SOLUTION MANUAL FOR
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS
AND DAVID SPICELAND AND MARK NELSON
CHAPTER 1 G
G A FRAMEWORK FOR FINANCIAL ACCOUNTING
G G G G
G REAL WORLD PERSPECTIVES
G G
RWP1-1 EDGAR Nike (ticker: NKE)
G G G G
RequirementG1
a. $23,717Gmillion
b. $9,040Gmillion
c. TotalGliabilitiesG=GTotalGassetsG–GtotalGshareholder’sGequity
$23,717G–G$9,040G=G$14,677Gmillion
RequirementG2
a. $39,117Gmillion.GRevenueGincreasedGfromGtheGpreviousGyear.
b. $4,029Gmillion.GNetGincomeGincreasedGfromGtheGpreviousGyear
.
RequirementG3
a. OperatingGcashGflowG=G$5,903Gmillion.GOperatingGcashGflowGwasGmoreGpositive
thanGtheGpreviousGyear.
b. InvestingGcashGflowG=G−$264Gmillion.GInvestingGcashGflowGwentGfromGpositiveGt
oGnegativeGfromGtheGpreviousGyear.
c. FinancingGcashGflowG=G−$5,293Gmillion.GFinancingGcashGflowGwasGmoreGnegativ
e
thanGtheGpreviousGyear.
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
G G G G G
RequirementG1
a. AverageGpayingGmembershipGincreasedGbyG23%GandGaverageGmonthlyGrevenueGpe
r
payingGmembershipGincreasedGbyG5%.
b. $2,795,434G/G$20,156,447G=G13.9%
c. $2,652,462,G13%GofGrevenues
RequirementG2
a. $9,801,215G/G$24,504,567G=G40%
b. $33,141Gmillion
©McGrawGHillGLLC.GAllGrightsGreserved.GNoGreproductionGorGfurtherGdistributionGpermittedGwithoutGtheGpriorGwrittenGconsentGofGMcGraw
GHillGLLCGManual,G Chapter
Solutions 5-1
G5
,©McGrawGHillGLLC.GAllGrightsGreserved.GNoGreproductionGorGfurtherGdistributionGpermittedGwithoutGtheGpriorGwrittenGconsentGofGMcGra
wGHillGLLC
5-2 FinancialGAccountingGforGManage
rs
,RequirementG3
a. $20,723,441.G Long-
termGdebtGwentGupGfromGtheGpreviousGyear.
b. $736,969
RequirementG4
9%
RequirementG5
a. ErnstG&GYoungGLLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
G G G G G G
RequirementG1
FirstGQuarter.
RequirementG2
AugustG26,G2018.G TheGsameGquarterGofGlastGyearGisGusedGasGtheGcomparisonGquarter.
RequirementG3
TheGquarterlyGreportGincludesG15Gnotes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
G G G G G
RequirementG1
TheGCOVID-19Gpandemic.
RequirementG2
OnGMarchG23,G2020,GtheGCompanyGannouncedGthatGitGwouldGbeGtakingGseveralGstepsGinGanGabunda
nceGofGcautionGtoGproactivelyGstrengthenGitsGfinancialGflexibilityGandGnavigateGthroughGthisGunprece
dentedGsituation.GSpecifically,GtheGCompanyGsuspendedGitsGquarterlyGdividendGbeginningGinGtheGsec
ondGquarterGofG2020,GdrewGdownG$800GmillionGonGitsGRevolvingGCreditGFacility,GtargetedGfurtherGr
eductionsGofGmoreGthanG$500GmillionGinGoperatingGexpenses,GcapitalGexpenditures,GandGworkingGca
pital,GandGsuspendedGshareGrepurchases.
