Hanover, Inc. Use the selected data from the comparative financial statements for Hanover, Inc. to answer the questions that follo
Hanover, Inc.
Balance Sheet Accounts
(all accounts have normal balances)
(in millions)

\begin{array}{lrr}&\text {Dec. 30,2017 }&\text { Dec. 31,2016}\\\text { Inventories } & \$ 1,780 & \$ 1,649 \\\text { Total current assets } & \$ 9,428 & \$ 8,625\\\text { Liabilities in order of significance: } & & \\\text { Long-term debt } & \$ 14,465 & \$ 15,001 \\\text { Other noncurrent liabilities } & 4,421 & 3,148 \\\text { Deferred income taxes } & 3,504 & 3,543 \\\text { Accounts payable } & 2,556 & 2,468 \\\text { Other current liabilities } & 2,066 & 1,738 \\\text { Accrued salaries and wages } & 1,538 & 1,082 \\\text { Short-term borrowings } & 1,200 & 1,126 \\\text { Accrued advertising expense } & 793 & 928 \\\text { Income taxes payable } & 658 & 1,142\end{array}

-Refer to the account information for Hanover, Inc.

Required:
(1) Calculate percentage changes in accounts payable and income taxes payable.Give a possible explanation for the changes in these accounts.
(2) By how much did Hanover's long-term and short-term borrowings change from 2016 to 2017? Give a possible explanation for the change in debt.What other financial statement would be useful in analyzing the change in borrowings? Why?

The Solution to This Problem Requires Time Value of Money

Multiple Choice

Correct Answer:VerifiedUnlock this answer nowGet Access to more Verified Answers free of chargeAccess For Free

Correct Answer:
Verified
Unlock this answer now
Get Access to more Verified Answers free of charge