SOLUTION MANUAL FOR
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS
AND DAVID SPICELAND AND MARK NELSON
CHAPTER 1 8
8 A FRAMEWORK FOR FINANCIAL ACCOUNTING
8 8 8 8
8REAL WORLD PERSPECTIVES
8 8
RWP1-1 EDGAR Nike (ticker: NKE)
8 8 8 8
Requirement81
a. $23,7178million
b. $9,0408million
c. Total8liabilities8=8Total8assets8–8total8shareholder’s8equity
$23,7178–8$9,0408=8$14,6778million
Requirement82
a. $39,1178million.8Revenue8increased8 from8the8previous8year.
b. $4,0298million.8Net8income8increased8from8the8previous8year.
Requirement83
a. Operating8cash8flow8=8$5,9038million.8Operating8cash8flow8was8more8positive
than8the8previous8 year.
b. Investing8cash8flow8=8−$2648million.8Investing8cash8flow8went8from8positive8to8ne
gative8from8the8previous8year.
c. Financing8cash8flow8=8−$5,2938million.8Financing8cash8flow8was8more8negative
than8the8previous8year.
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
8 8 8 8 8
Requirement81
a. Average8paying8membership8increased8by823%8and8average8monthly8revenue8per
paying8membership8increased8by85%.
b. $2,795,4348/8$20,156,4478=813.9%
c. $2,652,462,813%8of8revenues
Requirement82
a. $9,801,2158/8$24,504,5678=840%
b. $33,1418million
©McGraw8Hill8LLC.8All8rights8reserved.8No8reproduction8or8further8distribution8permitted8without8the8prior8written8consent8of8McGraw8Hill8LL
C
Solutions 8Manual,8 Chapter8 5-1
5
,©McGraw8Hill8LLC.8All8rights8reserved.8No8reproduction8or8further8distribution8permitted8without8the8prior8written8consent8of8McGraw8Hill8
LLC
5-2 Financial8Accounting8for8Manager
s
,Requirement83
a. $20,723,441.8 Long-term8debt8went8up8from8the8previous8year.
b. $736,969
Requirement84
9%
Requirement85
a. Ernst8&8Young8LLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
8 8 8 8 8 8
Requirement81
First8Quarter.
Requirement82
August826,82018.8 The8same8quarter8of8last8year8 is8used8as8the8comparison8quarter.
Requirement83
The8quarterly8report8includes8158notes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
8 8 8 8 8
Requirement81
The8COVID-198pandemic.
Requirement82
On8March823,82020,8the8Company8announced8that8it8would8be8taking8several8steps8in8an8abundance8o
f8caution8to8proactively8strengthen8its8financial8flexibility8and8navigate8through8this8unprecedented8sit
uation.8Specifically,8the8Company8suspended8its8quarterly8dividend8beginning8in8the8second8quarter8
of82020,8drew8down8$8008million8on8its8Revolving8Credit8Facility,8targeted8further8reductions8of8mo
re8than8$5008million8in8operating8expenses,8capital8expenditures,8and8working8capital,8and8suspende
d8share8repurchases.
©McGraw8Hill8LLC.8All8rights8reserved.8No8reproduction8or8further8distribution8permitted8without8the8prior8written8consent8of8McGraw8Hill8LL
C
Solutions 8Manual,8 Chapter8 5-3
5
, RWP1-5 Financial Analysis: American Eagle
8 8 8 8
($8in8thousands)
Requirement81
Total8assets =8$3,328,679
Total8liabilities
=8$2,080,8268
Stockholders’8equity =8$1,247,853
Assets = Liabilities + Stockholders’8Equity
$3,328,679 = $2,080,826 + $1,247,853
Requirement82
Consolidated8Statements8of8Operations
Requirement83
Net8sales =8$4,308,212
Net8income =8$191,257
Requirement84
Inflows Outflows
Investing8activities Sale8of8available-for-sale Capital8expenditures8for
investments property8and8equipment
Financing8activities Net8proceeds8from8stock8 Repurchase8of8common8stock
options8exercised
Requirement85
The8company’s8auditor8is8Ernst8&8Young8LLP.
The8auditor8states,8―We8have8audited8the8accompanying8consolidated8balance8sheets8of8American8Ea
gle8Outfitters,8Inc.8(the8Company)8as8of8February81,820208and8February82,82019,8the8related8consolid
ated8statements8of8operations,8comprehensive8income,8stockholders’8equity8and8cash8flows8for8each8
of8the8three8years8in8the8period8ended8February81,82020,8and8the8related8notes8(collectively8referred8to
8as8the8―consolidated8financial8statements‖).8 In8our8opinion,8 the8consolidated8 financial8statements8pre
sent8fairly,8in8all8material8respects,8the8financial8position8of8the8Company8at8February81,820208and8Fe
bruary82,82019,8and8the8results8of8its8operations8and8its8cash8flows8for8each8of8the8three8years8in8the8pe
riod8ended8February81,82020,8in8conformity8with8U.S.8generally8accepted8accounting8principles.‖
©McGraw8Hill8LLC.8All8rights8reserved.8No8reproduction8or8further8distribution8permitted8without8the8prior8written8consent8of8McGraw8Hill8
LLC
5-4 Financial8Accounting8for8Manager
s
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS
AND DAVID SPICELAND AND MARK NELSON
CHAPTER 1 8
8 A FRAMEWORK FOR FINANCIAL ACCOUNTING
8 8 8 8
8REAL WORLD PERSPECTIVES
8 8
RWP1-1 EDGAR Nike (ticker: NKE)
8 8 8 8
Requirement81
a. $23,7178million
b. $9,0408million
c. Total8liabilities8=8Total8assets8–8total8shareholder’s8equity
$23,7178–8$9,0408=8$14,6778million
Requirement82
a. $39,1178million.8Revenue8increased8 from8the8previous8year.
b. $4,0298million.8Net8income8increased8from8the8previous8year.
