mba fa 《financial accounting》习题答案1

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FinancialAccounting第五版课后作业答案（部分）

FinancialAccounting第五版课后作业答案（部分）EXERCISE 1-31. (c) 5. (d)2. (d) 6. (b)3. (a) 7. (e)4. (b) 8. (f)EXERCISE 1-7(a) Total assets (beginning of year) $ 97,000Total liabilities (beginning of year) 85,000Total stockholders’ equity (beginning of year) $ 12,000(b) Total stockholders’ equity (end of year) $ 40,000 Total stockholders’ equity (beginning of year) 12,000 Increase in stockholders’ equity $ 28,000Total revenues $215,000Total expenses 175,000Net income $ 40,000Increase in stockholders’ equity $ 28,000Less: Net income $(40,000)Add: Dividends 24,000) (16,000 )Additional investment $ 12,000(c) T otal assets (beginning of year) $129,000Total stockholder s’ equity (beginning of year) 75,000Total liabilities (beginning of year) $ 54,000EXERCISE 1-7 (Continued)(d) Total stockholders’ equity (end of year) $130,000 Total stockholders’ equity (beginning of year) 75,000 Increase in stockholders’ equity $ 55,000Total revenues $100,000Total expenses 55,000Net income $ 45,000Increase in stockholders’ equity $55,000Less: Net income $(45,000)Additional investment (25,000) (70,000)Dividends $15,000PROBLEM 1-1A (Continued)Key to Retained Earnings column on previous page.(a) Rent Expense(b) Advertising Expense(c) Service Revenue(d) Dividends(e) Salaries Expense(b) Service revenue $7,500ExpensesSalaries $2,200Rent 400Advertising 300 2,900Net income $4,600P1-3A(a) DIVINE COSMETICS CO.Income StatementFor the Month Ended June 30, 2006RevenuesService revenue $5,500 ExpensesSupplies expense $1,600Gas and oil expense 800 Advertising expense 500Utilities expense 300Total expenses 3,200Net income $2,300DIVINE COSMETICS CO. Retained Earnings StatementFor the Month Ended June 30, 2006Retained Earnings, June 1 $ 0 Add: Net income 2,3002,300Less: Dividends 1,700Retained Earnings, June 30 $ 600DIVINE COSMETICS CO.Balance SheetJune 30, 2006AssetsCash $10,000Accounts receivable 4,000 Cosmetic supplies 2,000 Equipment 25,000Total assets $41,000Liabilities and Stockholders’ Equity LiabilitiesNotes payable $13,000Accounts payable 1,200Total liabilities ?14,200Stoc kholders’ equityCommon stock $26,200Retained earnings 600Total stockholders’ equity ?26,800Total liabilities and stockholders’ equity $41,000(b) DIVINE COSMETICS CO.Income StatementFor the Month Ended June 30, 2006RevenuesService revenue ($5,500 + $800) $6,300 ExpensesSupplies expense $1,600Gas and oil expense ($800 + $100) 900 Advertising expense 500Utilities expense 300Total expenses 3,300Net income $3,000DIVINE COSMETICS CO.Retained Earnings StatementFor the Month Ended June 30, 2006Retained Earnings, June 1 $ 0 Add: Net income 3,0003,000Less: Dividends 1,700Retained Earnings, June 30 $1,300。

financial-accounting-习题答案文档

Chapter. 11-1As in many ethics issues, there is no one right answer. The local newspaper reported on this issue in these terms: "The company covered up the first report, and the local newspaper uncovered the company's secret. The company was forced to not locate here (Collier County). It became patently clear that doing the least that is legally allowed is not enough."1-21. B2. B3. E4. F5. B6. F7. X 8. E 9. X 10. B1-3a. $96,500 ($25,000 + $71,500)b. $67,750 ($82,750 – $15,000)c. $19,500 ($37,000 – $17,500)1-4a. $275,000 ($475,000 – $200,000)b. $310,000 ($275,000 + $75,000 – $40,000)c. $233,000 ($275,000 – $15,000 – $27,000)d. $465,000 ($275,000 + $125,000 + $65,000)e. Net income: $45,000 ($425,000 – $105,000 – $275,000)1-5a. owner's equityb.liabilityc.assetd.assete.owner's equityf. asset 1-6a. Increases assets and increases owner’s equity.b. Increases assets and increases owner’s equity.c. Decreases assets and decreases owner’s equity.d. Increases assets and increases liabilities.e. Increases assets and decreases assets.1-71. increase2. decrease3.increase4. decrease1-8a. (1) Sale of catering services for cash, $25,000.(2) Purchase of land for cash, $10,000.(3) Payment of expenses, $16,000.(4) Purchase of supplies on account, $800.(5) Withdrawal of cash by owner, $2,000.(6) Payment of cash to creditors, $10,600.(7) Recognition of cost of supplies used, $1,400.b. $13,600 ($18,000 – $4,400)c. $5,600 ($64,100 – $58,500)d. $7,600 ($25,000 – $16,000 – $1,400)e. $5,600 ($7,600 – $2,000)1-9It would be incorrect to say that the business had incurred a net loss of $21,750. The excess of the withdrawals over the net income for the period is a decrease in the amount of owner’s equity in the business.1-10Balance sheet items: 1, 3, 4, 8, 9, 101-11Income statement items: 2, 5, 6, 71-12MADRAS COMPANYStatement of Owner’s EquityFor the Month Ended April 30, 2006Leo Perkins, capital, April 1, 2006 ............................. $297,200 Net income for the month ........................................... $73,000Less withdrawals ........................................................ 12,000Increase in owner’s equity ......................................... 