Share
Explore BrainMass

The Financial Statements

The answer to Degree of operating leverage

An investment banker is analyzing two companies that specialize in the production and sale of candied apples. Old-Fashion Apples uses a labor-intensive approach, and Mech-Apple uses a mechanized system. CVP income statements for the two companies are shown below. Sales- $396,100 (OFA) $396,100 (MA); Variable costs- $284,

pro forma balance sheet

Campbell Co. balance sheet and income statement are shown below (in millions). The Co. and its creditors have agreed upon a voluntary reorganization plan. In this plan, each share of the $4 preferred will be exchanged for one share of $1.50 preferred with a par value for $50 plus one 10% subordinated income debenture with a pa

Financial statements - Direct method

While the direct method is preferred most companies use the indirect method due to the time it would take to complete the direct method. For my place of employment I can only begin to think how we would arrive at the information we would need for the direct method without a lot of work. On top of that if the direct method is u

Transaction analysis and financial statements

The two entrepreneurs plan to rent bicycles and in-line skates to week- End visitors to the lakefront. The following transactions occurred during The first month of operations: May 1 received contribution of 9,000 from each of the two principal owners of the new business in exchange for shares of stock. May 1 Purchase

Alice and Joe are going to form a business entity. Alice will contribute cash of $200,000 for a 40% ownership interest, and Joe will contribute land worth $300,000 for a 60% ownership interest. Joe's basis for the land is $180,000. Which of the following statements is correct?

Alice and Joe are going to form a business entity. Alice will contribute cash of $200,000 for a 40% ownership interest, and Joe will contribute land worth $300,000 for a 60% ownership interest. Joe's basis for the land is $180,000. Which of the following statements is correct? a. If the entity is a C corporation, Alice has $0

Critically discuss these statements, technical terms.

You have over heard the following statements: a) 'A budget is a forecast of what is expected to happen in a business during the next year.' b) 'Monthly budgets must be prepared with a column for each month so that you can see the whole year at a glance, month by month' c) 'Budgets are OK but they stifle all initiative.

Financial Ratio Analysis for Davis, Inc.

See Davis Inc. document attached. The financial statements of Davis Inc. appear below: DAVIS, INC. Comparative Balance Sheet December 31, --------------------------------------------------- Assets 2012 2011 Cash .........................................................................

mission statement

A mission statement provides a declaration as to why an organization exists and defines the business the organization is currently in. Mission statements concentrate on the present and are a reflection of an organizations core competencies. Ideally, the Mission statement becomes necessary prior to the inception of the company. H

Premium Entries and Financial Statements

Sycamore Candy Company offers a CD single as a premium for every five candy bar wrappers presented by customers together with $2.50. The candy bars are sold by the company to distributors for .30 cents each. The purchase price of each CD to the company is $2.25; in addition it cost .50 cents to mail each CD. The results of th

Analyze the Financial Statements for 2 US Companies

Choose 2 US companies. Go to the Web sites for both companies and find their financial statements for the last 2 years. Explain the differences in the financial statements for the two companies. 1) What accounts are found on one set of financial statements that are not found on the other set? 2) Compare and contrast the

Financial Position and Performance

Required: (a) Analyse the financial position and performance of the business and comment on any features that you consider to be significant. (b) State, with reasons, whether or not the investor should invest in the business on the terms outlined.

Financial Reporting Problem

The financial statements of P&G are presented in Appendix 5B or can be accessed at the book's companion website, www.wiley.com/college/kieso. Page 210 Chapter 5. The Text Book is called Intermediate Accounting, 13th Edition. Instructions: Refer to these financial statements and the accompanying notes to answer the follo

Analysis of Home Depot 2008 Annual Report

Financial Statements Paper Part II Using Home Depot, Inc. 2008 Annual Report located at the link at the bottom, Fundamentals of Financial Accounting, prepare a 1,050-1,750-word paper in which you address the following items: Does management's assessment of the financial condition agree with your assessment from the Financi

Cash and Accrual Income Statement for a Manufacturer

Anna's Catering makes sandwiches for vending machines. The sandwiches are delivered to the vendor on the same day that they are made. The following events took place during the first year of operations: a. On the first day of the year, issued common stock for a $20,000 cash investment and a $10,000 investment of equipment. Th

Dodd, CPA, audited Adams Company's financial statements for the year ended December 31, 20X8. On November 1, 20X9 Adams notified Dodd that it was changing auditors and that Dodd's services were being terminated.On November 5, 20X9, Adams invited Hall, CPA, to make a proposal for an engagement to audit its financial statements for the year ended December 31, 20X9.

Dodd, CPA, audited Adams Company's financial statements for the year ended December 31, 20X8. On November 1, 20X9 Adams notified Dodd that it was changing auditors and that Dodd's services were being terminated.On November 5, 20X9, Adams invited Hall, CPA, to make a proposal for an engagement to audit its financial statements fo

The audit committee of the board of directors of Unicorn Corp. asked Tish & Field, CPAs, to audit Unicorn's financial statements for the year ended December 31, 20X3. Tish & Field explained the need to make an inquiry of the predecessor auditor and requested permission to do so. Unicorn's management agreed and authorized the predecessor auditor to respond fully to Tish & Field's inquiries.

The audit committee of the board of directors of Unicorn Corp. asked Tish & Field, CPAs, to audit Unicorn's financial statements for the year ended December 31, 20X3. Tish & Field explained the need to make an inquiry of the predecessor auditor and requested permission to do so. Unicorn's management agreed and authorized the pre

Develop Personal Financial Statements

For this module only, please use your own personal financial situation. Assume that you developed a complete set of personal financial statements for you. Identify three decisions that you will make in the next year in which such financial statements would be useful and describe how you would use those financial statements in

Prepare a corrected Balance Sheet for Def Jam Enterprises

Jane is the President of Def Jam Enterprises. Def Jam enterprises began business on January 1, 2008. The company's controller is out of the country on business. Jane needs a copy of the company's balance sheet for a meeting tomorrow and asks her assistant to obtain the required information from the company's records. She present

Financial Statement Analysis

1. Condensed data taken from the ledger of Collins Company at December 31, 2006, and 2007, are as follows: 2007 2006 Current assets $ 200,000 $ 180,000 Property, plant and equipment

Income Statement and Variable Costs

The attached file shows the question and solution, with explanations for each step of the process of computing net income and the various revenue and cost components calculated and used in determine net income for all scenarios.

Cost Analysis

Jaclyn Rourke is the president and chief executive officer of Parker Company. Parker is a family-owned business that is one of the oldest watch producers in the United States. The last several years have been very difficult for Parker primarily because of the increasing price pressures brought to bear by foreign competition.

Transaction Analysis (Balance Sheet Accounts)

Enter the following column headings across the top of a sheet of paper: Current Assets, Noncurrent Assets, Current Liabilities, Long Term Debt, Owners' Equity and Net Income Enter the transaction/adjustment letter in the first column, and show the effect, if any, of each of the transactions/adjustments on the appropriate b

Georgia Company - Cash Flow Statement

Below is the information needed to answer the following question. Georgia Company, a merchandiser, recently completed its calendar-year 2009 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all

Preparing Financial Statements

Please see attachment for full problem description. A list of accounts for Lloyd Inc. at December 31, 2010, follows: Accounts Receivable $56,359 Advertising Expense 12,900 Capital Stock 50,000 Cash 22,340 Dividends 6,000 Income Tax Expense 1,450 Income Tax Payable 1,450 Inventory: J