ACCESS Test Bank for Financial Accounting for Managers 1st Edition Thoma
m m m m m m m m m m
s
CHAPTER 1 m
A FRAMEWORK FOR FINANCIAL ACCOUNTING
m m m m
m REAL WORLD PERSPECTIVES
m m
RWP1-1 EDGAR Nike (ticker: NKE)
m m m m
Requirementm1
a. $23,717mmillion
b. $9,040mmillion
c. Totalmliabilitiesm=mTotalmassetsm–mtotalmshareholder’smequity
$23,717m–m$9,040m=m$14,677mmillion
Requirementm2
a. $39,117mmillion.mRevenuemincreased mfrommthempreviousmyear.
b. $4,029mmillion.mNet mincomemincreased mfrommthempreviousmyear.
Requirementm3
a. Operatingmcashmflow m=m$5,903mmillion.mOperatingmcashmflow mwasmmorempositive
thanmthempreviousmyear.
b. Investingmcashmflow m=m−$264mmillion.mInvestingmcashmflow mwentmfrommpositivem
tomnegativemfrommthempreviousmyear.
c. Financingmcashmflow m=m−$5,293mmillion.mFinancingmcashmflow mwasmmoremnegative
thanmthempreviousmyear.
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
m m m m m
Requirementm1
a. Averagempayingmmembershipmincreased mbym23%mand maveragemmonthlymrevenuemp
ermpayingmmembershipmincreased mbym5%.
b. $2,795,434m/m$20,156,447m=m13.9%
c. $2,652,462,m13%mof mrevenues
Requirementm2
a. $9,801,215m/m$24,504,567m=m40%
b. $33,141mmillion
©McGrawmHillmLLC.mAllmrightsmreserved.mNomreproductionmormfurthermdistributionmpermitted mwithoutmthempriormwritten mconsentmofmMcGrawmHillmLLC.
Solutions mManual,m Chapter m1 1-1
mynursytest.store
,ACCESS Test Bank for Financial Accounting for Managers 1st Edition Thoma
m m m m m m m m m m
s
Requirementm3
a. $20,723,441.m Long-termmdebt mwent mupmfrommthempreviousmyear.
b. $736,969
Requirementm4
9%
Requirementm5
a. Ernst m&mYoungmLLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
m m m m m m
Requirementm1
First mQuarter.
Requirementm2
August m26,m2018.m Themsamemquartermof mlast myearmismused masmthemcomparisonmquarter.
Requirementm3
Themquarterlymreport mincludesm15mnotes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
m m m m m
Requirementm1
ThemCOVID-19mpandemic.
Requirementm2
OnmMarchm23,m2020,mthemCompanymannounced mthat mit mwould mbemtakingmseveralmstepsminmanmabundan
cemof mcautionmtomproactivelymstrengthenmitsmfinancialmflexibilitymand mnavigatemthroughmthismunprecede
nted msituation.mSpecifically,mthemCompanymsuspended mitsmquarterlymdividend mbeginningminmthemsecon
d mquartermof m2020,mdrew mdownm$800mmillionmonmitsmRevolvingmCredit mFacility,mtargeted mfurthermredu
ctionsmof mmoremthanm$500mmillionminmoperatingmexpenses, mcapital mexpenditures,mand mworkingmcapital
,mand msuspended msharemrepurchases.
©McGrawmHillmLLC.mAllmrightsmreserved. mNo mreproduction mormfurthermdistribution mpermitted mwithoutmthempriormwritten mconsentmofmMcGrawmHillmLLC.
