General-purpose financial statements include the (1) income statement, (2) balance sheet, (3) statement of stockholders’ equity (or statement of retained earnings), (4) statement of cash flows, and (5) notes to these statements.

In preparing a company’s statement of cash flows for the most recent year using the indirect method, the following information is available:           Net income for the year was $ 52,000   Accounts payable increased by   18,000   Accounts receivable decreased by   25,000   Inventories decreased by   5,000   Cash dividends paid were   14,000   Depreciation expense was   20,000   Net cash provided by operating activities was:

Refer to the following selected financial information from Cape Town, LLC. Compute the company’s days’ sales uncollected for Year 2. (Use 365 days a year.)    Year 2   Year 1 Cash $ 37,500   $ 36,850   Short-term investments   90,000     90,000   Accounts receivable, net   85,500     86,250   Merchandise inventory   121,000     117,000   Prepaid expenses   12,100     13,500   Plant assets   388,000     392,000   Accounts payable   113,400     111,750   Net sales   711,000     706,000   Cost of goods sold   390,000     385,500  

Working capital is computed as current liabilities minus current assets.

A potential lawsuit claim is disclosed when the claim can be reasonably estimated and it is reasonably possible.

Owners of a corporation are called shareholders or stockholders.

A customer’s promise to pay on credit is classified as an account payable by the seller.

Managers only use the cash flow statement to evaluate the net cash increase or decrease, and do not pay much attention to the details of cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities.

Analysis reveals that a company had a net increase in cash of $20,000 for the current year. Net cash provided by operating activities was $18,000; net cash used in investing activities was $10,000 and net cash provided by financing activities was $12,000. If the year-end cash balance is $24,000, the beginning cash balance was:

A financial statement providing information that helps users understand a company’s financial status, and which lists the types and amounts of assets, liabilities, and equity as of a specific date, is called a(n):