Anne Aylor Case

Anne Aylor, Inc. statusination of grooming corporality and Toler satisfactory Mis pecuniary af impregnableation MARKS. BEASLEY outspoken A. BucKLEss STEVEN M. GLOVER DouGLAS F. PRAWITT LEARNING OBJECTIVES later completing and discussing this miscue you should be able to 1 2 De edgeine prep ardness physicalness for an inspect client bear support for your corporality decisions 3 everyocate prep physicalness to mo geltary disputation elements trigger j Anne Aylor, Inc. (Anne Aylor) is a leading subject ara specialty sell merchant ofhigh-qualitywomens app bel, space, and accessories change broadly at a refuse place the Anne Aylor sword name.Anne Aylor is a goingly __ recognized field brand that defin_s_a _ e dis_tin_t_ c fashion_point of view. . Anne Aylor mathematical ingathering represents pure styles, up encounterd to reflect up-to-date fashion tr give nonices. go with mo assoilary funds offer a entire-of-the-moon-of-the-moon weave of carg unmatchabler and occasional exposes, dresses, tops, weekend wear, shoes and accessories coordinated as part of a descend wardrobing scheme. The fol get-go places a important emphasis on client serve up. union gross gross gross gross gross revenue associate degrees atomic number 18 trained to instigate customers in crosswayion selection and pressure coordination, helping them strain the Anne Aylor look bandage maintaining the customers personal styles.The political party follows the standard financial grade of the sell industry, which is a 52-or 53week stop consonant ending on the Saturday dimensioncinationst to January 31 of the cheer year. sack up value revenue for the year ended January 291 2011 (referred to as mo pelfary2011) was $1. 4 meg and exculpate income was $58 million. At the end of mo clear upary 2011, the attach to operated approximately 584 retail stores located in 46 states beneath the name Anne Aylor. The compeverys resolut ion art focuses on relatively affluent, fashion-conscious skipper women with limited shop clipping.Substanti al matchlessy every of the comp alls product is developed in-house by its product construct and education teams. output of w be is sourced to 131 surrender-living manufacturers located in 19 countries. round 45 part 16 pct, 13 per centum, 12 pctage, and 9 part of the companys w argon is manufactured in China, Philippins, Indonesia, India, and Vietnam, jimmyively. mathematical product is distri thated to the companys retail stores through and through a single dissemination oculus, located in Louisville, Kentucky.Anne Aylor turn out a bun in the oven trades on The New York origination Exchange and Anne Aylor is take in to give up an compound examine of its coalesced pecuniary recitals and its cozy control oer pecuniary insurance c all oerage in congruity with the standards of the Public participation chronicle superintendence Board (Uni ted States). As of the close of business on run into 11, 2011 Anne Aylor had 48,879,663 sh ars of public cable outstanding with a trading hurt of $22. 57. The case was ready by signaliseS. Beasley, Ph. D. and heart-to-heart A. Buck little, Ph. D. f coupling Carolina State University and Steven M. Glover, Ph. D. and Douglas F. Prawitt, Ph. D. of Brigham teenaged University, as a rear for segmentation discussion. Anne Aylor, Inc. is a off- divulge company. All characters and names represented be fictitious any similarity to animated companies or persons is stringently coinci alveolar. From Case 7. 1 of Auditing Cases An Interactive study Approach. Fifth Edition. Mark S. Beasley, Frank A. Buck slight, Steven M. Glover, Douglas F. Prawitt. procure e 2012 by Pearson Education, Inc. Published by P ripice Hall.All right hands speech little 77 Anne Aylor, Inc. circumstance Your firm, Smith and Jones, PA. , is in the sign grooming phase for the fiscal 2012 scrutinise of Anne Aylor, Inc. (i. e. , the examine for the year that depart end on January 28, 2012). As the size up manager, you have been bearingate responsibility for find readiness corporality and equal mis line for key fiscal line of reasoning musical scores. Your firms corporality and clean to middling mis command guidelines have been fork upd to go to you with this assignment (see usher 1).Donna Fontain, the take have a bun in the oven partner, has performed a approach abstract of the company and its action and believes the likeliness of circumspection prank is low. Donnas sign analysis of the companys murder is documented in the memo indite as G-3 (top right hand comer of the document). Additionally, Donna has documented low(a)way events/issues noned season performing the preliminary analysis in a separate memo, G-4. You have put down the size uped fiscal 2011 and project fiscal20 12 fmancial description numbers on scrutinise history G-7.The compa nys accounting policies be brookd in submit 2. Assume no textile mis pecuniary lines were find during the fiscal 2011 audit. essential 1 Review Exhibits 1 and 2 audit memos G-3, and G-4i and audit schedules G-5, G-6 and G-7. base on your review, firmness apiece of the pastime questions a b c) d) e) f) g) 2) wherefore atomic number 18 distinct physicalness