and thus generating profits. Both Sears and JCPenney are under considerable pressure from low-cost retailers such as Walmart. Situation 5: The statement of cash flows would be a primary focus to determine whether the annual cash flows from operating activities is sufficient to pay the interest on a continuing basis. Most large companies like Target will use credit lines to cover cash shortages throughout the year because of the seasonality of the retail industry. E1–22 1. BS 6. IS 11. IS 2. BS 7. BS 12. BS 3. BS 8. SCF 13. IS 4. IS 9. SCF 14. RE, BS 5. IS 10. IS E1–23 AMAZON.COM INC. Income Statement For the Year Ended December 31, 20Y1 (in Millions) Revenues: Net sales $48,077 Other income 125 Total revenue $48,202 Expenses: Cost of sales $37,288 Selling, general, and administrative expenses 9,927 Income tax expense 291 Interest expenses 65 Total expenses 47,571 Net income $ 631 E1–24 1. BS 4. BS, SCF 7. IS 10. BS 2. BS 5. SCF 8. IS 11. IS, RE 3. BS 6. IS 9. BS 12. SCF
and thus generating profits. Both Sears and JCPenney are under considerable pressure from low-cost retailers such as Walmart. Situation 5: The statement of cash flows would be a primary focus to determine whether the annual cash flows from operating activities is sufficient to pay the interest on a continuing basis. Most large companies like Target will use credit lines to cover cash shortages throughout the year because of the seasonality of the retail industry. E1–22 1. BS 2. BS 3. BS 4. IS 5. IS 6. IS 7. BS 8. SCF 9. SCF 10. IS 11. IS 12. BS 13. IS 14. RE, BS E1–23 AMAZON.COM INC. Income Statement For the Year Ended December 31, 20Y1 (in Millions) Revenues: Net sales $48,077 Other income 125 Total revenue $48,202 Expenses: Cost of sales $37,288 Selling, general, and administrative expenses 9,927 Income tax expense 291 Interest expenses 65 Total expenses 47,571 Net income $ 631 E1–24 1. BS 2. BS 3. BS 4. BS, SCF 5. SCF 6. IS 7. IS 8. IS 9. BS 10. BS 11. IS, RE 12. SCF
Solution-Manual-for-Survey-of-Accounting-7th-Edition-by-Warren.docx