Financial Accounting, Student Value Edition (5th Edition)
5th Edition
ISBN: 9780134728520
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
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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
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
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...
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