Solution manual for financial accounting for managers 1st edition by wayne thomas and david spiceland and mark nelson.pdf

SOLUTION MANUAL FOR

FINANCIAL ACCOUNTING FOR MANAGERS 1ST

EDITION BY WAYNE THOMAS AND DAVID SPICELAND

AND MARK NELSON



CHAPTER 1

A FRAMEWORK FOR FINANCIAL ACCOUNTING

REAL WORLD PERSPECTIVES
l2 l2




RWP1-1 EDGAR Nike (ticker: NKE)
l2 l2 l2 l2



Requirementl21
a. $23,717l2million
b. $9,040l2million
c. Totall2liabilitiesl2=l2Totall2assetsl2–
l2totall2shareholder’s l2 equity

$23,717l2–l2$9,040l2=l2$14,677l2million

Requirementl22
a. $39,117l2million.l2Revenuel2increasedl2froml2thel2previousl2year.
b. $4,029l2million.l2Netl2incomel2increasedl2froml2thel2previousl2year
.

Requirementl23
a. Operatingl2cashl2flowl2=l2$5,903l2million.l2Operatingl2cashl2flowl2wasl2morel2positive
thanl2thel2previousl2year.
b. Investingl2cashl2flowl2=l2−$264l2million.l2Investingl2cashl2flowl2wentl2froml2positivel2t
o2lnegativel2froml2thel2previousl2 year.
c. Financingl2cashl2flowl2=l2−$5,293l2million.l2Financingl2cashl2flowl2wasl2morel2negati
ve
thanl2thel2previousl2year.


©McGrawl2Hilll2LLC.l2Alll2rightsl2reserved.l2Nol2reproductionl2orl2furtherl2distributionl2permittedl2withoutl2thel2priorl2writtenl2consentl2ofl2McGraw
l2Hilll2LLCl2Manual,l 2 Chapter
Solutions 5-1
l2 5

, RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
l2 l2 l2 l2 l2



Requirementl21
a. Averagel2payingl2membershipl2increasedl2byl223%l2andl2averagel2monthlyl2revenuel2p
er
payingl2membershipl2increasedl2byl25%.
b. $2,795,434l2/l2$20,156,447l2=l213.9%
c. $2,652,462,l213%l2ofl2revenues

Requirementl22
a. $9,801,215l2/l2$24,504,567l2=l240%
b. $33,141l2million




©McGrawl2Hilll2LLC.l2Alll2rightsl2reserved.l2Nol2reproductionl2orl2furtherl2distributionl2permittedl2withoutl2thel2priorl2writtenl2consentl2ofl2McGr
awl2Hilll2LLC
5-2 Financiall2Accountingl2forl2Manage
rs

,©McGrawl2Hilll2LLC.l2Alll2rightsl2reserved.l2Nol2reproductionl2orl2furtherl2distributionl2permittedl2withoutl2thel2priorl2writtenl2consentl2ofl2McGraw
l2Hilll2LLCl2Manual,l 2 Chapter
Solutions 5-3
l2 5

, Requirementl23
a. $20,723,441.l 2 Long-
terml2debtl2wentl2upl2froml2thel2previousl2year.
b. $736,969

Requirementl24
9%

Requirementl25
a. Ernstl2&l2Youngl2LLP
b. Yes



RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
l2 l2 l2 l2 l2 l2

Requirementl21
Firstl2Quarter.

Requirementl22
Augustl226,l22018.l 2 Thel2samel2quarterl2ofl2lastl2 yearl2 isl2usedl2asl2thel2comparisonl2quarter.

Requirementl23
Thel2quarterlyl2reportl2includesl215l2notes.



RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
l2 l2 l2 l2 l2



Requirementl21
Thel2COVID-19l2pandemic.

Requirementl22
Onl2Marchl223,l22020,l2thel2Companyl2announcedl2thatl2itl2wouldl2bel2takingl2severall2stepsl2inl2anl2abund
ance2lofl2cautionl2tol2proactivelyl2strengthenl2itsl2financiall2flexibilityl2andl2navigatel2throughl2thisl2unprec
edented2lsituation.l2Specifically,l2thel2Companyl2suspendedl2itsl2quarterlyl2dividendl2beginningl2inl2thel2s
econdl2quarterl2ofl22020,l2drewl2downl2$800l2millionl2onl2itsl2Revolvingl2Creditl2Facility,l2targetedl2furth
erl2reductionsl2ofl2morel2thanl2$500l2millionl2inl2operatingl2expenses,l2capitall2expenditures,l2andl2worki
ngl2capital,l2andl2suspendedl2sharel2repurchases.




©McGrawl2Hilll2LLC.l2Alll2rightsl2reserved.l2Nol2reproductionl2orl2furtherl2distributionl2permittedl2withoutl2thel2priorl2writtenl2consentl2ofl2McGr
awl2Hilll2LLC
5-4 Financiall2Accountingl2forl2Manage
rs