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
| |
RWP1-1 EDGAR Nike (ticker: NKE)
| | | |
Requirement |1
a. $23,717 |million
b. $9,040 |million
c. Total |liabilities |= |Total |assets |– |total |shareholder’s |equity
$23,717 |– |$9,040 |= |$14,677 |million
Requirement |2
a. $39,117 |million. |Revenue |increased |from |the |previous |year.
b. $4,029 |million. |Net |income |increased |from |the |previous |year.
Requirement |3
a. Operating |cash |flow |= |$5,903 |million. |Operating |cash |flow |was |more |positive
than |the |previous |year.
b. Investing |cash |flow |= |−$264 |million. |Investing |cash |flow |went |from |positive |to
|negative |from |the |previous | year.
c. Financing |cash |flow |= |−$5,293 |million. |Financing |cash |flow |was |more |negative
than |the |previous |year.
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
| | | | |
Requirement |1
a. Average |paying |membership |increased |by |23% |and |average |monthly |revenue |per
paying |membership |increased |by |5%.
b. $2,795,434 |/ |$20,156,447 |= |13.9%
c. $2,652,462, |13% |of |revenues
Requirement |2
a. $9,801,215 |/ |$24,504,567 |= |40%
b. $33,141 |million
©McGraw |Hill |LLC. |All |rights |reserved. |No |reproduction |or |further |distribution |permitted |without |the |prior |written |consent |of |McGraw |Hill |LLC
Solutions |Manual, | Chapter 5-1
|5
,©McGraw |Hill |LLC. |All |rights |reserved. |No |reproduction |or |further |distribution |permitted |without |the |prior |written |consent |of |McGraw |Hill
|LLC
5-2 Financial |Accounting |for |Managers
,Requirement |3
a. $20,723,441. | Long-term |debt |went |up |from |the |previous |year.
b. $736,969
Requirement |4
9%
Requirement |5
a. Ernst |& |Young |LLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
| | | | | |
Requirement |1
First |Quarter.
Requirement |2
August |26, |2018. | The |same |quarter |of |last |year |is |used |as |the |comparison |quarter.
Requirement |3
The |quarterly |report |includes |15 |notes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
| | | | |
Requirement |1
The |COVID-19 |pandemic.
Requirement |2
On |March |23, |2020, |the |Company |announced |that |it |would |be |taking |several |steps |in |an |abundance|of
|caution |to |proactively |strengthen |its |financial |flexibility |and | navigate |through |this |unprecedented
|situation. |Specifically, |the |Company |suspended |its |quarterly |dividend |beginning |in |the |second |quarter
|of |2020, |drew |down |$800 |million |on |its |Revolving |Credit |Facility, |targeted |further |reductions |of |more
|than |$500 |million |in |operating |expenses, |capital |expenditures, |and |working |capital, |and |suspended
|share |repurchases.
©McGraw |Hill |LLC. |All |rights |reserved. |No |reproduction |or |further |distribution |permitted |without |the |prior |written |consent |of |McGraw |Hill |LLC
Solutions |Manual, | Chapter 5-3
|5
, RWP1-5 Financial Analysis: American Eagle
| | | |
($ |in |thousands)
Requirement |1
Total |assets = |$3,328,679
Total |liabilities = |$2,080,826
|Stockholders’ |equity = |$1,247,853
Assets = Liabilities + Stockholders’ |Equity
$3,328,679 = $2,080,826 + $1,247,853
Requirement |2
Consolidated |Statements |of |Operations
Requirement |3
Net |sales = |$4,308,212
Net |income = |$191,257
Requirement |4
Inflows Outflows
Investing |activities Sale |of |available-for-sale Capital |expenditures |for
investments property |and |equipment
Financing |activities Net |proceeds |from |stock Repurchase |of |common |stock
|options |exercised
Requirement |5
The |company’s |auditor |is |Ernst |& |Young |LLP.
The |auditor |states, |―We |have |audited |the |accompanying |consolidated |balance |sheets |of |American
|Eagle |Outfitters, |Inc. |(the |Company) |as |of |February |1, |2020 |and |February |2, |2019, |the |related
|consolidated |statements |of |operations, |comprehensive |income, |stockholders’ |equity |and |cash |flows |for
|each |of |the |three | years |in |the |period |ended |February |1, |2020, |and |the |related |notes |(collectively
|referred |to |as |the |―consolidated |financial |statements‖). | In |our |opinion, | the |consolidated | financial
|statements |present |fairly, |in |all |material |respects, |the |financial |position |of |the |Company |at |February |1,
|2020 |and |February |2, |2019, |and |the |results |of |its |operations |and |its |cash |flows |for |each |of |the |three|years
|in |the |period |ended |February |1, |2020, |in |conformity |with |U.S. |generally |accepted |accounting
|principles.‖
©McGraw |Hill |LLC. |All |rights |reserved. |No |reproduction |or |further |distribution |permitted |without |the |prior |written |consent |of |McGraw |Hill
|LLC
5-4 Financial |Accounting |for |Managers
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
| |
RWP1-1 EDGAR Nike (ticker: NKE)
| | | |
Requirement |1
a. $23,717 |million
b. $9,040 |million
c. Total |liabilities |= |Total |assets |– |total |shareholder’s |equity
$23,717 |– |$9,040 |= |$14,677 |million
Requirement |2
a. $39,117 |million. |Revenue |increased |from |the |previous |year.
b. $4,029 |million. |Net |income |increased |from |the |previous |year.