©McGrawGHillGLLC.GAllGrightsGreserved.GNoGreproductionGorGfurtherGdistributionGpermittedGwithoutGtheGpriorGwrittenGconsentGofGMcGraw
GHillGLLCGManual,G Chapter
Solutions 5-3
G5
, RWP1-5 Financial Analysis: American Eagle
G G G G
($GinGthousands)
RequirementG1
TotalGassets =G$3,328,679
TotalGliabilities
=G$2,080,82
6GStockholders’Gequity
=G$1,247,85
3
Assets = Liabilities + Stockholders’GEquity
$3,328,679 = $2,080,826 + $1,247,853
RequirementG2
ConsolidatedGStatementsGofGOperations
RequirementG3
NetGsales =G$4,308,212
NetGincome =G$191,257
RequirementG4
Inflows Outflows
InvestingGactivities SaleGofGavailable-for- CapitalGexpendituresGfor
sale propertyGandGequipment
investments
FinancingGactivities NetGproceedsGfromGstoc RepurchaseGofGcommonGstoc
kGoptionsGexercised k
RequirementG5
TheGcompany’sGauditorGisGErnstG&GYoungGLLP.
TheGauditorGstates,G―WeGhaveGauditedGtheGaccompanyingGconsolidatedGbalanceGsheetsGofGAmerican
GEagleGOutfitters,G Inc.G(theGCompany)GasGofGFebruaryG1,G2020GandGFebruaryG2,G2019,GtheGrelatedGc
onsolidatedGstatementsGofGoperations,GcomprehensiveGincome,Gstockholders’GequityGandGcashGflows
GforGeachGofGtheGthreeG yearsGinGtheGperiodGendedGFebruaryG1,G2020,GandGtheGrelatedGnotesG(collecti
velyGreferredGtoGasGtheG―consolidatedGfinancialGstatements‖).GInGourGopinion,GtheGconsolidatedGfinan
cialGstatementsGpresentGfairly,GinGallGmaterialGrespects,GtheGfinancialGpositionGofGtheGCompanyGatGF
ebruaryG1,G2020GandGFebruaryG2,G2019,GandGtheGresultsGofGitsGoperationsGandGitsGcashGflowsGforGeac
hGofGtheGthreeGyearsGinGtheGperiodGendedGFebruaryG1,G2020,GinGconformityGwithGU.S.GgenerallyGacce
ptedGaccountingGprinciples.‖
©McGrawGHillGLLC.GAllGrightsGreserved.GNoGreproductionGorGfurtherGdistributionGpermittedGwithoutGtheGpriorGwrittenGconsentGofGMcGra
wGHillGLLC
5-4 FinancialGAccountingGforGManage
rs
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS
AND DAVID SPICELAND AND MARK NELSON
CHAPTER 1 G
G A FRAMEWORK FOR FINANCIAL ACCOUNTING
G G G G
G REAL WORLD PERSPECTIVES
G G
RWP1-1 EDGAR Nike (ticker: NKE)
G G G G
RequirementG1
a. $23,717Gmillion
b. $9,040Gmillion
c. TotalGliabilitiesG=GTotalGassetsG–GtotalGshareholder’sGequity
$23,717G–G$9,040G=G$14,677Gmillion
RequirementG2
a. $39,117Gmillion.GRevenueGincreasedGfromGtheGpreviousGyear.
b. $4,029Gmillion.GNetGincomeGincreasedGfromGtheGpreviousGyear
.
RequirementG3
a. OperatingGcashGflowG=G$5,903Gmillion.GOperatingGcashGflowGwasGmoreGpositive
thanGtheGpreviousGyear.
b. InvestingGcashGflowG=G−$264Gmillion.GInvestingGcashGflowGwentGfromGpositiveGt
oGnegativeGfromGtheGpreviousGyear.
c. FinancingGcashGflowG=G−$5,293Gmillion.GFinancingGcashGflowGwasGmoreGnegativ
e
thanGtheGpreviousGyear.
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
G G G G G
RequirementG1
a. AverageGpayingGmembershipGincreasedGbyG23%GandGaverageGmonthlyGrevenueGpe
r
payingGmembershipGincreasedGbyG5%.
b. $2,795,434G/G$20,156,447G=G13.9%
c. $2,652,462,G13%GofGrevenues
RequirementG2
a. $9,801,215G/G$24,504,567G=G40%
b. $33,141Gmillion
©McGrawGHillGLLC.GAllGrightsGreserved.GNoGreproductionGorGfurtherGdistributionGpermittedGwithoutGtheGpriorGwrittenGconsentGofGMcGraw
GHillGLLCGManual,G Chapter
Solutions 5-1
G5
,©McGrawGHillGLLC.GAllGrightsGreserved.GNoGreproductionGorGfurtherGdistributionGpermittedGwithoutGtheGpriorGwrittenGconsentGofGMcGra
wGHillGLLC
5-2 FinancialGAccountingGforGManage
rs
,RequirementG3
a. $20,723,441.G Long-
termGdebtGwentGupGfromGtheGpreviousGyear.
b. $736,969
RequirementG4
9%
RequirementG5
a. ErnstG&GYoungGLLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
G G G G G G
RequirementG1
FirstGQuarter.
