Solution Manual for Financial Accounting 11th Edition Robert Libby, Patricia Libby, Complete Chapters 1 - 13, Verified Newest Version

SOLUTION MANUAL FOR

Financial Accounting 11th Edition
by Robert Libby, All Chapters 1 - 13

,TABLE OF CONTENTS
49 49 49



CHAPTER491:49Financial49Statements49and49Business49Decisions
Focus49Company:49Le-Nature’s49Inc.
CHAPTER492:49Investing49and49Financing49Decisions49and49the49Accounting49System
Focus49Company:49Chipotle49Mexican49Grill
CHAPTER493:49Operating49Decisions49and49the49Accounting49System
Focus49Company:49Chipotle49Mexican49Grill
CHAPTER494:49Adjustments,49Financial49Statements,49and49the49Closing49Process
Focus49Company:49Chipotle49Mexican49Grill
CHAPTER495:49Communicating49and49Analyzing49Accounting49Information
Focus49Company:49Apple49Inc.
CHAPTER496:49Reporting49and49Interpreting49Sales49Revenue,49Receivables,49and49Cash
Focus49Company:49Skechers49U.S.A.
CHAPTER497:49Reporting49and49Interpreting49Cost49of49Goods49Sold49and49Inventory
Focus49Company:49Harley-Davidson,49Inc.
CHAPTER498:49Reporting49and49Interpreting49Property,49Plant,49and49Equipment;49Intangibles;49an
d49Natural49Resources
Focus49Company:49FedEx49Corporation
CHAPTER499:49Reporting49and49Interpreting49Liabilities
Focus49Company:49Starbucks
CHAPTER4910:49Reporting49and49Interpreting49Bond49Securities
Focus49Company:49Amazon
CHAPTER4911:49Reporting49and49Interpreting49Stockholders’49Equity
Focus49Company:49Microsoft
CHAPTER4912:49Statement49of49Cash49Flows
Focus49Company:49National49Beverage49Corporation
CHAPTER4913:49Analyzing49Financial49Statements
Focus49Company:49The49Home49Depot

,Chapter 1 49


Financial Statements and Business Decisions
49 49 49 49




ANSWERS49TO49QUESTIONS

1. Accounting49is49a49system49that49collects49and49processes49(analyzes,49measures
,49and49records)49financial49information49about49an49organization49and49reports49t
hat49information49to49decision49makers.

2. Financial49accounting49involves49preparation49of49the49four49basic49financial49state
ments49and49related49disclosures49for49external49decision49makers.49Managerial49ac
counting49involves49the49preparation49of49detailed49plans,49budgets,49forecasts,49a
nd49performance49reports49for49internal49decision49makers.

3. Financial49reports49are49used49by49both49internal49and49external49groups49and49indi
viduals.49The49internal49groups49are49comprised49of49the49various49managers49of49th
e49entity.49The49external49groups49include49the49owners,49investors,49creditors,49go
vernmental49agencies,49other49interested49parties,49and49the49public49at49large.

4. Investors49purchase49all49or49part49of49a49business49and49hope49to49gain49by49rec
eiving49part49of49what49the49company49earns49and/or49selling49their49ownership49i
nterest49in49the49company49in49the49future49at49a49higher49price49than49they49paid.
49Creditors49lend49money49to49a49company49for49a49specific49length49of49time49and4
9hope49to49gain49by49charging49interest49on49the49loan.

, 5. In49a49society,49each49organization49can49be49defined49as49a49separate49accountin
g49entity.49An49accounting49entity49is49the49organization49for49which49financial49data
49are49to49be49collected.49Typical49accounting49entities49are49a49business,49a49chur
ch,49a49governmental49unit,49a49university49and49other49nonprofit49organizations49s
uch49as49a49hospital49and49a49welfare49organization.49A49business49typically49is49de
fined49and49treated49as49a49separate49entity49because49the49owners,49creditors,49in
vestors,49and49other49interested49parties49need49to49evaluate49its49performance49an
d49its49potential49separately49from49other49entities49and49from49its49owners.

6. Name49of49Statement Alternative49Title
(a) Income49Statement (a)49Statement49of49Earnings;49Statement49of
Income;49Statement49of49Operations
(b) Balance49Sheet (b)49Statement49of49Financial49Position
(c) Cash49Flow49Statement (c)4 9 Statement49of49Cash49Flows

7. The49heading49of49each49of49the49four49required49financial49statements49should4
9include49the49following:
(a) Name49of49the49entity
(b) Name49of49the49statement
(c) Date49of49the49statement,49or49the49period49of49time
(d) Unit49of49measure

8. (a)
The49purpose49of49the49income49statement49is49to49present49information49a
bout49the49revenues,49expenses,49and49the49net49income49of49an49entity49for
49a49specified49period49of49time.
(b) The49purpose49of49the49balance49sheet49is49to49report49the49financial49position
49of49an49entity49at49a49given49date,49that49is,49to49report49information49about49t
he49assets,49liabilities49and49stockholders’49equity49of49the49entity49as49of49a49
specific49date.
(c) The49purpose49of49the49statement49of49cash49flows49is49to49present49informati
on49about49the49flow49of49cash49into49the49entity49(sources),49the49flow49of49cas
h49out49of49the49entity49(uses),49and49the49net49increase49or49decrease49in49ca
sh49during49the49period.
(d) The49statement49of49stockholders’49equity49reports49the49changes49in49each4
9of49the49company’s49stockholders’49equity49accounts49during49 the49accounti
ng49period,49including49issue49and49repurchase49of49stock49and49the49way49t
hat49net49income49and49distribution49of49dividends49affected49the49retained49
earnings49of49the49company49during49that49period.

9. The49income49statement49and49the49statement49of49cash49flows49are49dated49―F
or49the49Year49Ended49December4931‖49because49they49report49the49inflows49an
d49outflows49of49resources49during49a49period49of49time.49In49contrast,49the49bala
nce49sheet49is49dated49―At49December4931‖49because49it49represents49the49resour
ces,49obligations,49and49stockholders’49equity49at49a49specific49date.