Disclosure Paper
Essay title: Disclosure Paper
Company Overview
PETsMART is a nationwide retail store that provides quality products for dogs cats, birds and other exotic animals. They carry a range of products such as dog food, cat food, and even toys from the basic and the weird a wacky. However, PETsMART is more then just a place to pick up food and toys for your loved pet, it is place to go for grooming veterinarian services or even a fun atmosphere to walk your dog while browsing through the isles.
Pacific Coast Distributing, Inc was started in 1986 by Jim Doughety as a Delaware corporation. The actual first pet food warehouse was opened in Phoenix, Arizona in 1987. The store’s name changed from Pacific Coast Distributing, Inc. to PETsMART in 1988. Over the years PETsMART grew through mergers and acquisitions, not only did this expand PETsMART product line, but it also expanded the services they offer. By 1999 not only did they have retail store front online they also had store fronts in Canada. (2008)
These acquisitions expanded PETsMART from a place to pick up basic food and toys for your pet to PETsMART a total pet care solution. Petsmart offers a wide variety of products and services for pets and their parents. These products range from a huge selection of pet food ranging from vegetarian to a full meaty blend, even specialty pet diet food. Food it not only product that Petsmart offers chew toys, squeaky toys, or edible guinea pig tiqi huts are just a few of the other products offered.
Beyond products Petsmart offers grooming, boarding, and even veterinarian services. A parent can have their pets’ nails done, fur cleaned, and even have their ears cleaned at the local Petsmart salon. Boarding is another service offered that allows parents to drop off their dog or cat for a day or a night stay so they may relax that their pet is in good hands. Vet care is another one of the services that is offered through Petsmart however this service is operated independently of Petsmart through BanField which Petsmart owns 20.5 percent market share. (2008)
Cash and Cash Equivalents
PETsMART had a cash and cash equivalent of $87,032 in 2005 which was down $5,503 from 2004. In 2004 PETsMART reported on its consolidated balance sheet a total of $92,535 in cash and cash equivalents (2005). Cash and cash equivalents are the money the company has available to them to use to operate. (Keiso, Weygandt, and Warfield, 2007) PETsMART is one of the companies that does not list all of its cash equivalents on its balance sheet. (2005)
Accounts Receivable
PETsMART reported accounts receivable for 2005 was $27,123. This was increase from the previous year. In 2004 PETsMART had reported accounts receivable at $17,044 which is a $10,079 difference. There were no further notes about accounts receivable in PETsMART’s annual report. (2005)
Merchandise Inventory
PETsMART’s merchandise inventories are stated at the lower of cost or market and