Question

Wolverine World Wide, Inc., manufactures military, work, sport, and casual footwear and leather accessories under a variety of brand names, such as Hush Puppies, Wolverine, Merrell, Stride Rite, and Bates, to a global market. The following transactions occurred during a recent year. Dollars are in millions a. Issued common stock to investors for $18.4 cash (example). b. Purchased $1,654.6 of additional inventory on account. c. Paid $411 on long-term debt principal and $3.6 in interest on the debt. d. Sold $2,370 of products to customers on account; cost of the products sold was $1,421.6. (Hint: There are two separate effects needed for (d): one for earning revenue and one for incurring an expense.) e. Paid cash dividends of $35 to shareholders. f. Purchased for cash $31.4 in additional property, plant, and equipment. g. Incurred $723.6 in selling expenses, paying three-fourths in cash and owing the rest on account. h. Earned $0.5 of interest on investments, receiving 80 percent in cash. i. Incurred $43 in interest expense to be paid at the beginning of next year.

Answer 1

Income Statement Expenses = Net Income Revenues + 3.6 = 2370 = -3.6 2370 -1421.6 + 1421.6 Balance Sheet Events Assets Liabilties + Equity 18.4 = 18.4 b 1654.6 = 1654.6 с -44.7 = -41.1 -3.6 d 2370/= + 2370 -1421.6 = -1421.6 е -35 = -35 f -31.4 = 31.4 = g -542.7 180.9 -723.6 h 0.4= 0.5 0.1= 43 -43 1999.5 1837.4 162.1 + - + - 723.6 -723.6 0.5 0.5 + + + 43 = 2191.8 -43 178.7 2370.5 1999.5 1999.5 * Kindly Comment down for any clarifications/ queries and please upvote.