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# The Financial Statements

### Purple Company: Prepare a Balance Sheet in good form

The following balance sheet was prepared by the bookkeeper for Purple Company as of December 31, 2011 Purple Company Balance Sheet as of December 31, 2011 Cash \$ 80,000 Accounts payable \$ 75,000 Accounts receivable (net) 52,200 Long-term liabilities 100,

### Disclosure long-term debt in a financial statement

How do you analyze and report long-term debt? What disclosures are required relative to long-term debt?

### Intercompany Transactions, Goodwill Impairment, fair value

1. Under the parent company concept, describe the treatment of an acquired subsidiary's assets and liabilities. 2. How often is goodwill tested for impairment and at what reporting level is it tested? 3. How is a reporting unit's fair value determined?

### Most important number; which percentages are required

1. Which ratios or percentages should be required as part of a company's annual report? Why? 2. Of all of the financial information presented on the balance sheet, the income statement, and the statement of cash flows, which one number do you think is the most important? Justify your response.

### Burger King: How to find the financial statements and information to analyze

I needed to find the financial statements of Burger King and analyze and assess them to determine if the financial performance has been on a decline or incline over the past in a year to year comparison. The analysis techniques I can use are comparative financial statements, trend analysis, ratio analysis, and percentage analys

### Depletion, Depreciation, and Investment

1. Anna is studying the annual reports of three different companies that her accounting group will use for its term project. She sees that two of the companies have made investments in the common stock of Ebay, Inc. What concerns her is that one company has reported the investment as a current asset, while the other company has

### Company A: Classify each cash transaction for financial statement presentation

Company A bank accounts and balances at the end of December 31, 2010 are: Bank Account Type Balance City Bank Savings \$2,450,000.00 Chase Checking 1 \$47,500.00 Chase Checking 2 (\$450.00) Chase Savings \$2,000,000.00 Chase Certificate of Deposit \$50,000.00 First National Checking 3 (\$12,0

### Income Statement and Balance Sheet: St. James Technology

Using the attached data and answers computed, answer the following: Prepare the company's multi-step income statement and owner's equity for the month ended January 31, 2011. Also prepare a balance sheet at the date in report form.

### Financial Statement Analysis: Starbucks

Using Starbucks' 2009 Annual Report (http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome) compute the following: 1. Compute the current year's profitability ratios. 2. Compute or locate the current year's investor ratios.

### Post Balance Sheet Events: Treatment in financial statements

At December 31, 2010, Coburn Corp. has assets of \$10,000,000, liabilities of \$6,000,000, common stock of \$2,000,000 (representing 2,000,000 shares of \$1 par common stock), and retained earnings of \$2,000,000. Net sales for the year 2010 were \$18,000,000, and net income was \$800,000. As auditors of this company, you are makin

### Which of the following statements is correct about EVA?

Which of the following statements is correct? a) One way to increase EVA is to achieve the same level of operating income but with more investor-supplied capital. b) If a firm reports positive net income, its EVA must also be positive c) One drawback of EVA as a performance measure is that it mistakenly a

### Financial Statement Analysis: Profits, sales, assets, stockholders' equity; ratios, trends

1. Profits might be compared to sales, assets, or stockholders' equity. Why are all three of these useful? Will trends in all three ratios always move in the same direction? Why or why not? 2. The Return on Assets for Smith Corporation has remained fairly stable at 15 percent, while the Return on Assets for Jones, Inc. has st

### Upton Company: Prepare an income statement

Upton Company was started on Jan. 1, 2011, when the owners invested \$160,000 cash in the business. During 2011, the company earned cash revenues of \$120,000 and incurred cash expenses of \$82,000. The company also paid cash distributions of \$15,000. Required: Prepare a 2011 income statement, capital statement (stateme

### Amount to be reported as a current liability

On September 1, 2008, a company borrowed \$130,000 from its bank and signed a nine-month note with 5% interest. The principal and interest on the loan are to be paid when the note matures. What is the total amount related to this loan that should be reported under current liabilities on the company's December 31, 2008, balanc

### GASB: Describe and discuss the requirement for the MD&A section of financials

GASB-34 requires that state and local governments will include a Management Discussion and Analysis (MD&A) section preceding the basic financial statements. Describe and discuss this requirement and compare this requirement with the SB-2 Report - (MD&A) as required by SOX.

