Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Question
Chapter 11, Problem 1CE
To determine
Prepare the statement of
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Compute Net Operating Assets
Refer to the balance sheet information below for Home Depot.
$ millions
Feb. 3, 2019
Jan. 28, 2018
Operating assets
$40,114
$38,887
Nonoperating assets
1,689
3,415
Total assets
$41,803
$42,302
Operating liabilities
$15,845
$15,245
Nonoperating liabilities
27,742
25,677
Total liabilities
$43,587
$40,922
Net sales
$102,793
Operating expense before tax
88,039
Net operating profit before tax (NOPBT)
14,754
Other expense
925
Income before tax
13,829
Tax expense
3,263
Net income
$10,566
Compute net operating assets for the years ended February 3, 2019, and January 28, 2018.
$ millions
February 3, 2019
January 28, 2018
Net operating assets (NOA)
Answer
Answer
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…
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…
Chapter 11 Solutions
Financial Accounting, Student Value Edition (5th Edition)
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...
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
- 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) AnswerAnswerarrow_forwardBalance Sheet as at As at 30/9/16 As at 30/9/15 $ $ Assets Current assets- Cash 8,200 9,400 Accounts Receivable 107,000 103,500 Inventory 82,700 71,300 Non-current assets less accumulated depreciation 242,600 245,700 Total assets 440,500 429,900 Liabilities and Owners' equity Current liabilities 117,000 120,000 Loan (repayable in 2019) 152,000 150,000 Total liabilities 269,000 270,000 Owners' equity 171,500 159,900 Total Liabilities and Owners' equity 440,500 429,900 Summarised Income Statement of Bishan Enterprise for the year ended 30 September 2016 $ Sales 990,000 Cost of goods sold 580,000 Gross profit 410,000 Operating expenses 350,000 Net profit 60,000 · Note - The owner withdrew $48,400 during 2016. Required: Calculate…arrow_forwardBETHESDA MINING COMPANYBalance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 65,470 $ 82,487 Accounts payable $ 186,922 $ 194,611 Accounts receivable 65,281 85,639 Notes payable 82,020 133,588 Inventory 116,676 181,549 Total $ 268,942 $ 328,199 Total $ 247,427 $ 349,675 Long-term debt $ 231,000 $ 167,750 Owners’ equity Common stock and paid-in surplus $ 224,000 $ 224,000 Accumulated retained earnings 182,232 219,704 Fixed assets Net plant and equipment $ 658,747 $ 589,978…arrow_forward
- Analyze, Forecast, and Interpret Income Statement and Balance SheetFollowing are the income statement and balance sheet of ADP Inc. DATA PROCESSING INC. Statement of Consolidated Earnings For Year Ended June 30, 2019, $ millions Total revenues $8,505.1 Operating expenses 4,287.5 Systems development and programming costs 381.8 Depreciation and amortization 182.6 Total cost of revenues 4,851.9 Selling, general, and administrative expenses 1,838.5 Interest expense 77.9 Total expenses 6,768.3 Other (income) expense, net (66.7) Earnings before income taxes 1,803.5 Provision for income taxes 427.7 Net earnings $1,375.8 DATA PROCESSING INC. Balance Sheet $ millions June 30, 2019 Current assets Cash and cash equivalents $1,169.5 Accounts receivable, net 1,463.6 Other current assets 311.8 Total current assets before funds held for clients 2,944.9 Funds half for clients 17,660.5 Total current assets 20,605.4 Long-term receivables,…arrow_forwardForecast an Income Statement Seagate Technology reports the following income statement for fiscal 2019. SEGATE TECHNOLOGY PLC Consolidated Statement of Income For Year Ended June 28, 2019, $ millions Revenue $10,835 Cost of revenue 7,458 Product development 1,436 Marketing and administrative 898 Amortization of intangibles 23 Restructuring and other, net (22) Total operating expenses 9,793 Income from operations 1,042 Interest income 529 Interest expense (224) Other, net 25 Other income (expense), net 330 Income before income taxes 1,372 (Benefit) provision for income taxes (640) Net income $2,012 Forecast Seagate’s 2020 income statement assuming the following income statement relations ($ millions). Note: Complete the entire question using the following Excel template: Excel Template. Then enter the answers into the provided spaces below with two decimal places. Assumptions Revenue growth 5% growth Cost of revenue 71.8% of…arrow_forwardHIC GROUP OF Companies COMPARATIVE INCOME STATEMENT For years ended 3rd December 2019 2020 Revenue and gains Sales revenue 495,500 496,738.75 Interest revenue 278,500 279,196.25 Investment Income 71,700 71,879.25 Other revenue 101,500 101,753.75 Total revenue and gains 947,200 949,968 Expenses and losses Cost of good sold 450,000 447,750 Selling&administrative 185,000 184,075 Computer (operating) 42,500 42,288…arrow_forward
