During the year ended December 31, 2016, Cabela's, Inc., a retailer of outdoor equipment and apparel, purchased merchandise inventory at a cost of $2,413,850 (in thousands). The following T-account reflects information contained in the company's 2015 and 2016 balance sheets (in thousands). Calculate Cabela's cost of sales for 2016 and complete the T-account. Inventory 2015 Balance 819,271 2016 Balance 860,360 During the year ended December 31, 2016, Cabela's, Inc., a retailer of outdoor equipment and apparel, purchased merchandise inventory at a cost of $2,413,850 (in thousands). Assume that all inventory purchases were on account (on credit) and that accounts payable is only used for inventory purchases. The following T-account reflects information contained in the company's 2015 and 2016 balance sheets (in thousands). Calculate the amount Cabela's paid in cash to its suppliers during 2016 and complete the T-account. Accounts Payable 281,985 2015 Balance 347,784 2016 Balance Ratio analysis is more complicated when a company is a conglomerate. Why? Explain the trade-off between net operating profit margin and net operating asset turnover. Discuss factors that limit the usefulness of financial accounting information for ratio analysis. Following is information for Snap-On, Inc., for three recent years. Reconcile the retained earnings account for the three-year period. (in millions) Retained earnings, December 31, 2016 3,384.9 Net income, 2016 546.4 Net income, 2015 478.7 Net income, 2014 421.9 Dividends*, 2016 148.4 Dividends*, 2015 129.0 Dividends, 2014 108.8 "Dividends include "dividend reinvestment plan and other amounts of: 1.2 (2014), 1.1 (2015) and 0.9 (2016). During the year ended December 31, 2016, Cabela's, Inc., a retailer of outdoor equipment and apparel, purchased merchandise inventory at a cost of $2,413,850 (in thousands). The following T-account reflects information contained in the company's 2015 and 2016 balance sheets (in thousands). Calculate Cabela's cost of sales for 2016 and complete the T-account. Inventory 2015 Balance 819,271 2016 Balance 860,360 During the year ended December 31, 2016, Cabela's, Inc., a retailer of outdoor equipment and apparel, purchased merchandise inventory at a cost of $2,413,850 (in thousands). Assume that all inventory purchases were on account (on credit) and that accounts payable is only used for inventory purchases. The following T-account reflects information contained in the company's 2015 and 2016 balance sheets (in thousands). Calculate the amount Cabela's paid in cash to its suppliers during 2016 and complete the T-account. Accounts Payable 281,985 2015 Balance 347,784 2016 Balance Ratio analysis is more complicated when a company is a conglomerate. Why? Explain the trade-off between net operating profit margin and net operating asset turnover. Discuss factors that limit the usefulness of financial accounting information for ratio analysis. Following is information for Snap-On, Inc., for three recent years. Reconcile the retained earnings account for the three-year period. (in millions) Retained earnings, December 31, 2016 3,384.9 Net income, 2016 546.4 Net income, 2015 478.7 Net income, 2014 421.9 Dividends*, 2016 148.4 Dividends*, 2015 129.0 Dividends, 2014 108.8 "Dividends include "dividend reinvestment plan and other amounts of: 1.2 (2014), 1.1 (2015) and 0.9 (2016)
