D. Answer each of the following questions (2 point each) 1. What is the amount of expenses paid in advance by Coach, Inc. as of July 2, 2016? 2. What is the amount of expenses incurred by Coach, Inc, as of July 2, 2016 for which invoices have not yet been received? 3. In talking with one of Coach's executives, they asserted that the Company's did not acquire a business thru the year ended July 2, 2016. Do you agree or disagree with this statement? Cite a line item on the balance sheet that would support your assertion. COACH, INC. CONSOLIDATED STATEMENTS OF INCOME July 2, 2016 Fiscal Year Ended June 27 2015 (millions, except per share data) June 28 2014 Net sales S 4,491.8 $ 4,191.6 $ 4,806.2 Cost of sales 1,440.5 1,283.0 1,5092 3,051.3 2.908.6 3,297.0 2,397.8 2,290.6 2,176.9 653.5 6180 1.120.1 Gross profit Selling, general and administrative expenses Operating income Interest (expense) income, net Income before provision for income taxes Provision for income taxes Net income (26.9) (6.4) 2.2 626.6 6116 1.1223 166.1 2092 341.0 S 460.5 $ 402.4 $ 781.3 Net income per share: Basic S 1.66 s 1.46 $ 2.81 Diluted $ 1.65 $ 1.45 $ 2.79 Shares used in computing net income per share: Basic 277.6 275.7 277.8 Diluted 279.3 2772 280.4 Cash dividends declared per common share S 1.350 $ 1350 $ 1.350 COACH, INC. CONSOLIDATED BALANCE SHEETS July 2 2016 June 27 2015 (million) ASSETS Current Assets: Cash and cash equivalents 859,0 $ 1.291.8 Short-term investments 460.4 234.0 Trade accounts receivable, less allowances of $2 2 and $3 respectively 2452 2195 Inventories 459.2 4851 Deferred income taxes 98.4 Prepaid expenses 58.0 73.1 Other current assets 91.1 104.6 Total current assets 2,172.9 2.506,5 Property and equipment, net 919.5 7326 Long term investments 558.6 406.0 Goodwill 502.4 4342 Intangible assets 346.8 359.9 Deferred income taxes 248.8 115.8 Others 143,7 1119 Total assets 4,892.7 $ 4,6669 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: 186.7 $ 222.8 625.0 600.6 15.0 113 Accounts payable Accrued liabilities Current debt Total current liabilities Long-term debt Other liabilities Total liabilities 826.7 834.7 861.2 879.1 521.9 4632 209. 2,177.0 See Note 11 on commitments and contingencies .8 2.8 Stockholders' Equity Preferred stock (authorized 20 million shares S001 par value) none issued Common stock: (authorized 1.000 million shares, 80.01 par value) issued and outstanding- 278.5 million and 276.6 million shares, respectively Additional puid-in-capital Accumulated deficit Accumulated other comprehensive loss Total stockholders' equity 2,857.1 (104.1) (72.9) 2,754.4 (1896) (777) 2,682.9 2,489 9 Total liabilities and stockholders' equity 4,892.7 $ 4,666 9