Short-term investments Accounts receivable Inventories Total current assets Gross Fixed Assets Less Accumulated Dep. Net Fixed Assets Total Assets Liabilities and equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total liabilities Common stock (100,000 shares) Retained earnings Total common equity Total liabilities and equity Income Statements 2011 7395000 0 5089000 36318000 48802000 107878000 0 107878000 156680000 2010 7907000 0 4144000 32713000 44764000
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___________________________________________________________________________ On July 1, 20X9, Link Corporation paid $340,000 for all of Tinsel Company's outstanding common stock. On that date, the costs and fair values of Tinsel's recorded assets and liabilities were as follows: 1. Based on the preceding information, the differential reflected in a consolidation worksheet to prepare a consolidated balance sheet immediately after the business combination is: A. $0. B. $25,000. C. $70,000. D. $45,000
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Leasehold improvements * Accounts payable * Manufacturing expenses * Selling and administrative expenses Processing Purchase Orders: -Purchase requisition -Purchase order Receiving Goods and Services -Receiving Report Recognizing Liability: -Vendor’s invoice -Debit memo -Voucher -Acquisitions transaction file -Acquisitions Journal/lisintg -AP master file -AP trial balance -Vendor’s statement Processing and recording Cash Disbursements: -Check -Cash disb. Transaction file -Cash disb
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indicates that the current assets are insufficient to pay off current liabilities and, if needs be, PCSC many have to look to other assets to pay off current liabilities. This is not a healthy situation to be in but is not an indication of bankruptcy. This ratio has dramatically improved over the last 5 years which is a healthy sign. The ratio has been very close to 1 over the last 3 years indicating that the current assets and liabilities are close to equal in value; this is approaching a more healthy
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EXPENDITURE CYCLE * AUDIT OBJECTIVES *CONTROLS * TESTS OF CONTROLS Note: in Achieving these audit objectives requires designing audit procedures to gather evidence that either corroborates or refutes management assertions. Expenditure Cycle Activities & Technologies • Purchases & Cash Disbursement System * DATA PROCESSING Department: Step 1: Purchasing Department Step 2: Receiving Department Step 3: Accounts Payable Department Step 4: Cash Disbursement Department AUTOMATED SYSTEM EFFECT: * Improved
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points out two common problems in capital structure research. First, although it is not clear whether non-financial liabilities should be considered debt, they should never be considered as equity. Yet, the common financial-debt-to-asset ratio (FD/AT) measure of leverage commits this mistake. Thus, research on increases in FD/AT explains, at least in part, decreases in non-financial liabilities. Future research should avoid FD/AT altogether. The paper also quantifies the components of the balance sheet of
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Team Case Assignment #1: WorldCom (Due Date: Monday, September 14) Bernard “Bernie” Ebbers and other founders started Long Distance Discount Service, a small Mississippi reseller of long-distance service. LDDS changed its name to WorldCom Inc., with Ebbers as CEO. WorldCom provides a broad range of communications services to both US and non-US based business and consumers. The company’s core business is communications services, which include voice, data, Internet and international services.
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How the Equity Method Relates to Consolidated Financial Statements As we'll see, the equity method is in many ways a partial consolidation. If a company acquires more than 50% of the voting stock of another company, it's said to have a controlling interest, because by voting those shares, the investor actually can control the company acquired. The investor is referred to as the parent; the investee is termed the subsidiary. For reporting purposes (although not legally), the parent and subsidiary
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You Are an Entrepreneur! Kristina Walters Dr. Chad Greenfield ACC557 – Financial Accounting 8/11/2013 1. EXECUTIVE SUMMARY 1.1 Product Sunshine Bakery is a new bakery specializing in gluten, wheat free products. Due to the rise in celiac disease there has been a significant increase in demand for these bakery products. For many years food allergies went undiagnosed and only recently doctors have started to diagnose food allergies such as gluten. Sunshine Bakery wants to help people
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monkey Ex2. Jennifer is the eldest gymnast EX5. a. A general ledger contains all the assets, liabilities and owners’ equity accounts b. The purpose of a trial balance is to prove that debits equal credits, but does not prove that all transaction have been recorded. C. the current assets section of the balance sheet contains items such as cash, Accounts receivable, and prepaid expensive and the current liabilities section contains items such as accounts payable, Notes payable and short term debt. d. The
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