Use Newell Brands, Inc.'s financial statements to answer to the following questions. According to the footnotes, what was the initial total acquisition cost of the Property, Plant, and Equipment that Newell Brands owns as of December 31, 2020? $ _________________ According to the footnotes, what is the total acquisition cost of Land that Newell Brands owns as of December 31, 2020?$ _________________ According to the footnotes, which of the following methods does Newell Brands use to depreciate its Property, Plant, and Equipment? (Circle one) Straight-Line Double-Declining-Balance Units-of-Activity Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to record depreciation on its Property and Equipment. Assume that Newell Brands makes one adjusting journal entry for depreciation expense at the end of each fiscal year as part of its adjusting entries) Does Newell Brands’ Goodwill footnote suggest that the company acquired any other companies during fiscal 2020? (Circle one) YES NO Does Newell Brands’ Goodwill footnote suggest that the company acquired any other companies during fiscal 2019? (Circle oneYES NO Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to record amortization on its finite-lived Intangible Assets. Assume that Newell Brands makes one adjusting journal entry for amortization expense at the end of each fiscal year as part of its adjusting entries. Newell Brands, Inc. Financial Statements (partial)newellBRANDSConsolidated Balance SheetsIn millions of dollarsAs ofDec 31, 2020$ 981As ofDec 31, 2019$ 349ASSETSCash and cash equivalentsAccounts receivable, net1,6781,842Inventories1,6381,606Prepaid expenses and other current assets331313Total current assets$ 4,628$ 4,110Property, plant, and equipment, net1,1761,155Goodwill3,5533,709Other long-term assets5,3436,668Total assets$ 14.700$ 15.642LIABILITIES AND STOCKHOLDERS' EQUITYAccounts payable$ 1,526$ 1,102Wages payable236204Current portion of long-term debt466332Other current liabilities1,3931,340Total current liabilities3,6212,978Long-term debt5,1415,391Other noncurrent liabilities2,0382,277Total liabilities10,80010,646Common stock3,4484,447Retained earnings452549Total stockholders' equity3,9004,996Total liabilities and stockholders' equity$ 14.700$ 15.642 Notes to Consolidated Financial Statements (partial)Footnote 1. Summary Of Significant Accounting Policies1.1. Description of BusinessNewell Brands is a leading global consumer goods company with a strong portfolio of well-known brands,including Rubbermaid®, Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer's®, Coleman®, Marmot®,Oster®, Sunbeam®, EgodSaver®, Mr. Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®,NUK®, Çalphalon®, Contigo®, First Alert®, Mapa®, Spontex® and Yankee Candle®. Newell Brands iscommitted to enhancing the lives of consumers around the world with planet friendly, innovative and attractiveproducts that create moments of joy and provide peace of mind. The Company sells its products in nearly 200countries around the world and has operations on the ground in over 40 of these countries, excluding third-partydistributors.6. Property, Plant, and EquipmentProperty, plant and equipment are stated at cost. Expenditures for maintenance and repairs are expensed asincurred. Depreciation expense is calculated principally on the straight-line basis. Useful lives determined bythe Company are as follows: buildings and improvements (20 – 40 years) and machinery and equipment (315 years). Depreciation expense was $200 million, and $254 million in 2020, and 2019, respectively.The following table summarizes property and equipment (in millions):As of December 31,20202019$ 86664$ 86641LandBuildings and improvementsMachinery and equipment2,3143,064(1,888)$ 1,1762,1512,878(1,723)$ 1,155Total property, plant and equipmentAccumulated depreciationProperty, plant and equipment, net7. Goodwill and Intangible AssetsThe Company evaluates goodwill for impairment annually at the reporting unit level. The Company also testsfor impairment if events and circumstances indicate that it is more likely than not that the fair value of areporting unit is below its carrying amount. If the carrying amount of the reporting unit is greater than the fairvalue, impairment may be present. The Company measures the amount of any goodwill impairment bycomparing the fair value to the carrying value of the reporting unit. An impairment charge is recognized tothe extent the carrying value of the reporting unit exceeds the fair value. The Company evaluates indefinite-lived intangible assets (primarily trademarks and tradenames) for impairment annually. The Company alsotests for impairment if events and circumstances indicate that it is more likely than not that the fair value ofan indefinite-lived intangible asset is below its carrying amount.The following table reflects goodwill activity for fiscal 2020 and 2019 (in millions):Goodwill balance as of December 31, 2018 $ 3874AcquisitionsOtherGoodwill balance as of December 31, 2019 $ 3.709_(165)AcquisitionsOtherGoodwill balance as of December 31, 2020 $ 3 553.(156)Total amortization expense for intangible assets subject to amortization was $157 million and $192 million in2020 and 2019, respectively.

Name: Use Newell Brands, Inc.'s financial statements to answer to the follow
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Description: Use Newell Brands, Inc.'s financial statements to answer to the following questions. According to the footnotes, what was the initial total acquisition cost of the Property, Plant, and Equipment that Newell Brands owns as of December 31, 2020? $ ____

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Answered: Property, Plant, and Equipment

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Use Newell Brands, Inc.'s financial statements to answer to the following questions.