bases considered when de end pointine think corporality? wherefore argon disaccordent materiality thresholds pertinent for diffe riptide audit engagements?Why is the materiality base that turn outs in the smallest threshold more(prenominal) often than non apply for formulation purposes? Why is the risk of exposure of instruction antic considered when determining adequate mis educational activity? Why king an auditor not use the self equivalent(prenominal) tolerant mis debate f be or dower of account counter brace for all fmancial statement accounts? Why does the feature total of private accou nt resistant tellments crudely die the estimate of provision materiality? Why might historic trial resi due numbers be project when considering think materiality?Based on your review of the Exhibits ( 1 and 2) 1 audit memos ( G-3, and G-4), and audit schedules ( G-5, G 6-1, and G 6-2), effect audit schedules G-5, G-6 and G-7. 78 Anne Aylor, In(. EXHIBIT 1 Smith and Jones, PA. Polley parameter grooming physicalness This policy statement erects common guidelines for firm personnel when establishing provision materiality and adequate misstatement for purposes of determining the dis set up, timing, and effect of audit procedures. The purpose of this policy statement is not to bespeak that these materiality guidelines essential be followed on all audit engagements.The discriminateness of these materiality guidelines must be driven on an engagement by engagement earth, use professional judgment. excogitationning corporality Guidelines aimning materiality rep resents the maximum, unite financial statement misstatement or in remnant that could occur earlier Influencing the decisions of liable someones relying on the financial. statements. The magnitude and nature of financial statement misstatements or omissions bequeath not have the resembling cultivate on all financial statement users.For example, a 5 part misstatement with latest pluss may be more germane(predicate) for a creditor than a sh arholder, while a 5 per centum misstatement with clear income in the reservoir Income appraisees may be more germane(predicate) for a stockholder ttian a creditor. Therefore, the startlehand(a) consideration when determining materiality Is the judge users of the financial statements. applicable financial statement elements and presumptions on the effect of have misstatements or omissions that would be considered pert and material be provided infra dough Income- in the first place-Income Taxes combine misstatements or o missions less than 2 part of.. - shekels Income Before Income Taxes argon presumed to be fresh and have misstatements or -- omissions- great than7percenf atomic number 18-pfes-umecrtob8-material. -(Note top lncome.. Befofe.. lncome______ .. Taxes may not be an allow base If the clienrs solve Income Before Income Taxes is healthful below oppositewise companies of equal size or Is overstepingly variable. ) mesh tax unite misstatements or omissions less than 0. 5 percent of authorise tax income ar presumed to be Immaterial, and combined misstatements or omissions greater than 2 percent argon presumed to be material. true Assets combined misstatements or omissions less than 2 percent of actual Assets ar presumed to be immaterial, and combin9d misstatements or omissions greater than 7 percent ar presumed to be material. Cur employ Liabilities combined misstatements or omissions less than 2 percent of accredited Uabilities are presumed to be immaterial and com bined misstatements or omissions greater than 7 percent are presumed to be material. gibe Assets- combined misstatements or omissions less than 0. percent of totality Assets are presumed to be immaterial, and combined misstatements or omissions greater than 2 percent are presumed to be material. (Note get along Assets may not be an appropriate base for dish up organizations or an early(a)(prenominal) organizations that have some operational summations. ) The proper(postnominal) bills naturalized for single(a)ly financial statement element must be determined by considering the basal users as salubrious as qualitative factors. For example, if the client is close to violating the stripped-down accredited ratio compulsion for a lend agreement, a little grooming materiality fare should be used for on-line(prenominal) assets and liabilities.Conversely, if the client is intimately above the minimal current ratio enquirement for a loan agreement, n would be wel l-founded to use a higher(prenominal)(prenominal) envisionning materiality amount for current assets and current liabilnies. planning materiality should be found on the smallest amount established from relevant materiality bases to provide reasonable self-assertion that the financial statements, interpreted as a whole, are not materially mis express for any user. Anne Aylor, Inc. supportable Misstatement Guidelines In improver to establishing materiality for the boilers suit financial statements, materiality for someone financial statement accounts should be established. The amount established for individual(a) accounts is referred to as tolerable misstatement. tolerant misstatement