Question 10 On the day that Best Buy sold the television, what effect did the sale...
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Question 10 On the day that Best Buy sold the television, what effect did the sale have on Best Buy's total equity? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 11 2.86 pts Question 12 2.86 pts Suppose that on July 8, 2022, the customer returns the television to Best Buy. What effect does this have on Best Buy's revenues? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. If the effect is positive (negative) enter the answer as a positive (negative) amount. 2.86 pts Suppose that on July 8, 2022, the customer returns the television to Best Buy. What effect does this have on Best Buy's cost of sales? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 13 Suppose that on July 8, 2022, the customer returns the television to Best Buy. What effect does this have on Best Buy's total assets? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 14 2.86 pts Question 15 2.86 pts Suppose that on July 8, 2022, the customer returns the television to Best Buy. What effect does this have on Best Buy's total liabilities? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. If the effect is positive (negative) enter the answer as a positive (negative) amount. 2.86 pts Suppose that on July 8, 2022, the customer returns the television to Best Buy. What effect does this have on Best Buy's equity? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 16 2.86 pts On the day that Best Buy sold the gift card, what effect did the sale have on Best Buy's revenues? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 17 2.86 pts On the day that Best Buy sold the gift card, what effect did the sale have on Best Buy's assets? Ignore the effect, if any, on cost of sales and inventory. Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 18 On the day that Best Buy sold the gift card, what effect did the sale have on Best Buy's liabilities? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 19 2.86 pts Question 20 2.86 pts On the day that Best Buy sold the gift card, what effect did the sale have on Best Buy's equity? Ignore the effect, if any, on cost of sales and inventory. Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. 2.86 pts On the day the customer's friend redeemed the card, what effect did the redemption have on Best Buy's revenues? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 21 On the day the customer's friend redeemed the card, what effect did the redemption have on Best Buy's assets? Ignore the effect, if any, on cost of sales and inventory. Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 22 2.86 pts Question 23 2.86 pts On the day the customer's friend redeemed the card, what effect did the redemption have on Best Buy's liabilities? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. 2.86 pts On the day the customer's friend redeemed the card, what effect did the redemption have on Best Buy's equity? Ignore the effect, if any, on cost of sales and inventory. Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 24 On January 28, 2023, what is the dollar amount of receivables owed to Best Buy? Your answer should be in millions of dollars. Question 25 2.86 pts Question 26 2.86 pts On January 28, 2023, what is the dollar amount of receivables that Best Buy expects to collect? Your answer should be in millions of dollars. 2.86 pts What amount of bad debt expense did Best Buy recognized during the fiscal year that ended on January 28, 2023? Your answer should be in millions of dollars. Inventories: Chevron When answering questions 27 through 29, please: Refer to the excerpt about inventories that is taken from Chevron's 10-K for the fiscal year that ended on December 31, 2022. This except is in the financial statement booklet. Refer to the Excel worksheets named: o Chevron Income Statement. o Chevron Balance sheet. o Chevron Inventory Footnote. Ignore taxes. That is, assume the income tax rate is zero and there are no sales taxes. Show your supporting calculations in the worksheet named Chevron Inventories, which is in the Excel file. This worksheet is blank. You are to enter the relevant data into it, and then use Excel to calculate your answers. Question 27 2.86 pts On December 31, 2022, what was the FIFO cost of Chevron's inventory? Your answer should be in millions dollars. Question 28 2.86 pts For the fiscal year that ended on December 31, 2022, what amount of cost of sales would have Chevron reported if it had used the FIFO cost-flow assumption instead of the LIFO cost-flow assumption. Your answer should be in millions