Macy's, Inc. is a premier retailer in the United​ States, operating nearly 900 stores in 45 states.​ Macy's, Bloomingdale's, and​ Bloomingdale's Outlet are all brands that operate under​ Macy's, Inc. The company sells a wide range of merchandise including apparel and​ accessories, cosmetics, home​ furnishings, and other goods.​ Macy's, Inc. purchases its merchandise from many suppliers and also develops its own private label brands.   Read the requirements:      1. Under the new revenue recognition​ rules, how will​ Macy's record and recognize sales​ revenue? Which financial statement is sales revenue reported​ on? 2. Macy's, Inc. reported cost of sales of​ $16,496 million for the year ending January​ 30, 2016. Which financial statement is cost of sales​ (also known as cost of goods​ sold) reported​ on? What does cost of sales​ represent? What type of account is cost of​ sales? 3. Assume​ Macy's, Inc. purchases​ $100,000 of inventory from one of its vendors. The terms of the purchase are FOB shipping point. Who pays the freight and how does the cost of the freight get​ recorded? Assume​ Macy's uses the perpetual inventory system.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Before you begin this​ assignment, it will be helpful if you review​ Macy's, Inc. 2015 annual report

​(https://www.sec.gov/Archives/edgar/data/794367/000079436716000221/m-0130201610k.htm​)
 
​Macy's, Inc. is a premier retailer in the United​ States, operating nearly 900 stores in 45 states.​ Macy's, Bloomingdale's, and​ Bloomingdale's Outlet are all brands that operate under​ Macy's, Inc. The company sells a wide range of merchandise including apparel and​ accessories, cosmetics, home​ furnishings, and other goods.​ Macy's, Inc. purchases its merchandise from many suppliers and also develops its own private label brands.
 
Read the requirements: 
   
1. Under the new revenue recognition​ rules, how will​ Macy's record and recognize sales​ revenue? Which financial statement is sales revenue reported​ on?
2. Macy's, Inc. reported cost of sales of​ $16,496 million for the year ending January​ 30, 2016. Which financial statement is cost of sales​ (also known as cost of goods​ sold) reported​ on? What does cost of sales​ represent? What type of account is cost of​ sales?
3. Assume​ Macy's, Inc. purchases​ $100,000 of inventory from one of its vendors. The terms of the purchase are FOB shipping point. Who pays the freight and how does the cost of the freight get​ recorded? Assume​ Macy's uses the perpetual inventory system.
4. On which financial statement will​ Macy's report its merchandise​ inventory?
5. Assume​ Macy's, Inc. prepares a​ multi-step income statement. What would the format of that income statement look​ like? What is one benefit of preparing a​ multi-step income statement for merchandising companies such as​ Macy's, Inc.?
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