CHAPTER 1 Essays , Research Papers

CHAPTER 1 Mini-Exercises |1-1|(1) B, (2) D, (3) A, (4) C*, | | |(5) B, (6) D, (7) A, (8) D. | | |* Dividends paid in cash are | | |also subtracted in the | | |Financing section of the | | |Statement of Cash Flows..| |1-2|(1) SE, (2) A, (3) R, | | |(4) A,| | |(5) E, (6) A, (7) E, | | |(8) L, (9) A.. | |1-3|(1) CPA: Certified Public| | |Accountant | | |(2) GAAP: Generally Accepted | | |Accounting Principles | | |(3) AICPA: American Institute | | |of Certified Public| | |Accountants. | | |(4) SEC: Securities and | | |Exchange Commission| | |(5) FASB: Financial Accounting | | |Standards Board | Exercises |1-1 |(1) K, (3) I, (5) A, (7) | | |J, (9) C, (11) H, (13) N | |1-2 |(1) A, (3) R, (5) L, (7) | | |E, | | |(9) E, (11) A, (13) L, (15) | | |E| |1-3 |(1) L, (3) L, (5) SE, | | |(7) A, (9) E, | | |(11) R, (13) E, (15) A,| | |(17) E.| |1-4 |Total Assets = 11,819 (in| | |billions of Yen). | |1-5 |Req. 1: Total Assets = | | |$179,350 | |1-6 |Net Income is $25,100. | |1-7 |Net Income is $522 (in | | |millions). | |1-8 |Net Income is $50,180. | |1-9 |(A) Stockholders' Equity = | | |$74,200. | |1-10|(B) Total Liabilities =| | |$241,600. | |1-11|Net Income = $75,500. Total | | |Assets = $196,250.| |1-12|Ending Retained Earnings = | | |$40,100. | |1-13|(1) I, (3) F, (5) O, (7) I| |1-14|Cash flow from operating| | |activities = $95,000. | Problems |1-1|Req. 1: Net Income = $32,060.| | | | | |Req. 3: Total Assets = | | |$157,000. | |1-2|Req. 1: Net Income = $4,925. | |1-3|Req. 1: (d) Income = -$2,900, | | |Cash = -$10,500. | |1-4|Req. 4: Stockholders Equity = | | |$29,000| Alternate Problems |1-1|Req. 1: Net Income = $20,050.| | | | | |Req 3: Total Assets = | | |$117,050. | |1-2|Req. 1: Net Income = $9,120. | |1-3|(d) Income -$36,000, Cash | | |-$30,000| Cases |1-1|(7) Total Liabilities = | | |$554,645,000.| |1-2|(2) Net Sales = | | |$1,834,618,000. | |1-3|(1) At the end of the most | | |recent year, American Eagle | | |Outfitters had total assets of | | |$1,963,676,000. Urban | | |Outfitters' had total assets = | | |$1,329,009,000. Clearly | | |American Eagle Outfitters is | | |the larger of the tow companies| | |in terms of total assets at the| | |end of the most recent year. | |1-4|Req. 2: Total Assets = | | |$142,000. | |1-5|Req. 1: Assert the need for an| | |independent audit of the | | |financial statements each year,| | |because this is the best way to| | |assure credibility -| | |conformance with GAAP, | | |completeness, and absence of | | |bias. | |1-6|(4) There is an ethics | | |violation in this case because | | |she would audit statements that| | |covered a period of time where | | |she was responsible for the | | |accounting operations of the | | |company. This is a problem both| | |in appearance and in fact.| |1-7|The solution to this case will | | |depend on the company and/or | | |accounting period selected for | | |analysis. | CHAPTER 2 Mini-Exercises |2-1 |(1) C, (2) H, (3) G, | ||(4) A, (5) I.| |2-2 |(1) D, (2) C, (3) A, | ||(4) I, (5) B.| |2-3 |(1) Y, (2) N, (3) Y, | ||(4) N, (5) Y, (6) N. | |2-4 |(1) CL, (3) NCA, (5) SE, | ||(7) CA, (9) NCA, (11) CA, | ||(13) SE, (15) CL. | |2-5 |(b) Cash -$7,000. Notes | ||Receivable +$7,000. | |2-6.1|Assets: Debit: increases; | ||Credit: decreases.| |2-7.2|Liabilities: an Increase is | ||recorded as a Credit; a| ||Decrease is recorded as a | ||Debit.| |2-8 |(d) Equipment (+A) | ||15,000| ||Cash (-A) | ||6,000| ||Notes Payable (+L)| ||9,000| |2-9 |Cash has a $6,800 debit| ||balance. | |2-10 |Total Assets = $44,700.| |2-11 |2007: Current Ratio = 1.50 | ||2008: Current Ratio = 1.18 | |2-12 |(a) F, (b) I, (c) F, | ||(d) I, (e) F..| Exercises |2-1 | (1) E, (3) B,(5) | | |K,(7) S,(9) I, | | || | |(11) O, (13) C, (15) D, | | |(17) N, (19) T.| |2-2 |Req. 1: (k) Received: | | |Investments (A); Given: Cash | | |(A) | |2-3 |(3) Taxes Payable: CL,| | |credit balance. | |2-4 |(c) Cash +9,000. Notes| | |Payable +9,000. | |2-5 |Req. 1: (c) Liabilities: | | |Dividends Payable +121.4. | | |Stockholders' Equity: | | |Retained Earnings -121.4| |2-6 |(e) Land (+A) | |