Walgreen Co., the largest drugstore chain in the United States, had the following items in its financial
Question:
Walgreen Co., the largest drugstore chain in the United States, had the following items in its financial statements for the year ended August 31, 2011 (in millions):
Net sales ………………………………….. $72,184
Net earnings ……………………………………… 2,714
Additions to property and equipment …………. (1,213)
Depreciation and amortization …………………. 1,086
Proceeds from sale of business …………………… 442
Cash dividends paid …………………………….. (647)
Other noncash expenses …………………………… 53
Increases in other current liabilities ………………. 112
Business acquisitions, net of cash received ……… (630)
Increases in inventories ………………………….. (592)
Increases in trade accounts payable ……………….. 384
Increases in other current assets ………………….. (24)
Stock repurchases ……………………………… (2,028)
Other cash provided by financing activities ………… 15
Other cash used for investing activities ……………. (203)
Proceeds related to employee stock plans …………. 235
Increases in accrued expenses and other liabilities … 218
Increases in accounts receivable ………………….. (243)
Repayments on long-term debt ……………………. (17)
Retained earnings ………………………………. 18,877
Stock compensation expense ……………………… 135
Deferred income taxes …………………………….. 132
Gain on sale of business …………………………. (434)
Increases in income taxes payable ………………… 102
Proceeds from sale of assets ……………………….. 79
Total assets ……………………………………. 27,454
Cash and cash equivalents at beginning of year ……… ?
Cash and cash equivalents at end of year ………… 1,556
Net decrease in cash and cash equivalents ……….. (324)
Select the items from this list that would appear in Walgreens’ statement of cash flows and prepare the statement in proper form. Fill in the appropriate amount for cash and cash equivalents at the beginning of the period. Use the indirect method for reporting cash flows from operating activities.
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Introduction to Management Accounting
ISBN: 978-0133058789
16th edition
Authors: Charles Horngren, Gary Sundem, Jeff Schatzberg, Dave Burgsta