SOLUTION MANUAL FOR
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE
SOLUTION MANUAL FOR
THOMAS AND DAVID SPICELAND AND MARK NELSON
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS
AND DAVID SPICELAND AND MARK NELSON
CHAPTER1 jx
jx AFRAMEWORK FORFINANCIALACCOUNTING
xj jx xj jx
jx REAL WORLD PERSPECTIVES jx jx
RWP1-1EDGAR Nike (ticker:NKE) xj jx jx jx
Requirement1 xj
a. $23,717 million jx
b. $9,040 million jx
c. Totalliabilities = Totalassets –totalshareholder’s equity
xj jx jx jx jx xj xj jx
$23,717 –$9,040 = $14,677 million jx xj xj jx jx
Requirement2 xj
a. $39,117 million. Revenue increased fromthe previous year. xj jx jx jx xj xj xj
b. $4,029 million. Net income increased fromtheprevious year.
xj jx jx jx jx xj xj jx
Requirement3 xj
a. Operating cash flow = $5,903 million. Operating cash flow was more positive jx jx xj jx jx jx jx jx jx xj xj
thanthe previous year. xj jx jx
b. Investing cash flow = −$264 million. Investing cash flow went frompositive tonegativ
xj jx jx jx jx jx jx jx jx jx xj xj xj
e fromthe previous year.
jx xj jx jx
c. Financing cash flow = −$5,293 million. Financing cash flow wasmore negative jx jx jx jx jx jx jx jx jx xj xj
thanthe previous year. xj jx jx
RWP1-2EDGAR NetflixInc (ticker: NFLX) xj jx xj jx jx
Requirement1 xj
a. Average paying membership increased by 23% and average monthlyrevenue per
xj jx jx jx jx jx xj jx xj jx
paying membership increased by5%. jx jx xj jx
b. $2,795,434/ $20,156,447= 13.9% xj jx xj jx
c. $2,652,462, 13%ofrevenues jx xj jx
Requirement2 xj
a. $9,801,215/ $24,504,567= 40% xj jx xj jx
b. $33,141 million jx
©McGrawHill LLC. All rights reserved.No reproduction orfurther distribution permitted withoutthe prior written consentofMcGrawH ill LLC
xj jx jx xj xj xj jx xj xj xj jx jx xj xj xj jx xj xj xj jx
SolutionsManual, Chapter 5
xj j x jx 5-1
,©McGrawHill LLC. Allrights reserved.No reproduction orfurther distribution permitted withoutthe prior written consent ofMcGrawHill LLC
xj jx jx xj jx xj jx xj xj xj jx jx xj jx xj jx xj xj xj jx
5-2 Financial Accountingfor Managers
xj xj xj
,Requirement3 xj
a. $20,723,441. Long-termdebt went upfromthe previous year. j x jx jx jx xj xj jx jx
b. $736,969
Requirement4 xj
9%
Requirement 5 jx
a. Ernst &Young LLP jx xj jx
b. Yes
RWP1-3EDGARGeneral MillsInc. (ticker: GIS) xj xj jx xj jx jx
Requirement 1 jx
First Quarter. jx
Requirement 2 jx
August 26, 2018. The same quarter oflast year is used as the comparisonquarter.
jx jx j x jx jx xj xj jx jx xj jx jx jx xj
Requirement 3 jx
The quarterlyreport includes 15 notes.
jx xj jx jx jx
RWP1-4EDGAR NordstromInc. (ticker:JWN) xj jx xj jx jx
Requirement 1 jx
The COVID-19 pandemic.
jx jx
Requirement 2 jx
On March 23, 2020, the Company announced that it would be taking several steps in an abundanceo fcautio
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx xj xj
nto proactivelystrengthen its financial flexibilityand navigatethroughthis unprecedentedsituation. Speci
xj jx jx jx jx jx xj jx xj xj jx xj jx
fically, the Company suspended its quarterly dividend beginning in the second quarter of2020, drew down
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx
$800 million on its Revolving Credit Facility, targeted further reductions of more than $500 million in oper
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx
ating expenses, capital expenditures, and working capital, and suspended share repurchases.