represents the amount individual financial statement accounts tail differ from their true amount without affecting the lovely presentation of the financial statements taken as a whole. boldness of tolerable misstatement for individual accounts enables the auditor to design and execute an a udn outline for separately audit cycle.The objective in setting tolerable misstatement for individual financial statement accounts is to provide reasonable federal agency that the financial statements taken as a whole are mediocrely presented in all material honours at the lowest embody. To provide reasonable impudence that the financial statements taken as a whole do not gear up material misstatements, the tolerable misstatement established for individual financial statement accounts should not exceed 75 percent of excogitatening materiality. The per centum threshold should be lower as the promiseation for foc exploitation fraud harvest-times.In many a(prenominal) audits it is reasonable to expect that individual financial accounts misstatements identified volitioning be less than tolerable misstatement and that misstatements crossways accounts depart depart each an some opposite(prenominal) (some identified misstatements will overstate moolah income and s ome identHied misstatements will to a lower placestate net income). This expectation is not reasonable when the likeliness of prudence fraud is hi,gh. If coun grocerying is designedly trying to misstate the financial statements, it is potential that misstatements will be systematically nonreversible in one resultion crosswise accounts.The tolerable misstatement office threshold should not exceed- - - - - - --- 7-5-percent-of- blueprintning materJality-if low-likelihood-ot worryfraud - _-- - - -- . 50 percent of stick outning materiality if sensibly low likelihood of management fraud, and 25 percent of planning materiality if objurgate likelihood of management fraud finally a lower tolerable misstatement may be needful for specific accounts because of the relevancy of the account to users. tolerable misstatement for a specific account should not exceed that amount that would trance the decision of reasonable users. Approved April 24, 2009 80 Anne Aylor, Inc. EXHIBIT 2 Anne Aylor, Inc. Accounting Policies Revenue Recognition -The conjunction learns revenue as sell is change to clients. The keep companys policy with respect to return certificates and demo separate is to record revenue as they are ransomed for merchandise. Prior to their redemption, these demonstrate certificates and commit cards are save as a li exponent.While the order honors all face certificates and gift cards presented for payment, management reviews unclaimed stead laws to determine gift certificate and gift card balances needed for escheatment to the appropriate organization agency. nubs colligate to exaltation and handling bill to clients in a gross gross gross gross sales dealing are sort out as revenue and the make up link up to shipping product to clients are sort as cost of sales. A go for for estimated returns is established when sales are put down. The federation excludes sales taxes calm from customers from net sales in Its assertion of Operations. bell of Sales and Selling, popular and Administrative Expenses- The next table Illustrates the freshmanhand be class in each major cost category live of Sales Cost of merchandise sold freight rate cost associated with moving merchandise from our suppliers to our distribution cracker __ . be asSociated with the rilovein8nt Of merchandise-through. customsr be associated with the fulfUiment of online customer orders Depreciation cogitate to merchandise management systems Sample development cost deal deficit and guest shipping be.Selling, habitual and Administrative Expenses Payroll, subvention and win cost for retail and in mergedd associates - __Design and merchandising oosts____ _ _ _ line of work be for retail and collective facilities -Depreciation relate to retail and corporate assets Advertising and commercialise be moving in and early(a) costs associated with direct our distribution center Freight spendings associated with moving merchandise from our distribution center to our retail stores and Legal, finance, culture systems and other corporate overhead costs.Advenlslng- Costs associated with the production of advertise, much(prenominal)(prenominal) as belief and other costs, as well as costs associated with communicating advertisement that has been produced, such(prenominal)(prenominal)(prenominal) as pickup ads, are expenditured when the announce counterbalance appears In print. Costs of direct mall catalogs and postcards are fully expensed when the advertising Is plan to starting signal arrive in clients homes. Leases and Oeteed split up Obligations Retail stores and administrative facilities are occupied under run allows, most of which are non-cancelable. n primeval of the store conveys subsidisation the right to filter out the term for one or devil special atomic number 23-year uttermosts under substantially the same terms and conditions as the original rents. Some store leases in any case contain early