Identify how each of the following transactions affects the company's financial statements. For the balance sheet, Identify how eachtransaction affects total assets, total llabilities, and equity. For the Income statement, Identify how each transaction affects profit. Ifthere is an Increase, select a *+" In the column or columns. If there is a decrease, select a "-" In the column or columns. If there is bothan Increase and a decrease, select a *+/-" In the column or columns. The Iline for the first transaction Is completed as an example.IncomeStatementBalance SheetTotalTotalTransactionEquityProfitAssetsLiabilities1 Owner invests cash2 Seli services for cash3 Acquire services on credit4 Pay wages with cash5 Owner withdraws cash6 Borrow cash with note payable7 Sell services on credit8 Buy office equipment for cash9 Collect receivable from (7)10 Buy asset with note payable

Financial statements contains all the economic activities of the firm, which shows detailed…

Answered: Identify how each of the following…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 32MCQ

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Which of the following ratios is used to measure a firms profitability? a. Liabilities Ă· Equity c. Sales Ă· Assets b. Assets Ă· Equity d. Net Income Ă· Net Sales
Which of the following is a measurement of earnings that represents the profit before interest, taxes, depreciation and amortization are subtracted? A. net income B. retained earnings C. EBITDA D. EPS
In performing vertical analysis, we express each item in a financial statement as a percentage of a base amount. What base amount is commonly used for income statement accounts? For balance sheet accounts?
Consider the following company’s balance sheet and income statement Return on assets. Return on equity.
Which of the following statements regarding the income statement is true?a. The income statement provides information about the profitability and growth of a company.b. The income statement shows the results of a company’s operations at a specific point in time.c. The income statement consists of assets, expenses, liabilities, and revenues.d. Typical income statement accounts include sales revenue, unearned revenue, and cost of goods sold.
For each transaction, indicate the change, if any, in total assets and total equity. If equity changes, indicate whether the change was reflected as a component of net income, or directly within the stockholders' equity portion of the balance sheet. Remember that the change in total assets must agree with the change in total equity. How would I complete the table?
Please solve for PART A (liquidity’s current ratio, account receivables turnover, and inventory turnover/profitability’s profit margin, asset turnover, return on assets, and earnings per share) and PART B (return on common stockholder’s equity, debt to assets ratio, and price earnings ratio)
Which of the following is NOT a financial statement?Choose one answer.a. Income statement b. Balance sheet c. Company performance sheet d. Cash flow statement
Identify how each of the following separate transactions through 10 affects financial statements. For increases, place a "+" and the dollar amount in the column or columns. For decreases, place a "-" and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example. Required: a. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total equity. For the income statement, identify how each transaction affects net income. b. For the statement of cash flows, identify how each transaction affects cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. Transaction 1. Owner invests $750 cash in business in exchange for stock 2. Receives $550 cash for services provided 3. Pays $350 cash for employee wages 4. Buys $480 of equipment on credit 5. Purchases $580 of supplies…
What is the primary purpose of the Statement of Affairs ? a. To determine how much is owed by the customers b. To determine the amount for the owners equity c. To determine how is left in the bank account d. To determine if there was a gain or loss on disposal The term Margin is determined by which of the following operations? a. Adding all the incomes b. Dividing gross profit by sales c. Subtracting expenses from sales d. Multiplying capital by a decimal The Sandy Bay is a trader in sand. On December 31, 2010 the closing inventory was completely destroyed by flood rains. The following information is available: (1) Inventory at December 1, 2010 at cost $31,400 (2) Purchases for December 2010 $55,600 (3) Sales for December 2010 $88,800 (4) Standard mark-up is 25% Based on this information, what was the value of the closing inventory? a. $15,960 b. $17,760 c. $20,400 d. $25,800…
When performing vertical analysis of an income statement, the base amount is ________. A sales revenue B total expenses C gross profit D net income
A) Calculate the total Current Assets, Total Assets, Total Liabilities and Equity, Gross profit, Operating Profit, Earning before Taxes, Taxes and Net Income after Tax on the Balance Sheet and Income statement below (rows highlighted in yellow) B) Calculate the percentage of each line item under Assets to the Total Assets, each line item under Liabilities and Equity to the total Liabilities and Equity, and Cost of Goods Sold, SG&A and Interest Expense to Revenue (blue boxes)

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