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Essay / Research Paper Abstract
This 6 page paper examines Krispy Kreme for the years 2001 – 2003, focusing on 2002. The paper carries out analyses on depreciation and amortisation, company stock, cash flow, income and management efficiency. The bibliography cites 3 sources.
Page Count:
6 pages (~225 words per page)
File: TS14_TEkrispy2.rtf
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Unformatted sample text from the term paper:
for the company we can assess the position ands patterns seen at the time of the financial reporting results. For Krispy Kreme we are looking at 2002 and the period
between 2001 and 2003. These areas are that of deprecation, company stock analysis, cash flow, income and management analysis. In this paper the figures given to are referred to by
the year of the accounts, the 10-K that was returned in 2003 is for the 2002 accounting year. Depreciation. Deprecations and amortisation occur where there are capital assets
that need to be written off. Assets, tangible or intangible, do not have an indefinite life. The matching concepts agues that these should be written off in a way that
attaches the cost of the asset with the revenue is produces. This occurs through depreciation, for physical goods and amortisation for intangible goods. If we look at this there
is a pattern of increasing levels of depreciation and amortisation, however this is unsurprising as there is an increase in the level of the physical asserts and it is in
2002 that w see intangible assets appear on the balance sheet for the first time. The level of depreciation and amortisation reaches $7,959 thousand, this is an increase of $7,001
thousand on 2001, which was also a large leap on the 2000 figure of $4,546 thousand. However, the aspect of the accounts that maybe of most concern is that
the way in which the repurchase of franchised stores are treated. The accounts tell us that the company will periodically re-purchase some of the franchise stores. There has been some
controversy over the prices paid for these stores, for a price many see as far too high by many. However the main issue is the treatment of these assets. 85%
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