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

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


CHAPTER 1 U



U A FRAMEWORK FOR FINANCIAL ACCOUNTING
U U U U




U REAL WORLD PERSPECTIVES
U U




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



RequirementU1
a. $23,717Umillion
b. $9,040Umillion
c. TotalUliabilitiesU=UTotalUassetsU–UtotalUshareholder’sUequity
$23,717U–U$9,040U=U$14,677Umillion

RequirementU2
a. $39,117Umillion.URevenueUincreasedUfromUtheUpreviousUyear.
b. $4,029Umillion.UNetUincomeUincreasedUfromUtheUpreviousUyear
.

RequirementU3
a. OperatingUcashUflowU=U$5,903Umillion.UOperatingUcashUflowUwasUmoreUpositive
thanUtheUpreviousUyear.
b. InvestingUcashUflowU=U−$264Umillion.UInvestingUcashUflowUwentUfromUpositiveUt
oUnegativeUfromUtheUpreviousUyear.
c. FinancingUcashUflowU=U−$5,293Umillion.UFinancingUcashUflowUwasUmoreUnegativ
e
thanUtheUpreviousUyear.



RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
U U U U U



RequirementU1
a. AverageUpayingUmembershipUincreasedUbyU23%UandUaverageUmonthlyUrevenueUpe
r
payingUmembershipUincreasedUbyU5%.
b. $2,795,434U/U$20,156,447U=U13.9%
c. $2,652,462,U13%UofUrevenues

RequirementU2
a. $9,801,215U/U$24,504,567U=U40%
b. $33,141Umillion
©McGrawUHillULLC.UAllUrightsUreserved.UNoUreproductionUorUfurtherUdistributionUpermittedUwithoutUtheUpriorUwrittenUconsentUofUMcGraw
UHillULLCUManual,U Chapter
Solutions 5-1
U5

,©McGrawUHillULLC.UAllUrightsUreserved.UNoUreproductionUorUfurtherUdistributionUpermittedUwithoutUtheUpriorUwrittenUconsentUofUMcGra
wUHillULLC
5-2 FinancialUAccountingUforUManage
rs

,RequirementU3
a. $20,723,441.U Long-
termUdebtUwentUupUfromUtheUpreviousUyear.
b. $736,969

RequirementU4
9%

RequirementU5
a. ErnstU&UYoungULLP
b. Yes



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

RequirementU1
FirstUQuarter.

RequirementU2
AugustU26,U2018.U TheUsameUquarterUofUlastUyearUisUusedUasUtheUcomparisonUquarter.

RequirementU3
TheUquarterlyUreportUincludesU15Unotes.



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



RequirementU1
TheUCOVID-19Upandemic.

RequirementU2
OnUMarchU23,U2020,UtheUCompanyUannouncedUthatUitUwouldUbeUtakingUseveralUstepsUinUanUabunda
nceUofUcautionUtoUproactivelyUstrengthenUitsUfinancialUflexibilityUandUnavigateUthroughUthisUunprece
dentedUsituation.USpecifically,UtheUCompanyUsuspendedUitsUquarterlyUdividendUbeginningUinUtheUsec
ondUquarterUofU2020,UdrewUdownU$800UmillionUonUitsURevolvingUCreditUFacility,UtargetedUfurtherUr
eductionsUofUmoreUthanU$500UmillionUinUoperatingUexpenses,UcapitalUexpenditures,UandUworkingUca
pital,UandUsuspendedUshareUrepurchases.




©McGrawUHillULLC.UAllUrightsUreserved.UNoUreproductionUorUfurtherUdistributionUpermittedUwithoutUtheUpriorUwrittenUconsentUofUMcGraw
UHillULLCUManual,U Chapter
Solutions 5-3
U5

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

($UinUthousands)

RequirementU1
TotalUassets =U$3,328,679
TotalUliabilities
=U$2,080,82
6UStockholders’Uequity
=U$1,247,85
3

Assets = Liabilities + Stockholders’UEquity
$3,328,679 = $2,080,826 + $1,247,853

RequirementU2
ConsolidatedUStatementsUofUOperations

RequirementU3
NetUsales =U$4,308,212
NetUincome =U$191,257


RequirementU4
Inflows Outflows
InvestingUactivities SaleUofUavailable-for- CapitalUexpendituresUfor
sale propertyUandUequipment
investments
FinancingUactivities NetUproceedsUfromUstoc RepurchaseUofUcommonUstoc
kUoptionsUexercised k

RequirementU5
TheUcompany’sUauditorUisUErnstU&UYoungULLP.

TheUauditorUstates,U―WeUhaveUauditedUtheUaccompanyingUconsolidatedUbalanceUsheetsUofUAmerican
UEagleUOutfitters,U Inc.U(theUCompany)UasUofUFebruaryU1,U2020UandUFebruaryU2,U2019,UtheUrelatedUc

onsolidatedUstatementsUofUoperations,UcomprehensiveUincome,Ustockholders’UequityUandUcashUflows
UforUeachUofUtheUthreeU yearsUinUtheUperiodUendedUFebruaryU1,U2020,UandUtheUrelatedUnotesU(collecti

velyUreferredUtoUasUtheU―consolidatedUfinancialUstatements‖).UInUourUopinion,UtheUconsolidatedUfinan
cialUstatementsUpresentUfairly,UinUallUmaterialUrespects,UtheUfinancialUpositionUofUtheUCompanyUatUF
ebruaryU1,U2020UandUFebruaryU2,U2019,UandUtheUresultsUofUitsUoperationsUandUitsUcashUflowsUforUeac
hUofUtheUthreeUyearsUinUtheUperiodUendedUFebruaryU1,U2020,UinUconformityUwithUU.S.UgenerallyUacce
ptedUaccountingUprinciples.‖




©McGrawUHillULLC.UAllUrightsUreserved.UNoUreproductionUorUfurtherUdistributionUpermittedUwithoutUtheUpriorUwrittenUconsentUofUMcGra
wUHillULLC
5-4 FinancialUAccountingUforUManage
rs