<F-1>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
LADD Furniture, Inc.:
Under date of February 6, 1998, we reported on the consolidated balance sheets
of LADD Furniture, Inc. and subsidiaries as of December 28, 1996 and January 3,
1998 and the related consolidated statements of operations, shareholders' equity
and cash flows for each of the years in the three-year period ended January 3,
1998, as contained in the annual report on Form 10-K for the year ended January
3, 1998. These consolidated financial statements and our report thereon are
included in the annual report on Form 10-K for the year ended January 3, 1998.
In connection with our audits of the aforementioned consolidated financial
statements, we also have audited the related financial statement schedule as
listed in the accompanying index. This financial statement schedule is the
responsibility of the company's management. Our responsibility is to express an
opinion on this financial statement schedule based on our audits.
In our opinion, such financial statement schedule, when considered in relation
to the basic consolidated financial statements taken as a whole, presents
fairly, in all material respects, the information set forth therein.
Greensboro, North Carolina
February 6, 1998
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LADD FURNITURE, INC. AND SUBSIDIARIES Schedule II
Valuation and Qualifying Accounts and Reserves
(dollar amounts in thousands)
Charged
Balance at (credited) Balance at
beginning of to costs and Charged to Deductions end of
Description year expenses other accounts (c) year
- - ----------------------------- ---------------- ---------------- ------------------ ------------ -------------
Year ended January 3, 1997 .
Doubtful receivables $1,625 781 - (1,177) 1,229
Discounts 83 (3)(b) - - 80
Returns and Allowances 1,297 129 (b) - - 1,426
--------------- ---------------- ------------------ ------------ -------------
$3,005 907 - (1,177) 2,735
=============== ================ ================== ============ =============
Year ended December 28, 1996
Doubtful receivables $2,553 3,308 (540)(a) (3,696) 1,625
Discounts 123 (40)(b) - - 83
Returns and Allowances 1,381 (84)(b) - - 1,297
--------------- ---------------- ------------------ ------------ -------------
$4,057 3,184 (540) (3,696) 3,005
=============== ================ ================== ============ =============
Year ended December 30, 1995
Doubtful receivables $2,832 2,898 . (1,085)(a) (2,092) 2,553
Discounts 0 123 (b) - - 123
Returns and Allowances 1,462 (36)(b) (45)(a) - 1,381
--------------- ---------------- ------------------ ------------ -------------
$4,294 2,985 (1,130) (2,092) 4,057
=============== ================ ================== ============ =============
Notes
(a) Represents businesses divested or reclassified to businesses held for
sale.
(b) Represents net increase (decrease) in required reserve.
(c) Represents uncollectible receivables written-off, net of recoveries.