Explain the purpose of each of the 4 basic financial statements? How do managers and employees use them? How about investors and creditors?
1. (Answer using Excel): Calculating Cash Flows, Consider the following abbreviated financial statements for: WESTON ENTERPRISES 2011 and 2012 Partial Balance Sheets ASSETS 2011 Current assets $936 Net fixed assets $4,176 2012 Current assets $1,015 Net fixed assets $4,896 LIABILITIES AND OWNERS' EQUITY 2011
Select three public companies, find their annual reports in the investors relations section of their website. Select: Home Depot, Apple & Discover How much cash is available for the company to pay its current debts? Is the company in trouble or in good shape? (current ratio as evidence) Is each company increasing or d
For Home Depot (product), Discover Card (service) and Apple (manufacturer): How much cash is available for the company to pay its current debts? Is the company in trouble or in good shape? Is each company increasing or decreasing its investment in its operations? How well is each company doing in its operations? Give ea
Prepare Financial Statements from the following "Adjusted Trial Balance Worksheet". The 2012 year-end adjusted balances taken from the general ledger of Cooperstown Services, Inc. are listed below in general ledger order.Transfer these accounts and balances to a spreadsheet worksheet and prepare an Income statement, a Classified
Complete the following exercise. Fill in the Excel spreadsheet provided via the link below to provide your answers to part a. Then paste the Excel data into a Word document on which you can also write the answer to part b. income_statement.xlsx Administrative Expenses........................................................
In 2010, Earthscope Company decided to sell its satellite sales division, even though the division had been profitable during the year. During 2010, the satellite division earned $54,000 and the taxes on that income were $12,500. The division was sold for a gain of $750,000, and the taxes $36,700. How would these amounts be repo
Which of the following statements is true? i. Under the cash method, prepaid income such as rent is usually taxed when received rather than when earned. ii. Alimony received by the taxpayer is taxable. iii. Income earned by selling goods on the Internet is taxable. A. i only B. ii only C. iii only D. i & iii only E.
Using the 10-k filing for Netflix, Break-even is the point where fixed costs equal the total contribution margin. Another way of saying the same thing is that break-even is the point where net income equals zero. The task for this fourth SLP is to further assess Netflix's financial position. Assume that 70% of the company'
XY Company: Segmented Income Statement It is important to consider the financial impact of changing the product mix (i.e., adding or dropping products). Preparing a segmented income statement for various scenarios assists management in determining the estimated financial impact of making one choice over another. The case belo
Describe management assertions embodied in financial statements. Explain why auditors use them as a focal point of the audit.
Acquirer purchases 100% of target by issuing $100 million in new debt to purchase target shares, carrying an interest rate of 10%. Excess cash is used to help pay for the acquisition. Acquirer expects to be able to close down several of the target company's old manufacturing facilities and save an estimated $2 million in t
Use T-accounts to summarize activities and prepare a classified income statement for April and a classified balance sheet at the end of April. > Pre-opening (March) You decide to go into the bicycle business and invest $100,000 of your own money. You rent a building in a shopping center for $3,000 per month, beginning
The Used Books Company is a small online retailer operating out of a garage apartment. The owner buys books at garage sales, thrift shops, library sales, and whenever an opportunity arises. The company classified all books into five categories based on cost of acquisition and estimated sales price. See below for details about bo
The 1999 Balance Sheet for ABC Corporation is shown below: Assets 1999 Liabilities 1999 Cash $10,000 Accounts Payable $ 8,000 Accounts Receivable 20,000
Use the example of a new restaurant to illustrate the differences between a vision and a mission statement. Please discuss different pricing strategies available to a new business and the methods available to target a market.
How is the income statement different from the balance sheet?
Define the three common tools used to analyze financial statements. Who can use it? Why is it used? How is it calculated?
Corn Company December 31, 1999 Cash $98,000 Gross account receivable $151,000 Allowance for doubtful accounts(tax,insurance) $12,000 Pre-paid expense $30,000 Inventory $689,000 Land $195,000 Plant/property/equipment (ppe) $912,000 Accumulated depreciation on ppe $613,000
Please help in preparing a bank reconciliation statement for the month. On Aug 14th, Compuville's cash book showed a debit balance of $4,000.00. The bank statement showed a balance of $4,270.00. In the comparison, the following was found: * check issued amounting to $2,500.00 has not been cashed * The bank rejected check
Joey Cuono started his own consulting firm, Cuono Company, on June 1, 2014. The trial balance at June 30 is shown below. CUONO COMPANY Trial Balance June 30, 2014 Account Number Debit Credit 101 Cash $6,200 110 Accounts Receivable 6,000
Write a memo to your superior analyzing the performance of SAC for 2010 and 2011. This analysis should be based on the information found in the consolidated financial statements. Your memo should include the following financial ratios and a comparison of the ratios over the two-year period: •current ratio •debt-to-equi
Armada Company has these comparative balance sheet data: ARMADA COMPANY Balance Sheets December 31 2010 2009 Cash $25,000 $30,000 Receivables (net) 65,000 60,000 Inventories 60,000 50,000 Plant assets (net) 200,000 180,000 $350,000 $320,000 Accounts payable $50,000 $60,000 Mortgage payable (15%) 100,00
1. How does a balance sheet of a service organization differ from that of a manufacturing company? 2. How can you utilize financial statements in communicating to and managing employees?
Copies Express was incorporated on November 20, 2009, and began operating on January 2, 2010. The balance sheet as of the beginning of operations is shown in Exhibit 1. In preparing financial statements for the first year of operations, the accountant reviewed the record of cash receipts and cash disbursements for Copies Exp
1. Crimson manufactures decorative iron railings. In preparing for next year's operations, management has developed the following estimates: Total Per Unit Sales (20,000 units) $1,000,000 $50.00 Direct materials $200,000
Create an income statement and a balance sheet for years Y1 through Y5. You must use the accrual basis of accounting and apply GAAP accounting principles. Include the following five items on a separate sheet in the same EXCEL worksheet file: balance sheet; income statement; calculation of cost of goods sold, purchases, and endi
Using the Balance sheet dated 12/31/2012, record the transactions that happened during 2013 and complete a Balance sheet dated 12/31/2013. You must list any new assets and liabilities, but can keep the same amounts from the balance sheet dated 12/31/2012. Assume that the net income number includes all necessary revenues and expe
Question: Loretta Smith, president and owner of Custom Enterprises, applied for a $250,000 loan from City National Bank. The bank requested financial statements from Custom Enterprises as a basis for granting the loan. Loretta has told her accountant to provide the bank with a balance sheet. Loretta has decided to omit the other
Need to: - Create pro-forma financial statements for the first five years of operations. - Document all assumptions - Support use of the assumptions. *****Company is seeking growth capital in the amount of $50,000 for the purpose of purchasing new and more modern equipment and for training existing personnel in the use