of dollars. Question 29 2.86 pts What effect, if any, did LIFO liquidations have on Chevron's net income for the fiscal year that ended on December 31, 2022? If the effect was positive (negative), enter your answer as a positive (negative) amount. Your answer should be in millions of dollars. Leasing: Multiple Choice When answering questions 30 through 35, you are to select the correct answer to questions about how various key performance indicators (i.e., KPIs) would change if all of a company's leases were accounted for as finance leases. That is, you are to answer whether a particular KPI calculated using pro forma amounts in which we assume the company accounts for all of its leases as finance leases would be higher, lower, or the same as the amount the KPI would equal if we calculated it using the company's reported numbers. When answering these questions, please: Assume that, when preparing its financial statements, the company's managers and auditors classify all of its leases as operating leases. Ignore tax effects. That is, assume there is no effect on tax expense or any other tax-related amounts. Question 30 If all of the company's leases were accounted for as finance leases, then: 2.86 pts The company's NOPAT for the most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's income statement and balance sheet for that same fiscal year. The company's NOPAT for the most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's income statement and balance sheet for that same fiscal year. The company's NOPAT for the most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's income statement and balance sheet for that same fiscal year. This question cannot be answered with the information given to me. Question 31 If all of the company's leases were accounted for as finance leases, then: 2.86 pts The company's net financial expense for the most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's income statement for that same fiscal year. The company's net financial expense for the most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's income statement for that same fiscal year. The company's net financial expense for the most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's income statement for that same fiscal year. This question cannot be answered with the information given to me. Question 32 If all of the company's leases were accounted for as finance leases, then: 2.86 pts The company's operating assets at the end of its most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's operating assets at the end of its most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's operating assets at the end of its most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. This question cannot be answered with the information given to me. Question 33 If all of the company's leases were accounted for as finance leases, then: 2.86 pts The company's operating liabilities at the end of the most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's operating liabilities at the end of the most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's operating liabilities at the end of the most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. This question cannot be answered with the information given to me. Question 34 If all of the company's leases were accounted for as finance leases, then: 2.86 pts The company's financial obligations at the end of its most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's financial obligations at the end of its most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's financial obligations at the end of its most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. This question cannot be answered with the information given to me. Question 35 If all of the company's leases were accounted for as finance leases, then: 2.76 pts O The company's financial assets at the end of its most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's financial assets at the end of its most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's financial assets at the end of its most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. e. This question cannot be answered with the information given to me. When answering questions six through 23, please: Refer to the excerpt about revenue recognition that is taken from Best Buy's 10-K for the fiscal year that ended on January 28, 2023. This except is in the financial statement booklet. Refer to the Excel worksheets named: o Best Buy Income Statement. o Best Buy Balance Sheet. Ignore taxes. That is, assume the income tax rate is zero and there are no sales taxes. Show your supporting