RequirementG2
AugustG26,G2018.G TheGsameGquarterGofGlastGyearGisGusedGasGtheGcomparisonGquarter.
RequirementG3
TheGquarterlyGreportGincludesG15Gnotes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
G G G G G
RequirementG1
TheGCOVID-19Gpandemic.
RequirementG2
OnGMarchG23,G2020,GtheGCompanyGannouncedGthatGitGwouldGbeGtakingGseveralGstepsGinGanGabunda
nceGofGcautionGtoGproactivelyGstrengthenGitsGfinancialGflexibilityGandGnavigateGthroughGthisGunprece
dentedGsituation.GSpecifically,GtheGCompanyGsuspendedGitsGquarterlyGdividendGbeginningGinGtheGsec
ondGquarterGofG2020,GdrewGdownG$800GmillionGonGitsGRevolvingGCreditGFacility,GtargetedGfurtherGr
eductionsGofGmoreGthanG$500GmillionGinGoperatingGexpenses,GcapitalGexpenditures,GandGworkingGca
pital,GandGsuspendedGshareGrepurchases.
©McGrawGHillGLLC.GAllGrightsGreserved.GNoGreproductionGorGfurtherGdistributionGpermittedGwithoutGtheGpriorGwrittenGconsentGofGMcGraw
GHillGLLCGManual,G Chapter
Solutions 5-3
G5
, RWP1-5 Financial Analysis: American Eagle
G G G G
($GinGthousands)
RequirementG1
TotalGassets =G$3,328,679
TotalGliabilities
=G$2,080,82
6GStockholders’Gequity
=G$1,247,85
3
Assets = Liabilities + Stockholders’GEquity
$3,328,679 = $2,080,826 + $1,247,853
RequirementG2
ConsolidatedGStatementsGofGOperations
RequirementG3
NetGsales =G$4,308,212
NetGincome =G$191,257
RequirementG4
Inflows Outflows
InvestingGactivities SaleGofGavailable-for- CapitalGexpendituresGfor
sale propertyGandGequipment
investments
FinancingGactivities NetGproceedsGfromGstoc RepurchaseGofGcommonGstoc
kGoptionsGexercised k
RequirementG5
TheGcompany’sGauditorGisGErnstG&GYoungGLLP.
TheGauditorGstates,G―WeGhaveGauditedGtheGaccompanyingGconsolidatedGbalanceGsheetsGofGAmerican
GEagleGOutfitters,G Inc.G(theGCompany)GasGofGFebruaryG1,G2020GandGFebruaryG2,G2019,GtheGrelatedGc
onsolidatedGstatementsGofGoperations,GcomprehensiveGincome,Gstockholders’GequityGandGcashGflows
GforGeachGofGtheGthreeG yearsGinGtheGperiodGendedGFebruaryG1,G2020,GandGtheGrelatedGnotesG(collecti
velyGreferredGtoGasGtheG―consolidatedGfinancialGstatements‖).GInGourGopinion,GtheGconsolidatedGfinan
cialGstatementsGpresentGfairly,GinGallGmaterialGrespects,GtheGfinancialGpositionGofGtheGCompanyGatGF
ebruaryG1,G2020GandGFebruaryG2,G2019,GandGtheGresultsGofGitsGoperationsGandGitsGcashGflowsGforGeac
hGofGtheGthreeGyearsGinGtheGperiodGendedGFebruaryG1,G2020,GinGconformityGwithGU.S.GgenerallyGacce
ptedGaccountingGprinciples.‖
©McGrawGHillGLLC.GAllGrightsGreserved.GNoGreproductionGorGfurtherGdistributionGpermittedGwithoutGtheGpriorGwrittenGconsentGofGMcGra
wGHillGLLC
5-4 FinancialGAccountingGforGManage
rs
