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The Financial Statements

Beth Nail: missing numbers in the illustrated balance sheet

Beth Nail discovered a piece of wet and partially burned balance sheet after her office was destroyed by fire. She could recall a current ratio of 1.75 and a debt to assets ratio of 45 percent Assets Current assets Cash $ 36,000 Accounts receivable

financial statement analysis

Review the financial statements of your choice of a publicly traded U.S. company. Post a link to the statements. What did you learn from the notes on long-term debt? What would you have liked to have seen that would have given you a better idea with the status of the company's long-term debt? What did you learn from the

This post addresses the level of retained earnings.

Big Golf Corp paid taxes of $ 90,000 and purchased equipment worth $175,000 during the year that ended June 30, 2008. The firm had net income of $500,000 during the year ended June 30, 2008. After paying out $95,000 in dividends, the balance went into retained earnings. If the firm's total retained earnings were $900,000, what w

Creation of a Common Sized Financial Statement

Common Sized Financial Statements Linden Corporation has a 10% market share in its industry. Below are income statements ($millions) for Linden and for the industry. Normal Income Statement Linden Industry Sales $6,000 $64,000 Cost of goods sold 3,200 33,65

Financial Statements for Genatron Manufacturing

Following are financial statements for the Genatron Manufacturing Corporation for 2012 and 2011. GENATRON MANUFACTURING CORPORATION INCOME STATEMENT 2012 2011 BALANCE SHEET 2012 2011 Net sales $1,500,000 $1,300,000 ASSETS Cost of goods sold 900,000 780

This posting addresses the basics of financial statements.

Identify the four basic financial statements. Describe the purpose of each of the four financial statements. Discuss how the financial statements would be useful to internal users, such as to managers and employees. Discuss how the financial statements would be useful to external users, such as investors and creditors.

Computing work-in-process inventory from balance sheet

On June 30, 2011, a tornado damaged Jensen Corporation's warehouse and factor completely destroying the work-in-process inventory. Neither the raw materials nor finished goods inventories were damaged. A physical inventory taken after the tornado revealed the following values: Raw materials $87,000 Work-in-process 0

Comparison of Financial Statements for Textron vs. Gulfstream

Review the financial statements for two years for Textron and Gulfstream. Make a comparison of: -revenues -cost of good sold -accounts receivable -accounts payable -inventory Show trends for all five categories for each company during this two year period. Keeping the case analysis in mind, discuss and interpret the

Contribution and Absorption Approach of Income Statements

Alaska Company has been producing and selling 100,000 units per year. They have excess capacity. The following budget was prepared for the next year: Selling price per unit $12.50 Variable cost per unit: Direct materials $5.00 Direct labor $3.00 Overhead $1.00 Selling and administrative $.25 Fixed costs in total: Ove

Your firm audits Metropolitan Power Supply (MPS). The issue under consideration is the treatment in the company's financial statements of $700 million in capitalized construction costs relating to Eagle Mountain, a partially completed nuclear power plant.

Your firm audits Metropolitan Power Supply (MPS). The issue under consideration is the treatment in the company's financial statements of $700 million in capitalized construction costs relating to Eagle Mountain, a partially completed nuclear power plant. See attachment for full description.

Pickett Company: Prepare an income statement and a balance sheet

Your task is to prepare an income statement and a balance sheet in good format after adjusting for the two errors below. 1 - A physical count of inventory indicates $75,000 on hand. 2 - There's a check for $10,000 from a customer that has not been recorded in the working trial balance. The check is payment for a purchase ma

Financial Statements and the Production of Cash Flow Statements

Please address the following inquiries: - The significance of financial statement data is not in the amount alone. Why is it necessary to convert accrual-based net income to a cash basis when preparing a statement of cash flows? - How is the amount of cash payments to suppliers computed under the direct method in producing

Please explain in your own words and include references if used. Thank you... Examine the objective of conducting an audit of financial statements and its impact on stakeholders. Analyze the auditor's responsibilities in conducting an audit and the impact on stakeholders. Evaluate the importance of setting audit objectives, both general and specific, and their impact on the audit outcome.

