Financial Accounting
5th Edition
ISBN: 9780134728643
Author: Robert Kemp; Jeffrey Waybright
Publisher: Pearson Education (US)
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Chapter 11, Problem 1CE
To determine
Prepare the statement of cash flows for Incorporation S for the year ending December 31, 2019, using the indirect method.
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Identifying and Computing Net Operating Assets (NOA) and Net Nonoperating Obligations (NNO)Following are the balance sheets and statement of earnings for Home Depot Inc. for fiscal year ended February 3, 2019, which the company labels fiscal year 2018.
THE HOME DEPOT INC.
Consolidated Balance Sheets
February 3,
January 28,
$ millions, except par value
2019
2018
Assets
Current assets
Cash and cash equivalents
$1,778
$3,595
Receivables, net
1,936
1,952
Merchandise inventories
13,925
12,748
Other current assets
890
638
Total current assets
18,529
18,933
Net property and equipment
22,375
22,075
Goodwill
2,252
2,275
Other assets
847
1,246
Total assets
$44,003
$44,529
THE HOME DEPOT INC.
Consolidated Balance Sheets
February 3,
January 28,
$ millions, except par value
2019
2018
Liabilities and Stockholders’ Equity
Current liabilities
Short-term debt
$1,339
$1,559
Accounts payable
7,755
7,244
Accrued salaries and…
Compute Net Operating Assets
Refer to the balance sheet information below for Home Depot.
$ millions Feb. 3, 2019 Jan. 28, 2018Operating assets $31,669 $30,701Nonoperating assets 1,334 2,696Total assets $33,003 $33,397Operating liabilities $12,509 $12,035Nonoperating liabilities 21,902 20,271Total liabilities $34,411 $32,306Net sales $81,152 Operating expense before tax 69,505 Net operating profit before tax (NOPBT) 11,647 Other expense 731 Income before tax 10,916 Tax expense 2,576 Net income $8,340
Compute net operating assets for the years ended February 3, 2019, and January 28, 2018.
$ millions February 3, 2019 January 28, 2018Net operating assets (NOA) AnswerAnswer
Forecast an Income StatementSeagate Technology reports the following income statement for fiscal 2019.
SEGATE TECHNOLOGY PLC
Consolidated Statement of Income
For Year Ended June 28, 2019, $ millions
Revenue
$20,780
Cost of revenue
14,916
Product development
1982
Marketing and administrative
906
Amortization of intangibles
46
Restructuring and other, net
(44)
Total operating expenses
17,806
Income from operations
2,974
Interest income
168
Interest expense
(448)
Other, net
50
Other expense, net
(230)
Income before income taxes
2,744
(Benefit) provision for income taxes
(1,280)
Net income
$4,024
Forecast Seagate’s 2020 income statement assuming the following income statement relations ($ millions).
Revenue growth
5%
Cost of revenue
71.8% of revenue
Product development
9.5% of revenue
Marketing and administrative
4.4% of revenue
Amortization of intangibles
No change
Restructuring and other, net
$0
Interest income
No change…
Chapter 11 Solutions
Financial Accounting
Ch. 11 - Prob. 1DQCh. 11 - Prob. 2DQCh. 11 - Prob. 3DQCh. 11 - A company issued bonds during the year. Would this...Ch. 11 - Prob. 5DQCh. 11 - When using the indirect method, why are gains on...Ch. 11 - Prob. 7DQCh. 11 - Prob. 8DQCh. 11 - Prob. 9DQCh. 11 - Prob. 10DQ
Ch. 11 - Prob. 1SCCh. 11 - Operating activities are most closely related to:...Ch. 11 - Prob. 3SCCh. 11 - Prob. 4SCCh. 11 - Finlay, Inc., earned net income of 63,000 after...Ch. 11 - Prob. 6SCCh. 11 - Prob. 7SCCh. 11 - Prob. 8SCCh. 11 - Prob. 9SCCh. 11 - Elliot Enterprises had operating expenses of...Ch. 11 - Prob. 11SCCh. 11 - Prob. 12SCCh. 11 - Prob. 1SECh. 11 - Prob. 2SECh. 11 - Prob. 3SECh. 11 - Prob. 4SECh. 11 - Prob. 5SECh. 11 - Prob. 6SECh. 11 - Operating activitiesindirect method (Learning...Ch. 11 - Prob. 8SECh. 11 - Operating activitiesdirect method (Learning...Ch. 11 - Prob. 10SECh. 11 - Prob. 11SECh. 11 - Prob. 12SECh. 11 - Prob. 13AECh. 11 - Prob. 14AECh. 11 - Prob. 15AECh. 11 - Preparing a statement of cash flowsindirect method...Ch. 11 - Prob. 17AECh. 11 - Prob. 18AECh. 11 - Prob. 19AECh. 11 - Prob. 20AECh. 11 - Prob. 21AECh. 11 - Prob. 22BECh. 11 - Prob. 23BECh. 11 - Preparing a statement of cash flowsindirect method...Ch. 11 - Prob. 25BECh. 11 - Prob. 26BECh. 11 - Prob. 27BECh. 11 - Prob. 28BECh. 11 - Prob. 29BECh. 11 - Calculating certain information using the direct...Ch. 11 - Prob. 31APCh. 11 - Prob. 32APCh. 11 - Prob. 33APCh. 11 - Prob. 34APCh. 11 - Prob. 35APCh. 11 - Prob. 36APCh. 11 - Prob. 37BPCh. 11 - Prob. 38BPCh. 11 - Prob. 39BPCh. 11 - Prob. 40BPCh. 11 - Prob. 41BPCh. 11 - Prob. 42BPCh. 11 - Prob. 1CECh. 11 - Prob. 1CPCh. 11 - Apply Your Knowledge Ethics In Action Case 1....Ch. 11 - Case 2. Kevin Sailors, the CEO of Candle...Ch. 11 - Financial Analysis Purpose: To help to familiarize...Ch. 11 - Prob. 1IACh. 11 - Small Business Analysis Purpose: To help you...Ch. 11 - Written Communication Prepare a paper outlining...Ch. 11 - Comprehensive Problem The Accounting Cycle and...
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