Exam 3: Understanding Financial Statements and Cash Flows

Which of the following accounts does not belong in the equity section of a balance sheet?

Please refer to Table 3-1 for the following questions. Table 3-1 Jones Company Financial Information -Based on the information in Table 3-1,assuming that no common stock was repurchased during the year,the firm issued how much new common stock during 2010?

Li Retailing reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000; Li's operating profit margin is equal to

The increase in owners equity for a given period is equal to

Baron,Inc.has total current assets of $1,200,000; long-term debt of $600,000; total current liabilities of $500,000; and long-term assets of $800,000.How much is the firm's net working capital?

Earnings before taxes,or taxable income,is equal to operating income minus financing costs.

The December 31,2009 balance sheet shows net fixed assets of $150,000 and the December 31,2010 balance sheet shows net fixed assets of $250,000.Depreciation expense for 2009 is $25,000 and depreciation expense for 2010 is $35,000.Based on this information,the cost of fixed assets purchased during 2010 is

Table 3-3 Based on the information in Table 3-3,prepare a statement of cash flows for 2010.Assume that there were no changes in any other asset or liability accounts,and that the ending cash balance for 2009 was $100.

According to accrual accounting,revenues are recognized when earned and expenses are recognized when incurred.

Which of the following accounts does not belong on the asset side of a balance sheet?

Please refer to Table 3-1 for the following questions. Table 3-1 Jones Company Financial Information -Based on the information in Table 3-1,calculate the amount of dividends paid by Jones Company in 2010 (no assets were disposed of during the year,and there was no change in interest payable or taxes payable).

PDQ Corp.has sales of $4,000,000; the firm's cost of goods sold is $2,500,000; and its total operating expenses are $600,000.The firm's interest expense is $250,000,and the corporate tax rate is 40%.What is PDQ's net income?

If two companies have the same revenues and operating expenses,their net incomes will still be different if one company finances its assets with more debt and the other company with more equity.

A balance sheet is a statement of the financial position of the firm on a given date,including its asset holdings,liabilities,and equity.

A corporation's operating profit margin is equal to

Use the following information to calculate the company's accounting net income for the year.

All of the following statements about balance sheets are true except:

All of the following would result in an increase in stockholders equity except:

Which of the following best describes cash flow from financing activities?

The statement of cash flow explains the changes that took place in the firm's cash balance over the period of interest.