Financial Accounting (5th Edition) (What's New in Accounting)
5th Edition
ISBN: 9780134727790
Author: Robert Kemp, Jeffrey Waybright
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 8, Problem 1CFSAP
Continuing Financial Statement Analysis Problem
Let’s look at Dick’s Sporting Goods (Dick’s) some more. Think about Dick’s. What assets did Dick’s need to operate? Return to Dick’s Annual Report (see the Continuing Financial Statement Analysis Problem in Chapter 2 for instructions on how to access the Annual Report).
Now answer the following questions:
- 1. Look at Dick’s
balance sheet . What long-term assets does Dick’s own? How much has Dick’s invested in each type of long-term assets as of January 28, 2017, and January 30, 2016? - 2. Read through footnote 1 on page 45, footnote 2 on page 50, and footnote 4 on page 52 of Dick’s 2016 Annual Report. Why does Dick’s have tangible and intangible assets?
- 3. Look over footnote 1 on pages 45 and 46. Read about how Dick’s accounts for (1) property and equipment, and (2) intangible assets. How is Dick’s
depreciating its property and equipment and amortizing its intangible assets? - 4. What is Dick’s return on assets (ROA) and fixed asset turnover for the year ending January 28, 2017? What do these ratios tell you?
- 5. Looking back over your answers to questions 1 through 4, how do you think Dick’s is performing? What do you think of Dick’s management of assets?
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
2
Please assist and show working with explan
Suppose you need to quickly determine how much money your firm received from the sale of equipment last year. Where would you find this information in the financial statements? Include the name of the statement and the item in that statement.
Chapter 8 Solutions
Financial Accounting (5th Edition) (What's New in Accounting)
Ch. 8 - Prob. 1DQCh. 8 - Prob. 2DQCh. 8 - Prob. 3DQCh. 8 - What is depreciation, and why is it used in...Ch. 8 - Prob. 5DQCh. 8 - Which depreciation method would be moot...Ch. 8 - Prob. 7DQCh. 8 - Prob. 8DQCh. 8 - Prob. 9DQCh. 8 - Prob. 10DQ
Ch. 8 - Prob. 1SCCh. 8 - Prob. 2SCCh. 8 - How should a capital expenditure for a long-term...Ch. 8 - Which depreciation method usually produces the...Ch. 8 - Prob. 5SCCh. 8 - Prob. 6SCCh. 8 - Prob. 7SCCh. 8 - Prob. 8SCCh. 8 - Prob. 9SCCh. 8 - Prob. 10SCCh. 8 - Prob. 11SCCh. 8 - Prob. 12SCCh. 8 - Prob. 1SECh. 8 - Long-term asset terms (Learning Objective 1) 5-10...Ch. 8 - Prob. 3SECh. 8 - Lump-sum purchase (Learning Objective 2) 5-10 min....Ch. 8 - Errors in accounting for long-term assets...Ch. 8 - Concept of depreciation (Learning Objective 3)...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Depreciation methods (Learning Objective 3) 10-15...Ch. 8 - Prob. 9SECh. 8 - Prob. 10SECh. 8 - Prob. 11SECh. 8 - Prob. 12SECh. 8 - Prob. 13SECh. 8 - Prob. 14SECh. 8 - Prob. 15SECh. 8 - Other long term assets (Learning Objective 8) 5-10...Ch. 8 - Prob. 17SECh. 8 - Prob. 18AECh. 8 - Prob. 19AECh. 8 - Prob. 20AECh. 8 - Prob. 21AECh. 8 - Depreciation methods (Learning Objective 3) 15-20...Ch. 8 - Prob. 23AECh. 8 - Prob. 24AECh. 8 - Prob. 25AECh. 8 - Prob. 26AECh. 8 - Prob. 27AECh. 8 - Prob. 28AECh. 8 - Prob. 29AECh. 8 - Prob. 30AECh. 8 - Prob. 31AECh. 8 - Prob. 32BECh. 8 - Prob. 33BECh. 8 - Prob. 34BECh. 8 - Prob. 35BECh. 8 - Prob. 36BECh. 8 - Prob. 37BECh. 8 - Prob. 38BECh. 8 - Prob. 39BECh. 8 - Prob. 40BECh. 8 - Prob. 41BECh. 8 - Prob. 42BECh. 8 - Prob. 43BECh. 8 - Prob. 44BECh. 8 - Prob. 45BECh. 8 - Long-term asset costs and partial-year...Ch. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 48APCh. 8 - Prob. 49APCh. 8 - Prob. 50APCh. 8 - Prob. 51APCh. 8 - Prob. 52APCh. 8 - Prob. 53BPCh. 8 - Journalizing long-term asset transactions...Ch. 8 - Prob. 55BPCh. 8 - Prob. 56BPCh. 8 - Prob. 57BPCh. 8 - Prob. 58BPCh. 8 - Prob. 59BPCh. 8 - Prob. 1CECh. 8 - Prob. 1CPCh. 8 - Continuing Financial Statement Analysis Problem...Ch. 8 - Prob. 1EIACh. 8 - Prob. 2EIACh. 8 - Financial Analysis Purpose: To help familiarize...Ch. 8 - Prob. 1IACh. 8 - Prob. 1SBACh. 8 - Written Communication A client of yours notified...
