Use the January 3, 2015, Form 10-K for Stanley Black & Decker, Inc. (Stanley) to complete the

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Use the January 3, 2015, Form 10-K for Stanley Black & Decker, Inc. (Stanley) to complete the requirements below. To obtain the Form 10-K, you can use the EDGAR system following the instructions in Appendix A, or it can be found under "Corporate Information" on the company's corporate website at www.stanleyblackanddecker.com. Read carefully the following portions of the document:
■ "Description of the Business" on pages 4 and 5.
■ "Consolidated Statement of Operations" on page 53.
■ The following parts of Note A on page 58 through 63:
• "Revenue recognition"
• "Advertising costs"
• "Shipping and handling costs"
■ "Note C: Inventories" on page 64.
■ "Note D: Property, plant, and equipment" on page 64.
Required
a. Does the level of detail that Stanley provides regarding costs incurred to manufacture its products suggest the company's financial statements are designed primarily to meet the needs of external or internal users?
b. Does Stanley treat shipping and handling costs as product or nonproduct costs?
c. Does Stanley treat advertising and promotion costs as product or nonproduct costs?
d. In the first accounting course, you learned about a class of inventory called merchandise inventory.
What categories of inventory does Stanley report in its annual report?
e. What is the cost of the land owned by Stanley? What is the cost of its machinery and equipment?
Financial Statements
Financial 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...
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Fundamental Managerial Accounting Concepts

ISBN: 978-1259569197

8th edition

Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds

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