According to the footnotes, what was the initial total acquisition cost of the Property, Plant, and Equipment that Newell Brands owns as of December 31, 2020? $ _________________

According to the footnotes, what is the total acquisition cost of Land that Newell Brands owns as of December 31, 2020?

$ _________________

According to the footnotes, which of the following methods does Newell Brands use to depreciate its Property, Plant, and Equipment? (Circle one)

Straight-Line

Double-Declining-Balance

Units-of-Activity

Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to record depreciation on its Property and Equipment. Assume that Newell Brands makes one adjusting journal entry for depreciation expense at the end of each fiscal year as part of its adjusting entries)

Does Newell Brands’ Goodwill footnote suggest that the company acquired any other companies during fiscal 2020? (Circle one)

YES NO

Does Newell Brands’ Goodwill footnote suggest that the company acquired any other companies during fiscal 2019? (Circle one

YES NO

Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to record amortization on its finite-lived Intangible Assets. Assume that Newell Brands makes one adjusting journal entry for amortization expense at the end of each fiscal year as part of its adjusting entries.

Newell Brands, Inc. Financial Statements (partial)
newell
BRANDS
Consolidated Balance Sheets
In millions of dollars
As of
Dec 31, 2020
$ 981
As of
Dec 31, 2019
$ 349
ASSETS
Cash and cash equivalents
Accounts receivable, net
1,678
1,842
Inventories
1,638
1,606
Prepaid expenses and other current assets
331
313
Total current assets
$ 4,628
$ 4,110
Property, plant, and equipment, net
1,176
1,155
Goodwill
3,553
3,709
Other long-term assets
5,343
6,668
Total assets
$ 14.700
$ 15.642
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable
$ 1,526
$ 1,102
Wages payable
236
204
Current portion of long-term debt
466
332
Other current liabilities
1,393
1,340
Total current liabilities
3,621
2,978
Long-term debt
5,141
5,391
Other noncurrent liabilities
2,038
2,277
Total liabilities
10,800
10,646
Common stock
3,448
4,447
Retained earnings
452
549
Total stockholders' equity
3,900
4,996
Total liabilities and stockholders' equity
$ 14.700
$ 15.642

Notes to Consolidated Financial Statements (partial)
Footnote 1. Summary Of Significant Accounting Policies
1.1. Description of Business
Newell Brands is a leading global consumer goods company with a strong portfolio of well-known brands,
including Rubbermaid®, Paper Mate®, Sharpie®, Dymo®, EXPO®, Parker®, Elmer's®, Coleman®, Marmot®,
Oster®, Sunbeam®, EgodSaver®, Mr. Coffee®, Rubbermaid Commercial Products®, Graco®, Baby Jogger®,
NUK®, Çalphalon®, Contigo®, First Alert®, Mapa®, Spontex® and Yankee Candle®. Newell Brands is
committed to enhancing the lives of consumers around the world with planet friendly, innovative and attractive
products that create moments of joy and provide peace of mind. The Company sells its products in nearly 200
countries around the world and has operations on the ground in over 40 of these countries, excluding third-party
distributors.
6. Property, Plant, and Equipment
Property, plant and equipment are stated at cost. Expenditures for maintenance and repairs are expensed as
incurred. Depreciation expense is calculated principally on the straight-line basis. Useful lives determined by
the Company are as follows: buildings and improvements (20 – 40 years) and machinery and equipment (3
15 years). Depreciation expense was $200 million, and $254 million in 2020, and 2019, respectively.
The following table summarizes property and equipment (in millions):
As of December 31,
2020
2019
$ 86
664
$ 86
641
Land
Buildings and improvements
Machinery and equipment
2,314
3,064
(1,888)
$ 1,176
2,151
2,878
(1,723)
$ 1,155
Total property, plant and equipment
Accumulated depreciation
Property, plant and equipment, net
7. Goodwill and Intangible Assets
The Company evaluates goodwill for impairment annually at the reporting unit level. The Company also tests
for impairment if events and circumstances indicate that it is more likely than not that the fair value of a
reporting unit is below its carrying amount. If the carrying amount of the reporting unit is greater than the fair
value, impairment may be present. The Company measures the amount of any goodwill impairment by
comparing the fair value to the carrying value of the reporting unit. An impairment charge is recognized to
the extent the carrying value of the reporting unit exceeds the fair value. The Company evaluates indefinite-
lived intangible assets (primarily trademarks and tradenames) for impairment annually. The Company also
tests for impairment if events and circumstances indicate that it is more likely than not that the fair value of
an indefinite-lived intangible asset is below its carrying amount.
The following table reflects goodwill activity for fiscal 2020 and 2019 (in millions):
Goodwill balance as of December 31, 2018 $ 3874
Acquisitions
Other
Goodwill balance as of December 31, 2019 $ 3.709
_(165)
Acquisitions
Other
Goodwill balance as of December 31, 2020 $ 3 553.
(156)
Total amortization expense for intangible assets subject to amortization was $157 million and $192 million in
2020 and 2019, respectively.

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