Trend analysis is a form of horizontal analysis that can reveal patterns in data across successive periods.
In preparing a company’s statement of cash flows for the mos…
In preparing a company’s statement of cash flows for the most recent year, the following information is available: Loss on the sale of equipment $ 14,000 Purchase of equipment 225,000 Proceeds from the sale of equipment 106,000 Repayment of outstanding bonds 87,000 Purchase of treasury stock 25,000 Issuance of common stock 96,000 Purchase of land 115,000 Increase in accounts receivable during the year 33,000 Decrease in accounts payable during the year 75,000 Payment of cash dividends 35,000 Net cash flows from investing activities for the year were:
When preparing the operating activities section of the state…
When preparing the operating activities section of the statement of cash flows using the indirect method, expenses with no cash outflows are added back to net income.
Identify the accounts that would normally have balances in t…
Identify the accounts that would normally have balances in the credit column of a business’s trial balance.
Recordkeeping, or bookkeeping, is the recording of transacti…
Recordkeeping, or bookkeeping, is the recording of transactions and events, either manually or electronically. This is just one part of accounting.
If a company plans to continue business into the future, clo…
If a company plans to continue business into the future, closing entries are not required.
The credit purchase of a new oven for $4,700 was posted to K…
The credit purchase of a new oven for $4,700 was posted to Kitchen Equipment as a $4,700 debit and to Accounts Payable as a $4,700 debit. What effect would this error have on the trial balance?
When preparing the operating activities section of the state…
When preparing the operating activities section of the statement of cash flows using the indirect method, decreases in current operating assets are subtracted from net income.
Clermont Industries reported Net income of $283,000 and aver…
Clermont Industries reported Net income of $283,000 and average Total assets of $637,000. The Return on total assets is:
Refer to the following selected financial information from P…
Refer to the following selected financial information from Port Elizabeth, LLC. Compute the company’s current ratio for Year 2. 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