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Financial Accounting: Basic Statements

2-Describe the purpose of the four major financial statements
3-why are notes to financial statements important to professional security analysts?
15-Which measure of profitability is probably of greatest interest to the investing public and why?
17-Financial ratio analysis is often divided into five areas liquidity, activity, debt, profitability, and market ratios; differentiate each and which is the greatest concern of creditors?

1-You are an intern at the office of a local tax preparer, to test your knowledge of basic financial statements, your manager gives you a list of the following accounts and asks you to prepare a basic financial statement using the provided information.

Depreciation 25, 000, 000
General and admin fees 22, 000, 000
Sales 345,000,000
Sales expenses 18, 000, 000
Cost of goods sold 255, 000, 000
Lease expense 4, 000, 000
Interest expense 3, 000, 000

3-cooper industries began in 2009with retained earnings of $25.32million. During the year it paid four quarterly dividends of $0.35 per share to 2.75 million common stockholders. Preferred stockholders, holding500,000 shares were paid two semiannual dividends of $0.75 per share. The firm had a net profit after taxes of $5.15 million. Prepare the statement of the returned earnings for the year ended dec 31, 2009.


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