Gamestop and its Individual Asset and Liabilities, Net Sales, and Net Loss

Please work on the mini project about GameStop based on the instructions listed in this document that I up load.
Please upload a word or pdf document of the work before the deadline.

MINI PROJECT #1 PART A (SEC Filing) The following questions require you to find information contained in GAMESTOP’s annual reports, also known as the 10-K filings with the SEC. You can find the 10-Ks on the SEC Edgar website: http://www.sec.gov/edgar/searchedgar/companysearch.html Search for “GAMESTOP” or ticker symbol “GME.” Then click on “Classic version” on the top right corner on the page. Filter the results by entering “10-K” in the “Filing Type:” field. 1. How many 10-K filings does GAMESTOP have (ignore the amended file)? In other words, how many years has GAMESTOP been around as a public company and how many annual reports has it filed? ____ 2. What is GAMESTOP’s last day of the fiscal year? You can find this on the cover page of each 10-K. Now notice the exact date that each year’s 10-K was filed. How many days has it taken GAMESTOP to publish its 10-K after the end of its fiscal year? Calculate the number of days for each of the last three fiscal years and comment about the trend (if any). Fiscal Year Last day of the fiscal year Date of the 10-K filing Number of days in between 2020 2019 2018 Comment on the trend: __________________________________________________ 3. Bring up the entire 10-K for the most recent year. Find the Consolidated Balance Sheets and Consolidated Statements of Operations. Notice the PRECISE dates and dollar units for all the headings (your answers must be consistent with GAMESTOP’s format). Answer the following questions for just the most recent fiscal year. a. What was the largest individual asset account (not including subtotals) and its amount? [Operating lease right-of-use assets: $ 662.1 (in millions)] b. What was the largest individual liability account (not including subtotals) and its amount? [Accrued liabilities and other current liabilities: $ 626.8 (in millions)] c. What was the largest individual equity account (not including subtotals) and its amount? [Retained earnings: $ 474.9 (in millions)] d. What was the amount of Revenue? [$5,089. 8 (in millions)] e. What was the largest expense account (not including subtotals) and its amount? [Cost of sales 3830.3 (in millions)] 4. Find Item 7, Management’s Discussion and Analysis (MD&A) of Financial Condition and Results of Operations. Read through what company management has to say and answer the following questions. a. In your own words, and in the simplest one sentence, explain how GAMESTOP generates revenue (sales)? [sell games and entertainment products through its e-commerce properties and thousands of stores .] Page 2 of 3 b. In one or two sentences, summarize the impact of COVID-19 on GAMESTOP’s revenue and expenses. [lower revenue due to Store closures; Additional costs of $25 million to ensure employment a nd customer safety.] c. Use one sentence to summarize the time trend of GAMESTOP’s revenue during fiscal years from 2018 to 2020. [decr ease] d. What major product category does GAMESTOP have? Use one sentence to summarize the time trend of each product category’s revenue for fiscal years from 2018 to 2020. [Hardware and accessories, Software, Collectibles, all are decreasing, except a slight increase for collectibles in 2019] e. What is GAMESTOP’s business strategy for the fiscal year 2020? Answer with one or two sentences. [strategy: Stabilize and Optimize the core business; cost restructuring, inventory management optimization, adding high margin product categories, and rationalize the global store base (de-densify store base or optimize the store base); transform GameStop for the future by expanding our addressable market and product offerings to drive growth in the gaming and entertainment industries.] f. What actions have been taken to purse this strategy in the fiscal year 2020? Answer with one or two sentences. [store closings, exit unprofitable businesses, or invest in e-commerce capabilities.] 5. Find GAMESTOP’s net income for the fiscal year 2020. Find GAMESTOP’s stock prices from Yahoo! Finance (https://finance.yahoo.com/ → search by name or ticker → Historical Data) and compute its raw stock returns for the same period. Net loss (215.3) million Close price 1/29/2021=325.00 Beginning price 2/3/2020=3.88 (or 3.84, close price on 1/31/2020) Return=8276% (or 8364%) PART B (Press Release & Conference Call): This part requires you to read a press release announcing GAMESTOP’s 2021 Q2 earnings results and listen to a conference call via an archived webcast. One way to bring up the press release (do not go to the SEC website): a. Go to GAMESTOP’s Investor Relations website: https://gamestop.gcs-web.com/ b. “GAMESTOP Q2 2021” is featured on the GAMESTOP’s Investor Relations website. If not, click on “Newsroom,” then try to find quarterly earnings releases for “2021 Q2”. The following questions can be answered from a careful reading of the press release. 1. What dates did the company’s 2021 Q2 quarter begin and end? 2. In the “SECOND QUARTER OVERVIEW”, what action(s) that GAMESTOP take in Q2 that best correspond to its business strategy (as discussed in Question Part A 4e)? [“Invested in long-term growth initiatives that include expanding the Company’s product catalog, enhancing its fulfillment network capabilities and technology, and adding talent across the organization.” OR “Entered into a lease of a new 530,000 square foot fulfillment center in Reno, Nevada, positioning the Company’s fulfillment network to span both coasts of the continental U.S.”] 3. Is the company’s financial reports audited? Page 3 of 3 4. What is the GAAP net income (loss) for 2021 Q2? 5. Did GAMESTOP provide non-GAAP net income (loss)? If so, what is its non-GAAP net income (loss) for 2021 Q2? [Yes, Adjusted net loss 55 million OR Adjusted EBITDA (29.5) million] To listen to the conference call that discusses the 2021 Q2 results, do one of the following: a. Go to GAMESTOP’s Investor Relations website, and you should be able to identify the relevant conference call. If not, google “gmaestop 2021 q2 conference call”. OR b. You can google “gmaestop 2021 q2 conference call transcript” to get the transcript. 7. On what exact date and time did this conference call originally take place? [Sep 08, 2021, 5:00 p.m. ET] 8. Which members of management and their titles participated on the conference call? [Matt Furlong -- Chief Executive Officer] 9. Did GAMESTOP provide forecasts to guide investors’ expectation for its outlook? [NO] 10. Did GAMESTOP host a Q&A session to answer investors’ questions, a practice that most companies take during conference calls. [NO] 11. Open-end question: What is the most useful information you learned from the conference call? Briefly answer with one or two sentences in your own words. [op