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

SOLUTION MANUAL FOR n n




FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS
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AND DAVID SPICELAND AND MARK NELSON
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CHAPTER 1 n




n A FRAMEWORK FOR FINANCIAL ACCOUNTING
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n REAL WORLD PERSPECTIVES
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RWP1-1 EDGAR Nike (ticker: NKE)
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Requirement 1 n




a. $23,717 million n




b. $9,040 million n




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 n




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 n




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 to
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negative 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 n




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% n n n n




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




Requirement 2 n




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




b. $33,141 million n




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Solutions Manual, Chapter 5
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5-2 Financial Accounting for Managers
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,Requirement 3 n




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




b. $736,969

Requirement 4 n




9%

Requirement 5 n




a. Ernst & Young LLP n n n




b. Yes



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




Requirement 1 n




First Quarter.
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Requirement 2 n




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




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




Requirement 1 n




The COVID-19 pandemic.
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Requirement 2 n




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 unprecedented
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situation. 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 than
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$500 million in operating expenses, capital expenditures, and working capital, and suspended share
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repurchases.
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Solutions Manual, Chapter 5
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, RWP1-5 Financial Analysis: American Eagle n n n n




($ in thousands)
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Requirement 1 n




Total assets n = $3,328,679
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Total liabilities n = $2,080,826
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Stockholders’ equity
n n = $1,247,853
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Assets = Liabilities + Stockholders’ Equity n




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

Requirement 2 n




Consolidated Statements of Operations n n n




Requirement 3 n




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




Inflows Outflows
Investing activities n Sale of available-for-sale
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investments property and equipment n n




Financing activities n Net proceeds from stock
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options exercised
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Requirement 5 n




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 Eagle
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Outfitters, Inc. (the Company) as of February 1, 2020 and February 2, 2019, the related consolidated
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statements of operations, comprehensive income, stockholders’ equity and cash flows for each of the
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three years in the period ended February 1, 2020, and the related notes (collectively referred to as the
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―consolidated financial statements‖). In our opinion, the consolidated financial statements present fairly,
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in all material respects, the financial position of the Company at February 1, 2020 and February 2, 2019,
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and the results of its operations and its cash flows for each of the threeyears in the period ended February
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1, 2020, in conformity with U.S. generally accepted accounting principles.‖
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5-4 Financial Accounting for Managers n n n