CHAPTER 13 – CURRENT LIABILITIES AND CONTINGENCIES I. Liabilities A. Three Characteristics 1. Probable‚ future sacrifices of economic benefits 2. That arise from present obligations 3. Resulting from past transactions B. Current Liabilities 1. Payable within 1 year 2. Reported at maturity value C. Types of Current Liabilities 1. Accounts Payable a. Buy merchandise on account
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(You will need to compute the missing figure for Notes Payable). (Be sure to list the assets and liabilities in order of their liquidity. Omit the "$" sign in your response.) THE SWEET SODA SHOP Balance Sheet September 30‚ 2011 Assets Cash Accounts receivable Building Furniture and fixtures Land Supplies Total Liabilities & Owners ’ Equity Liabilities: Notes payable Accounts payable Total Liabilities Owners ’ equity: Capital stock Retained earnings Total $ 7‚400 1‚250 45‚500 20‚000 55‚000 3‚440 $
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in millions) Assets 2007 2006 Current assets $8‚076 $7‚346 Property‚ plant‚ and equipment (net) 1‚678 1‚658 Other assets 934 866 Total assets $10‚688 $9‚870 Liabilities and Stockholders’ Equity Current liabilities $2‚584 $2‚612 Long-term liabilities 1‚079 973 Stockholders’ equity 7‚025 6‚285 Total liabilities and stockholders’ equity $10‚688 $9‚870 Complete the horizontal analysis of the balance sheet data for Nike using 2006 as a base. (If amount decreases‚ use either
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increase the owner ’s equity through solid revenues. These revenues increase assets or proceed to decrease the business liabilities. In the case shown above‚ for M.M. Smiths Company‚ the total amount of assets consists of $211‚500‚ while liabilities are listed at $30‚000. However‚ the owner ’s capital is $181‚500. Therefore‚ the loan assistant would subtract the total liabilities from the owner ’s equity and assets. This amount would be $363‚000.00. In the case shown above‚ for Full service
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discussed in further detail include horizontal analysis‚ current ratio‚ quick ratio‚ and cash to current liabilities ratio. A horizontal analysis is used to compare data from two or more periods side by side. The current ratio reveals the relative amount of working capital by dividing current assets by current liabilities. A quick ratio is calculated by dividing the assets by the current liabilities. This paper will examine the financial standing of Apple‚ INC and provide recommendations on how to better
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formula that represents the relationship between the assets‚ liabilities‚ and owner ’s equity of a small business. Businesses use this to basically show what it owns what it owes and what its investors are investing. In order to understand these concepts it is important to have some knowledge of what is meant by each of the three basic components mentioned. “Assets refer to the worth of goods or products in the possession of the owner. Liabilities represent the amount of cash or resources that were borrowed
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able to classify them into the respective categories (b) Understand the accounting equation and the relationship between assets‚ liabilities and owner’s equity. Classifications of accounts • • 1. 2. 3. 4. 5. An account is used to record all information regarding an item. The five major categories of account Revenues Expenses Assets Liabilities Owner’s Equity Revenue Account • • Revenues are income earned by a business Examples of revenue accounts 1. 2. 3. 4
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Nano Brewery 1 Evaluation of the Nano Brewery MBA Foundations Course Patten University James P. McQuiston Abstract The Nano Brewery is a very small business that has been operating for two years. The two owners have found that demand for their product has outstripped their ability to supply it. They are considering expanding their company to meet this demand. We will analyze their financial performance and evaluate broader environmental factors before providing a recommendation on company expansion
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Reorganization and Troubled Debt Restructuring 135 CHAPTER 8 MULTIPLE CHOICE ANSWERS AND SOLUTIONS 8-1: a Trade accounts payable (P52‚000 + P62‚700) P114‚700 12% preferred stock (5‚000 x P1) P 5‚000 Paid in capital in excess of par (5‚000 x P9) 45‚000 Cash (P62‚700 x P0.80) _50‚160 _100‚160 Gain from discharge of indebtedness P 14‚540 8-2: c 8-3: c 8-4: b Carrying value of the
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According to the entity theory‚ there is no fundamental difference between liabilities and owners equity. Both provide capital to the business entity and receive income in return in the form of interest and dividends (Schroeder‚ Clark‚ & Cathey‚ 2009‚ page 363). Under entity theory‚ liabilities and equity would require separate line disclosure in the balance sheet‚ but there would be no subtotals for total liabilities or total equity. (Schroeder‚ Clark‚ & Cathey‚ 2009‚ page 363). Both are considered
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