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
- Please answer question IV, v, VIarrow_forwardHello, how do I solve this problem? I attached the bottom part of the question and what it's asking for since it wouldn't fit in the screenshot. Assuming that total assets were $3,112,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place. a. Ratio of fixed assets to long-term liabilities b. Ratio of liabilities to stockholders' equity c. Asset turnover d. Return on total assets % e. Return on stockholders’ equity % f. Return on common stockholders' equity %arrow_forwardplease help me to solve this problemarrow_forward
- Required information [The following information applies to the questions displayed below.] Consider the following balance sheet and income statement for Mmm Good Foods Incorporated (the company that operates Tasty Fried Chicken and Pizza Party), in condensed form, including some information from the cash flow statement: (amounts are millions) Balance Sheet Cash and short-term investments Accounts receivable Inventory Other current assets Long-lived assets Total assets Current liabilities Total liabilities Shareholders' equity Total liabilities and equity Income Statement Sales Cost of sales Gross margin Earnings before interest and taxes Interest Taxes Net income Share price Earnings per share Number of outstanding shares (millions) Cash Flows Cash flow from operations Capital expenditures Dividends Mmm Good Foods Incorporated 2019 2018 $743 623 $ 443 597 161 3,704 $ 5,231 $ 1,541 13, 247 (8,016) $ 5,231 $ 5,597 1,235 $ 4,362 $ 1,859 486 79 $ 1,294 $ 102 4.23 300 $ 1,315 196 511 167…arrow_forwardComputing the return on total assets. Ive looked in the book but I keep getting the same answer and it says it is incorrect.arrow_forwardQuestion 2Alex is currently considering to invest his money in one of the companies between Company A and Company B. The summarized final accounts of the companies for their last completed financial year are as follows: a. Calculate the following ratios for Company A and Company B. State clearly the formulae used for each ratio: i. Gross Profit Marginii. Net Profit Marginiii. Inventory Turnover Period (days)iv. Receivables Collection Period (days)arrow_forward
- Question iv, v, vi. Please assist and show workingarrow_forwardMatch the correct answer with these terms : cash, cell, SL depreciation, tangible, fiscal, a calender, cost, replacement cost, liabilities, GAAP It assumes that an equal share of the total depreciation is taken each year during the assets life. Answer 1 Is a one-year period that companies use for financial reporting Answer 2 A set of rules used as a basis for financial reporting Answer 3 Assets having physical substance or form. Answer 4 The amount creditors expect you to pay in the future Answer 5 The value of what was given up to acquire the item. Answer 6 The asset was valued at the amount it would cost to replace the asset Answer 7 The accounting system that records revenue when cash is received from customers and expenses when cash is paid Answer 8 The intersection of a column and row. Answer 9 A one-year accounting period ends that occurs at December 31. Answer 10arrow_forwardPlease do not give solution in image format thankuarrow_forward
- A docs.google.com/forms choose the right answer Amount invested by the proprietor in the business should be credit to: Drawing O Capital O Cash O A/c payable O choose the right answer The assets that can be easily converted into cash within a short period, i.e., 1 year or less are known as Intangible assets O Investments Current assets Fixed assets Oarrow_forwardI need help figuring: G. operating profit margin H. Long-term debt ratio (use end of year balance sheet figure) I. Total debt ratio (use end of your balance sheet figures) J. Times interest earn K. Cash coverage ratio L. Current ratio (use end of your balance sheet figures) M. Quick ratio (use end of your balance sheet figures)arrow_forwardView Policies Current Attempt in Progress Financing activities involve O cash receipts from sales of goods and services. O long-term liability and owners' equity items. O lending money to other entities and collecting on those loans. O acquiring and disposing of productive long-lived assets. Save for Later Attempts: 0 of 1 used Submit Answerarrow_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
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning
Property, Plant and Equipment (PP&E) - Introduction to PPE; Author: Gleim Accounting;https://www.youtube.com/watch?v=e_Hx-e-h9M4;License: Standard Youtube License