Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Problem 2 (11 points) Use Newell Brands, Inc.'s financial statements to answer to the following questions. 1. According to the footnotes, what was the initial

image text in transcribed
image text in transcribed
Problem 2 (11 points) Use Newell Brands, Inc.'s financial statements to answer to the following questions. 1. According to the footnotes, what was the initial total acquisition cost of the Property, Plant, and Equipment that Newell Brands owns as of December 31, 2020? (1 point) 2. According to the footnotes, what is the total acquisition cost of Land that Newell Brands owns as of December 31, 2020? (1 point) 3. According to the footnotes, which of the following methods does Newell Brands use to depreciate its Property, Plant, and Equipment? (Circle ane) (1 point) Straight-Line Double-Declining Balance Units-of-Activity 4. Provide the 2020 adjusting joumal entry (both accounts and amounts) that Newell Brands made to record depreciation on its Property and Equipment. Assume that Newell Brands makes one adjusting journal entry for depreciation expense at the end of each fiscal year as part of its adjusting entries. (3 points) 5. Does Newell Brands' Goodwill footnote suggest that the company acquired any other companies during fiscal 2020? (Circle ane) (1 point) YES NO 6. Does Newell Brands' Goodwill footnote suggest that the company acquired any other companies during fiscal 2019? (Circle ane) 4 point) YES NO 7. Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to record amortization on its finite-lived Intangible Assets. Assume that Newell Brands makes one adjusting journal entry for amortization expense at the end of each fiscal year as part of its adjusting entries. (3 points) Newell Brands, Inc. Financial Statements (partial) BRANDS newell Consolidated Balance Sheets In millions of dollars As of ASSETS Dec 31, 2020 Cash and cash equivalents $ 981 Accounts receivable, net 1,678 Inventories 1,638 Prepaid expenses and other current assets 331 Total current assets $ 4,628 Property, plant, and equipment, net 1,176 Goodwill 3,553 Other long-term assets 5,343 Total assets $ 14,700 As of Dec 31, 2019 $ 349 1,842 1,606 313 $ 4,110 1,155 3,709 6,668 S_15.642 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Wages payable Current portion of long-term debt Other current liabilities Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 1,526 236 466 1,393 3,621 5,141 2,038 10,800 3,448 452 3,900 S 14.700 S 1.102 204 332 1,340 2,978 5,391 2,277 10,646 4,447 549 4.996 S 15.642 Problem 2 (11 points) Use Newell Brands, Inc.'s financial statements to answer to the following questions. 1. According to the footnotes, what was the initial total acquisition cost of the Property, Plant, and Equipment that Newell Brands owns as of December 31, 2020? (1 point) 2. According to the footnotes, what is the total acquisition cost of Land that Newell Brands owns as of December 31, 2020? (1 point) 3. According to the footnotes, which of the following methods does Newell Brands use to depreciate its Property, Plant, and Equipment? (Circle ane) (1 point) Straight-Line Double-Declining Balance Units-of-Activity 4. Provide the 2020 adjusting joumal entry (both accounts and amounts) that Newell Brands made to record depreciation on its Property and Equipment. Assume that Newell Brands makes one adjusting journal entry for depreciation expense at the end of each fiscal year as part of its adjusting entries. (3 points) 5. Does Newell Brands' Goodwill footnote suggest that the company acquired any other companies during fiscal 2020? (Circle ane) (1 point) YES NO 6. Does Newell Brands' Goodwill footnote suggest that the company acquired any other companies during fiscal 2019? (Circle ane) 4 point) YES NO 7. Provide the 2020 adjusting journal entry (both accounts and amounts) that Newell Brands made to record amortization on its finite-lived Intangible Assets. Assume that Newell Brands makes one adjusting journal entry for amortization expense at the end of each fiscal year as part of its adjusting entries. (3 points) Newell Brands, Inc. Financial Statements (partial) BRANDS newell Consolidated Balance Sheets In millions of dollars As of ASSETS Dec 31, 2020 Cash and cash equivalents $ 981 Accounts receivable, net 1,678 Inventories 1,638 Prepaid expenses and other current assets 331 Total current assets $ 4,628 Property, plant, and equipment, net 1,176 Goodwill 3,553 Other long-term assets 5,343 Total assets $ 14,700 As of Dec 31, 2019 $ 349 1,842 1,606 313 $ 4,110 1,155 3,709 6,668 S_15.642 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Wages payable Current portion of long-term debt Other current liabilities Total current liabilities Long-term debt Other noncurrent liabilities Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 1,526 236 466 1,393 3,621 5,141 2,038 10,800 3,448 452 3,900 S 14.700 S 1.102 204 332 1,340 2,978 5,391 2,277 10,646 4,447 549 4.996 S 15.642

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Information For Decisions

Authors: Robert W. Ingram, Bruce Baldwin

4th Edition

0324069545, 978-0324069549

More Books

Students also viewed these Accounting questions