termination options, which can be practised by the confederation under specific conditions. most(prenominal) of the store leases require payment of a stipulate minimum rent, plus a contingent rent establish on a fate of the stores net sales in overabundance of a specified threshold.In addition, most of the leases require payment of real estate taxes, indemnification and original frequent area and upkeep costs In addition to the next minimum lease payments. Rent expense under non-cancelable operating leases with scheduled rent improvers or free rent power points is accounted for on a straight-line terra firma over the sign lease term beginning on the date of sign possession, which is principally when the alliance enters the space and begins device build-out Any sanely assured re new-fangledals are considered. The amount of the pleonastic of straight-line rent expense over scheduled payments is record as adeferred financial obligation. 1 Anne Aylor, IlK. grammatical construction allowances and other such lease incentives are recorded as deferred credits, and are amortized on a straight-line basis as a reduction of rent expense beginning in the decimal point they are deemed to be earned, which often is consequent to the date of initial possession and generally coincides with the store open up date. The current tidy sum of unamortized deferred lease costs and construction allowances is include in accumulated moving in, and the long-term portion is include in Deferred lease costs on the bon tons Balance Sheets.Restructuring Costs On January 30, 2008, the play along inniated a multi-year restructuring platform designed to compound protnability and improve boilersuit operating effectiveness. The restructuring program, includes conclusion underperforming stores over a leash-year occlusion, reducing the orders corporate staff by approximately 1Oo/o and undertaking a broad- found productivity scuttle that includes, among other things, the strategical procurement of non-merchandise goods and usefulnesss.Restructuring costs include non- funds expenses, to begin with associated wnh the write-down of assets colligate to store closures, change charges connect mainly to severance and heterogeneous other costs to implement the restructuring program. Liabilities associated with restructuring charges are included in increase salaties and gift, Accrued tenancy, Accrued expenses and other current liabilities, and other(a) liabilities. change in and coin Equivalents Cash and short-run highly liquefied investments with original due date dates of 3 months or less are considered cash or cash equivalents.The connection invests excessiveness cash principally in money commercialise accounts and short-term commercial paper. pecuniary Instruments- The communitys auction bridge rate securities are classified as available-for-sale and are -- carried at. cost or_ p ar_ observe,. which _appro,droaJe$J mMLV- . I_s. e_ sepurities have stated maturities beyond three months but are tolld and traded as short-term instruments due to theliquiditY-provided fnrougn - - - -ttie interesrrateresetmechanism-of-2B-or35-days- -. --- swap Inventories Merchandise inventories are valued at the lower of evenhandedly(a) cost or market, at the individual item level. market is determined ground on the estimated net realizable value, which is generally the merchandise interchange scathe. Merchandise farm animal levels are monitored to recognize slow-moving items and low assortments (items no monthlong in stock in a sufficient drop of sizes) and markdowns are used to clear such merchandise. Merchandise arsenal value is lessen if the selling price is marked below cost.Physical armoury counts are performed one-yearly in January, and estimates are make for any shortage between the date of the physical inventory count and the balance sheet date. re positing Pre-Opening Costs Non- crownwork expendnures, such as rent, advertising and paysheet costs incurred introductory to the inception of a new store are charged to expense in the period they are incurred. spot and Equipment- berth and equipment are recorded at cost. Depreciation and amortization are computed on a straight-line basis over the following estimated useful lives building . 0 eld Leasehold receiptss 10 long time or term of lease, if shorter Furniture, fixtures and equipment.. . 2-1 0 old age Software .. 5 years Accounting for the Impairment or Disposal of lasting Assets The assessment of possible declension is base on tbe Companys ability to recover the carrying value of the long-lived asset from the pass judgment time to come pre-tax cash flows (undiscounted and wnhout liaison charges).If these cash flows are Jess tha11 the carrying value of such assets, an stultification press release is recognized for the difference between estimated fair value and carrying value. The primary measure of fair value is based on discounted cash flows. The measurement of impairment requires management to make estimates of these cash flows link up to long- 82 Anne Aylor, In(. lived assets, as well as other fair value determinations. good will and lndenlte-llved Intangible Assets The Company performs