Exam 5: Balance Sheet and Statement of Cash Flows

Net cash provided by operating activities divided by average total liabilities equals the

Kohler Company owns the following investments: Kohler will report securities in its long-term investments section of

Use the following information for questions 98 through 100. The following trial balance of Reese Corp. at December 31, 2014 has been properly adjusted except for the income tax expense adjustment. Other financial data for the year ended December 31, 2014: $\bullet$ Included in accounts receivable is $1,200,000 due from a customer and payable in quarterly installments of $150,000. The last payment is due December 29, 2016. $\bullet$ The balance in the Deferred Income Tax Liability account pertains to a temporary difference that arose in a prior year, of which $20,000 is classified as a current liability. $\bullet$ During the year, estimated tax payments of $525,000 were charged to income tax expense. The current and future tax rate on all types of income is 30%. In Reese's December 31, 2014 balance sheet, -The final retained earnings balance is

The balance sheet is useful for analyzing all of the following except

Which of the following is a limitation of the balance sheet?

Free cash flow is net income less capital expenditures and dividends.

Current assets are presented in the balance sheet in

Treasury stock should be reported as a(n)

When a portion of inventories has been pledged as security on a loan,

Which of the following is not a required supplemental disclosure for the balance sheet?

Which of the following should be excluded from long-term liabilities?

Which of the following facts concerning fixed assets should be included in the summary of significant accounting policies?

Receivables are valued based on their ________.

Preparing the statement of cash flows involves all of the following except determining the

The correct order to present current assets is

Companies may use parenthetical explanations, notes, cross references, and supporting schedules to disclose pertinent information.

The net assets of a business are equal to

Which item below is not a current liability?

Companies have the option of disclosing information about the nature of their operations and the use of estimates in preparing financial statements.

Balance sheet presentation.The following balance sheet was prepared by the bookkeeper for Kraus Company as of December 31, 2014. The following additional information is provided:1. Cash includes the cash surrender value of a life insurance policy $9,400, and a bank overdraft of $2,500 has been deducted."2. The net accounts receivable balance includes: (a) accounts receivable-debit balances $60,000;(b) accounts receivable-credit balances $4,000;(c) allowance for doubtful accounts $3,800."3. Inventory does not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.4. Investments include investments in common stock, trading $19,000 and available-for-sale $48,300, and franchises $9,000."5. Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000. InstructionsPrepare a balance sheet in good form (stockholders' equity details can be omitted.)"