61,000Leo Perkins, capital, April 30, 2006 ........................... $358,2001-13HERCULES SERVICESIncome StatementFor the Month Ended November 30, 2006Fees earned ................................................................. $232,120 Operating expenses:Wages expense ........................................................ $100,100Rent expense ........................................................... 35,000Supplies expense .................................................... 4,550Miscellaneous expense ........................................... 3,150Total operating expenses ................................... 142,800 Net income ................................................................... $ 89,3201-14Balance sheet: b, c, e, f, h, i, j, l, m, n, oIncome statement: a, d, g, k1-151. b–investing activity2.a–operating activity3. c–financing activity4.a–operating activity1-16a. 2003: $10,209 ($30,011 – $19,802)2002: $8,312 ($26,394 – $18,082)b. 2003: 0.52 ($10,209 ÷ $19,802)2002: 0.46 ($8,312 ÷ $18,082)c. T he ratio of liabilities to stockholders’ equity increased from 2002 to 2003,indicating an increase in risk for creditors. However, the assets of The Home Depot are more than sufficient to satisfy creditor claims. Chapter. 22-1AccountAccount NumberAccounts Payable 21Accounts Receivable 12Cash 11Corey Krum, Capital 31Corey Krum, Drawing 32Fees Earned 41Land 13Miscellaneous Expense 53Supplies Expense 52Wages Expense 512-2Balance Sheet Accounts Income Statement Accounts1. Assets11 Cash12 Accounts Receivable13 Supplies14 Prepaid Insurance15 Equipment2. Liabilities21 Accounts Payable22 Unearned Rent3. Owner's Equity31 Millard Fillmore, Capital32 Millard Fillmore, Drawing4. Revenue41 Fees Earned5. Expenses51 Wages Expense52 Rent Expense53 Supplies Expense59 Miscellaneous Expense2-3a. andb.Account Debited Account Credited Transaction Type Effect Type Effect(1) asset + owner's equity +(2) asset + asset –(3) asset + asset –liability +(4) expense + asset –(5) asset + revenue +(6) liability –asset –(7) asset + asset –(8) drawing + asset –(9) expense + asset –Ex. 2–4(1) Cash ...................................................................... 40,000Ira Janke, Capital ............................................ 40,000(2) Supplies ............................................................... 1,800Cash ................................................................ 1,800(3) Equipment ............................................................ 24,000Accounts Payable .......................................... 15,000Cash ................................................................ 9,000(4) Operating Expenses ............................................ 3,050Cash ................................................................ 3,050(5) Accounts Receivable .......................................... 12,000Service Revenue ............................................ 12,000(6) Accounts Payable ................................................ 7,500Cash ................................................................ 7,500(7) Cash ...................................................................... 9,500Accounts Receivable ..................................... 9,500(8) Ira Janke, Drawing ............................................... 5,000Cash ................................................................ 5,000(9) Operating Expenses ............................................ 1,050Supplies .......................................................... 1,050 2-51. debit and credit (c)2. debit and credit (c)3. debit and credit (c)4. credit only (b)5. debit only (a)6. debit only (a)7. debit only (a)2-6a. Liability—credit f. Revenue—creditb. Asset—debit g. Asset—debitc. Asset—debit h. Expense—debitd. Owner's equity i. Asset—debit(Cindy Yost, Capital)—credit j. Expense—debite. Owner's equity(Cindy Yost, Drawing)—debit2-7a. credit g. debitb. credit h. debitc. debit i. debitd. credit j. credite. debit k. debitf. credit l. credit2-8a. Debit (negative) balance of $1,500 ($10,500 – $4,000 – $8,000). Such anega tive balance means that the liabilities of Seth’s busine ssexceed the assets.b. Yes. The balance sheet prepared at December 31 will balance, withSeth Fite, Capital, being reported in the owner’s equity section as anegative $1,500.2-9a. The increase of $28,750 in the cash account does not indicateearnings of that amount. Earnings will represent the net change inall assets and liabilities from operating transactions.b. $7,550 ($36,300 – $28,750)2-10a. $40,550 ($7,850 + $41,850 – $9,150)b. $63,000 ($61,000 + $17,500 – $15,500)c. $20,800 ($40,500 – $57,700 + $38,000)2-112005Aug. 1 Rent Expense ....................................................... 1,500Cash ................................................................ 1,5002 Advertising Expense (700)Cash (700)4 Supplies ............................................................... 1,050Cash ................................................................ 1,0506 Office Equipment ................................................. 7,500Accounts Payable .......................................... 7,5008 Cash ...................................................................... 3,600Accounts Receivable ..................................... 3,60012 Accounts Payable ................................................ 