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
HN HN HN HN
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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N
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
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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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H
f caution to proactively strengthen its financial flexibility and navigate through this unprecedentedsit
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H
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 $500 million in operating expenses, capital expenditures, and working capital, and suspende
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d share repurchases.
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Solutions Manual, Chapter HN H N HN 5-3
5
, RWP1-5 Financial Analysis: American Eagle HN HN HN HN
($ in thousands)
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Requirement 1 HN
Total assets HN = $3,328,679
HN
Total liabilities HN
= $2,080,826
HN N
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
HN
Net income HN = $191,257
HN
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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H HN HN HN HN
ended February 1, 2020, in conformity with U.S. generally accepted accounting principles.‖
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LC
5-4 Financial Accounting for Managers HN HN HN
