Exam 4: Structure of the Balance Sheet and Statement of Cash Flows

Large amounts of high interest debt on a company's balance sheet signal an ability to take advantage of profitable investment opportunities when they arise because the borrowed funds are available for use by management.

Financing activities include the cash effects of

How far into the future the obligations of a company will come due refers to the company's

The amount of income taxes recognized on the income statement but not yet payable to the government are found on the

The Common Stock account is reported on the balance sheet at the

Capital structure refers to how much of an entity's assets are financed by retained earnings versus by issuing new shares of stock.

The term "consolidated" is used in financial statements under U.S.GAAP to refer to the financial reporting for a parent and its subsidiaries.The equivalent term used on balance sheets in the United Kingdom is

Long-term debt is reported on the balance sheet at

Early in 2015,a plant manager at one of ABC Corporation's 19 manufacturing facilities suffered a fatal heart attack.This information would normally be disclosed by ABC in notes to its 2014 financial statements.

Depreciation is added back to net income to determine cash from operating activities under the indirect method.

Selected data for Kris Corporation's comparative balance sheets for Year 1 and Year 2 are as follows: Assets Year 1 Year 2 Cash \ 100,000 (\ 50,000) Accounts receivable (net) 50,000 100,000 Inventory 100,000 250,000 Equipment (net) \ 300,000 Total assets \ 550,000 \ 650,000 Liabilities and Equity Accounts payable \ 150,000 \ 100,000 Income taxes payable 80,000 30,000 Bonds payable 100,000 80,000 Common stock 100,000 200,000 Retained earnings 120,000 240,000 Total liabilities and Equity \ 550,000 \ 650,000 A brief income statement for Year 2 shows the following: Sales \9 00,000 Cost of goods sold \ 500,000 Operating expenses 100,000 Depreciation 50,000 Income tax expense 100,000 750,000 Net Income \1 50,000 -How much cash did Barden collect from customers in Year 4? Assume all sales are on credit.

Which of the following measures how readily assets can be converted to cash relative to how soon liabilities will have to be paid in cash?

Current assets are assets expected to

The statement of cash flows shows the user why a firm's investments and financial structure have changed between two balance sheets dates.

Current liabilities are liabilities expected to be settled after twelve months or one operating cycle if it is longer.

In a common-size balance sheet,each balance sheet account is expressed as a percentage of total

Inventories are reported on the balance sheet at

Blimpy's Doughnuts Inc.'s,adjusted trial balance appears below.Prepare a classified balance sheet at December 31,2011 for Blimpy's.Hint: Account categories for several of the items listed are found in parenthesis.

Cash is always measured for the balance sheet at

The balance sheet provides information on all of the following except