jx jx jx jx jx jx jx jx jx jx
©McGrawHill LLC. All rights reserved.No reproduction orfurther distribution permitted withoutthe prior written consentofMcGrawH ill LLC
xj jx jx xj xj xj jx xj xj xj jx jx xj xj xj jx xj xj xj jx
SolutionsManual, Chapter 5 xj j x jx 5-3
, RWP1-5 FinancialAnalysis:AmericanEagle jx xj xj xj
($ inthousands)xj xj
Requirement1 xj
Totalassets xj = $3,328,679
jx
Totalliabilities xj
= $2,080,826
jx xj
Stockholders’ equity jx =$1,247,853xj
Assets = Liabilities + Stockholders’Equity xj
$3,328,679 = $2,080,826 + $1,247,853
Requirement 2 jx
Consolidated StatementsofOperations jx xj xj
Requirement 3 jx
Net sales jx = $4,308,212
jx
Net income jx = $191,257 jx
Requirement4 xj
Inflows Outflows
Investingactivities xj Sale ofavailable-for-sale xj xj Capitalexpenditures for xj jx
investments propertyand equipment xj jx
Financingactivities xj Net proceeds from stocko
jx jx jx xj Repurchase ofcommon stock jx xj jx
ptions exercised xj
Requirement5 xj
The company’s auditor is Ernst &Young LLP.
jx jx jx xj jx xj jx
The auditor states, ―We have audited the accompanying consolidated balance sheetsof American Eagle Ou
jx xj jx jx jx jx jx jx jx jx xj jx jx jx
tfitters, Inc. (the Company) as of February 1, 2020 and February 2, 2019, the related consolidated statement
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx
s of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in th
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx
e period ended February 1, 2020, and the related notes (collectively referred to asthe ―consolidated financia
jx jx jx jx jx jx jx jx jx jx jx jx jx xj jx jx
l statements‖). Ino ur opinion, the consolidated financialstatements present fairly, in all material respects, t
jx jx xj jx jx jx jx jx jx jx jx jx jx jx jx
he financial position ofthe Company at February 1, 2020and February2, 2019, and the resultsofits operatio
jx jx jx jx jx jx jx jx jx xj jx xj jx jx jx jx xj xj jx
ns and its cash flows for eachofthe threeyears in the period ended February1, 2020, in conformity with U.S.
jx jx jx jx jx jx xj xj jx xj jx jx jx jx jx jx jx jx jx jx jx jx
generally accepted accounting principles.‖ jx jx jx
©McGrawHill LLC. Allrights reserved.No reproduction orfurther distribution permitted withoutthe prior written consent ofMcGrawHill LLC
xj jx jx xj jx xj jx xj xj xj jx jx xj jx xj jx xj xj xj jx
5-4 Financial Accountingfor Managers xj xj xj
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE
SOLUTION MANUAL FOR
THOMAS AND DAVID SPICELAND AND MARK NELSON
FINANCIAL ACCOUNTING FOR MANAGERS 1ST EDITION BY WAYNE THOMAS
AND DAVID SPICELAND AND MARK NELSON
CHAPTER1 jx
jx AFRAMEWORK FORFINANCIALACCOUNTING
xj jx xj jx
jx REAL WORLD PERSPECTIVES jx jx
RWP1-1EDGAR Nike (ticker:NKE) xj jx jx jx
Requirement1 xj
a. $23,717 million jx
b. $9,040 million jx
c. Totalliabilities = Totalassets –totalshareholder’s equity
xj jx jx jx jx xj xj jx
$23,717 –$9,040 = $14,677 million jx xj xj jx jx
Requirement2 xj
a. $39,117 million. Revenue increased fromthe previous year. xj jx jx jx xj xj xj
b. $4,029 million. Net income increased fromtheprevious year.
xj jx jx jx jx xj xj jx
Requirement3 xj
a. Operating cash flow = $5,903 million. Operating cash flow was more positive jx jx xj jx jx jx jx jx jx xj xj
thanthe previous year. xj jx jx
b. Investing cash flow = −$264 million. Investing cash flow went frompositive tonegativ
xj jx jx jx jx jx jx jx jx jx xj xj xj
e fromthe previous year.
jx xj jx jx
c. Financing cash flow = −$5,293 million. Financing cash flow wasmore negative jx jx jx jx jx jx jx jx jx xj xj
thanthe previous year. xj jx jx
RWP1-2EDGAR NetflixInc (ticker: NFLX) xj jx xj jx jx
Requirement1 xj
a. Average paying membership increased by 23% and average monthlyrevenue per
xj jx jx jx jx jx xj jx xj jx
paying membership increased by5%. jx jx xj jx
b. $2,795,434/ $20,156,447= 13.9% xj jx xj jx
c. $2,652,462, 13%ofrevenues jx xj jx
Requirement2 xj
a. $9,801,215/ $24,504,567= 40% xj jx xj jx
b. $33,141 million jx
©McGrawHill LLC. All rights reserved.No reproduction orfurther distribution permitted withoutthe prior written consentofMcGrawH ill LLC
xj jx jx xj xj xj jx xj xj xj jx jx xj xj xj jx xj xj xj jx
SolutionsManual, Chapter 5
xj j x jx 5-1
,©McGrawHill LLC. Allrights reserved.No reproduction orfurther distribution permitted withoutthe prior written consent ofMcGrawHill LLC
xj jx jx xj jx xj jx xj xj xj jx jx xj jx xj jx xj xj xj jx
5-2 Financial Accountingfor Managers
xj xj xj
,Requirement3 xj
a. $20,723,441. Long-termdebt went upfromthe previous year. j x jx jx jx xj xj jx jx
b. $736,969
Requirement4 xj
9%
Requirement 5 jx
a. Ernst &Young LLP jx xj jx
b. Yes
RWP1-3EDGARGeneral MillsInc. (ticker: GIS) xj xj jx xj jx jx
Requirement 1 jx
First Quarter. jx
Requirement 2 jx
August 26, 2018. The same quarter oflast year is used as the comparisonquarter.