calculations in the worksheet named Best Buy Revenue, which is in the Excel file. This worksheet is blank. You are to enter the relevant data into it, and then use Excel to calculate your answers. When answering questions six through fifteen, assume that on July 1, 2022 a customer purchased a Samsung 50 inch television from Best Buy. The customer paid cash of $350 and took immediate possession of the television. The television had a carrying value of $280. The customer had the right to return the television within 15 days of purchase and Best Buy estimates a return rate of five percent. Question 6 2.86 pts On the day that Best Buy sold the television, what effect did the sale have on Best Buy's revenues? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. D > Question 7 On the day that Best Buy sold the television, what effect did the sale have on Best Buy's cost of sales? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 8 2.86 pts Question 9 2.86 pts On the day that Best Buy sold the television, what effect did the sale have on Best Buy's total assets? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. 2.86 pts On the day that Best Buy sold the television, what effect did the sale have on Best Buy's total liabilities? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. 3 5 Assets A Current assets Cash and cash equivalents Receivables, net O Merchandise inventories 0 Other current assets 1 Total current assets 2 Net property and equipment 3 Operating lease assets 4 Goodwill 5 Other assets 6 Total assets $ millions, except per share amounts 7 8 Liabilities and equity 9 Current liabilities 0 Accounts payable 1 Unredeemed gift card liabilities 2 Deferred revenue Best Buy Co., Inc. Consolidated Balance Sheets 3 Accrued compensation and related expenses 4 Accrued liabilities O Long-term debt 1 Total liabilities 2 5 Current portion of operating lease liabilities 6 Current portion of long-term debt 7 Total current liabilities 8 Long-term operating lease liabilities Long-term liabilities 3 Common stock 4 Additional paid-in capital 5 Retained earnings B 6 Accumulated other comprehensive income 7 Total equity 8 9 Total liabilities and equity 0 1 January 28, 2023 January 29, 2022 1,874 1,141 5,140 647 8,802 2,352 2,746 1,383 520 15,803 5,687 274 1,116 405 843 638 16 8,979 2,164 705 1.160 13.008 22 21 2,430 322 2,795 C 15,803 2,936 1,042 5,965 596 10,539 2,250 2,654 1,384 677 17,504 6,803 316 1,103 845 946 648 13 10,674 2,061 533 1.216 14.484 23 0 2,668 329 3,020 17,504 1 2 3 4 5 Revenue 6 Cost of sales 7 Gross profit 8 Selling, general and administrative expenses 9 Restructuring charges Best Buy Co., Inc. Consolidated Income Statements $ millions, except per share amounts Fiscal Years Ended: January 28, 2023 January 29, 2022 January 30, 2021 46,298 51,761 47,262 36,386 40,121 36,689 11,640 8,635 -34 3,039 10 Operating income 11 Other income (expense): 12 Investment income and other 13 Interest expense 14 Earnings before income tax expense and equity in income of affiliates 15 Income tax expense 16 Equity in income of affiliates 17 Net earnings 18 19 9,912 7,970 147 1,795 28 -35 1,788 370 1 1,419 10 -25 3,024 574 4 2,454 10,573 7,928 254 2,391 38 -52 2,377 579 0 1,798 Excerpt about revenue recognition taken from Best Buy's 10-K for the fiscal year that ended on January 28, 2023. Revenue Recognition We generate revenue from the sale of products and services. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods or services. Our revenue excludes sales and usage-based taxes collected and is reported net of sales refunds, which includes an estimate of future returns and contract cancellations based on historical refund rates, with a corresponding reduction to cost of sales. We defer the revenue associated with any unsatisfied performance obligation until the obligation is satisfied, i.e., when control of a product is transferred to the customer or a service is completed. Best Buy Gift Cards We sell Best Buy gift cards to our customers in our retail stores, online and through select third parties. Our gift cards do not expire. We recognize revenue from gift cards when the card is redeemed by the customer. We also recognize revenue for the portion of gift card values that is not expected to be redeemed ("breakage). We estimate breakage based on historical patterns and other factors, such as laws and regulations applicable to each jurisdiction. Gift card breakage income was $59 million, $49 million and $33 million in fiscal 2023, fiscal 2022, and fiscal 2021, respectively. Excerpt about receivables taken from Best Buy's 10-K for the fiscal year that ended on January 28, 