Chapter 15 Understanding accounting and Financial statement Accounting is the process of measuring‚ interpreting‚ and communicating financial information to support internal and external business decision. Users of accounting information Both people inside an organization and people outside an organization use accounting information to help them make business decision. Owners‚ shareholders‚ potential investors‚ creditors use to evaluate operation of the firm to make investment decision
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Development of the Company’s application development platform. • Financing for the first year of operation. • Capital to purchase servers‚ computers‚ and related technology Mr. Iztok will contribute €25‚000 to the venture. 1.3 Mission Statement MaxBee’s mission is to develop high quality application for Apple-based consumer electronic device. 2 1.4 Management Team Iztok Blažič founded the Company. Mr. Iztok has a lot of theoretical knowledge in the software programming industry
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Making 9 PART 2 12 2a.Ratios and the Performance of Living Wood 12 2b. Difference between Financial Statements 14 PART 3 17 3a. Material and Labour Variances 17 3b. Calculation of Variances 18 3c. Comment on Variances 18 PART 4 19 PART 5 23 5.Cash Budget 23 PART 6 24 6.Financial Strategies of Living Wood 24 Conclusion 25 References 26 List of Figures Figure 1: Components of a financial statement 8 Figure 2: Decision Making Factors 10 Figure 3: Components of a Profit and Loss account 15 Figure 4:
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EXERCISE 4-3 (20–25 minutes) LeRoi Jones Inc. Income Statement For Year Ended December 31‚ 2007 Revenues Net sales ($1‚250‚000(b) – $17‚000) $1‚233‚000 Expenses Cost of goods sold 500‚000 Selling expenses 400‚000(c) Administrative expenses 100‚000(a) Interest expense 20‚000 Total expenses 1‚020‚000 Income before income tax 213‚000 Income tax 63‚900 Net income $ 149‚100 Earnings per share $ 7.46* *Rounded
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$6‚000 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40% and they paid their taxes within the fiscal year. Compute net income for the first year for Alpaca Corporation. Solution: Prepare a direct method cash flow statement for end of the first year for Alpaca Corporation. Solution: Direct Method Cash Flow Statement: Cash inflow from sales 180‚000 (200‚000 Revenue – 20‚000 AR) Cash outflow for purchases
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The chosen industry of the business is food industry to provide the need of a person. 1.4 Statement of financial needed The sources of our financing is from our personal savings and we will also apply for a loan in order for us to have enough money to put up our own business and can manage our daily need in operating the business‚ we have estimated the total financial amount to 100‚000php 1.5. Statement of Confidentiality report This Business Plan is confidential and contains proprietary information
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WAlmart | Accounting Cycle Paper | Accounting Cycle of Walmart | | Melanie Bartholomew | September 2‚ 2012 | When a company‚ like Walmart‚ begins to prepare financial statements and reports at the end of an accounting cycle they generally use Generally Accepted Accounting Principles and “the collective process of recording and processing the accounting events” (Definition of ‘Accounting Cycle’‚ 2012)‚ known as the accounting cycle. There are nine steps involved in the accounting cycle
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The balance sheet‚ income statement and cash flow statement are closely related. Basically‚ a balance sheet describes a company’s assets‚ liabilities and stockholder’s equity in a specific period of time. An income statement mainly shows the net profits or loss of a company. The purpose of the income statement is to show stockholders and investors whether the company earned or lost money. A cash flow statement explains cash inflows and outflows. Each financial statement reveals a part of a company’s
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21. Generally accepted accounting principles c. derive their credibility and authority from general recognition and acceptance by the accounting profession. 22. A soundly developed conceptual framework of concepts and objectives should d. all of these. 23. Which of the following (a-c) are not true concerning a conceptual framework in account-ing? c. It should be based on fundamental truths that are derived from the laws of nature. S24. Which of the following is not a benefit associated
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Inc. During the year‚ Race sold to Gallow for $450‚000 goods which cost $330‚000. Gallow still owned 15% of the goods at year-end. Gallow’s reported net income was $204‚000 and Race’s net income was $806‚000. Race decided to use the equity method to account for this investment. What was the non-controlling interest’s share of consolidated net income? A. $37‚200 B. $22‚800 C. $30‚900 D. $32‚900 E. $40‚800 Difficulty: Easy Hoyle - Chapter 05 #3
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