Please explain in your own words and include references if used. Thank you... Examine the objective of conducting an audit of financial statements and its impact on stakeholders. Analyze the auditor's responsibilities in conducting an audit and the impact on stakeholders. Evaluate the importance of setting audit

Prepare entries for each event balance sheet

The 2012 balance sheet of the Blackberry Mountain Inc. is attached. During 2013, the following events occurred. 1. Paid cash $36,000 in advance for 3 years' rent of office on January 1. 2. On January 1, purchased 50 personal computers at a cost of $1,500 each, paying cash upon delivery. 3. On January 14, paid employees $5,560

Financial Statements of Univor Company

Univor Company reported an increase in inventories in the past year. What is the effect of this change on the current ratio (current assets _ current liabilities)? What does this tell a statement user about Buildeasy's liquidity? What is one of the major limitations of the balance sheet as a source of information? What is

Compare Financial Statements of Ascension Health and HCA, Inc.

Download and review the financial statements of Ascension Health, a not-for-profit, religious based healthcare system from: http://www.ascensionhealth.org/assets/docs/Audited_Financial_Statements_For_the_Year_Ended_June_30_2010.pdf. Download and review the financial statements of HCA, Inc., a for-profit healthcare system

Prepare a schedule showing the intangible asset section

Janes Company provided the following information on intangible assets: a. A patent was purchased from the Lou Company for $760,000 on January 1, 2009. Janes estimated the remaining useful life of the patent to be 10 years. The patent was carried on Lou's accounting records at a net book value of $390,000 when Lou sold it to

Investing Decisions, Pro Forma Statement

Discussion Questions C13 - Financial Analysis: The Big Picture 1. "Income statement provides investors with past financial data and information and therefore cannot be relied on to make future investing decisions." Do you agree? Explain. 2. What is pro forma income statement and in your opinion has this practice put too

Review of file after client was convicted of financial statement fraud

Question You have been assigned the peer review of an audit file after the client was convicted of financial statement fraud. The client, Grande Stores, a large store chain, materially overstated net income by understating accounts payable and recording fictitious supplier credits that reduced accounts payable. You have bee

CEO Ford's Future Positives

Ford Motor: Use recent balance sheet and other information to answer the following questions: Who is the CEO? Is his view of Ford's future positive? What are the challenges as he sees them? What was the Revenue for 2010? From what sources did Ford make their Revenue? What was the Net Income for 2010? What w

put together a Balance Sheet and a Financial Statement

Introduction Calvary Baptist Church School have suffered from two civil wars thus the country has in adequate infrastructure and few number of educational institutions. The project aims to provide information to students in the country by establishing a public library. This will enable CBSC Students to have access to informatio

I have the five ratios to conduct ratio analysis. I just need help to figure out whether to use common size income statements or regular income statements. And how to figure whether to use income statements for the analysis or the balance sheet. Balance sheet or trial balance. The five ratios I will be using are: current ratio gross profit margin Operating margin/ROS Debt to equity Inventory turnover

I have the five ratios to conduct ratio analysis. I just need help to figure out whether to use common size income statements or regular income statements. And how to figure whether to use income statements for the analysis or the balance sheet. Balance sheet or trial balance. The five ratios I will be using are: current

Thurston's Department store: Journalize transactions

Review of Accounting Thurston's Department store had the following transactions during 2010 (the company's fiscal year is Jan, 1- Dec. 31). Jan 1 The company issued common stocks for $300,000 cash to start the business. (#of stock issued: 10,000 par value :$25/sh) Jan 1 Issued bonds for $300,000. (Par value of bond =$3

Adjusting entries, bal statement, income statement

On September 1, 2005, Kelly Randolf and Paul Simple started a comic book industry newsletter called Comic Times. They produced the first month's edition during September. The following transactions occurred during their first month of operations: Sept 1: Comic Times, Inc., was formed when Kelly and Paul filed with the State