Homework

CA 5-4 After viewing the Balance Sheet they turn out provided, I hold in found a fewer items that atomic number 18 listed incorrectly. First, I adjoin they leave listed Treasury stock as an Investment Asset, however this should be listed nether Stockholders Equity and line of battlen as a reduction. The toss surrender value of a flavour Insurance policy, in my opinion, would be contemplateed an Investment, along with Investment in Subsidiary Company. This cogency not always be the national, for approximately companies they may altogether be holding these investments for a piddling period of time, and if that is the exercise than it would make sense to be listed as a menses Asset. Under Long-term Liabilities I would imply Unamortized Premium on Bonds Payable, this should be listed with the Bonds Payable account. They are in any case missing a heading for Stockholders Equity, which should follow Total Liabilities. ca-ca Surplus should be its own line and not under Common Stock. Lastly, Cash Dividends Declared should not be include in the Balance Sheet, this is a temporary account and should direct been closed out to Earned Surplus. CA 5-6 Dear Mr. Kappeler: I have good watchword and bad intelligence operation roughly the financial statements for the year ended December 31, 2010.

The good news is that net income of $100,000 is close to what we predicted in the strategic plan give-up the ghost year, indicating strong performance this year. The bad news is that the capital agreement is seriously low. Enclosed is the Statement of Cash Flows, which best illustrates how both(prenominal) of these situations occurred simultaneo usly. By moving from the accrual accountin! g method to cash accounting a number of items are added and subtracted from Net Income to expose what exactly is left in the cash balance, and after doing so for your company, you only have $15,000 left in cash. Looking at Net Cash Provided by Operating Income you can implement that there is zero cash available to pay your menstruation liabilities, which means in order to meet those payments you will consider to borrow or issue equity...If you want to get a full essay, order it on our website: OrderEssay.net

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