The company used $45,000 in cash to purchase land on the west side of Hatu Lake. For Practice 3-1 through 3-5, do the following for each transaction: 1. List the accounts impacted by the transaction. 2. For each account, indicate whether the transaction increased or decreased the account. 3. For each account, indicate ho
Please explain the bases for comparison and limitations of financial statement analysis in at least one paragraph please.
You have just completed estimating your organization's pro-forma financial statements for the coming year. The amount of external funding indicated is hopelessly large, in your opinion. What types of changes can you consider that will reduce this value?
TAYLOR TOOL COMPANY Income Statement For the Year Ended December 31 2006 2005 Net sales $1,818,500 $1,750,500 Cost of goods sold 1,011,500 996,000 Gross profit 807,000 754,500 Selling and administrative expense 506,000 479,000 Income from operations 301,000 275,500 Other expenses and losses Interest expense 18,000 14,0
One of your small business clients, Dr. Leo Krusack, has opened a dental practice. He has come to you for help in organizing his accounts. Help him classify each of the following business transactions in the excel spreadsheet file attached. *One June 1st, Leo opened an account for his practice at your bank and deposited $20
How would people respond to the statement, "You can't learn how to get along with people from reading a book?"
Stockholders' Equity On January 1, 2006, Fast Company had the following account balances in its shareholders' equity accounts. Common stock, $1 par, 250,000 shares issued 250,000 Paid-in capital excess of par, common 500,000 Preferred stock, $100 par, 10,000 shares outstanding 1,000,000 Paid-in capital excess of par, pr
Pierre Imports' balance sheet is shown below. The company has credit terms from its suppliers of net 30. However, the company has fallen behind and currently payables represent 50 days purchases. The company wants to increase bank borrowings in order to become current in meeting its trade obligations (that is, to have 30 d
On January 1, 2004, Ace acquires 15 percent of Zach's outstanding common stock for $52,000 and classifies the investment as an available-for-sale security. On January 1, 2005, Ace buys an additional 10 percent of Zach for $43,800. This second purchase gives Ace the ability to influence Zach's decision making significantly.
16. Assuming the firm's market cap is $640 million and the firm has a net profit margin of 7.6%, what is the firm's price-to-sales ratio for 2006?
Work sheet data for Cajon Company is presented. No common stock was issued during April. Prepare an income statement, a retained earnings statement, and a classified balance sheet. (a) Journalize the closing entries at April 30. (b) Post the closing entries to Income Summary and Retained Earnings. Use T accounts. (c) Prepar
Why are companies required to prepare a statement of cash flows? Why is the statement of cash flows divided into three sections? What does each section tell you about the operations of a company?
Explain a financial statement.
An auditor finishes the audit of a company's financial statements and discovers a material misstatement that was due to recording revenue on a transaction to a regular customer twice. The client acknowledged the error and readily corrected the control deficiency before the financial statements were issued. Which of the followin
Statement of Cash Flows Southwestern Rentals, Inc., rents equipment to customers ranging from homeowners to large construction companies. The financial information shown below was gathered from its accounting records for 2006. Assume any increase or decrease in the balances from 1/1/06 to 12/31/06 resulted from either receiving
Comprehensive Financial Statement Preparation The following information was obtained from the records of Wilcox, Inc., as of December 31,2006. Land . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 42,500 Buildings . . . . . . . . . . . . . . . . . . . . . . . . . . . . 197,550 Salaries expense . . . . . . . .
Financial Statements and Analysis. See attached file for full problem description. P11-6 For each of the following numbered items, you are to select the lettered item(s) that indicate(s) its effect(s) on the corporation's statements. If more than one effect is applicable to particular item, be sure to indicate all applicabl
The Colo Company Assume it is Monday, May 1, the first business day of the month, and you have just been hired as the accountant for Colo Company, which operates with monthly accounting periods. All of the company's accounting work is completed through the end of April and its ledgers show April 30 balances. During your firs
Does the purpose of the income statement, Balance Sheet, and Statement of cash flows change based upon the frame of reference of the user of reports (i.e. Banker, Vendor, Proprietor, Investor, etc.)? Defend your position.
The following information has been taken from the financial statements of the Gaines Company. Gaines Company has only issued common stock Net Income $ 60,000 Total Assets January 1 20X9 $500,000 Total Liabilities. December 31, 20X9 $175.000 Net Sales $900.000 Interest Expense $ 20,000 Curren
Common Stock, $10 par value $300,000 Paid-in Capital in excess of par-common 200.000 Retained Earnings 225,000 Preferred Stock, $50 par value 150,000 Paid-in Capital in excess of par-preferred 30,000 What is the total stockholders equity? Beemer Corporation organized on January 1, 20X3. Beemer has authorization f
McKenny Corporation, whose year end is December 31, lost some of its accounting records in a recent fire on June 25, 20X6. The following information has been salvaged from the rubble. The preferred stock account has a balance of $225,000 and the par of each share is $50. The common stock has a par of $10 per share and the av
2. The adjusted trial balance for China Tea Company at December 31, 2006 is presented below: Debit Credit Cash 10,500 Accounts receivable
Doug Maltbee formed a lawn service business as a summer job. To start the business on May 1, he deposited $1,000 in a new bank account in the name of the proprietorship. The $1,000 consisted of a $600 loan from his father and $400 of his own money. Doug rented lawn equipment, purchased supplies, and hired fellow students to mow
Balance sheet disclosures for preferred stock include all of the following except: The number of shares issued. The number of shares outstanding. The liquidating or redemption value. The credit or market value. The number of shares authorized.
There is NO OTHER information provided for the assignment. You are supposed to make up the 4 statements for an imaginary business. Therefore, please feel free to make up any numbers other than for those provided. Need pro forma financials - 4 STATEMENTS 1) Pro forma sales - 3 years - based on 1 sale each year supple
Preparing a classified balance sheet. See attached file for full problem description.
E15-18 (Dividends and Stockholders' Equity Section) Anne Cleves Company reported the following amounts in the stockholders' equity of its December 31, 2006, balance sheet. Preferred stock, 10%, $100 par (10,000 shares authorized, 2,000 shares issued) $200,000 Common stock, $5 par (100,0
Based on the provided financial report / income statement, please answer the two questions: 1. What were the company's net revenues for the last three reporting periods? 2. What was the change in dollars in the company's net income from its most recent reporting period to the previous reporting period?
FASB Statement of Concepts No. 2 indicates several qualitative characteristics of useful accounting information. Following is a list of some of these qualities, as well as a list of statements and phrases describing the qualities a) Benefits > costs b) Decisions usefulness c) Relevance d) Reliability e) Predictive value, f