Sonos, Incorporated designs, develops, manufactures, and sells multi-room audio products. The Sonos sound system provides customers with an immersive listening experience created by the design of its speakers and components, a proprietary software platform, and the ability to stream content from a variety of sources over the customer's wireless network or over Bluetooth. In an earlier year, it reported the following on its income statement (dollars in millions). Net sales Costs and expenses Cost of sales Research and development Selling, general, and administrative Operating income (loss) Interest and other incone (expenses), net Loss before provision for income taxes Provision for income taxes Net loss The company's beginning and ending assets were $762 and $816, respectively. Required: Listed here are hypothetical additional transactions. Assuming that they also occurred during the fiscal year, complete the following tabulation, indicating the sign of the effect of each additional transaction (+ for increase and-for decrease). Consider each item independently and ignore taxes. (Hint Construct the journal entry for each transaction before evaluating its effect.) Note: Select "NE" if there is no effect. Transaction a. Recorded sales on account of $400 and related cost of goods sold of $300. b. Incurred additional research and development expense of $100, which was paid in cash. c. Issued additional shares of common stock for $260 cash. d. Declared and paid dividends of $90. a $ 1,326 754 215 b C d 384 (27) 7 (20) (0) $ (20) Gross Profit Operating Income Return on Assets
Sonos, Incorporated designs, develops, manufactures, and sells multi-room audio products. The Sonos sound system provides customers with an immersive listening experience created by the design of its speakers and components, a proprietary software platform, and the ability to stream content from a variety of sources over the customer's wireless network or over Bluetooth. In an earlier year, it reported the following on its income statement (dollars in millions). Net sales Costs and expenses Cost of sales Research and development Selling, general, and administrative Operating income (loss) Interest and other incone (expenses), net Loss before provision for income taxes Provision for income taxes Net loss The company's beginning and ending assets were $762 and $816, respectively. Required: Listed here are hypothetical additional transactions. Assuming that they also occurred during the fiscal year, complete the following tabulation, indicating the sign of the effect of each additional transaction (+ for increase and-for decrease). Consider each item independently and ignore taxes. (Hint Construct the journal entry for each transaction before evaluating its effect.) Note: Select "NE" if there is no effect. Transaction a. Recorded sales on account of $400 and related cost of goods sold of $300. b. Incurred additional research and development expense of $100, which was paid in cash. c. Issued additional shares of common stock for $260 cash. d. Declared and paid dividends of $90. a $ 1,326 754 215 b C d 384 (27) 7 (20) (0) $ (20) Gross Profit Operating Income Return on Assets
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sonos, Incorporated designs, develops, manufactures, and sells multi-room audio products. The Sonos sound system provides
customers with an immersive listening experience created by the design of its speakers and components, a proprietary software
platform, and the ability to stream content from a variety of sources over the customer's wireless network or over Bluetooth. In an
earlier year, it reported the following on its income statement (dollars in millions).
Net sales
Costs and expenses
Cost of sales
Research and development
Selling, general, and administrative
Operating income (loss)
Interest and other incone (expenses), net
Loss before provision for income taxes
Provision for income taxes
Net loss
The company's beginning and ending assets were $762 and $816, respectively.
Transaction
a
b.
$ 1,326
Required:
Listed here are hypothetical additional transactions. Assuming that they also occurred during the fiscal year, complete the following
tabulation, indicating the sign of the effect of each additional transaction (+ for increase and for decrease). Consider each item
Independently and ignore taxes. (Hint Construct the journal entry for each transaction before evaluating its effect.)
Note: Select "NE" if there is no effect.
C.
d.
754
215
384
a. Recorded sales on account of $400 and related cost of goods sold of $300.
b. Incurred additional research and development expense of $100, which was paid in cash.
c. Issued additional shares of common stock for $260 cash.
d. Declared and paid dividends of $90.
Gross Profit Operating Income Return on Assets
(27)
7
(20)
(0)
$ (20)
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