financial statement Therapy Inc. experienced the following events in 2013, its first year of operation: 1. Performed counseling services for $18,000 cash. 2. On February 1, 2013, paid $12,000 cash to rent office space for the coming year. 3. Adjusted the accounts to reflect e amount of rent used during the year. Required Based on this information alone a. Record the events under an accounting equation b. Prepare an income statement, balance sheet, and statement of cash flows for
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persistent and large net income figures. However, during year 8 there is a large amount of depreciation, signifying large capital investments. Specifically, in years 6 through 7 the company invested roughly $3M in fixed assets. Based on this information I would say that the company was preparing for growth and purchased the assets to jump into the animal care services industry. They financed their investments through debt shown under the financing side of the cash flow statement, in particularly years
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Financial Statements Dave Hall ACC/290 Lisa Henderson September 16, 2013 Financial Statements In any business, the financial statements are the backbone of the financial accounting reporting within the business. The four financial statements include the income statement, balance sheet, retained earnings statement and the statement of cash flows (Kimmel, Weygandt & Kieso, 2010). These four statements provide a summary picture of the overall financial health of the company, for the period
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Financial Statements Paper 2 Financial Statements Paper Part I Keeping accurate financial statements for a company should be the number one goal of the company's financial team. Falsifying financial information can lead to misrepresentation of the company's financial status can lead to bad financial decisions and possible disaster of the business. There are three important financial statements for a business that provide management and shareholders
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CHAPTER 3 ------------------------------------------------- FINANCIAL STATEMENTS, CASH FLOW, AND TAXES 1. Below are the 2007 and 2008 year-end balance sheets for Tran Enterprises: Assets: 2008 2007 Cash $ 200,000 $ 170,000 Accounts receivable 864,000 700,000 Inventories 2,000,000 1,400,000 Total current assets $3,064,000 $2,270,000 Net fixed assets 6,000,000 5,600,000 Total assets $9,064,000 $7,870,000 Liabilities and equity:
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Date: November 18, 2010 Re: Cash Flows The Carpino Company’s Accounting Team is pleased to announce that the organization has experienced a very productive and exciting first year. This memo and the attached cash flow statement summarize the important details of Carpino’s statement of cash flows for the period ending January 31, 2007. The information from this financial statement will provide Carpino’s shareholders reasons for the difference between net income and net cash used by operating, investing
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Balance Sheet Los Lobos Balance Sheet Assets Dec 31 2007 Dec 31 2006 Current Assets Cash $35,000 32,000 Accounts receivable 33,000 30,000 Allowance for doubtful accounts (1,300) 31,700 (1,100) 28,900 Inventory 31,000 47,000 Total Current Assets 97,700 107,900 Property, plant, & equipment 100,000 95,000 Accumulated depreciation (16,500) 83,500 (15,000) 80,000 Total Assets 181,200
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Financial Reporting and Analysis Chapter 4 Solutions Structure of the Balance Sheet and Statement of Cash Flows Exercises Exercises E4-1. Determining collections on account (AICPA adapted) Cash receipts from sales include cash sales plus collections on account computed as follows: Cash sales Beginning accounts receivable Credit sales Less: Ending accounts receivable Total Cash receipts from sales $ 200,000 400,000 3,000,000 __(485,000) $3,115,000 Alternative Solution: T-account
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scarce resources and on the status or resources and claims to resources. Because accountings have to report these organizations, the reports are done in a formal way called financial statements. The financial statements that are the main focused in this paper is the income statement, the balance sheet and the statement
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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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