Requirement83
a. Operating8cash8flow8=8$5,9038million.8Operating8cash8flow8was8more8positive
than8the8previous8 year.
b. Investing8cash8flow8=8−$2648million.8Investing8cash8flow8went8from8positive8to8ne
gative8from8the8previous8year.
c. Financing8cash8flow8=8−$5,2938million.8Financing8cash8flow8was8more8negative
than8the8previous8year.
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
8 8 8 8 8
Requirement81
a. Average8paying8membership8increased8by823%8and8average8monthly8revenue8per
paying8membership8increased8by85%.
b. $2,795,4348/8$20,156,4478=813.9%
c. $2,652,462,813%8of8revenues
Requirement82
a. $9,801,2158/8$24,504,5678=840%
b. $33,1418million
©McGraw8Hill8LLC.8All8rights8reserved.8No8reproduction8or8further8distribution8permitted8without8the8prior8written8consent8of8McGraw8Hill8LL
C
Solutions 8Manual,8 Chapter8 5-1
5
,©McGraw8Hill8LLC.8All8rights8reserved.8No8reproduction8or8further8distribution8permitted8without8the8prior8written8consent8of8McGraw8Hill8
LLC
5-2 Financial8Accounting8for8Manager
s
,Requirement83
a. $20,723,441.8 Long-term8debt8went8up8from8the8previous8year.
b. $736,969
Requirement84
9%
Requirement85
a. Ernst8&8Young8LLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
8 8 8 8 8 8
Requirement81
First8Quarter.
Requirement82
August826,82018.8 The8same8quarter8of8last8year8 is8used8as8the8comparison8quarter.
Requirement83
The8quarterly8report8includes8158notes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
8 8 8 8 8
Requirement81
The8COVID-198pandemic.
Requirement82
On8March823,82020,8the8Company8announced8that8it8would8be8taking8several8steps8in8an8abundance8o
f8caution8to8proactively8strengthen8its8financial8flexibility8and8navigate8through8this8unprecedented8sit
uation.8Specifically,8the8Company8suspended8its8quarterly8dividend8beginning8in8the8second8quarter8
of82020,8drew8down8$8008million8on8its8Revolving8Credit8Facility,8targeted8further8reductions8of8mo
re8than8$5008million8in8operating8expenses,8capital8expenditures,8and8working8capital,8and8suspende
d8share8repurchases.
©McGraw8Hill8LLC.8All8rights8reserved.8No8reproduction8or8further8distribution8permitted8without8the8prior8written8consent8of8McGraw8Hill8LL
C
Solutions 8Manual,8 Chapter8 5-3
5
, RWP1-5 Financial Analysis: American Eagle
8 8 8 8
($8in8thousands)
Requirement81
Total8assets =8$3,328,679
Total8liabilities
=8$2,080,8268
Stockholders’8equity =8$1,247,853
Assets = Liabilities + Stockholders’8Equity
$3,328,679 = $2,080,826 + $1,247,853
Requirement82
Consolidated8Statements8of8Operations
Requirement83
Net8sales =8$4,308,212
Net8income =8$191,257
Requirement84
Inflows Outflows
Investing8activities Sale8of8available-for-sale Capital8expenditures8for
investments property8and8equipment
Financing8activities Net8proceeds8from8stock8 Repurchase8of8common8stock
options8exercised
Requirement85
The8company’s8auditor8is8Ernst8&8Young8LLP.
The8auditor8states,8―We8have8audited8the8accompanying8consolidated8balance8sheets8of8American8Ea
gle8Outfitters,8Inc.8(the8Company)8as8of8February81,820208and8February82,82019,8the8related8consolid
ated8statements8of8operations,8comprehensive8income,8stockholders’8equity8and8cash8flows8for8each8
of8the8three8years8in8the8period8ended8February81,82020,8and8the8related8notes8(collectively8referred8to
8as8the8―consolidated8financial8statements‖).8 In8our8opinion,8 the8consolidated8 financial8statements8pre
sent8fairly,8in8all8material8respects,8the8financial8position8of8the8Company8at8February81,820208and8Fe
bruary82,82019,8and8the8results8of8its8operations8and8its8cash8flows8for8each8of8the8three8years8in8the8pe
riod8ended8February81,82020,8in8conformity8with8U.S.8generally8accepted8accounting8principles.‖
©McGraw8Hill8LLC.8All8rights8reserved.8No8reproduction8or8further8distribution8permitted8without8the8prior8written8consent8of8McGraw8Hill8
LLC
5-4 Financial8Accounting8for8Manager
s
