Accounting: What the Numbers Mean 9th Edition by Wayne W McManus, Daniel F Viele, David H Marshall

Exercise 93

Analyze several accounts using Intel Corporation annual report data Set

up a horizontal model in the following format:

		Assets	Liabilities		Revenues	Expenses
	Cash and Cash Equivalents	Accounts Receivable, net	Inventories	Accounts Payable	Net Revenue	Cost of  Sales	Marketing, General, and Administrative
Beginning balance
Net revenue
Cost of sales
Marketing, general, and administrative expenses
Purchases on account
Collections of accounts receivable
Payments of accounts payable
Ending balance

Required:

a. Enter the beginning (December 29, 2007) and ending (December 27, 2008) account balances for Accounts Receivable, Inventories, and Accounts Payable. Find these amounts on the balance sheet for Intel Corporation in the appendix.

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b. From the income statement for Intel Corporation for the year ended December 27, 2008, in the appendix, record the following transactions in the model:

1. Net Revenue, assuming that all sales were made on account.

2. Cost of Sales, assuming that all costs were transferred from inventories.

3. Marketing, General, and Administrative Expenses, assuming all of these expenses were accrued in the Accounts Payable liability account as they were incurred.

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c. Assuming that the only other transactions affecting these balance sheet accounts were those described next, calculate the amount of each transaction:

1. Purchases of inventories on account.

2. Collections of accounts receivable.

3. Payments of accounts payable.

Step 1 of 6

a.

Enter the beginning and ending account balances for accounts receivable in the above model $512 and $560 respectively.

Enter the beginning balance of $724 and ending balance of $767 for the inventory in the above model.

Also enter the beginning and ending account balances for Payment to suppliers and others in the above model $545 and $585 respectively