### Prepare a balance sheet and operating income

Explain how the ledger provides the information needed to prepare: the balance sheet and the operating statement A short response please.

### Starbucks Financial Statement Analysis: Horizontal statement

Using Starbucks' 2009 Annual report (http://investor.starbucks.com/phoenix.zhtml?c=99518&p=irol-irhome), complete the following questions: 1. Prepare a horizontal analysis of key income statement items and compute the current year's liquidity ratios. 2. Compute the current year's long-term debt-paying ratios. http://p

### Financial Statement Analysis

1. When computing the debt ratio, do you think the result would be more useful to financial statement users if the numerator included all liabilities as shown on the balance sheet, all liabilities as shown on the balance sheet plus any contingencies, or only long-term liabilities? Why 2. In assessing the ability of a company

### Financial Statement Analysis: Starbucks Corporation & Caribou Coffee Co. Inc.

Primary: Starbucks Corporation (SBUX) Year End: September Competitor: Caribou Coffee Co. Inc. (CBOU) Year End: December 1. Calculate the following ratios needed to assess liquidity and interpret the results. This should include the last 3 years of ratios for the company and the last 3 years of ratios for the

### Compute missing amounts in a balance sheet

Accounts payable \$6,000 Equipment \$7,000 Accounts receivable 1,000 Land 7,000 Building ? Unearned revenue 2,000 Cash 3,000 Total stockholder's equity ? If total stockholder's equity was \$19,000, what would be the balance of the Building Account? I

### Nolan Company: Prepare a Balance sheet in proper form

Balance sheet items of Nolan Company at December 31, 2010. Prepare a balance sheet and include a complete heading. Accounts payable \$ 6,000 Accounts receivable 15,000 Building 65,000 Cash 11,000 Common stock 80,000 Land 31,000 Office equipment 5,000 Retained earni

### Financial Statement Analysis

1. "The current ratio is preferred over the quick ratio when assessing a company's liquidity. Since these two ratios move in tandem (that is, if one goes up, the other goes up), computing the quick ratio is redundant." Do you agree or disagree? Why? 2. Overall, would a company rather have a longer or a shorter operating cyc

### Financial Statements of Castle Corporation for 2009

Information from the financial statements of Castle Corporation for 2009 is set out below (see attachment).

### Financial Statement Analysis

1. Two businessmen were discussing the purpose of depreciating long-term assets. The first stated, "My company depreciates assets to better reflect their market value. We all know that most items decrease in value over time, and depreciation helps us to reflect this, resulting in more relevant information." The second disagreed,

### Interpreting Financial Statements: Computing Probability Ratios

Compute profitability ratios - Please help calculate 1. Profit margin, 2. Asset turnover, 3. Return of assets. 4 Return on common stockholder's equity for Walmart/Target. What information outside the annual report may be useful to you as an investor? Why?

### E5-11: Prepare classified balance sheet for Abbey Corporation at December 31, 2010

E5-11 (balance sheet preparation) Presented below is the adjusted trial balance of Abbey Corporation at December 31, 2010. cash \$ ? office supplies 1200 prepaid insurance 100

### Sautter Graphics Accounts

The accounts of Sautter Graphics follow with their normal balances at December 31, 2009. The accounts are listed in no particular order. ACCOUNTS BALANCE -------------- --------------- P. Sautter, Capital \$48,800 Insurance Expense 700 Accounts Payable 4300 Service Revenue 86,000 Land 29,000 Supplies Expense

### Financial Statement Analysis for Better Mouse trap

See attached file. Question1. a. What is the company's average annual rate of sales growth from 2007 through 2009? b. How long, on average, was Better Mouse Trap taking to collect on its receivable accounts in 2009? (Assume all of the company's sales were on credit.) c. Was Better Mouse Trap more or less profitable i

### Analysis of transactions, prepare financial statements

See attached template. Need an analysis of transactions, balance sheet, income statement, and statement of owners equity completed. As of April 30th, Laird had Cash of 1,720. He has 3,240 in accounts receivable, \$24,000 in land. \$5,400 in accounts payable, and Daniels capital is \$23,660 Considering this info log below.

### Balance sheet classification of various liabilities

Classify how each would be reported on the balance sheet. a. Accrued vacation pay b. Estimated taxes payable c. Service warranties on appliance sales d. Bank overdraft e. Employee payroll deductions unremitted f. Unpaid bonus to officers g. Deposit received from customer to guarantee performance of a contract h. Sales