merchandise inventory Businesses Inventory that sell a product to customers Merchandise held for sale Asset account 3 Describe and illustrate merchandising operations and the two types of inventory systems 4 Balance Sheet Income Statement Sales Inventory Asset revenue Cost of goods sold Expense 5 Cash Purchase inventory Collect cash from customers Accounts receivable Sell inventory Inventory 6 PERIODIC Goods PERPETUAL
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plans and statements. 2. Prepare a personal balance sheet. 3. Draft a personal income and expense statement. 4. Develop a good record-keeping system and calculate ratios to interpret personal financial statements. 5. Construct a cash budget and use it to monitor and control spending. 6. Apply time value of money concepts to put a monetary value on financial goals. 3 FIN4901EF.Unit 2 Table of Content • The role of financial statements in financial planning • Personal balance sheet: assets, liabilities
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regarding what the income statement includes, what it says about Home Depot, why it is important, and what decisions can be made from the financial statement. The same can be answered about both the balance sheet and the statement of cash flows as well. Each financial statement is important and useful in its own way and all of the three financial statements are beneficial for management within Home Depot. According to “Beginners’ Guide to Financial Statements” (2007), “an income statement is a report
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year. Q -2 Ames Company reported 2014 net income of $151,000. During 2014, accounts receivable increased by $13,000 and accounts payable increased by $9,500. Depreciation expense was $44,000. Prepare the cash flows from operating activities section of the statement of cash flows. Q -3 Martinez Corporation engaged in the following cash transactions during 2014. Q-4 The major classifications of activities reported in the statement of cash flows are operating, investing, and financing
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Dollar amount of Sales/Revenues: | 333,808 | c. Net Income: | 17,501 | d. Basic Earnings per Share: | 13,038 | e. Number of Common Shares outstanding: | 13,063 | 4. Use the financial highlights section of your company’s annual report to note the following information. (Note: FYE may need to be adjusted depending on most recent information available) Item | | FYE 2010 | | FYE 2009 | | FYE 2008 | | FYE 2007 | Net Income | $ | 17,501 | $ | 19,252 | $ | 11,165 | $ | 8,377 |
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Chapter 2 A company would withhold certain financial information from external parties if the information. I believe that it is unethical for company managers to limit the information available to their internal decision makers. It is unethical 2-54 1. Consistency-The same measurement application methods are used over time. 2. Neutrality - The accounting information is free of bias. 3. Feedback Value-The information provides input to evaluate a previously made decision.
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Definitions It seems fitting to begin with a more formal definition of accounting: Accounting is a set of concepts and techniques that are used to measure and report financial information about an economic unit. The economic unit is generally considered to be a separate enterprise. The information is reported to a variety of different types of interested parties. These include business managers, owners, creditors, governmental units, financial analysts, and even employees. In one way or another
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Financial Statements A set of financial statements is a structured representation of the financial performance and financial position of a business and how its financial position changed over time. It is the ultimate output of an accounting information system and has following six components: 1. Income Statement 2. Balance Sheet 3. Statement of Cash Flows 4. Statement of Changes in Equity 5. Notes and Other Disclosures Financial statements are better understood in context of all other components
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Business Math September 3, 2015 Abstract This paper is an analysis of the financial statement of Phillips 66. The researcher will present horizontal and vertical analysis of the income statement and balance sheet among other things. Introduction This paper presents an analysis of Phillips 66 financial statement. Specifically discussed in this document will be the following: Preparation of Financial Statement, Business Problem Solving, Recovery Methods, Indebtedness, Horizontal Analysis, Vertical
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Topics include the items in inventory, costs assigned, costing methods used, and inventory estimation techniques. Chapter 4 focused on the final steps of the accounting process. We explained the importance of proper revenue and expense recognition and described the closing process. We also showed how to prepare financial statements from a work sheet. Larson−Wild−Chiappetta: Fundamental Accounting Principles, Seventeenth Edition 5. Accounting for Merchandising Operations Text © The
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