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Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Hush Puppies,
Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Hush Puppies, Wolverine, and Bates, to a global market. The following transactions occurred during a recent year. Dollars are in thousands. a. Issued common stock to investors for $14,083 cash (example). b. Purchased $874,418 of additional inventory on account. c. Borrowed $10,200. d. Sold $1,476,068 of products to customers on account; cost of the products sold was $746,547. e. Declared and paid cash dividends of $22,358. f. Purchased for cash $24,526 in additional property, plant, and equipment. g. Incurred $345,904 in selling expenses, paying three-fourths in cash and owing the rest on account. h. Earned $1,763 interest on investments, receiving 90 percent in cash. i. Incurred $3,050 in interest expense to be paid at the beginning of next year. Required: For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decrease, and zero for a net effect of zero) of each transaction. (Remember that A = L + SE, R - E = NI, and NI affects SE through Retained Earnings). The first transaction is provided as an example. Balance Sheet Income Statement Transaction Assets Liabilities Stockholders' Equity Revenues Expenses Net Income a. b. 14,083 14,083 C. d. e.
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