1-2 FinancialmAccountingmfor mManagers
mynursytest.store
,ACCESS Test Bank for Financial Accounting for Managers 1st Edition Thoma
m m m m m m m m m m
s
RWP1-5 Financial Analysis: American Eagle
m m m m
($minmthousands)
Requirementm1
Totalmassets =m$3,328,679
Totalmliabilities =m$2,080,826
Stockholders’mequity =m$1,247,853
Assets = Liabilities + Stockholders’mEquity
$3,328,679 = $2,080,826 + $1,247,853
Requirementm2
Consolidated mStatementsmof mOperations
Requirementm3
Net msales =m$4,308,212
Net mincome =m$191,257
Requirementm4
Inflows Outflows
Investingmactivities Salemof mavailable-for- Capitalmexpendituresmformpro
saleminvestments pertymand mequipment mRepurc
Financingmactivities hasemof mcommonmstock
Net mproceedsmfro
mmstockmoptionsmexe
rcised
Requirementm5
Themcompany’smauditormismErnst m&mYoungmLLP.
Themauditormstates,m“Wemhavemaudited mthemaccompanyingmconsolidated mbalancemsheetsmof mAmericanm
EaglemOutfitters,mInc.m(themCompany)masmof mFebruarym1,m2020mand mFebruarym2,m2019,mthemrelated mcon
solidated mstatementsmof moperations,mcomprehensivemincome,mstockholders’mequitymand mcashmflowsmfor
meachmof mthemthreemyearsminmthemperiod mended mFebruarym1,m2020,mand mthemrelated mnotesm(collectivelymr
eferred mtomasmthem“consolidated mfinancialmstatements”).mInmourmopinion,mthemconsolidated mfinancialmst
atementsmpresent mfairly,minmallmmaterialmrespects,mthemfinancialmpositionmof mthemCompanymat mFebruary m
1,m2020mand mFebruarym2,m2019,mand mthemresultsmof mitsmoperationsmand mitsmcashmflowsmformeachmof mthemt
hreemyearsminmthemperiod mended mFebruarym1,m2020,minmconformitymwithmU.S.mgenerallymaccepted macco
untingmprinciples.”
mynursytest.store
, ACCESS Test Bank for Financial Accounting for Managers 1st Edition Thoma
m m m m m m m m m m
s
©McGrawmHillmLLC.mAllmrightsmreserved.mNomreproductionmormfurthermdistributionmpermitted mwithoutmthempriormwritten mconsentmofmMcGrawmHillmLLC.
Solutions mManual,m Chapter m1 1-3
mynursytest.store
m m m m m m m m m m
s
CHAPTER 1 m
A FRAMEWORK FOR FINANCIAL ACCOUNTING
m m m m
m REAL WORLD PERSPECTIVES
m m
RWP1-1 EDGAR Nike (ticker: NKE)
m m m m
Requirementm1
a. $23,717mmillion
b. $9,040mmillion
c. Totalmliabilitiesm=mTotalmassetsm–mtotalmshareholder’smequity
$23,717m–m$9,040m=m$14,677mmillion
Requirementm2
a. $39,117mmillion.mRevenuemincreased mfrommthempreviousmyear.
b. $4,029mmillion.mNet mincomemincreased mfrommthempreviousmyear.
Requirementm3
a. Operatingmcashmflow m=m$5,903mmillion.mOperatingmcashmflow mwasmmorempositive
thanmthempreviousmyear.
b. Investingmcashmflow m=m−$264mmillion.mInvestingmcashmflow mwentmfrommpositivem
tomnegativemfrommthempreviousmyear.
c. Financingmcashmflow m=m−$5,293mmillion.mFinancingmcashmflow mwasmmoremnegative
thanmthempreviousmyear.
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
m m m m m
Requirementm1
a. Averagempayingmmembershipmincreased mbym23%mand maveragemmonthlymrevenuemp
ermpayingmmembershipmincreased mbym5%.
b. $2,795,434m/m$20,156,447m=m13.9%
c. $2,652,462,m13%mof mrevenues
Requirementm2
a. $9,801,215m/m$24,504,567m=m40%
b. $33,141mmillion
©McGrawmHillmLLC.mAllmrightsmreserved.mNomreproductionmormfurthermdistributionmpermitted mwithoutmthempriormwritten mconsentmofmMcGrawmHillmLLC.
