Issue link: http://www.e-digitaleditions.com/i/176211
Corn flakes, Silly Putty, Play Dough, Frisbees, and potato chips all happened by accident. An entrepreneur had the vision to see that the new product would fill a consumer need or want. Other examples of entrepreneurs turning a discovery into an opportunity are disposable diapers, coffee makers, ice cream cones, and safety pins. Services such as delivery services and personal fitness can also be a business opportunity. An entrepreneur must have the vision and determination to discover these business opportunities. Sometimes just walking through a store to look for products that need improvement can lead to a new business. Other times, having a conversation with someone complaining about a need can also lead to a new product or idea for a service business. A P P L I C ATI ON 1. List five problems that you would like to solve that would help either at home, in your community, or at school. 2. From this list, describe a business opportunity (product or service) for each problem. Analyzing Nike's financial statements Selected published financial information for Nike, Inc., is reproduced in Appendix B. Look at pages B-5 through B-9, where you will find Nike's financial statements. To the left of the column headings on each page, you will see the phrase "In millions." This means that all dollar amounts are rounded to the nearest million. Therefore, an amount such as $174 actually means $174,000,000. Another way to think of this is that you can calculate the actual amount by multiplying the rounded amount by 1,000,000 ($174 × 1,000,000 = $174,000,000). Not all companies round the amounts in their financial statements to the nearest million dollars. Many companies round to the nearest thousand dollars. INSTRUC TIONS 1. List the actual amounts of Cash and equivalents and Accounts receivable, net for Nike for May 31, 2011. 2. The financial statements for Chipotle Mexican Grill, Inc., include the phrase "all numbers in thousands." In June 2010, the income statement included Total Revenue, $466,841, and Gross Profit, $178,357. List the actual amounts of Total Revenue and Gross Profit. Starting a Proprietorship: Changes That Affect the Accounting Equation Chapter 1 29