2023. Receivables Receivables consist primarily of amounts due from vendors for various vendor funding programs, banks for customer credit card and debit card transactions, online marketplace partnerships and mobile phone network operators for device sales and commissions. Receivables are stated at their carrying values, net of a reserve for expected credit losses, which is primarily based on historical collection trends. Our allowances for uncollectible receivables were $30 million and $39 million as of January 28, 2023, and January 29, 2022, respectively. We had $41 million and $52 million of write-offs in fiscal 2023 and fiscal 2022, respectively. Excerpt about inventories taken from Chevron's 10-K for the fiscal year that ended on December 31, 2022. Inventories Crude oil, products and chemicals inventories are generally stated at cost, using a last-in, first-out method. In the aggregate, these costs are below market. Ancillary information about inventories is provided below. All amounts are in millions of U.S. dollars. (This table is reproduced in the Excel worksheet named Chevron Inventory Footnote.) Fiscal Years Ended: Excess of FIFO cost over the carrying value (i.e., LIFO cost) of inventories LIFO profits (losses) on inventory drawdowns included in earnings December December 31, 2022 31, 2021 9,061 5,588 122 35 December 31, 2020 2,749 -147 1 2 3 4 5 Assets 6 Cash and cash equivalents 7 Marketable securities 8 Accounts and notes receivable 9 Inventories 10 Prepaid expenses and other current assets 11 Total Current Assets 12 Long-term receivables, net 13 Investments and advances Chevron Corporation Consolidated Balance Sheets 19 20 Liabilities and Equity 21 Short-term debt 14 Properties, plant and equipment, net 15 Deferred charges and other assets 16 Goodwill 17 Assets held for sale 18 Total Assets 22 Accounts payable 23 Accrued liabilities $ millions, except per share amounts Fiscal Years Ended: December 31, 2022 December 31, 2021 24 Federal and other taxes on income 25 Other taxes payable 26 Total Current Liabilities 27 Long-term debt 1 28 Deferred credits and other noncurrent obligations 29 Noncurrent deferred income taxes 30 Noncurrent employee benefit plans 31 Total Liabilities 32 33 Common stock 34 Capital in excess of par value 35 Retained earnings 36 Accumulated other comprehensive losses 37 Deferred compensation and benefit plan trust 38 Treasury stock 39 Total Chevron Corporation Stockholders' Equity 40 Noncontrolling interests 41 Total Equity 42 43 Total Liabilities and Equity ^^ 17,678 223 20,456 8,247 3,739 50,343 1,069 45,238 143,591 12,310 4,722 436 257,709 1,964 18,955 7,486 4,381 1,422 34,208 21,375 20,396 17,131 4,357 97,467 1,832 18,660 190,024 -2,798 -240 -48, 196 159,282 960 160,242 257,709 5,640 35 18,419 6,795 2,849 33,738 603 40,696 146,961 12,384 4,385 768 239,535 256 16,454 6,972 1,700 1,409 26,791 31,113 20,778 14,665 6,248 99,595 1,832 17,282 165,546 -3,889 -240 -41,464 139,067 873 139,940 239,535 A Sales and other operating revenues Income (loss) from equity affiliates Other income Total Revenues and Other Income Costs and Other Deductions Cost of sales Operating expenses Selling, general and administrative expenses Exploration expenses Depreciation, depletion and amortization Taxes other than on income Interest and debt expense Other components of net periodic benefit costs Total Costs and Other Deductions Income (Loss) Before Income Tax Expense Income Tax Expense (Benefit) B Chevron Corporation Consolidated Income Statements $ millions, except per share amounts Fiscal Years Ended: December 31, 2022 235,717 8,585 1,950 246,252 Net Income (Loss) Less: Net income (loss) attributable to noncontrolling interests Net Income (Loss) Attributable to Chevron Corporation 145,416 24,714 4,312 974 16,319 4,032 516 295 196,578 49,674 14,066 35,608 143 35,465 C December 31, 2021 155,606 5,657 1,202 162,465 92,249 20,726 4,014 549 17,925 3,963 712 688 140,826 21,639 5,950 15,689 64 15,625 D December 31, 2020 94,471 -472 693 94,692 52,148 20,323 4,213 1,537 19,508 2,839 697 880 102,145 -7,453 -1,892 -5,561 -18 -5,543 Chevron Corporation Schedule of Ancillary Inventory Information $ millions, except per share amounts Fiscal Years Ended: December 31, 2022 December 31, 2021 December 31, 2020 Excess of FIFO cost over the carrying value (i.e., LIFO cost) of inventories 9,061 5,588 2,749 LIFO profits (losses) on inventory drawdowns included in earnings 122 35 -147 Question 10 On the day that Best Buy sold the television, what effect did the sale have on Best Buy's total equity? