FUNDAMENTALS OF FINANCIAL ACCOUNTING LL
6th Edition
ISBN: 9781265554927
Author: PHILLIPS
Publisher: MCG
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 1, Problem 1SDC
Finding Financial Information
Answer the following questions by referring to the financial statements of The Home Depot in Appendix A at the end of this book. (Note: Fiscal 2016 for The Home Depot runs from February 1, 2016, to January 29, 2017. As with many retail companies, The Home Depot labels the period “Fiscal 2016” even though it ends in the 2017 calendar year. The label “Fiscal 2016” is appropriate because Fiscal 2016 includes 11 months from the 2016 calendar year. The Home Depot explains its choice of fiscal period in Note 1 to its financial statements.)
Required:
- 1. What amount of net income was reported (in millions) for the year ended January 29, 2017?
- a. $94,595
- b. $32,313
- c. $7,009
- d. $7,957
- 2. What amount of sales revenue (in millions) was earned for the year ended January 29, 2017?
- a. $32,313
- b. $94,595
- c. $7,957
- d. $7,009
- 3. What was the cost (in millions) of the company’s inventory on January 29, 2017?
- a. $2,538
- b. $12,549
- c. $2,216
- d. $11,809
- 4. How much cash (in millions) does The Home Depot have on January 29, 2017?
- a. $2,538
- b. $12,549
- c. $2,216
- d. $11,809
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Refer to the financial statements of The Home Depot in Appendix A. (Note: Fiscal 2019 for The Home Depot runs from February 4,
2019, to February 2, 2020. As with many retail companies, The Home Depot labels the period "Fiscal 2019" even though it ends in the
2020 calendar year. The label "Fiscal 2019" is appropriate because Fiscal 2019 includes 11 months from the 2019 calendar year. The
Home Depot explains its choice of fiscal period in Note 1 to its financial statements)
Required:
1. What were the year-end dates for the "Fiscal 2019" and "Fiscal 2018" periods?
Fiscal 2019
February 4, 2019
February 4, 2019
February 4, 2019
rebruary 2, 2020
O Option A
O Option B
O Option C
O Option D
Fiscal 2018
February 2, 2018
January 28, 2018
February 2, 2020
rebruary 3, 2015
Refer to the financial statements of Lowe’s Companies, Incorporated, in Appendix B. (Note: Fiscal 2019 for Lowe’s runs from February 2, 2019, to January 31, 2020. As with many retail companies, Lowe’s labels the period “Fiscal 2019” even though it ends in the 2020 calendar year. The label “Fiscal 2019” is appropriate because Fiscal 2019 includes 11 months from the 2019 calendar year. Lowe’s explains its choice of fiscal period in Note 1 to its financial statements.)
2. What journal entry must Lowe’s make when a customer purchases and pays for, but does not yet use, a gift card?
Total current assets
Merchandise inventory
Property and equipment, net of depreciation
Total assets
Total current liabilities
Total long-term liabilities
Total liabilities
Total shareholders' equity
Sales
Cost of goods sold
Gross profit
Operating income
Earnings from continuing operations before income tax expense
Income tax expense
Net earnings
Basic earnings per share
Total assets
Total current liabilities
Total long-term liabilities
Total liabilities
Fresh Grocer Corporated
Selected Financial Information
(amounts in millions, except per share amounts)
Total current assets
Merchandise inventory
Property and equipment, net of depreciation
Total stockholders' equity
Sales
Cost of goods sold
Gross profit
Best Grocer Incorporated
Selected Financial Information
(amounts in millions except per share data)
Net earnings
Basic earnings per share
Required
Operating income
Earnings from continuing operations before income taxes
Income tax expense
December 31, 2019 December 31, 2018
$ 11,270
$…
Chapter 1 Solutions
FUNDAMENTALS OF FINANCIAL ACCOUNTING LL
Ch. 1 - Define accounting.Ch. 1 - Prob. 2QCh. 1 - Briefly distinguish financial accounting from...Ch. 1 - The accounting process generates financial reports...Ch. 1 - Explain what the separate entity assumption means...Ch. 1 - List the three main types of business activities...Ch. 1 - What information should be included in the heading...Ch. 1 - What are the purposes of (a) the balance sheet,...Ch. 1 - Explain why the income statement, statement of...Ch. 1 - Briefly explain the difference between net income...