jx jx j x jx jx xj xj jx jx xj jx jx jx xj
Requirement 3 jx
The quarterlyreport includes 15 notes.
jx xj jx jx jx
RWP1-4EDGAR NordstromInc. (ticker:JWN) xj jx xj jx jx
Requirement 1 jx
The COVID-19 pandemic.
jx jx
Requirement 2 jx
On March 23, 2020, the Company announced that it would be taking several steps in an abundanceo fcautio
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx xj xj
nto proactivelystrengthen its financial flexibilityand navigatethroughthis unprecedentedsituation. Speci
xj jx jx jx jx jx xj jx xj xj jx xj jx
fically, the Company suspended its quarterly dividend beginning in the second quarter of2020, drew down
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx
$800 million on its Revolving Credit Facility, targeted further reductions of more than $500 million in oper
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx
ating expenses, capital expenditures, and working capital, and suspended share repurchases.
jx jx jx jx jx jx jx jx jx jx
©McGrawHill LLC. All rights reserved.No reproduction orfurther distribution permitted withoutthe prior written consentofMcGrawH ill LLC
xj jx jx xj xj xj jx xj xj xj jx jx xj xj xj jx xj xj xj jx
SolutionsManual, Chapter 5 xj j x jx 5-3
, RWP1-5 FinancialAnalysis:AmericanEagle jx xj xj xj
($ inthousands)xj xj
Requirement1 xj
Totalassets xj = $3,328,679
jx
Totalliabilities xj
= $2,080,826
jx xj
Stockholders’ equity jx =$1,247,853xj
Assets = Liabilities + Stockholders’Equity xj
$3,328,679 = $2,080,826 + $1,247,853
Requirement 2 jx
Consolidated StatementsofOperations jx xj xj
Requirement 3 jx
Net sales jx = $4,308,212
jx
Net income jx = $191,257 jx
Requirement4 xj
Inflows Outflows
Investingactivities xj Sale ofavailable-for-sale xj xj Capitalexpenditures for xj jx
investments propertyand equipment xj jx
Financingactivities xj Net proceeds from stocko
jx jx jx xj Repurchase ofcommon stock jx xj jx
ptions exercised xj
Requirement5 xj
The company’s auditor is Ernst &Young LLP.
jx jx jx xj jx xj jx
The auditor states, ―We have audited the accompanying consolidated balance sheetsof American Eagle Ou
jx xj jx jx jx jx jx jx jx jx xj jx jx jx
tfitters, Inc. (the Company) as of February 1, 2020 and February 2, 2019, the related consolidated statement
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx
s of operations, comprehensive income, stockholders’ equity and cash flows for each of the three years in th
jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx jx
e period ended February 1, 2020, and the related notes (collectively referred to asthe ―consolidated financia
jx jx jx jx jx jx jx jx jx jx jx jx jx xj jx jx
l statements‖). Ino ur opinion, the consolidated financialstatements present fairly, in all material respects, t
jx jx xj jx jx jx jx jx jx jx jx jx jx jx jx
he financial position ofthe Company at February 1, 2020and February2, 2019, and the resultsofits operatio
jx jx jx jx jx jx jx jx jx xj jx xj jx jx jx jx xj xj jx
ns and its cash flows for eachofthe threeyears in the period ended February1, 2020, in conformity with U.S.
jx jx jx jx jx jx xj xj jx xj jx jx jx jx jx jx jx jx jx jx jx jx
generally accepted accounting principles.‖ jx jx jx
©McGrawHill LLC. Allrights reserved.No reproduction orfurther distribution permitted withoutthe prior written consent ofMcGrawHill LLC
xj jx jx xj jx xj jx xj xj xj jx jx xj jx xj jx xj xj xj jx
5-4 Financial Accountingfor Managers xj xj xj