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 11 2.86 pts Question 12 2.86 pts Suppose that on July 8, 2022, the customer returns the television to Best Buy. What effect does this have on Best Buy's revenues? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. If the effect is positive (negative) enter the answer as a positive (negative) amount. 2.86 pts Suppose that on July 8, 2022, the customer returns the television to Best Buy. What effect does this have on Best Buy's cost of sales? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 13 Suppose that on July 8, 2022, the customer returns the television to Best Buy. What effect does this have on Best Buy's total assets? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 14 2.86 pts Question 15 2.86 pts Suppose that on July 8, 2022, the customer returns the television to Best Buy. What effect does this have on Best Buy's total liabilities? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. If the effect is positive (negative) enter the answer as a positive (negative) amount. 2.86 pts Suppose that on July 8, 2022, the customer returns the television to Best Buy. What effect does this have on Best Buy's equity? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 16 2.86 pts On the day that Best Buy sold the gift card, what effect did the sale have on Best Buy's revenues? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 17 2.86 pts On the day that Best Buy sold the gift card, what effect did the sale have on Best Buy's assets? Ignore the effect, if any, on cost of sales and inventory. Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 18 On the day that Best Buy sold the gift card, what effect did the sale have on Best Buy's liabilities? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 19 2.86 pts Question 20 2.86 pts On the day that Best Buy sold the gift card, what effect did the sale have on Best Buy's equity? Ignore the effect, if any, on cost of sales and inventory. Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. 2.86 pts On the day the customer's friend redeemed the card, what effect did the redemption have on Best Buy's revenues? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 21 On the day the customer's friend redeemed the card, what effect did the redemption have on Best Buy's assets? Ignore the effect, if any, on cost of sales and inventory. Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 22 2.86 pts Question 23 2.86 pts On the day the customer's friend redeemed the card, what effect did the redemption have on Best Buy's liabilities? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. 2.86 pts On the day the customer's friend redeemed the card, what effect did the redemption have on Best Buy's equity? Ignore the effect, if any, on cost of sales and inventory. Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 24 On January 28, 2023, what is the dollar amount of receivables owed to Best Buy? Your answer should be in millions of dollars. Question 25 2.86 pts Question 26 2.86 pts On January 28, 2023, what is the dollar amount of receivables that Best Buy expects to collect? Your answer should be in millions of dollars. 2.86 pts What amount of bad debt expense did Best Buy recognized during the fiscal year that ended on January 28, 2023? Your answer should be in millions of dollars. Inventories: Chevron When answering questions 27 through 29, please: Refer to the excerpt about inventories that is taken from Chevron's 10-K for the fiscal year that ended on December 31, 2022. This except is in the financial statement booklet. Refer to the Excel worksheets named: o Chevron Income Statement. o Chevron Balance sheet. o Chevron Inventory Footnote. Ignore taxes. That is, assume the income tax rate is zero and there are no sales taxes. Show your supporting calculations in the worksheet named Chevron Inventories, which is in the Excel file. This worksheet is blank. You are to enter the relevant data into it, and then use Excel to calculate your answers. Question 27 2.86 pts On December 31, 2022, what was the FIFO cost of Chevron's inventory? Your answer should be in millions dollars. Question 28 2.86 pts For the fiscal year that ended on December 31, 2022, what amount of cost of sales would have Chevron reported if it had used the FIFO cost-flow assumption instead of the LIFO cost-flow assumption. Your answer should be in millions of dollars. Question 29 2.86 pts What effect, if any, did LIFO liquidations have on Chevron's net income for the fiscal year that ended on December 31, 2022? If the effect was positive (negative), enter your answer as a positive (negative) amount. Your answer should be in millions of dollars. Leasing: Multiple Choice When answering