Ch. 1 - Describe the basic accounting equation that...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Describe the equation that provides the structure...Ch. 1 - Prob. 14QCh. 1 - Prob. 15QCh. 1 - Prob. 16QCh. 1 - Briefly define what an ethical dilemma is and...Ch. 1 - Prob. 18QCh. 1 - Prob. 1MCCh. 1 - Which of the following is true regarding the...Ch. 1 - Which of the following is false regarding the...Ch. 1 - Which of the following regarding retained earnings...Ch. 1 - Prob. 5MCCh. 1 - Which of the following statements regarding the...Ch. 1 - Prob. 7MCCh. 1 - Which of the following is true? a. FASB creates...Ch. 1 - Which of the following would not be a goal of...Ch. 1 - Prob. 10MCCh. 1 - Prob. 1MECh. 1 - Matching Definitions with Terms or Abbreviations...Ch. 1 - Matching Definitions with Terms Match each...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to Balance...Ch. 1 - Matching Financial Statement Items to the Basic...Ch. 1 - Matching Financial Statement Items to the Four...Ch. 1 - Reporting Amounts on the Statement of Cash Flows...Ch. 1 - Prob. 11MECh. 1 - Preparing a Statement of Retained Earnings Stone...Ch. 1 - Relationships among Financial Statements Items...Ch. 1 - Prob. 14MECh. 1 - Relationships among Financial Statements Items...Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Preparing a Balance Sheet DSW, Inc., is a designer...Ch. 1 - Completing a Balance Sheet and Inferring Net...Ch. 1 - Labeling and Classifying Business Transactions The...Ch. 1 - Preparing an Income Statement and Inferring...Ch. 1 - Preparing an Income Statement Home Realty,...Ch. 1 - Prob. 8ECh. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Analyzing and Interpreting an Income Statement...Ch. 1 - Prob. 11ECh. 1 - Matching Cash Flow Statement Items to Business...Ch. 1 - Preparing an Income Statement. Statement of...Ch. 1 - Interpreting the Financial Statements Refer to...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to CP1-3....Ch. 1 - Preparing an Income Statement, Statement of...Ch. 1 - Prob. 2PACh. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PA1-3....Ch. 1 - Preparing an Income Statement and Balance Sheet...Ch. 1 - Interpreting the Financial Statements Refer to PB...Ch. 1 - Reporting Amounts on the Four Basic Financial...Ch. 1 - Evaluating Financial Statements Refer to PB1-3....Ch. 1 - Finding Financial Information Answer the following...Ch. 1 - Comparing Financial Information Refer to the...Ch. 1 - Prob. 5SDCCh. 1 - Prob. 6SDCCh. 1 - Prob. 1CC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The following balances are extracted from the books of Happy-go Lucky Stores for the year ended 30June 2018.Prepare the Statement of Comprehensive Income of Happy-go-Lucky Stores for the mostrecent accounting period. Prepare the Statement of Financial Position of Happy-go-Lucky Stores on 30 June 2018arrow_forwardkoopman Company began operations on January 1, 2018, and uses the FIFO inventory method for financial reporting and the average cost inventory method for income taxes. At the beginning of 2020, koopman decided to switch to the average cost inventory method for financial reporting. It had previously reported the following financial statement information for 2019: 1. Prepare the journal entry to reflect the change in methods at the beginning of 2020. Show supporting calculations. 2. Prepare the 2020 financial statements. Notes to the financial statements are not necessary. Show supporting calculations.arrow_forwardMonty Music Emporium carries a wide variety of musical instruments, sound reproduction equipment, recorded music, and sheet music. Monty uses two sales promotion techniques-warranties and premiums-to attract customers. Musical instruments and sound equipment are sold with a 1-year warranty for replacement of parts and labor. The estimated warranty cost, based on past experience, is 1% of sales. The premium is offered on the recorded and sheet music. Customers receive a coupon for each dollar spent on recorded music or sheet music. Customers may exchange 200 coupons and $10 for an MP3 player. Monty pays $21 for each player and estimates that 70% of the coupons given to customers will be redeemed. Monty's total sales for 2025 were $6,886,000; $5,610,000 from musical instruments and sound reproduction equipment and $1,276,000 from recorded music and sheet music. Replacement parts and labor for warranty work totaled $90,500 during 2025 ($41,000 of the work is related to pre-2025 sales). A…arrow_forward
- Access the FASB Accounting Standards Codification at the FASB website (www.fasb.org). Determine the specific citation for each of the following items:1. What is the balance sheet classification for a note payable due in six months that was used to purchase abuilding?arrow_forwardThe following information is available for Ayayai Corp. for 2023: Payment for goods during year Accounts Payable, beginning Inventory, beginning Accounts Payable, ending Inventory, ending Cost of goods sold for 2023 is $106100. $120600. $137700. $106300. $106200 14200 31500 14100 17000arrow_forwardHi, the question is looking for : 1) Statement of Comprehensive Income of Happy-go-Lucky Stores for the mostrecent accounting period.2) Statement of Financial Position of Happy-go-Lucky Stores on 30 June 2018 Extracted from the books of Happy-go Lucky Stores for the year ended 30arrow_forward
