Analyze several accounts using Campbell Soup Company annual report data Set up a horizontal model in the following format:
Assets
Liabilities
Revenues
Expenses
Beginning balance Net sales
Cost of products sold Marketing, selling, and Cash and Cash Equivalents
Accounts
Receivable Inventories
Payable to Suppliers and Others
Net Sales
Cost of Products Sold
Marketing, Selling, and Administrative
administrative expenses Purchases on account Collections of accounts receivable Payments to suppliers and others Ending balance
Required:
a. Enter the beginning (August 1, 2010) and ending (July 31, 2011) account balances for Accounts Receivable, Inventories, and Payable to Suppliers and Others. Find these amounts on the balance sheet for Campbell Soup Company in the appendix.
b. From the income statement for Campbell Soup Company for the year ended July 31, 2011, in the appendix, record the following transactions in the model:
1. Net Sales, assuming that all sales were made on account.
2. Cost of Products Sold, assuming that all costs were transferred from inventories.
3. Marketing, Selling, and Administrative Expenses, assuming all of these expenses were accrued in the Payable to Suppliers and Others liability category as they were incurred.
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 to suppliers and others.