Requirement |3
a. Operating |cash |flow |= |$5,903 |million. |Operating |cash |flow |was |more |positive
than |the |previous |year.
b. Investing |cash |flow |= |−$264 |million. |Investing |cash |flow |went |from |positive |to
|negative |from |the |previous | year.
c. Financing |cash |flow |= |−$5,293 |million. |Financing |cash |flow |was |more |negative
than |the |previous |year.
RWP1-2 EDGAR Netflix Inc (ticker: NFLX)
| | | | |
Requirement |1
a. Average |paying |membership |increased |by |23% |and |average |monthly |revenue |per
paying |membership |increased |by |5%.
b. $2,795,434 |/ |$20,156,447 |= |13.9%
c. $2,652,462, |13% |of |revenues
Requirement |2
a. $9,801,215 |/ |$24,504,567 |= |40%
b. $33,141 |million
©McGraw |Hill |LLC. |All |rights |reserved. |No |reproduction |or |further |distribution |permitted |without |the |prior |written |consent |of |McGraw |Hill |LLC
Solutions |Manual, | Chapter 5-1
|5
,©McGraw |Hill |LLC. |All |rights |reserved. |No |reproduction |or |further |distribution |permitted |without |the |prior |written |consent |of |McGraw |Hill
|LLC
5-2 Financial |Accounting |for |Managers
,Requirement |3
a. $20,723,441. | Long-term |debt |went |up |from |the |previous |year.
b. $736,969
Requirement |4
9%
Requirement |5
a. Ernst |& |Young |LLP
b. Yes
RWP1-3 EDGAR General Mills Inc. (ticker: GIS)
| | | | | |
Requirement |1
First |Quarter.
Requirement |2
August |26, |2018. | The |same |quarter |of |last |year |is |used |as |the |comparison |quarter.
Requirement |3
The |quarterly |report |includes |15 |notes.
RWP1-4 EDGAR Nordstrom Inc. (ticker: JWN)
| | | | |
Requirement |1
The |COVID-19 |pandemic.
Requirement |2
On |March |23, |2020, |the |Company |announced |that |it |would |be |taking |several |steps |in |an |abundance|of
|caution |to |proactively |strengthen |its |financial |flexibility |and | navigate |through |this |unprecedented
|situation. |Specifically, |the |Company |suspended |its |quarterly |dividend |beginning |in |the |second |quarter
|of |2020, |drew |down |$800 |million |on |its |Revolving |Credit |Facility, |targeted |further |reductions |of |more
|than |$500 |million |in |operating |expenses, |capital |expenditures, |and |working |capital, |and |suspended
|share |repurchases.
©McGraw |Hill |LLC. |All |rights |reserved. |No |reproduction |or |further |distribution |permitted |without |the |prior |written |consent |of |McGraw |Hill |LLC
Solutions |Manual, | Chapter 5-3
|5
, RWP1-5 Financial Analysis: American Eagle
| | | |
($ |in |thousands)
Requirement |1
Total |assets = |$3,328,679
Total |liabilities = |$2,080,826
|Stockholders’ |equity = |$1,247,853
Assets = Liabilities + Stockholders’ |Equity
$3,328,679 = $2,080,826 + $1,247,853
Requirement |2
Consolidated |Statements |of |Operations
Requirement |3
Net |sales = |$4,308,212
Net |income = |$191,257
Requirement |4
Inflows Outflows
Investing |activities Sale |of |available-for-sale Capital |expenditures |for
investments property |and |equipment
Financing |activities Net |proceeds |from |stock Repurchase |of |common |stock
|options |exercised
Requirement |5
The |company’s |auditor |is |Ernst |& |Young |LLP.
The |auditor |states, |―We |have |audited |the |accompanying |consolidated |balance |sheets |of |American
|Eagle |Outfitters, |Inc. |(the |Company) |as |of |February |1, |2020 |and |February |2, |2019, |the |related
|consolidated |statements |of |operations, |comprehensive |income, |stockholders’ |equity |and |cash |flows |for
|each |of |the |three | years |in |the |period |ended |February |1, |2020, |and |the |related |notes |(collectively
|referred |to |as |the |―consolidated |financial |statements‖). | In |our |opinion, | the |consolidated | financial
|statements |present |fairly, |in |all |material |respects, |the |financial |position |of |the |Company |at |February |1,
|2020 |and |February |2, |2019, |and |the |results |of |its |operations |and |its |cash |flows |for |each |of |the |three|years
|in |the |period |ended |February |1, |2020, |in |conformity |with |U.S. |generally |accepted |accounting
|principles.‖
©McGraw |Hill |LLC. |All |rights |reserved. |No |reproduction |or |further |distribution |permitted |without |the |prior |written |consent |of |McGraw |Hill
|LLC
5-4 Financial |Accounting |for |Managers
