@PROFDOCDIGITALLIBRARIES
SOLUTION MANUAL
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION
WAYNE THOMAS, DAVID SPICELAND & MARK NELSON
PR
O
FD
O
C
,@PROFDOCDIGITALLIBRARIES
CHAPTER 1
A FRAMEWORK FOR FINANCIAL ACCOUNTING
REAL WORLD PERSPECTIVES
RWP1-1 EDGAR Nike (ticker: NKE)
Requirement 1
PR
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
O
a. $39,117 million. Revenue increased from the previous year.
b. $4,029 million. Net income increased from the previous year.
FD
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 to
negative from the previous year.
O
c. Financing cash flow = −$5,293 million. Financing cash flow was more negative
than the previous year.
C
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
,@PROFDOCDIGITALLIBRARIES
PR
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FD
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,@PROFDOCDIGITALLIBRARIES
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
PR
First Quarter.
Requirement 2
August 26, 2018. The same quarter of last year is used as the comparison quarter.
O
Requirement 3
The quarterly report includes 15 notes.
FD
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
Requirement 1
The COVID-19 pandemic.
O
Requirement 2
On March 23, 2020, the Company announced that it would be taking several steps in an abundance
C
of caution to proactively strengthen its financial flexibility and navigate through this unprecedented
situation. 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.
SOLUTION MANUAL
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION
WAYNE THOMAS, DAVID SPICELAND & MARK NELSON
PR
O
FD
O
C
,@PROFDOCDIGITALLIBRARIES
CHAPTER 1
A FRAMEWORK FOR FINANCIAL ACCOUNTING
REAL WORLD PERSPECTIVES
RWP1-1 EDGAR Nike (ticker: NKE)
Requirement 1
PR
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
O
a. $39,117 million. Revenue increased from the previous year.
b. $4,029 million. Net income increased from the previous year.
FD
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 to
negative from the previous year.
O
c. Financing cash flow = −$5,293 million. Financing cash flow was more negative
than the previous year.
C
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
,@PROFDOCDIGITALLIBRARIES
PR
O
FD
O
C
,@PROFDOCDIGITALLIBRARIES
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
PR
First Quarter.
Requirement 2
August 26, 2018. The same quarter of last year is used as the comparison quarter.
O
Requirement 3
The quarterly report includes 15 notes.
FD
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
Requirement 1
The COVID-19 pandemic.
O
Requirement 2
On March 23, 2020, the Company announced that it would be taking several steps in an abundance
C
of caution to proactively strengthen its financial flexibility and navigate through this unprecedented
situation. 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.
