SOLUTION MANUAL: Financial Accounting for Managers 1st Edition by Wayne Thomas, David Spiceland (2022)

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


CHAPTER 1 hs




hs A FRAMEWORK FOR FINANCIAL ACCOUNTING
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hs REAL WORLD PERSPECTIVES hs hs




RWP1-1 EDGAR Nike (ticker: NKE)
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Requirement 1 hs



a. $23,717 million hs



b. $9,040 million hs



c. Total liabilities = Total assets – total shareholder’s equity
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$23,717 – $9,040 = $14,677 million
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Requirement 2 hs



a. $39,117 million. Revenue increased from the previous year.
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b. $4,029 million. Net income increased from the previous year.
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Requirement 3 hs



a. Operating cash flow = $5,903 million. Operating cash flow was more positive
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than the previous year.
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b. Investing cash flow = −$264 million. Investing cash flow went from positive toneg
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ative from the previous year.
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c. Financing cash flow = −$5,293 million. Financing cash flow was more negative
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than the previous year.
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RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
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Requirement 1 hs



a. Average paying membership increased by 23% and average monthly revenue per
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paying membership increased by 5%.
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b. $2,795,434 / $20,156,447 = 13.9% hs hs hs hs



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




Requirement 2 hs



a. $9,801,215 / $24,504,567 = 40% hs hs hs hs



b. $33,141 million hs




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Solutions Manual, Chapter
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5

,©McGraw Hill LLC. All rights reserved. No reproduction or further distribution permitted without the prior written consent of McGraw Hill LL
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C
5-2 Financial Accounting for Managers
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,Requirement 3 hs



a. $20,723,441. Long-term debt went up from the previous year. h s hs hs hs hs hs hs hs



b. $736,969

Requirement 4 hs



9%

Requirement 5 hs



a. Ernst & Young LLP hs hs hs



b. Yes



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



Requirement 1 hs



First Quarter.hs




Requirement 2 hs



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



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




Requirement 1 hs



The COVID-19 pandemic.
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Requirement 2 hs



On March 23, 2020, the Company announced that it would be taking several steps in an abundanceof
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caution to proactively strengthen its financial flexibility and navigate through this unprecedentedsitua
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tion. Specifically, the Company suspended its quarterly dividend beginning in the second quarter of
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2020, drew down $800 million on its Revolving Credit Facility, targeted further reductions of more t
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han $500 million in operating expenses, capital expenditures, and working capital, and suspended sh
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are repurchases.
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©McGraw Hill LLC. All rights reserved. No reproduction or further distribution permitted without the prior written consent of McGraw Hill LLC
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Solutions Manual, Chapter
hs h s hs 5-3
5

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



($ in thousands)
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Requirement 1 hs



Total assets hs = $3,328,679
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Total liabilities hs



= $2,080,826
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Stockholders’ equity hs = $1,247,853
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Assets = Liabilities + Stockholders’ Equity hs



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

Requirement 2 hs



Consolidated Statements of Operations hs hs hs




Requirement 3 hs



Net sales hs = $4,308,212
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Net income hs = $191,257
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Requirement 4 hs



Inflows Outflows
Investing activities hs Sale of available-for-salehs hs Capital expenditures for hs hs



investments property and equipment hs hs



Financing activities hs Net proceeds from stock
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options exercised hs




Requirement 5 hs



The company’s auditor is Ernst & Young LLP.
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The auditor states, ―We have audited the accompanying consolidated balance sheets of American Eag
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le Outfitters, Inc. (the Company) as of February 1, 2020 and February 2, 2019, the related consolidate
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d statements of operations, comprehensive income, stockholders’ equity and cash flows for each of th
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e three years in the period ended February 1, 2020, and the related notes (collectively referred to as th
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e ―consolidated financial statements‖). In our opinion, the consolidated financial statements present fa
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irly, in all material respects, the financial position of the Company at February 1, 2020 and February 2
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, 2019, and the results of its operations and its cash flows for each of the threeyears in the period ende
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d February 1, 2020, in conformity with U.S. generally accepted accounting principles.‖
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©McGraw Hill LLC. All rights reserved. No reproduction or further distribution permitted without the prior written consent of McGraw Hill LL
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C
5-4 Financial Accounting for Managers hs hs hs