- ! Required information [The following information applies to the questions displayed below.] The following is sample list of the Speiran Company's transactions completed during 2019. The company's fiscal year ends on December 31. Jan. 8 Purchased merchandise for resale on account. The invoice amount was $14,720; assume a perpetual inventory system. 17 Paid January 8 invoice. Apr. 1 Borrowed $72,000 from Lowell Bank for general use; signed a 12-month, 8% annual interest-bearing note for the money. May 1 Rented office space in one of Speiran Company's buildings to another company and collected six months' rent in advance amounting to $27,000. Required: 1. Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)arrow_forwardLocate Gap Inc.’s 2020 Annual Report (for fiscal year 2/2/20-1/30/21) There are 10 sections of questions. You will find the information necessary to answer the questions in “Item 8. Financial Statements and Supplementary Data,” of the report. Read through the questions carefully and answer in the space provided. What are the following amounts at 1/30/21: Total Assets : Total Liabilities: Total Owner’s Equity : At 1/30/21: What is the percentage of debt used to finance Gap? What is the percentage of owner’s equity used to finance Gap? What is the significance of these two percentages?arrow_forwardBlue Company uses the LIFO method for financial reporting purposes but FIFO for internal reporting purposes. At January 1, 2020, the LIFO reserve has a credit balance of $1,106,700. At December 31, 2020, Blue's internal reports indicated that the FIFO inventory balance was $2,828,000 and for external reporting purposes the LIFO inventory balance was $1,614,600. (a) Your answer is correct. What is the amount of the LIFO reserve and the LIFO effect related to 2020? LIFO reserve at December 31, 2020 1213400 LIFO effect for 2020 106700 eTextbook and Media List of Accounts Attempts: 1 of 5 used (b) What is the journal entry needed to record the LIFO effect at December 31, 2020? (If no entry is required, select "No entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31, 2020 %24 %24arrow_forward
- The following selected transactions relate to contingencies of Classical Tool Makers, Inc., which began operations in July 2016. Classical’s fiscal year ends on December 31. Financial statements are issued in April 2017. Required: Prepare the year-end entries for any amounts that should be recorded as a result of each of these contingencies and indicate whether a disclosure note is indicated. 1. Classical’s products carry a one-year warranty against manufacturer’s defects. Based on previous experience, warranty costs are expected to approximate 4% of sales. Sales were $2 million (all credit) for 2016. Actual warranty expenditures were $30,800 and were recorded as warranty expense when incurred. 2. Although no customer accounts have been shown to be uncollectible, Classical estimates that 2% of credit sales will eventually prove uncollectible. 3. In December 2016, the state of Tennessee filed suit against Classical, seeking penalties for violations of clean air laws. On January 23,…arrow_forwardMark Industries issues a note in the amount of $45,000 on August 1, 2018 in exchange for the sale of merchandise. Which of the following is the correct journal entry for this sale? A. B. C. D.arrow_forwardOn September 30, 2013, the general ledger of Leons Golf Shop, which uses the calendar year as its accounting period, showed the following year-to-date account balances: The merchandise inventory account had a 48,000 balance on January 1, 2013. The historical gross profit percentage is 40%. Leon prepares quarterly financial statements and takes physical inventory once a yearat the end of the accounting period. In order to prepare the financial statements for the third quarter, the store needs to have an estimate of ending inventory. You have been asked to use the gross profit method to estimate the ending inventory. Review the worksheet called GP. Study it carefully because it may have a solution format somewhat different from the one shown in your textbook.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Intermediate Accounting: Reporting And AnalysisAccountingISBN:9781337788281Author:James M. Wahlen, Jefferson P. Jones, Donald PagachPublisher:Cengage Learning
Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning
Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:Cengage Learning
Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
How To Analyze an Income Statement; Author: Daniel Pronk;https://www.youtube.com/watch?v=uVHGgSXtQmE;License: Standard Youtube License