SOLUTION MANUAL FOR FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS AND DAVID SPICELAND AND MARK NELSON

FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS
AND DAVID SPICELAND AND MARK NELSON


CHAPTER 1 YQ




YQ A FRAMEWORK FOR FINANCIAL ACCOUNTING
YQ YQ YQ YQ




YQ REAL WORLD PERSPECTIVES YQ YQ




RWP1-1 EDGAR Nike (ticker: NKE)
YQ YQ YQ YQ




Requirement 1 YQ



a. $23,717 million YQ



b. $9,040 million YQ



c. Total liabilities = Total assets – total shareholder’s equity
YQ YQ YQ YQ YQ YQ YQ YQ



$23,717 – $9,040 = $14,677 million
YQ YQ YQ YQ YQ




Requirement 2 YQ



a. $39,117 million. Revenue increased from the previous year.
YQ YQ YQ YQ YQ YQ YQ



b. $4,029 million. Net income increased from the previous year.
YQ YQ YQ YQ YQ YQ YQ YQ




Requirement 3 YQ



a. Operating cash flow = $5,903 million. Operating cash flow was more positive
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



than the previous year.
YQ YQ YQ



b. Investing cash flow = −$264 million. Investing cash flow went from positive t
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



onegative from the previous year.
Q
Y YQ YQ YQ YQ



c. Financing cash flow = −$5,293 million. Financing cash flow was more negativ
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



e
than the previous year.
YQ YQ YQ




RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
YQ YQ YQ YQ YQ




Requirement 1 YQ



a. Average paying membership increased by 23% and average monthly revenue pe
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



r
paying membership increased by 5%.
YQ YQ YQ YQ



b. $2,795,434 / $20,156,447 = 13.9% YQ YQ YQ YQ



c. $2,652,462, 13% of revenues YQ YQ YQ




Requirement 2 YQ



a. $9,801,215 / $24,504,567 = 40% YQ YQ YQ YQ



b. $33,141 million YQ




©McGraw Hill LLC. All rights reserved. No reproduction or further distribution permitted without the prior written consent of McGraw Hil
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ


l LLC
Solutions
YQ Manual, Chapter
YQ Y Q Y 5-1
Q 5

,©McGraw Hill LLC. All rights reserved. No reproduction or further distribution permitted without the prior written consent of McGraw
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ


Hill LLC
5-2YQ Financial Accounting for Manager
YQ YQ YQ


s

,Requirement 3 YQ



a. $20,723,441. Long- Y Q



term debt went up from the previous year.
YQ YQ YQ YQ YQ YQ YQ



b. $736,969

Requirement 4 YQ



9%

Requirement 5 YQ



a. Ernst & Young LLP YQ YQ YQ



b. Yes



RWP1-3 EDGAR General Mills Inc. (ticker: GIS) YQ YQ YQ YQ YQ YQ



Requirement 1 YQ



First Quarter. YQ




Requirement 2 YQ



August 26, 2018. The same quarter of last year is used as the comparison quarter.
YQ YQ Y Q YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ




Requirement 3 YQ



The quarterly report includes 15 notes.
YQ YQ YQ YQ YQ




RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN) YQ YQ YQ YQ YQ




Requirement 1 YQ



The COVID-19 pandemic.
YQ YQ




Requirement 2 YQ



On March 23, 2020, the Company announced that it would be taking several steps in an abunda
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



nceof caution to proactively strengthen its financial flexibility and navigate through this unpreced
Q
Y YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



entedsituation. Specifically, the Company suspended its quarterly dividend beginning in the seco
Q
Y YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



nd quarter of 2020, drew down $800 million on its Revolving Credit Facility, targeted further re
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



ductions of more than $500 million in operating expenses, capital expenditures, and working ca
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



pital, and suspended share repurchases.
YQ YQ YQ YQ




©McGraw Hill LLC. All rights reserved. No reproduction or further distribution permitted without the prior written consent of McGraw Hil
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ


l LLC
Solutions
YQ Manual, Chapter YQ Y Q Y 5-3
Q 5

, RWP1-5 Financial Analysis: American Eagle YQ YQ YQ YQ



($ in thousands)
YQ YQ




Requirement 1 YQ



Total assets YQ = $3,328,679
YQ



Total liabilities YQ



= $2,080,82 YQ



6Stockholders’ equity = $1,247,853
Q
Y YQ YQ




Assets = Liabilities + Stockholders’ Equity YQ



$3,328,679 = $2,080,826 + $1,247,853

Requirement 2 YQ



Consolidated Statements of Operations YQ YQ YQ




Requirement 3 YQ



Net sales YQ = $4,308,212
YQ



Net income YQ = $191,257
YQ




Requirement 4 YQ



Inflows Outflows
Investing activities YQ Sale of available-for-sale
YQ YQ Capital expenditures for YQ YQ



investments property and equipment YQ YQ



Financing activities YQ Net proceeds from stoc
YQ YQ YQ Repurchase of common stoc YQ YQ YQ



koptions exercised
Q
Y YQ k

Requirement 5 YQ



The company’s auditor is Ernst & Young LLP.
YQ YQ YQ YQ YQ YQ YQ




The auditor states, ―We have audited the accompanying consolidated balance sheets of American
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ Y



Eagle Outfitters, Inc. (the Company) as of February 1, 2020 and February 2, 2019, the related c
Q YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



onsolidated statements of operations, comprehensive income, stockholders’ equity and cash flows
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



for each of the three years in the period ended February 1, 2020, and the related notes (collecti
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



vely referred to as the ―consolidated financial statements‖). In our opinion, the consolidated finan
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



cial statements present fairly, in all material respects, the financial position of the Company at F
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



ebruary 1, 2020 and February 2, 2019, and the results of its operations and its cash flows for eac
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



h of the threeyears in the period ended February 1, 2020, in conformity with U.S. generally acce
YQ YQ YQ Q
Y YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ



pted accounting principles.‖
YQ YQ




©McGraw Hill LLC. All rights reserved. No reproduction or further distribution permitted without the prior written consent of McGraw
YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ YQ


Hill LLC
5-4 YQ Financial Accounting for Manager YQ YQ YQ


s