SOLUTION MANUAL
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS AND DAVID SPICELAND AND
MARK NELSON
CHAPTER 1 bd
bd A FRAMEWORK FOR FINANCIAL ACCOUNTING
bd bd bd bd
REAL WORLD PERSPECTIVES
bd bd bd
5 5-1
, RWP1-1 EDGAR Nike (ticker: NKE)
bd bd bd bd
Requirement 1 bd
a. $23,717 million bd
b. $9,040 million bd
c. Total liabilities = Total assets –
bd bd bd bd bd
total shareholder’s equity
bd bd bd
$23,717 – $9,040 = $14,677 millionbd bd bd bd bd
Requirement 2 bd
a. $39,117 million. Revenue increased from the previous yea
bd bd bd bd bd bd bd
r.
b. $4,029 million. Net income increased from the previous ye
bd bd bd bd bd bd bd bd
ar.
Requirement 3 bd
a. Operating cash flow = $5,903 million. Operating cash flow was more positiv
bd bd bd bd bd bd bd bd bd bd bd
e
than the previous year.
bd bd bd
b. Investing cash flow = −$264 million. Investing cash flow went from positive
bd bd bd bd bd bd bd bd bd bd bd
bd tonegative from the previous year.
b
d bd bd bd bd
c. Financing cash flow = −$5,293 million. Financing cash flow was more negat
bd bd bd bd bd bd bd bd bd bd bd
ive
than the previous year.
bd bd bd
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
bd bd bd bd bd
Requirement 1 bd
a. Average paying membership increased by 23% and average monthly revenu
bd bd bd bd bd bd bd bd bd
e perbd
5-2
, paying membership increased by 5%.
bd bd bd bd
b. $2,795,434 / $20,156,447 = 13.9%
bd bd bd bd
c. $2,652,462, 13% of revenues
bd bd bd
Requirement 2 bd
a. $9,801,215 / $24,504,567 = 40
bd bd bd bd
%
b. $33,141 million
bd
5 5-3
, a. $20,723,441. Long- b d
term debt went up from the previous year.
bd bd bd bd bd bd bd
b. $736,969
Requirement 4 bd
9%
Requirement 5 bd
a. Ernst & Young LLP
bd bd bd
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
bd bd bd bd bd bd
Requirement 1 bd
First Quarter.
bd
Requirement 2 bd
August 26, 2018. The same quarter of last year is used as the comparison quarter.
bd bd b d bd bd bd bd bd bd bd bd bd bd bd
Requirement 3 bd
The quarterly report includes 15 notes.
bd bd bd bd bd
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
bd bd bd bd bd
Requirement 1 bd
The COVID-19 pandemic.
bd bd
5-4
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS AND DAVID SPICELAND AND
MARK NELSON
CHAPTER 1 bd
bd A FRAMEWORK FOR FINANCIAL ACCOUNTING
bd bd bd bd
REAL WORLD PERSPECTIVES
bd bd bd
5 5-1
, RWP1-1 EDGAR Nike (ticker: NKE)
bd bd bd bd
Requirement 1 bd
a. $23,717 million bd
b. $9,040 million bd
c. Total liabilities = Total assets –
bd bd bd bd bd
total shareholder’s equity
bd bd bd
$23,717 – $9,040 = $14,677 millionbd bd bd bd bd
Requirement 2 bd
a. $39,117 million. Revenue increased from the previous yea
bd bd bd bd bd bd bd
r.
b. $4,029 million. Net income increased from the previous ye
bd bd bd bd bd bd bd bd
ar.
Requirement 3 bd
a. Operating cash flow = $5,903 million. Operating cash flow was more positiv
bd bd bd bd bd bd bd bd bd bd bd
e
than the previous year.
bd bd bd
b. Investing cash flow = −$264 million. Investing cash flow went from positive
bd bd bd bd bd bd bd bd bd bd bd
bd tonegative from the previous year.
b
d bd bd bd bd
c. Financing cash flow = −$5,293 million. Financing cash flow was more negat
bd bd bd bd bd bd bd bd bd bd bd
ive
than the previous year.
bd bd bd
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
bd bd bd bd bd
Requirement 1 bd
a. Average paying membership increased by 23% and average monthly revenu
bd bd bd bd bd bd bd bd bd
e perbd
5-2
, paying membership increased by 5%.
bd bd bd bd
b. $2,795,434 / $20,156,447 = 13.9%
bd bd bd bd
c. $2,652,462, 13% of revenues
bd bd bd
Requirement 2 bd
a. $9,801,215 / $24,504,567 = 40
bd bd bd bd
%
b. $33,141 million
bd
5 5-3
, a. $20,723,441. Long- b d
term debt went up from the previous year.
bd bd bd bd bd bd bd
b. $736,969
Requirement 4 bd
9%
Requirement 5 bd
a. Ernst & Young LLP
bd bd bd
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
bd bd bd bd bd bd
Requirement 1 bd
First Quarter.
bd
Requirement 2 bd
August 26, 2018. The same quarter of last year is used as the comparison quarter.
bd bd b d bd bd bd bd bd bd bd bd bd bd bd
Requirement 3 bd
The quarterly report includes 15 notes.
bd bd bd bd bd
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
bd bd bd bd bd
Requirement 1 bd
The COVID-19 pandemic.
bd bd
5-4
