Question

Following are selected accounts for Staples, Inc., for the fiscal year ended January 30, 2016 (a) Indicate whether each account appears on the balance sheet (B) or income statement (I). Staples, Inc. ($ millions) Amount Classification Sales $21,059 Answer I Accumulated depreciation 4,375 Answer B Depreciation expense 388 Answer I Retained earnings 6,900 Answer I Net income 379 Answer I Property, plant & equipment, net 1,586 Answer B Selling, general and admin expense 4,600 Answer I Accounts receivable 1,899 Answer B Total liabilities 4,788 Answer B Stockholders' equity 5,384 Answer B (b) Using the data, compute total assets and total expenses. Total Assets Answer Total Expenses Answer

Answer 1

Answer:

Staples, Inc

a)  Staples, Inc. ($ millions) Amount Classification

                                                Income State           Balance Sheet

Sales                                        $21,059   I

Accumulated depreciation                                        4,375 B

Depreciation expense                   388  I

Retained earnings                                                       6,900 B

Net income                                     379 I

Property, plant & equipment, net                                1,586 B

Selling, general & admin expense 4,600 I

Accounts receivable                                                     1,899 B

Total liabilities                                                               4,788 B

Stockholders' equity                                                    5,384 B

bi) Total Assets:

Property, plant & equipment, net  $1,586

Accounts receivable                       $1,899

Total Assets =                                $3,485

bii) Total Expenses

Depreciation expense                        $388

Selling, general & admin expense $4,600

Total expenses =                           $4,988

Explanation:

Items that appear in the balance sheet are permanent accounts, whose balances are carried forward from one financial period to another.   On the other hand, items that appear in the income statement are temporary accounts or periodic accounts, whose balances are closed to the period's income summary.  These accounts are not carried forward to the next accounting period.