Posted: April 21st, 2016

4 What was the amount of advertising expense for 2012?

13a Distinguish between capital and operating leases.
13b Which type of lease does Kroger make greater use of?
13c What was the total net rent expense for 2012?

14 What was the amount of advertising expense for 2012?

15 Kroger’s sales are for cash. Why are there accounts receivable on the balance sheet?

16a Kroger has three types of benefit plans: qualified, non-qualified, and other. What is the funded status of these plans as of the end of 2012?
16b How, if at all, is this funding status reflected in the balance sheet?
16c What amount of expense was recognized for these three types of plan in 2012?
16d Kroger’s pension fund assets are invested largely in three types of investment. Identify these, and comment briefly.

17a What segments (product types) does Kroger divide its operations into?
17b What trend is observable in the relative importance of these segments in terms of sales?

18a Compute the following for years 2012, 2011, and 2010: gross profit margin, operating profit margin, net profit margin (return on sales).
18b Comment on Kroger’s profitability based on the above.