FINANCIAL tACCOUNTING tFOR tMANAGERS t1ST tEDITION tBY tWAYNE
tTHOMAStAND tDAVID tSPICELAND tAND tMARK tNELSON
CHAPTER 1 t
t A FRAMEWORK FOR FINANCIAL ACCOUNTING
t t t t
t REAL WORLD PERSPECTIVES
t t
RWP1-1 EDGAR Nike (ticker: NKE)
t t t t
Requirement t1
a. $23,717 tmillion
b. $9,040 tmillion
c. Total tliabilities t= tTotal tassets t– ttotal tshareholder’s tequity
$23,717 t– t$9,040 t= t$14,677 tmillion
Requirement t2
a. $39,117 tmillion. tRevenue tincreased tfrom tthe tprevious tyear.
b. $4,029 tmillion. tNet tincome tincreased tfrom tthe tprevious tyear.
Requirement t3
a. Operating tcash tflow t= t$5,903 tmillion. tOperating tcash tflow twas tmore tpositive
than tthe tprevious tyear.
b. Investing tcash tflow t= t−$264 tmillion. tInvesting tcash tflow twent tfrom tpositive tto
tnegative tfrom tthe tprevious t year.
c. Financing tcash tflow t= t−$5,293 tmillion. tFinancing tcash tflow twas tmore tnegative
than tthe tprevious tyear.
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
t t t t t
Requirement t1
a. Average tpaying tmembership tincreased tby t23% tand taverage tmonthly trevenue tper
paying tmembership tincreased tby t5%.
b. $2,795,434 t/ t$20,156,447 t= t13.9%
c. $2,652,462, t13% tof trevenues
Requirement t2
a. $9,801,215 t/ t$24,504,567 t= t40%
b. $33,141 tmillion
©McGraw tHill tLLC. t All trights treserved. tNo treproduction tor tfurther tdistribution tpermitted twithout tthe tprior twritten tconsent tof tMcGraw tHill
tLLC
Solutions tManual, t Chapter 5-1
t 5
,©McGraw tHill tLLC. tAll trights treserved. tNo treproduction tor tfurther tdistribution tpermitted twithout tthe tprior twritten tconsent tof tMcGraw
tHill tLLC
5-2 Financial tAccounting tfor
Managers
t
,Requirement t3
a. $20,723,441. t Long-term tdebt twent tup tfrom tthe tprevious
tyear.
b. $736,969
Requirement t4
9%
Requirement t5
a. Ernst t& tYoung tLLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
t t t t t t
Requirement t1
First tQuarter.
Requirement t2
August t26, t2018. t The tsame tquarter tof tlast tyear t is tused tas tthe tcomparison tquarter.
Requirement t3
The tquarterly treport tincludes t15 tnotes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
t t t t t
Requirement t1
The tCOVID-19 tpandemic.
Requirement t2
On tMarch t23, t2020, tthe tCompany tannounced tthat tit twould tbe ttaking tseveral tsteps tin tan
tabundancetof tcaution tto tproactively tstrengthen tits t financial tflexibility tand t navigate tthrough tthis
tunprecedentedtsituation. tSpecifically, tthe tCompany tsuspended tits tquarterly tdividend tbeginning tin
tthe tsecond tquarter tof t2020, tdrew tdown t$800 tmillion ton tits tRevolving t Credit tFacility, ttargeted
tfurther treductions tof tmore tthan t$500 tmillion tin toperating texpenses, tcapital texpenditures, tand
tworking tcapital, t and tsuspended t share trepurchases.
©McGraw tHill tLLC. t All trights treserved. tNo treproduction tor tfurther tdistribution tpermitted twithout tthe tprior twritten tconsent tof tMcGraw tHill
tLLC
Solutions tManual, t Chapter 5-3
t 5
, RWP1-5 Financial Analysis: American Eagle
t t t t
($ tin tthousands)
Requirement t1
Total tassets = t$3,328,679
Total tliabilities =
t$2,080,826tStockholders’ tequity
= t$1,247,853
Assets = Liabilities + Stockholders’ tEquity
$3,328,679 = $2,080,826 + $1,247,853
Requirement t2
Consolidated tStatements tof tOperations
Requirement t3
Net tsales = t$4,308,212
Net tincome = t$191,257
Requirement t4
Inflows Outflows
Investing tactivities Sale tof tavailable-for-sale Capital texpenditures tfor
investments property tand tequipment
Financing tactivities Net tproceeds tfrom Repurchase tof tcommon
tstocktoptions tstock
texercised
Requirement t5
The tcompany’s tauditor tis tErnst t& tYoung tLLP.
The tauditor tstates, t―We thave taudited tthe taccompanying tconsolidated tbalance tsheets tof tAmerican
tEagle tOutfitters, tInc. t(the tCompany) tas tof tFebruary t1, t2020 tand tFebruary t2, t2019, tthe trelated
tconsolidated tstatements tof toperations, tcomprehensive tincome, tstockholders’ tequity tand tcash
tflows tfor teach tof tthe tthree tyears tin tthe tperiod tended tFebruary t1, t2020, tand tthe trelated tnotes
t(collectively treferred tto tas tthe t ―consolidated tfinancial tstatements‖). t In tour topinion, t the
tconsolidated t financial tstatements tpresent tfairly, tin tall tmaterial trespects, tthe tfinancial tposition tof
tthe tCompany tat tFebruary t1, t2020 tand tFebruary t2, t2019, tand tthe tresults tof tits toperations tand t its
tcash tflows tfor teach tof tthe tthreetyears tin tthe tperiod tended tFebruary t1, t2020, tin tconformity twith
tU.S. tgenerally taccepted taccounting tprinciples.‖
©McGraw tHill tLLC. tAll trights treserved. tNo treproduction tor tfurther tdistribution tpermitted twithout tthe tprior twritten tconsent tof tMcGraw
tHill tLLC
5-4 Financial tAccounting tfor
Managers
t