Accounting Hw1 - 1167 Words

15.515: Financial Accounting Fall 2012 Problem Set 2 Question 1. Understanding Walmart’s financial statements In this homework we will ask you a series of questions related to revenue recognition based on Wal-Mart 2012’s Annual Report (posted on Stellar ~/Materials/Financial statements used / discussed in class). The goal is to become familiar with real financial statements. 1. How much net sales did Walmart generate for the fiscal period ending on January 31, 2012? $443,854M 2. What was the balance of Walmart’s accounting receivables as of January 31, 2012? $5,937M 3. What was the balance of Walmart’s allowance for doubtful accounts (ADA) as of January 31, 2012? $323M 4. Assume that Walmart wrote-off†¦show more content†¦Throughout this question, ignore all of Groupon’s costs other than the $150 paid to the merchant. The offer is announced on August 1st and it requires 100 customers to purchase the deal so that the deal goes through. For all of the questions below, if no transaction should be recorded, please explain why. 1. On August 2nd, there are 50 customers that agreed to purchase the deal. Based on Groupon’s revenue recognition policy described above, use the balance sheet equation (BSE) to record the transaction that Groupon would record on that date. No transaction, because the â€Å"gt;100 customer† criteria hasn’t been met. 2. On August 5th, Groupon has sold 200 Rock Climbing packages for cash. Based on Groupon’s revenue recognition policy described above, use the balance sheet equation (BSE) to record the transaction that Groupon would record on that date. In recording this transaction, assume that Groupon does not pay the merchant until a later date. Asset Liability Equity Cash A/P R/E +60k +30k +30k Below is an excerpt from Groupon’s 2011 Annual Report posted on Stellar ~/Materials/Financial statements used / discussed in class)) about its merchant payment policy. ------------------------------------------------- Merchant Payments ------------------------------------------------- Under the redemption payment model, which we utilize in most of our international operations in conformity with local market practice, merchantsShow MoreRelatedInvestment Analysis Course4863 Words   |  20 PagesUNIVERSITY OF MASSACHUSSETS DARTMOUTH College of Business Department of Accounting and Finance Fall 2011 COURSE: Investment Analysis, FIN 383-Section 01, TR 12:30-1:45 Class location: Science Engr 118 PREREQUISITES: FIN 312 and junior standing INSTRUCTOR: Duong Nguyen, Ph.D. Office Room 220, College of Business Phone (508) 999 – 8070 Email dnguyen2@umassd.edu Tuesday 3:30-5:00 pm Thursday 3:30-5:00 pm Wednesday 11:00-12:00 and 1-5pm and also by appointment OFFICE HOURS: COURSE DESCRIPTION