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

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


CHAPTER 1 HN




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




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




a. $23,717 million HN




b. $9,040 million HN




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 HN




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 HN




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 tone
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gative 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 HN




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% HN HN HN HN




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




Requirement 2 HN




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




b. $33,141 million HN




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Solutions Manual, Chapter
HN H N HN 5-1
5

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




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




b. $736,969

Requirement 4 HN




9%

Requirement 5 HN




a. Ernst & Young LLP HN HN HN




b. Yes



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




Requirement 1 HN




First Quarter. HN




Requirement 2 HN




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




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




Requirement 1 HN




The COVID-19 pandemic.
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Requirement 2 HN




On March 23, 2020, the Company announced that it would be taking several steps in an abundanceo
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f caution to proactively strengthen its financial flexibility and navigate through this unprecedentedsit
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uation. Specifically, the Company suspended its quarterly dividend beginning in the second quarter
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of 2020, drew down $800 million on its Revolving Credit Facility, targeted further reductions of mo
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re than $500 million in operating expenses, capital expenditures, and working capital, and suspende
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d share 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 HN H N HN 5-3
5

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




($ in thousands)
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Requirement 1 HN




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




= $2,080,826
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H




Stockholders’ equity HN = $1,247,853
HN




Assets = Liabilities + Stockholders’ Equity HN




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

Requirement 2 HN




Consolidated Statements of Operations HN HN HN




Requirement 3 HN




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




Inflows Outflows
Investing activities HN Sale of available-for-sale HN HN Capital expenditures for HN HN




investments property and equipment HN HN




Financing activities HN Net proceeds from stock HN HN HN N
H Repurchase of common stock HN HN HN




options exercised HN




Requirement 5 HN




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 Ea
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gle Outfitters, Inc. (the Company) as of February 1, 2020 and February 2, 2019, the related consolida
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ted statements of operations, comprehensive income, stockholders’ equity and cash flows for each of
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the three years in the period ended February 1, 2020, and the related notes (collectively referred to as
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the ―consolidated financial statements‖). In our opinion, the consolidated financial statements presen
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t fairly, in all material respects, the financial position of the Company at February 1, 2020 and Febru
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ary 2, 2019, and the results of its operations and its cash flows for each of the threeyears in the period
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ended 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 L
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LC
5-4 Financial Accounting for Managers HN HN HN