Hanover, Inc ​
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-Refer to the Account Information for Hanover, Inc

question 173

Essay

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

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Definitions:

Unemployed

The state of being without a job despite being willing to work, typically measured as a percentage of the labor force.

Ethical Development

The process of developing and understanding moral principles that govern a person's behavior or conducting of an activity.

Conventional

Based on or in accordance with what is generally done or believed.

Preconventional

A stage in moral development characterized by behavior driven by the desire to avoid punishment and seek personal gain, typically seen in young children.