SOLUTION MANUAL FOR . .
FINANCIAL.ACCOUNTING.FOR.MANAGERS.1ST.EDITION.BY.WAYNE.THOMAS.AND.D
AVID.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.nega
tive.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 5-1
,©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.cauti
on.to.proactively.strengthen.its.financial.flexibility.and.navigate.through.this.unprecedented.situation..Sp
ecifically,.the.Company.suspended.its.quarterly.dividend.beginning.in.the.second.quarter.of.2020,.drew.d
own.$800.million.on.its.Revolving.Credit.Facility,.targeted.further.reductions.of.more.than.$500.million.i
n.operating.expenses,.capital.expenditures,.and.working.capital,.and.suspended.share.repurchases.
©McGraw.Hill.LLC..All.rights.reserved..No.reproduction.or.further.distribution.permitted.without.the.prior.written.consent.of.McGraw.Hill.LLC
Solutions.Manual,. Chapter.5 5-3
, RWP1-5 Financial Analysis: American Eagle
. . . .
($.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.o Repurchase.of.common.stock
ptions.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.state
ments.of.operations,.comprehensive.income,.stockholders’.equity.and.cash.flows.for.each.of.the.three.yea
rs.in.the.period.ended.February.1,.2020,.and.the.related.notes.(collectively.referred.to.as.the.―consolidate
d.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.o
f.its.operations.and.its.cash.flows.for.each.of.the.three.years.in.the.period.ended.February.1,.2020,.in.confor
mity.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.D
AVID.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.nega
tive.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 5-1
,©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.cauti
on.to.proactively.strengthen.its.financial.flexibility.and.navigate.through.this.unprecedented.situation..Sp
ecifically,.the.Company.suspended.its.quarterly.dividend.beginning.in.the.second.quarter.of.2020,.drew.d
own.$800.million.on.its.Revolving.Credit.Facility,.targeted.further.reductions.of.more.than.$500.million.i
n.operating.expenses,.capital.expenditures,.and.working.capital,.and.suspended.share.repurchases.
©McGraw.Hill.LLC..All.rights.reserved..No.reproduction.or.further.distribution.permitted.without.the.prior.written.consent.of.McGraw.Hill.LLC
Solutions.Manual,. Chapter.5 5-3
, RWP1-5 Financial Analysis: American Eagle
. . . .
($.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.o Repurchase.of.common.stock
ptions.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.state
ments.of.operations,.comprehensive.income,.stockholders’.equity.and.cash.flows.for.each.of.the.three.yea
rs.in.the.period.ended.February.1,.2020,.and.the.related.notes.(collectively.referred.to.as.the.―consolidate
d.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.o
f.its.operations.and.its.cash.flows.for.each.of.the.three.years.in.the.period.ended.February.1,.2020,.in.confor
mity.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
