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

l2 SOLUTION MANUAL FOR
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS
AND DAVID SPICELAND AND MARK NELSON


CHAPTER 1
A FRAMEWORK FOR FINANCIAL ACCOUNTING

REAL WORLD PERSPECTIVES
l2 l2




RWP1-1 EDGAR Nike (ticker: NKE)
l2 l2 l2 l2



Requirementl21
a. $23,717l2million
b. $9,040l2million
c. Totall2liabilitiesl2=l2Totall2assetsl2–
l2totall2shareholder’s l2 equity

$23,717l2–l2$9,040l2=l2$14,677l2million

Requirementl22
a. $39,117l2million.l2Revenuel2increasedl2froml2thel2previousl2year.
b. $4,029l2million.l2Netl2incomel2increasedl2froml2thel2previousl2year
.

Requirementl23
a. Operatingl2cashl2flowl2=l2$5,903l2million.l2Operatingl2cashl2flowl2wasl2morel2positive
thanl2thel2previousl2year.
b. Investingl2cashl2flowl2=l2−$264l2million.l2Investingl2cashl2flowl2wentl2froml2positivel2t
o2lnegativel2froml2thel2previousl2 year.
c. Financingl2cashl2flowl2=l2−$5,293l2million.l2Financingl2cashl2flowl2wasl2morel2negati
ve
thanl2thel2previousl2year.



RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
l2 l2 l2 l2 l2



Requirementl21
a. Averagel2payingl2membershipl2increasedl2byl223%l2andl2averagel2monthlyl2revenuel2p
er
payingl2membershipl2increasedl2byl25%.
b. $2,795,434l2/l2$20,156,447l2=l213.9%
c. $2,652,462,l213%l2ofl2revenues

Requirementl22
a. $9,801,215l2/l2$24,504,567l2=l240%
©McGrawl2Hilll2LLC.l2Alll2rightsl2reserved.l2Nol2reproductionl2orl2furtherl2distributionl2permittedl2withoutl2thel2priorl2writtenl2consentl2ofl2McGraw
l2Hilll2LLCl2Manual,l 2 Chapter
Solutions 5-1
l2 5

, b. $33,141l2million




©McGrawl2Hilll2LLC.l2Alll2rightsl2reserved.l2Nol2reproductionl2orl2furtherl2distributionl2permittedl2withoutl2thel2priorl2writtenl2consentl2ofl2McGr
awl2Hilll2LLC
5-2 Financiall2Accountingl2forl2Manage
rs

,©McGrawl2Hilll2LLC.l2Alll2rightsl2reserved.l2Nol2reproductionl2orl2furtherl2distributionl2permittedl2withoutl2thel2priorl2writtenl2consentl2ofl2McGraw
l2Hilll2LLCl2Manual,l 2 Chapter
Solutions 5-3
l2 5

, Requirementl23
a. $20,723,441.l 2 Long-
terml2debtl2wentl2upl2froml2thel2previousl2year.
b. $736,969

Requirementl24
9%

Requirementl25
a. Ernstl2&l2Youngl2LLP
b. Yes



RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
l2 l2 l2 l2 l2 l2

Requirementl21
Firstl2Quarter.

Requirementl22
Augustl226,l22018.l 2 Thel2samel2quarterl2ofl2lastl2 yearl2 isl2usedl2asl2thel2comparisonl2quarter.

Requirementl23
Thel2quarterlyl2reportl2includesl215l2notes.



RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
l2 l2 l2 l2 l2



Requirementl21
Thel2COVID-19l2pandemic.

Requirementl22
Onl2Marchl223,l22020,l2thel2Companyl2announcedl2thatl2itl2wouldl2bel2takingl2severall2stepsl2inl2anl2abund
ance2lofl2cautionl2tol2proactivelyl2strengthenl2itsl2financiall2flexibilityl2andl2navigatel2throughl2thisl2unprec
edented2lsituation.l2Specifically,l2thel2Companyl2suspendedl2itsl2quarterlyl2dividendl2beginningl2inl2thel2s
econdl2quarterl2ofl22020,l2drewl2downl2$800l2millionl2onl2itsl2Revolvingl2Creditl2Facility,l2targetedl2furth
erl2reductionsl2ofl2morel2thanl2$500l2millionl2inl2operatingl2expenses,l2capitall2expenditures,l2andl2worki
ngl2capital,l2andl2suspendedl2sharel2repurchases.




©McGrawl2Hilll2LLC.l2Alll2rightsl2reserved.l2Nol2reproductionl2orl2furtherl2distributionl2permittedl2withoutl2thel2priorl2writtenl2consentl2ofl2McGr
awl2Hilll2LLC
5-4 Financiall2Accountingl2forl2Manage
rs