Chapter 1 The Role of Accounting in Business 45Instructions
- Would you classify a realty business like Zeppelin Realty as a manufacturing, merchan-
dising, or service business? - By analyzing the interrelationships among the four financial statements, determine the
proper amounts for (a) through (p).
The following financial data were adapted from the annual report of Home Depotfor the
period ended February 1, 2004.In millions
Accounts payable $ 7,764
Accounts receivable 1,097
Capital stock 2,727
Cash 2,826
Cost of goods sold 44,236
Dividends 595
Income taxes 2,539
Interest expense 62
Inventories 9,076
Long-term debt 2,332
Other assets 1,375
Other expense 27
Other liabilities 1,934
Property, plant, and equipment 20,063
Sales 64,816
Selling, general, and administrative expenses 13,648Instructions
- Prepare Home Depot’s income statement for the year ended February 1, 2004.
- Prepare Home Depot’s retained earnings statement for the year ended February 1, 2004.
(Note: The retained earnings at February 2, 2003, was $15,971.) - Prepare a balance sheet as of February 1, 2004, for Home Depot.
The following cash data were adapted from the annual report of Harley-Davidson, Inc., for
the period ended December 31, 2004. The cash balance as of January 1, 2004, was $329,329 (in
thousands).In thousands
Cash receipts from issuing debt $ 305,047
Cash payments for capital stock repurchases 501,961
Cash payments for dividends 119,232
Cash from investing activities 1,189
Cash payments for investments 495,389
Cash payments for property, plant, and equipment 213,550
Net cash flows from operating activities 969,726Instructions
Prepare Harley-Davidson’s statement of cash flows for the year ended December 31, 2004.Alternate Problem
1-3B
Income statement, retained
earnings statement, and
balance sheet
Goal 4
- Net income, $4,304
Alternate Problem
1-4B
Statement of cash flows
Goal 4
Net decrease in cash, $54,170