Exam 2: Introducing Financial Statements

Consider the transactions listed. Match them to the financial statement effects listed -Sell common stock for cash

Miguel decided to open a lemonade stand on Saturdays. Match Miguel's business activities to the following balance sheet items. (Note: each balance sheet item can only be used once). -Bought lemons, sugar and (secret ingredient) grapefruit.

In its fiscal 2016 balance sheet, JetBlue Airways Corporation, reported cash of $443 million at year-end. The statement of cash flows reports that cash increased by $115 million during the year and that net cash flow from operating activities was $1,632 million. What was the cash flow from investing activities during the year?

According to the revenue recognition principle, companies are required to record revenue when cash is received as this provides the most objective evidence for the auditors.

During 2016, Skechers U.S.A., Inc. had Sales of $3,563.3 million, Gross profit of $1,634.6 million and Selling, general, and administrative expenses of $1,278.0 million. What was Skechers' Cost of sales for 2016?

Consider the effects of the independent transactions, a through d, on a company's balance sheet, income statement, statement of cash flows, and statement of stockholders' equity. a. The company purchased inventory on credit. b. The company paid cash for rent expense. c. The company collected cash from clients previously billed for goods sold. d. The company paid cash for inventory purchased in Transaction a. Complete the table below to explain the effects and financial statement linkages. Use "+" to indicate the account increases and "-" to indicate the account decreases.

Following is information for Snap-On, Inc., for three recent years. Reconcile the retained earnings account for the three-year period. *Dividends include "dividend reinvestment plan and other" amounts of: 1.2 (2014), 1.1 (2015) and 0.9 (2016).

Pfizer Inc., a pharmaceutical company, reported net income for fiscal 2016 of $7,215 million, retained earnings at the start of the year of $71,993 million and dividends of $7,448 million, and other transactions with shareholders that increased retained earnings during the year by $14 million. If there were no additional transactions during the year that affected retained earnings, what was the balance of retained earnings at the end of the year?

During fiscal year-end 2016, Kohl's Corporation reports the following (in $ millions): net income of $556, retained earnings at the end of the year of $12,522 and retained earnings at the beginning of the year of $12,329. Assume that there were no other retained earnings transactions during fiscal 2016. What dividends did the firm pay in fiscal year ended January 28, 2017?

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are: -Unearned revenue

Consider the transactions listed. Match them to the financial statement effects listed -Repay bank loan

In its fiscal year ended January 28, 2017 balance sheet, Big Lots, Inc., reported cash and cash equivalents at the start of the year of $54,144 thousand. By the end of the year, the cash and cash equivalents had decreased to $51,164 thousand. The company's statement of cash flows reported cash from operating activities of $311,925 thousand, cash from financing activities of $(230,204) thousand. What amount did the company report for cash from investing activities?

The statement of cash flows has three main sections: cash flows from operating activities, cash flows from investing activities, and cash flows from capital activities.

How would a purchase of inventory on credit affect the income statement?

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are: -Prepaid insurance expense

Identify the financial statements in which you would find each of the items listed below. Some items may appear on more than one statement. Indicate all financial statements that apply to each item. The possible choices are: -Accrued expenses

For each of the following financial statement items, indicate the correct balance sheet classification, from the list below. You may use each balance sheet classification item only once.

Book value of stockholders' equity usually differs from company market value. Explain some reasons why a company's book value of stockholders' equity can differ from a company's market value.

Consider the transactions listed. Match them to the financial statement effects listed -Pay wages with cash

Use the accounts below for Stanley Black & Decker, Inc. to prepare a balance sheet at December 31, 2016.