questions 30 through 35, you are to select the correct answer to questions about how various key performance indicators (i.e., KPIs) would change if all of a company's leases were accounted for as finance leases. That is, you are to answer whether a particular KPI calculated using pro forma amounts in which we assume the company accounts for all of its leases as finance leases would be higher, lower, or the same as the amount the KPI would equal if we calculated it using the company's reported numbers. When answering these questions, please: Assume that, when preparing its financial statements, the company's managers and auditors classify all of its leases as operating leases. Ignore tax effects. That is, assume there is no effect on tax expense or any other tax-related amounts. Question 30 If all of the company's leases were accounted for as finance leases, then: 2.86 pts The company's NOPAT for the most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's income statement and balance sheet for that same fiscal year. The company's NOPAT for the most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's income statement and balance sheet for that same fiscal year. The company's NOPAT for the most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's income statement and balance sheet for that same fiscal year. This question cannot be answered with the information given to me. Question 31 If all of the company's leases were accounted for as finance leases, then: 2.86 pts The company's net financial expense for the most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's income statement for that same fiscal year. The company's net financial expense for the most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's income statement for that same fiscal year. The company's net financial expense for the most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's income statement for that same fiscal year. This question cannot be answered with the information given to me. Question 32 If all of the company's leases were accounted for as finance leases, then: 2.86 pts The company's operating assets at the end of its most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's operating assets at the end of its most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's operating assets at the end of its most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. This question cannot be answered with the information given to me. Question 33 If all of the company's leases were accounted for as finance leases, then: 2.86 pts The company's operating liabilities at the end of the most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's operating liabilities at the end of the most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's operating liabilities at the end of the most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. This question cannot be answered with the information given to me. Question 34 If all of the company's leases were accounted for as finance leases, then: 2.86 pts The company's financial obligations at the end of its most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's financial obligations at the end of its most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's financial obligations at the end of its most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. This question cannot be answered with the information given to me. Question 35 If all of the company's leases were accounted for as finance leases, then: 2.76 pts O The company's financial assets at the end of its most recent fiscal year would be higher than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's financial assets at the end of its most recent fiscal year would be lower than the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. The company's financial assets at the end of its most recent fiscal year would be the same as the amount we would obtain if we used the reported amounts shown on the company's balance sheet for that same fiscal year. e. This question cannot be answered with the information given to me. When answering questions six through 23, please: Refer to the excerpt about revenue recognition that is taken from Best Buy's 10-K for the fiscal year that ended on January 28, 2023. This except is in the financial statement booklet. Refer to the Excel worksheets named: o Best Buy Income Statement. o Best Buy Balance Sheet. Ignore taxes. That is, assume the income tax rate is zero and there are no sales taxes. Show your supporting calculations in the worksheet named Best Buy Revenue, which is in the Excel file. This worksheet is blank. You are to enter the relevant data into it, and then use Excel to calculate your answers. When answering questions six through fifteen, assume that on July 1, 2022 a customer purchased a Samsung 50 inch television from Best Buy. The customer paid cash of $350 and took immediate possession of the television. The television had a carrying value of $280. The customer had the right to return the television within 15 days of purchase and Best Buy estimates a return rate of five percent. Question 6 2.86 pts On the day that Best Buy sold the television, what effect did the sale have on Best Buy's revenues? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. D > Question 7 On the day that Best Buy sold the television, what effect did the sale have on Best Buy's cost of sales? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. Question 8 2.86 pts Question 9 2.86 pts On the day that Best Buy sold the television, what effect did the sale have on Best Buy's total assets? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. 2.86 pts On the day that Best Buy sold the television, what effect did the sale have on Best Buy's total liabilities? Your answer should be in dollars. If the effect is positive (negative) enter the answer as a positive (negative) amount. 3 5 Assets A Current assets Cash and cash equivalents Receivables, net O Merchandise inventories 0 Other current assets 1 Total current assets 2 Net property and equipment 3 Operating lease assets 4 Goodwill 5 Other assets 6 Total assets $ millions, except per share amounts 7 8 Liabilities and equity 9 Current liabilities 0 Accounts payable 1 Unredeemed gift card liabilities 2 Deferred revenue Best Buy Co., Inc. Consolidated Balance Sheets 3 Accrued compensation and related expenses 4 Accrued liabilities O Long-term debt 1 Total liabilities 2 5 Current portion of operating lease liabilities 6 Current portion of long-term debt 7 Total current liabilities 8 Long-term operating lease liabilities Long-term liabilities 3 Common stock 4 Additional paid-in capital 5 Retained earnings B 6 Accumulated other comprehensive income 7 Total equity 8 9 Total liabilities and equity 0 1 January 28, 2023 January 29, 2022 1,874 1,141 5,140 647 8,802 2,352 2,746 1,383 520 15,803 5,687 274 1,116 405 843 638 16 8,979 2,164 705 1.160 13.008 22 21 2,430 322 2,795 C 15,803 2,936 1,042 5,965 596 10,539 2,250 2,654 1,384 677 17,504 6,803 316 1,103 845 946 648 13 10,674 2,061 533 1.216 14.484 23 0 2,668 329 3,020 17,504 1 2 3 4 5 Revenue 6 Cost of sales 7 Gross profit 8 Selling, general and administrative expenses 9 Restructuring charges Best Buy Co., Inc. Consolidated Income Statements $ millions, except per share amounts Fiscal Years Ended: January 28, 2023 January 29, 2022 January 30, 2021 46,298 51,761 47,262 36,386 40,121 36,689 11,640 8,635 -34 3,039 10 Operating income 11 Other income (expense): 12 Investment income and other 13 Interest expense 14 Earnings before income tax expense and equity in income of affiliates 15 Income tax expense 16 Equity in income of affiliates 17 Net earnings 18 19 9,912 7,970 147 1,795 28 -35 1,788 370 1 1,419 10 -25 3,024 574 4 2,454 10,573 7,928 254 2,391 38 -52 2,377 579 0 1,798 Excerpt about revenue recognition taken from Best Buy's 10-K for the fiscal year that ended on January 28, 2023. Revenue Recognition We generate revenue from the sale of products and services. Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the transaction price consideration that we expect to receive in exchange for those goods or services. Our revenue excludes sales and usage-based taxes collected and is reported net of sales refunds, which includes an estimate of future returns and contract cancellations based on historical refund rates, with a corresponding reduction to cost of sales. We defer the revenue associated with any unsatisfied performance obligation until the obligation is satisfied, i.e., when control of a product is transferred to the customer or a service is completed. Best Buy Gift Cards We sell Best Buy gift cards to our customers in our retail stores, online and through select third parties. Our gift cards do not expire. We recognize revenue from gift cards when the card is redeemed by the customer. We also recognize revenue for the portion of gift card values that is not expected to be redeemed ("breakage). We estimate breakage based on historical patterns and other factors, such as laws and regulations applicable to each jurisdiction. Gift card breakage income was $59 million, $49 million and $33 million in fiscal 2023, fiscal 2022, and fiscal 2021, respectively. Excerpt about receivables taken from Best Buy's 10-K for the fiscal