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

SOLUTION MANUAL FOR B B




FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS
B B B B B B B B



AND DAVID SPICELAND AND MARK NELSON
B B B B B B




CHAPTER 1 B




A FRAMEWORK FOR FINANCIAL ACCOUNTING
B B B B




B REAL WORLD PERSPECTIVES
B B




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




Requirement 1 B



a. $23,717 million B



b. $9,040 million B



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



$23,717 – $9,040 = $14,677 million
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Requirement 2 B



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



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




Requirement 3 B



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



than the previous year.
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b. Investing cash flow = −$264 million. Investing cash flow went from
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positive to negative from the previous year.
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c. Financing cash flow = −$5,293 million. Financing cash flow was
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more negative
B B



than the previous year.
B B B




RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
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Requirement 1 B



a. Average paying membership increased by 23% and average monthly
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revenue per
B B



paying membership increased by 5%.
B B B B



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



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




RMecqGuraiwreHm
©
B ill LeLnCt. uA 2l l rights reserved. No reproduction or further distribution permitted without the prior written consent of McGraw Hill LLC
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Solutions Manual, Chapter
B B 5-1
5

, a. $9,801,215 / $24,504,567 =
B B B



B40%
b. $33,141 million
B




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B B B B B B B B B B B B B B B B B B B B


5-2 Financial Accounting for Managers
B B B

,Requirement 3 B



a. $20,723,441. Long-term debt went up from the B B B B B



previous year.
B B



b. $736,969

Requirement 4 B



9%

Requirement 5 B



a. Ernst & Young B B



LLP B



b. Yes




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



Requirement 1 B



First Quarter.
B




Requirement 2 B



August 26, 2018. The same quarter of last year is used as the comparison quarter.
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Requirement 3 B



The quarterly report includes 15 notes.
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RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)B B B B B




Requirement 1 B



The COVID-19 pandemic.
B B




Requirement 2 B



On March 23, 2020, the Company announced that it would be taking several steps in
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an abundanceof caution to proactively strengthen its financial flexibility and navigate
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through this unprecedentedsituation. Specifically, the Company suspended its quarterly
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dividend beginning in the second quarter of 2020, drew down $800 million on its
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Revolving Credit Facility, targeted further reductions of more than $500 million
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in operating expenses, capital expenditures, and working capital, and suspended share
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repurchases.
B




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B B B B B B B B B B B B B B B B B B B B


Solutions Manual, Chapter
B B 5-3
5

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



($ in thousands)
B B




Requirement 1 B



Total assets B = $3,328,679 B



Total liabilities
B =
$2,080,826Stockholders’ equity B B



=
$1,247,853

Assets = Liabilities + Stockholders’
Equity B



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

Requirement 2 B



Consolidated Statements of Operations B B B




Requirement 3
Net sales B = $4,308,212 B



Net incomeB = $191,257 B




Requirement 4
Inflows Outflows
Investing activities B Sale of available-for- B B Capital expenditures for B B



sale B property and equipment
B B B



investments
Financing activities B Net proceeds from
B B Repurchase of common B B



stockoptionsB stock B



exercised B




Requirement 5 B



The company’s auditor is Ernst & Young LLP.
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The auditor states, ―We have audited the accompanying consolidated balance sheets of
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American Eagle Outfitters, Inc. (the Company) as of February 1, 2020 and
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February 2, 2019, the related consolidated statements of operations, comprehensive
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income, stockholders’ equity and cash flows for each of the three years in the
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period ended February 1, 2020, and the related notes (collectively referred to as the
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―consolidated financial statements‖). In our opinion, the consolidated financial statements
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present fairly, in all material respects, the financial position of the Company at
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February 1, 2020 and February 2, 2019, and the results of its operations and its
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cash flows for each of the threeyears in the period ended February 1, 2020, in
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conformity with U.S. generally accepted accounting principles.‖
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5-4 Financial Accounting for Managers
B B B