- Just Dew It Corporation 2018 and 2019 Balance Sheets Assets Liabilities and Owner’s Equity 2018 2019 2018 2019 Current Assets Current Liabilities Cash $11,135 $13,407 Accounts payable $45,166 $48,185 Accounts Receivable 28,419 30,915 Notes payable 17,773 18,257 Inventory 51,163 56,295 Total $62,939 $66,442 Total $90,717 $100,617 Long term debt $44,000 $39,000 Owners’ equity Net plant and equipment $326,456 $357,560 Common stock and paid-in surplus $50,000 $50,000 Retained earnings 260,234 302,735 Total $310,234 $352,735 Total assets $417,173 $458,177 Total liabilities and owners’ equity $417,173 $458,177 Debt–equity ratio and equity multiplier. Total debt ratio and long-term debt ratio.arrow_forwardЕ. The income statement , statement of retained earnings and balance sheet of Somerville Company are as follows: Somerville Company Income Statement For the Year Ended December 31, 2019 Amount Percent Net sales 8,281,989 100.0% Less: Cost of goods sold Gross margin Less: Operating expenses Operating income (5,383,293) 2,898,696 (1,323,368) 1,575,328 (50,000) 1,525,328 65.0 35.0 16.0 19.0 Less: Interest expense Income before taxes 0.6 18.4 Less: Income taxes (40%) (610,131) 915.197 7.4 Net income 11.0 Somerville Company Statement of Retained Earnings For the Year Ended December 31, 2019 Balance, beginning of period 1,979,155 Net income 915,197 Total 2,894,352 (80,000) (201,887) 2.612.465 Less: Preferred dividends Dividends to common stockholders Balance, end of periodarrow_forwardJust Dew It Corporation 2018 and 2019 Balance Sheets Assets Liabilities and Owner’s Equity 2018 2019 2018 2019 Current Assets Current Liabilities Cash $11,135 $13,407 Accounts payable $45,166 $48,185 Accounts Receivable 28,419 30,915 Notes payable 17,773 18,257 Inventory 51,163 56,295 Total $62,939 $66,442 Total $90,717 $100,617 Long term debt $44,000 $39,000 Owners’ equity Net plant and equipment $326,456 $357,560 Common stock and paid-in surplus $50,000 $50,000 Retained earnings 260,234 302,735 Total $310,234 $352,735 Total assets $417,173 $458,177 Total liabilities and owners’ equity $417,173 $458,177 Prepare the 2019 combined common-size, common-base year balance sheet for Just Dew It.arrow_forward
- Just Dew It Corporation 2018 and 2019 Balance Sheets Assets Liabilities and Owner’s Equity 2018 2019 2018 2019 Current Assets Current Liabilities Cash $11,135 $13,407 Accounts payable $45,166 $48,185 Accounts Receivable 28,419 30,915 Notes payable 17,773 18,257 Inventory 51,163 56,295 Total $62,939 $66,442 Total $90,717 $100,617 Long term debt $44,000 $39,000 Owners’ equity Net plant and equipment $326,456 $357,560 Common stock and paid-in surplus $50,000 $50,000 Retained earnings 260,234 302,735 Total $310,234 $352,735 Total assets $417,173 $458,177 Total liabilities and owners’ equity $417,173 $458,177 For each account on this company’s balance sheet, show the change in the account during 2019 and note…arrow_forwardComputing Activity Ratios Selected balance sheet and income statement information follows for R.A. Corporation. R.A. Corporation $ millions April 2, 2020 March 28, 2019 Income statement information: Sales $20,967 $22,353 Cost of goods sold 9,654 9,726 Balance sheet information: Accounts receivable, gross 2,313 2,718 Inventory 3,375 3,126 Accounts payable 468 630 Required Compute the following ratios for its fiscal year ended April 2, 2020. Round your answers to two decimal places (for example, enter 20.46 for 20.4555558). a. Accounts receivable turnover Answer b. Average days to collect receivables Answer c. Inventory turnover Answer d. Average days in inventory Answer e. Accounts payable turnover Answer f. Average days payable outstanding Answer g. Cash conversion cycle Answerarrow_forwardRefer to the balance sheet information below for Home Depot. $ millions Feb. 3, 2019 Jan. 28, 2018 Operating assets Nonoperating assets Total assets Operating liabilities Nonoperating liabilities Total liabilities Net sales $13,837 $13,414 583 1,178 $14,420 $14,592 $5,466 $5,259 9,569 8,857 $15,035 $14,116 $35,458 Operating expense before tax 30,369 Net operating profit before tax (NOPBT) 5,089 Other expense 319 Income before tax Tax expense Net income 4,770 1,126 $3,644 a. Compute return on net operating assets (RNOA). Assume a statutory tax rate of 22%. Note: 1. Select the appropriate numerator and denominator used to compute RNOA from the drop-down menu options. 2. Enter the numerator and denominator amounts to compute 2018 RNOA. Denominator Average NOA NOPAT $ Numerator $ RNOA 8,263 0% b. Disaggregate RNOA into components of profitability (NOPM) and productivity (NOAT). Assume a statutory tax rate of 22%. Note: 1. Select the appropriate numerator and denominator used to compute…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
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
Consolidated financial statements; Author: The Finance Storyteller;https://www.youtube.com/watch?v=DTFD912ZJQg;License: Standard Youtube License