annual impairment testing cerebrate to the carrying value of the Companys recorded goodwill and indefinite-lived nonphysical assets.Defeed finance Costs- Deferred finance costs are amortized victimization the effective interest method over the term of the link up debt. Self indemnity The Company is self-insured for trusted breathing outes related to its employee point of assistant medical and dental plans, its workers requital plan and for short-term hinderance up to authentic thresholds. Costs for self-insurance claims filed, as well as claims incurred but not account, are accrue based on managements estimates, use study devel opd from plan administrators, third party activities, historical analysis, and other relevant data.Costs for seH-insurance claims filed and claims incurred but not reported are accumulated based on known claims and historical develop. Income Taxes The Company accounts for income exploitation the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized, and income or expense is recorded, for the estimated laterlife tax consequences due to differences between the financial statement carrying amounts of lively assets and liabilities and their respective tax bases. Treasury transmission line Repurchases The Company repurchases park stock from time to time, subject to market conditions and at dominate market prices, through open market purchases or in privately negotiated transactions. Repurchased shares of common stock are recorded using the ost method. - -- - - -- -Stock-based Compensation- The Com pany uses the change prospective method to record stock-based - stipend--Thecalculaticinof stocK-baseifcompensatiOn exp-ense requirestne commentary ofnigtily subjective___ .. - assumptions, including the anticipate term of the stock-based awards, stock price unpredictability, and pre-vesting forfeitures. The Company estimates the expected IHe of shares established in connection with stock-based awards using historical exercise patterns, which is assumed to be representative of forthcoming behavior.The volatility of common stock at the date of grant is estimated based on an bonnie of the historical volatility and the implied volatility of publicly traded options on the common stock. In addion, the expected forfeure rate is estimated and expense is only recorded for those shares expected to vest. Forfeitures are estimated based on historical experience of stock-based awards granted, exercised and cancelled, as well as considering forthcoming expected behavior.Savings extern alize and bonus mean -In June 2006, the Companys Board of Directors important management to impede s non-contributory defined benefit bounty plan (the award Plan) and enkindle its defined role 401 (k) savings plan (the 401 (k) Plan. These plan changes became effective on October 1, 2006. Savings Plan intimately all employees of the Company and s subsidiaries who work at least 30 hours per week or who work 1,000 hours during a successive 12 month period are eligible to participate in the Companys 401 (k) Plan.Under the plan, players can conduce an aggregate of up to 75o/o of their annual wampum in any conclave of pre-tax and after-tax partings, subject to certain limations. The Company makes a matching -contribution of 1OOo/o wh respect to the start printing off 3o/o of each participants contributions to the 401 (k) Plan and makes a matching contribution of 50o/o with respect to the second 3o/o of each participants contributions to the 401 (k) Plan. bonus Plan- Subs tantially all employees of the Company who began employment previous to October 1, 2006, and completed 1,000 hours of service during a consecutive 12 month period prior to that date are eligible for benefits under the Companys tribute Plan. The Pension Plan calculates benefits based on a career average formula. Only those associates who were eligible under the Pension Plan on or to begin with September 30, 2006 are eligible to receive benefits from the Pension P an once they have completed the five years of 83 Anne Aylor, Inc. ervice required to flex fully vested. As a resut of the Pension Plan freeze, no associate may engender a participant in the Pension Plan on or after October 1, 2006, and no additional benefits will be earned under the Pension Plan on or after October 1, 2006. The Company records the net over- or under-funded position of a defined benefit postretirement plan as an other asset or other liability, with any unrecognised prior service costs, transition obligat ions or actuarial gains/losses reported as a fragment of accumulated other comprehensive income in stockholders honor. new(prenominal) Liabilities Other liabilies includes liabilities associated with the Companys restructuring program, tribute plan, borrowings for the purchase of better assets, and obligation tor excess corporate office space. - --- -- - -- --- -. - -- - - --- - 84 Anne Aylor, In(. Anne Aylor, Inc. memorandum Analysis of achievement First rear end socio-economic class cease January 28,2012 origin nimble by season G3 DF 6115111 Reviewed by interlock sales for the commencement exercise take inn of fiscal 2012 change magnitude 7. 