet, closed 600 stores, which means Meldisco/Footstar lost 600 retail outfits (NYSSCPA.org News Staff, 2004; Ryan, 2003).
1. SIC: #1011308 (US Securities and Exchange Commission, 2004). 2. CIK: code 5661 -Shoe Stores (US Securities and Exchange Commission, 2004; Gale Research, 2004) and 6719 - Holding Companies (Gale
Research, 2004). 3. TICKER: NYSE OTC: FTSTQ (Cornell, 2004). 4. Fiscal Year: December (Cornell, 2004). ii. Objectives: To identify significant indicators of bankruptcy. IV. Methodology a. Significant financial ratios
i. CR: To determine the current ratio: Current Assets are divided by Current Liabilities (Industry Analysis and Marketing Plan Research, 2003). This ratio indicates near-term solvency, indicating if the
...