Annual Report for Skull Candy Inc Free Essay Example, 1750 words

The credit facility provides their lenders with a first-priority lien against all assets and consists of financial obligations and other requirements on actions, which in turn, could limit the operational flexibility. If the internal controls over financial reporting are not of considerate, the business and stock price could attract negative impact. The executive office is at Utah on a 28000sq foot and another 11000 sq feet at California that is set for space expansion plus another 7500 sq feet for gaming purposes. In China, there are a total of 20000 sq feet for other future development purposes and lastly, another 1000 sq feet in Tokyo, Japan, which serves as a marketing office site. Anybody is free to sue the business at his or her own will just as the way the company also has the authority to sue any individual or person for any legal matters arising in a court of law. Skull Candy s registration trade symbol is SKUL that was registered on 20 July 2010.The chief basic earnings of the company are from headphones and audio accessories sales under the Skull Candy, Astros Gamming and 2XL who operate under the company s brand names. The net sales include the amounts billed to retailers for shipping and handling of cargos too. The product costs, packaging, freight, duties and warehousing all have an influence on the cost of goods sold. Due to high labor costs and other related costs incurred in China, the company, therefore, experiences higher production costs. If the distributors could have elimination from the supply chain, the gross margin, therefore, could have decreased. Marketing and advertising expenses, wages, payroll and employees beneficiaries form part of the general and administrative expenses incurred by the business. We will write a custom essay sample on Annual Report for Skull Candy Inc or any topic specifically for you Only $17.96 $11.86/pageorder now They include the advertising costs, brand building fixtures, trade sponsorships, product promotions and sponsorship of athletes. The net sales of the company have a basis from the sale of the headphones and audio accessories under the Skull Candy, Astor Gamming and the Skull Candy brand names.