5 percent from the source o draw in f fiscal 2011.Comparable store sales for the showtime sop up of fiscal 2012 change magnitude 5. 1 percent, compared to a similar store sales increase of 2. 5 percent in the first quarter offiscal201 J. The Company saw improvement in same store sales as a result of a targeted promoti onal scheme that helped drive change magnitude traffic to Company stores. The Company withal continues to experience growth in e-commerce sales that are up by more than 20% over the previous same period. Gross valuation reserve as a serving of net sales increased to 54. 5 percent in the first quarter of fiscal 2012, compared to 53. 0 percent in the first quarter of fiscal 2011.The increase in gross perimeter as a portion of net sales for the first quarter of fiscal 2012 as compared to the comparable fiscal 2011 period was due in the beginning to higher full price sales as a percentage of total sales conjugated with higher tolerance rates achieved on both full price and non-full price sales at stores. This performance was the result of better product offerings, effective market initiatives and the success of the Companys strategy to appropriately position inventory levels. -- -Selling, general and administrative expenses as a percentage of net sales decreased -ro481 percent -n-rhe first quanero jlsCiir20n co paredto5og peicenroj ner f m sales in the first quarter of fiscal 2011. The decrease in selling, general and administrative expenses as a percentage of net sales was primarily due to improved operating leverage as a result of higher net sales, payroll and tenancy related savings associated with the restructuring program, and go along focus on cost savings initiatives.The decrease in selling, general and administrative expenses was partially offset by higher marketing and performance-based compensation expenses. Net income as a percentage of net sales increased to 3. 8 percent in the first quarter of fiscal 2012, compared to 2. 6 percent in the first quarter of fiscal 2011. The increase in net income as a percentage of net sales is due to strong full price selling at Company stores and improved operating efficiencies. 85 Anne Aor, Inc. Anne Aylor, Inc. supply physicalness AsiiiSrnent course of study Ended January 28, 2012 uncreated Us ers of monetary commands (llat) reference book Prepared by Date Reviewed by G5 Materla ltl_Bases On thousands_ Flscal2011 unquestionable Financial affirmation Bat Amounts Income Before Taxes Net Revenues Current Uabilltles Current Assets add up Assets Planning physicalness On thousands) commentary Flscal2012 Planning Materiality Levels Projected speed Limit dispirit Limit Financial Dollar Statement Dollar Amount per centum Amounts Percent Amount 2 7 2 0. 5 7 2 7 2 0. 5 2 I$ 87 Anne Aylor, Inc. Anne Aylor, Inc. bearable Mlutatement Assessment Year Ended January 28, 2012 acknowledgment Prepared by Dale Reviewed by G6 likeliness of anxiety role player (check one) low-pitched likeliness of forethought phoney Reasonably Low Likelihood of Management Fraud curb Likelihood of Management Fraud enough Misstatement (In thousands) Planning Materiality Multiplication factor in (0. 75 if low likelihood of management fraud, 0. 50 if reasonably low likelihood of manageme nt fraud, and 0. 25 if moderate likelihood of management fraud).Tolerable Misstatement (In thousands) $ X $ pee S lflc Accounts Requiring Lower Tolerable Mlsstatement Account Tolerable Misstatement chronicle- --- - . - - .. - - - - - -- . - account statement report Explanation Explanation Explanation 88 Anne Aylor, Inc. Anne Aylor, Inc. Planning Materiality Financial Information YearEndedJanuary28,2012 Reference Prepared by G7 Data Reviewed by 1/28/2012 1/29/2011Projected Actual All amonts are in thousands 1,355,400 $ $ 1,243,788 Net sales 599,700 562,427 Cost of sales 755,700 681,361 Gross allowance account 659,800 627,622 SeiUng, general and administrative expenses 3,856 Restructuring charges 0 95,900 operate income/(loss 49,883 involvement income 700 636 1,200 Interest expense 1,009 95,400 lncome/(loss) onward income taxes 49,510 Income tax provlsion/(beneflt) 36,900 18,408 Net lncome/(loss) 58,500 $-=-$=-3a1,102 A11ets Current assets Cash and cash equivalents $ 15 6,600 $ 138,194 . ___ Accountsreceivable ____ -- --12,100 12,67o--.. - Merchandise Inventories 133,800 111,229 Refundable Income- taxes-- - - - -- - - - -- - - 18,400 16,394 Deferred income taxes Pre pay expenses and other current assets resume current assets Property and equipment net Deferred financing costs, net Deferred Income taxes Other assets integrality assets Uabllltles and Stockholdn blondness Current llabllltles Accounts payable Accrued salaries and bonus Accrued tenancy Gift certificates and merchandise credits recoverable Accrued expenses and other current Uabilltles Total current liabilities Deferred lease costs Deferred income taxes semipermanent performance compensation Other liabilities Total liabilities Stockholders fair-mindedness viridity stock and paid in capital Retained earnings Accumulated other comprehensive loss Treasury stock Total stockholders equity . Total liabilities and stockholders equity $