year that ended on January 28, 2023. Receivables Receivables consist primarily of amounts due from vendors for various vendor funding programs, banks for customer credit card and debit card transactions, online marketplace partnerships and mobile phone network operators for device sales and commissions. Receivables are stated at their carrying values, net of a reserve for expected credit losses, which is primarily based on historical collection trends. Our allowances for uncollectible receivables were $30 million and $39 million as of January 28, 2023, and January 29, 2022, respectively. We had $41 million and $52 million of write-offs in fiscal 2023 and fiscal 2022, respectively. Excerpt about inventories taken from Chevron's 10-K for the fiscal year that ended on December 31, 2022. Inventories Crude oil, products and chemicals inventories are generally stated at cost, using a last-in, first-out method. In the aggregate, these costs are below market. Ancillary information about inventories is provided below. All amounts are in millions of U.S. dollars. (This table is reproduced in the Excel worksheet named Chevron Inventory Footnote.) Fiscal Years Ended: Excess of FIFO cost over the carrying value (i.e., LIFO cost) of inventories LIFO profits (losses) on inventory drawdowns included in earnings December December 31, 2022 31, 2021 9,061 5,588 122 35 December 31, 2020 2,749 -147 1 2 3 4 5 Assets 6 Cash and cash equivalents 7 Marketable securities 8 Accounts and notes receivable 9 Inventories 10 Prepaid expenses and other current assets 11 Total Current Assets 12 Long-term receivables, net 13 Investments and advances Chevron Corporation Consolidated Balance Sheets 19 20 Liabilities and Equity 21 Short-term debt 14 Properties, plant and equipment, net 15 Deferred charges and other assets 16 Goodwill 17 Assets held for sale 18 Total Assets 22 Accounts payable 23 Accrued liabilities $ millions, except per share amounts Fiscal Years Ended: December 31, 2022 December 31, 2021 24 Federal and other taxes on income 25 Other taxes payable 26 Total Current Liabilities 27 Long-term debt 1 28 Deferred credits and other noncurrent obligations 29 Noncurrent deferred income taxes 30 Noncurrent employee benefit plans 31 Total Liabilities 32 33 Common stock 34 Capital in excess of par value 35 Retained earnings 36 Accumulated other comprehensive losses 37 Deferred compensation and benefit plan trust 38 Treasury stock 39 Total Chevron Corporation Stockholders' Equity 40 Noncontrolling interests 41 Total Equity 42 43 Total Liabilities and Equity ^^ 17,678 223 20,456 8,247 3,739 50,343 1,069 45,238 143,591 12,310 4,722 436 257,709 1,964 18,955 7,486 4,381 1,422 34,208 21,375 20,396 17,131 4,357 97,467 1,832 18,660 190,024 -2,798 -240 -48, 196 159,282 960 160,242 257,709 5,640 35 18,419 6,795 2,849 33,738 603 40,696 146,961 12,384 4,385 768 239,535 256 16,454 6,972 1,700 1,409 26,791 31,113 20,778 14,665 6,248 99,595 1,832 17,282 165,546 -3,889 -240 -41,464 139,067 873 139,940 239,535 A Sales and other operating revenues Income (loss) from equity affiliates Other income Total Revenues and Other Income Costs and Other Deductions Cost of sales Operating expenses Selling, general and administrative expenses Exploration expenses Depreciation, depletion and amortization Taxes other than on income Interest and debt expense Other components of net periodic benefit costs Total Costs and Other Deductions Income (Loss) Before Income Tax Expense Income Tax Expense (Benefit) B Chevron Corporation Consolidated Income Statements $ millions, except per share amounts Fiscal Years Ended: December 31, 2022 235,717 8,585 1,950 246,252 Net Income (Loss) Less: Net income (loss) attributable to noncontrolling interests Net Income (Loss) Attributable to Chevron Corporation 145,416 24,714 4,312 974 16,319 4,032 516 295 196,578 49,674 14,066 35,608 143 35,465 C December 31, 2021 155,606 5,657 1,202 162,465 92,249 20,726 4,014 549 17,925 3,963 712 688 140,826 21,639 5,950 15,689 64 15,625 D December 31, 2020 94,471 -472 693 94,692 52,148 20,323 4,213 1,537 19,508 2,839 697 880 102,145 -7,453 -1,892 -5,561 -18 -5,543 Chevron Corporation Schedule of Ancillary Inventory Information $ millions, except per share amounts Fiscal Years Ended: December 31, 2022 December 31, 2021 December 31, 2020 Excess of FIFO cost over the carrying value (i.e., LIFO cost) of inventories 9,061 5,588 2,749 LIFO profits (losses) on inventory drawdowns included in earnings 122 35 -147
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Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
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