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3 years ago

Identifying and Classifying Balance Sheet and Income Statement Accounts

Business

1 answer:

Anvisha [2.4K]3 years ago

3 0

Answer:

Staples, Inc.

a. Indication of whether each account appears on the balance sheet (B) or income statement (I):

Staples, Inc. ($ millions) Amount Classification

Sales $24,381 (I)

Accumulated depreciation 4,067 (B)

Depreciation expense 408 (I)

Retained earnings 6,694 (B)

Net income (loss) (211) (I)

Property, plant & equipment, net 6,030 (B)

Selling, general and admin expense 4,884 (I)

Accounts receivable 1,816 (B)

Total liabilities 6,144 (B)

Stockholders' equity 6,136 (B)

b) Total Assets = $3,779

Total Expenses = $5,292

c) Net Loss Margin = -0.87%

Total Liabilities-to-Equity Ratio = = 100.13%

Explanation:

a) Data and Calculations:

Total assets:

Accumulated depreciation (4,067) (B)

Property, plant & equipment, net 6,030 (B)

Accounts receivable 1,816 (B)

Total assets = $3,779

Total Expenses:

Depreciation expense 408 (I)

Selling, general and admin expense 4,884 (I)

Total expenses = $5,292

Net profit (loss) margin = $(211)/ $24,381 * 100 = -0.865%

Total liabilities-to-equity ratio = total liabilities/stockholders' equity * 100

= $6,144/$6,136 * 100

= 100.13%

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3 years ago

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