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%
