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

question 16

Essay

Hanover,Inc.
Use the selected data from the comparative financial statements for Hanover,Inc.to answer the questions that follow.
$\begin{array}{c}\text {Hanover, Inc.}\\\text {Balance Sheet Accounts}\\\text {(all accounts have normal balances)}\\\text {(in millions)}\\\begin{array}{lrr}&\text { Dec. } 30,2018 &\text { Dec. } 31,2017\\\text { Inventories } & \$ 1,780 & \$ 1,649 \\\\\text { Total current assets } & \$ 9,428 & \$ 8,625\\\\\text { Liabilities in order of significance: }\\\text { Long-term debt } &\$ 14,465 & \$ 15,001 \\\text { Other noncurrent liabilities } & 4,421 & 3,148 \\\text { Deferred income taxes } & 3,504 & 3,543 \\\text { Accounts payable } & 2,556& 2,468 \\\text { Other current liabilities } &2,066 & 1,738 \\\text { Accrued sal aries and wages } & 1,538 & 1,082 \\\text { Short-term borrowings } & 1,200 & 1,126 \\\text { Accrued advertising expense } & 793& 928 \\\text { Income taxes payable } &658 & 1,142\end{array}\end{array}$

-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- and short-term borrowings change from 2017 to 2018? 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:

Critical Roles

Key positions within an organization that are essential to achieving its business goals and maintaining operations.

Mentors

Executives who coach, advise, and encourage junior employees.

Coaches

Professionals who provide guidance and training in a specific area, such as sports, life, or business, aiming to improve the performance and achieve goals.

HR Managers

Professionals responsible for overseeing the administrative functions of an organization, including recruitment, performance management, and employee relations.