SOLUTION MANUAL
All Chapters Included
5-1
,FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMASAND DAVID SPICELAND AND MARK NELSON
CHAPTER 1
A FRAMEWORK FOR FINANCIAL ACCOUNTING REAL WORLD PERSPECTIVE
RWP1-1 EDGAR Nike (ticker: NKE)
Requirement 1
a. $23,717 million
b. $9,040 million
c. Total liabilities = Total assets – total shareholder’s
equity
$23,717 – $9,040 = $14,677 million
Requirement 2
a. $39,117 million. Revenue increased from the previous
year.
b. $4,029 million. Net income increased from the
previous year.
Requirement 3
a. Operating cash flow = $5,903 million. Operating cash flow was more
positive
than the previous year.
b. Investing cash flow = −$264 million. Investing cash flow went from
positive tonegative from the previous year.
c. Financing cash flow = −$5,293 million. Financing cash flow was more
negative
than the previous year.
5-2
,RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
Requirement 1
a. Average paying membership increased by 23% and average monthly
revenue per
paying membership increased by 5%.
b. $2,795,434 / $20,156,447 = 13.9%
c. $2,652,462, 13% of revenues
Requirement 2
a. $9,801,215 / $24,504,567 =
40%
b. $33,141 million
Requirement 3
a. $20,723,441. Long-term debt went up from the
previous year.
b. $736,969
Requirement 4
9%
Requirement 5
a. Ernst & Young LLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
Requirement 1
First Quarter.
Requirement 2
5-3
, August 26, 2018. The same quarter of last year is used as the comparison quarter.
Requirement 3
The quarterly report includes 15 notes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
Requirement 1
The COVID-19 pandemic.
Requirement 2
On March 23, 2020, the Company announced that it would be taking several steps in
an abundanceof caution to proactively strengthen its financial flexibility and
navigate through this unprecedentedsituation. Specifically, the Company suspended
its quarterly dividend beginning in the second quarter of 2020, drew down $800
million on its Revolving Credit Facility, targeted further reductions of more than
$500 million in operating expenses, capital expenditures, and working capital, and
suspended share repurchases.
RWP1-5 Financial Analysis: American Eagle
($ in thousands)
Requirement 1
Total assets = $3,328,679
Total liabilities =
$2,080,826Stockholders’ equity
=
$1,247,853
5-4
All Chapters Included
5-1
,FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMASAND DAVID SPICELAND AND MARK NELSON
CHAPTER 1
A FRAMEWORK FOR FINANCIAL ACCOUNTING REAL WORLD PERSPECTIVE
RWP1-1 EDGAR Nike (ticker: NKE)
Requirement 1
a. $23,717 million
b. $9,040 million
c. Total liabilities = Total assets – total shareholder’s
equity
$23,717 – $9,040 = $14,677 million
Requirement 2
a. $39,117 million. Revenue increased from the previous
year.
b. $4,029 million. Net income increased from the
previous year.
Requirement 3
a. Operating cash flow = $5,903 million. Operating cash flow was more
positive
than the previous year.
b. Investing cash flow = −$264 million. Investing cash flow went from
positive tonegative from the previous year.
c. Financing cash flow = −$5,293 million. Financing cash flow was more
negative
than the previous year.
5-2
,RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
Requirement 1
a. Average paying membership increased by 23% and average monthly
revenue per
paying membership increased by 5%.
b. $2,795,434 / $20,156,447 = 13.9%
c. $2,652,462, 13% of revenues
Requirement 2
a. $9,801,215 / $24,504,567 =
40%
b. $33,141 million
Requirement 3
a. $20,723,441. Long-term debt went up from the
previous year.
b. $736,969
Requirement 4
9%
Requirement 5
a. Ernst & Young LLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
Requirement 1
First Quarter.
Requirement 2
5-3
, August 26, 2018. The same quarter of last year is used as the comparison quarter.
Requirement 3
The quarterly report includes 15 notes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
Requirement 1
The COVID-19 pandemic.
Requirement 2
On March 23, 2020, the Company announced that it would be taking several steps in
an abundanceof caution to proactively strengthen its financial flexibility and
navigate through this unprecedentedsituation. Specifically, the Company suspended
its quarterly dividend beginning in the second quarter of 2020, drew down $800
million on its Revolving Credit Facility, targeted further reductions of more than
$500 million in operating expenses, capital expenditures, and working capital, and
suspended share repurchases.
RWP1-5 Financial Analysis: American Eagle
($ in thousands)
Requirement 1
Total assets = $3,328,679
Total liabilities =
$2,080,826Stockholders’ equity
=
$1,247,853
5-4
