Exam 2: Financial Statements and the Annual Report

What is the correct method for calculating working capital?

If there are no changes in a company's capital stock during a period,the company may choose to prepare

.____________________ is the impact of information to change decision-making.

The 2016 income statement of Kellyson Enterprises shows operating revenues of $120,500,selling expenses of $35,200,general and administrative expenses of $29,900,interest expense of $1,500,and income tax expense of $10,520.Kellyson's stockholders' equity was $280,000 at the beginning of the year and $320,000 at the end of the year.The company has 20,000 shares of stock outstanding at December 31,2017. ​ Required Compute Kellyson's profit margin.What other information would you need in order to comment on whether this ratio is favorable?

On the statement of cash flows,the ______________________________ section involves the issuance and repayment of long-term liabilities and stock transactions.

Fasoli,Inc. The following balance sheet items from Fasoli,Inc.are listed for December 31,2017: Accounts payable \ 32,650 Interest payable 2,200 Accounts receivable 26,500 Land 250,000 Accumulated depreciation-buildings 40,000 Marketable securities 15,000 Merchandise inventory 112,900 Accumulated depreciation-equipment 12,500 Notes payable, due April 15, 2018 6,500 Office supplies 200 Notes payable, due December 31,2021 251,630 Paid-in capital in excess of par value 75,000 Buil dings 150,000 Patents 45,000 Capital stock, \ 1 par value 200,000 Prepaid rent 3,800 Cash 60,990 Retained earnings 113,510 Equipment 84,500 Salaries payable 7,400 Income taxes payable 7,500 -Read the information about Fasoli,Inc. ​ Required Prepare the Liabilities section of the classified balance sheet,including total liabilities balance.

The quality of accounting information that allows a user to analyze two or more companies and look for similarities and differences is known as understandability.

Hopper,Inc. Use the information from Hopper,Inc.to answer the following question. ​ Operating revenues \ 1,900,000 \ 1,600,000 Operating expenses 1,400,000 1,100,000 Income taxes 200,000 200,000 ​ -Read the information about Hopper,Inc.Which of the following statements is the best answer regarding the company's profit margin?

Huntington Corporation Presented below are all of the items from Huntington Corporation's income statement for the years ending December 31, 2018 and 2017. December 31, 2018 December 31, 2017 Service fees \ 2,300,000 \ 2,100,000 General and administrative expenses 1,900,000 1,500,000 Other income, net 40,000 20,000 Income taxes 150,000 180,000 -Read the information about Huntington Corporation. Required How much is net income for the year ended December 31,2018? If Huntington Corporation had used a single-step statement,by how much would net income be different? Explain.

As used in accounting,the "Notes to the Financial Statement" should be

Under current accounting principles,how is net income on the income statement measured?

Hopper,Inc. Use the information from Hopper,Inc.to answer the following question. ​ Operating revenues \ 1,900,000 \ 1,600,000 Operating expenses 1,400,000 1,100,000 Income taxes 200,000 200,000 ​ -Read the information about Hopper,Inc.Which ratio are you able to calculate given only the information provided by Hopper?

Huntington Corporation Presented below are all of the items from Huntington Corporation's income statement for the years ending December 31, 2018 and 2017. December 31, 2018 December 31, 2017 Service fees \ 2,300,000 \ 2,100,000 General and administrative expenses 1,900,000 1,500,000 Other income, net 40,000 20,000 Income taxes 150,000 180,000 -Read the information about Crystal,Inc.Which item is most "liquid"? Why is liquidity important?

Rosu Company has total current assets of $150,000 and total current liabilities of $50,000.What is the amount of working capital for Rosu Company?

Carnival Bakery borrowed $500,000 from Front Street Bank.Carnival then hired a contractor to build a new Jonesie distribution outlet.In which section of Carnival's statement of cash flows would you find information that indicated that Carnival acquired the new Jonesie distribution outlet?

Which financial statement reports information helpful in assessing working capital?

Which of the following accounts are normally reported as long-term liabilities on a classified balance sheet?

Which one of the following sections on a statement of cash flows is used to report the cash flow effects of buying and selling property,plant,and equipment?

What is the operating cycle of a business? How does this impact the classification of assets into current and noncurrent categories?

An objective of financial reporting is to reflect economic information concerning a company's cash flows.