Solutions mManual,m Chapter m1 1-1
mynursytest.store
,ACCESS Test Bank for Financial Accounting for Managers 1st Edition Thoma
m m m m m m m m m m
s
Requirementm3
a. $20,723,441.m Long-termmdebt mwent mupmfrommthempreviousmyear.
b. $736,969
Requirementm4
9%
Requirementm5
a. Ernst m&mYoungmLLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
m m m m m m
Requirementm1
First mQuarter.
Requirementm2
August m26,m2018.m Themsamemquartermof mlast myearmismused masmthemcomparisonmquarter.
Requirementm3
Themquarterlymreport mincludesm15mnotes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
m m m m m
Requirementm1
ThemCOVID-19mpandemic.
Requirementm2
OnmMarchm23,m2020,mthemCompanymannounced mthat mit mwould mbemtakingmseveralmstepsminmanmabundan
cemof mcautionmtomproactivelymstrengthenmitsmfinancialmflexibilitymand mnavigatemthroughmthismunprecede
nted msituation.mSpecifically,mthemCompanymsuspended mitsmquarterlymdividend mbeginningminmthemsecon
d mquartermof m2020,mdrew mdownm$800mmillionmonmitsmRevolvingmCredit mFacility,mtargeted mfurthermredu
ctionsmof mmoremthanm$500mmillionminmoperatingmexpenses, mcapital mexpenditures,mand mworkingmcapital
,mand msuspended msharemrepurchases.
©McGrawmHillmLLC.mAllmrightsmreserved. mNo mreproduction mormfurthermdistribution mpermitted mwithoutmthempriormwritten mconsentmofmMcGrawmHillmLLC.
1-2 FinancialmAccountingmfor mManagers
mynursytest.store
,ACCESS Test Bank for Financial Accounting for Managers 1st Edition Thoma
m m m m m m m m m m
s
RWP1-5 Financial Analysis: American Eagle
m m m m
($minmthousands)
Requirementm1
Totalmassets =m$3,328,679
Totalmliabilities =m$2,080,826
Stockholders’mequity =m$1,247,853
Assets = Liabilities + Stockholders’mEquity
$3,328,679 = $2,080,826 + $1,247,853
Requirementm2
Consolidated mStatementsmof mOperations
Requirementm3
Net msales =m$4,308,212
Net mincome =m$191,257
Requirementm4
Inflows Outflows
Investingmactivities Salemof mavailable-for- Capitalmexpendituresmformpro
saleminvestments pertymand mequipment mRepurc
Financingmactivities hasemof mcommonmstock
Net mproceedsmfro
mmstockmoptionsmexe
rcised
Requirementm5
Themcompany’smauditormismErnst m&mYoungmLLP.
Themauditormstates,m“Wemhavemaudited mthemaccompanyingmconsolidated mbalancemsheetsmof mAmericanm
EaglemOutfitters,mInc.m(themCompany)masmof mFebruarym1,m2020mand mFebruarym2,m2019,mthemrelated mcon
solidated mstatementsmof moperations,mcomprehensivemincome,mstockholders’mequitymand mcashmflowsmfor
meachmof mthemthreemyearsminmthemperiod mended mFebruarym1,m2020,mand mthemrelated mnotesm(collectivelymr
eferred mtomasmthem“consolidated mfinancialmstatements”).mInmourmopinion,mthemconsolidated mfinancialmst
atementsmpresent mfairly,minmallmmaterialmrespects,mthemfinancialmpositionmof mthemCompanymat mFebruary m
1,m2020mand mFebruarym2,m2019,mand mthemresultsmof mitsmoperationsmand mitsmcashmflowsmformeachmof mthemt
hreemyearsminmthemperiod mended mFebruarym1,m2020,minmconformitymwithmU.S.mgenerallymaccepted macco
untingmprinciples.”
mynursytest.store
, ACCESS Test Bank for Financial Accounting for Managers 1st Edition Thoma
m m m m m m m m m m
s
©McGrawmHillmLLC.mAllmrightsmreserved.mNomreproductionmormfurthermdistributionmpermitted mwithoutmthempriormwritten mconsentmofmMcGrawmHillmLLC.
Solutions mManual,m Chapter m1 1-3
mynursytest.store