1,150Cash ................................................................ 1,15020 Gayle McCall, Drawing ........................................ 1,000Cash ................................................................ 1,00025 Miscellaneous Expense (500)Cash (500)30 Utilities Expense (195)Cash (195)31 Accounts Receivable .......................................... 10,150Fees Earned .................................................... 10,15031 Utilities Expense (380)Cash (380)2-12a.JOURNAL Page 43Post.Date Description Ref. Debit Credit 2006Oct. 27 Supplies .................................................. 15 1,320Accounts Payable .............................. 21 1,320 Purchased supplies on account.b.,c.,d.Supplies 15Post.BalanceDate Item Ref. Dr. Cr. Dr. Cr. 2006Oct. 1 Balance ................................. ✓ ........... ........... 585 ...........27 ............................................... 43 1,320 ........... 1,905 ........... Accounts Payable 21 2006Oct. 1 Balance ................................. ✓ ........... ........... ........... 6,15027 ............................................... 43 ........... 1,320 ........... 7,4702-13Inequality of trial balance totals would be caused by errors described in(b) and (d).2-14ESCALADE CO.Trial BalanceDecember 31, 2006Cash ................................................................... 13,375Accounts Receivable ......................................................... 24,600Prepaid Insurance .............................................................. 8,000Equipment .......................................................................... 75,000Accounts Payable .............................................................. 11,180 Unearned Rent ................................................................... 4,250 Erin Capelli, Capital ........................................................... 82,420 Erin Capelli, Drawing ......................................................... 10,000Service Revenue ................................................................ 83,750 Wages Expense .................................................................. 42,000Advertising Expense ......................................................... 7,200 Miscellaneous Expense ..................................................... 1,425 181,600 181,6002-15a. Gerald Owen, Drawing ........................................ 15,000Wages Expense .............................................. 15,000b. Prepaid Rent ........................................................ 4,500Cash ................................................................ 4,500 2-16题目的资料不全, 答案略.2-17a. KMART CORPORATIONIncome StatementFor the Years Ending January 31, 2000 and 1999(in millions)Increase (Decrease)2000 1999 Amount Percent1. Sales .................................................. $ 37,028 $ 35,925 $ 1,103 3.1%2. Cost of sales ..................................... (29,658) (28,111) 1,547 5.5%3. Selling, general, and admin.expenses ........................................... (7,415) (6,514) 901 13.8%4. Operating income (loss)before taxes ...................................... $ (45) $ 1,300 $(1,345) (103.5%) b. The horizontal analysis of Kmart Corporation reveals deterioratingoperating results from 1999 to 2000. While sales increased by $1,103million, a 3.1% increase, cost of sales increased by $1,547 million, a5.5% increase. Selling, general, and administrative expenses alsoincreased by $901 million, a 13.8% increase. The end result was thatoperating income decreased by $1,345 million, over a 100%decrease, and created a $45 million loss in 2000. Little over a yearlater, Kmart filed for bankruptcy protection. It has now emerged frombankruptcy, hoping to return to profitability.3-11. Accrued expense (accrued liability)2. Deferred expense (prepaid expense)3. Deferred revenue (unearned revenue)4. Accrued revenue (accrued asset)5. Accrued expense (accrued liability)6. Accrued expense (accrued liability)7. Deferred expense (prepaid expense)8. Deferred revenue (unearned revenue)3-2Supplies Expense (801)Supplies (801)3-3$1,067 ($118 + $949)3-4a. Insurance expense (or expenses) will be understated. Net income willbe overstated.b. Prepaid insurance (or assets) will be overstated. Owner’s equity willbe overstated.3-5a.Insurance Expense ............................................................ 1,215Prepaid Insurance ............................................... 1,215 b.Insurance Expense ............................................................ 1,215Prepaid Insurance ............................................... 1,215 3-6Unearned Fees ...................................................................... 9,570Fees Earned ......................................................... 9,570 3-7a.Salary Expense .................................................................. 9,360Salaries Payable .................................................. 9,360 b.Salary Expense .................................................................. 12,480Salaries Payable .................................................. 12,480 3-8$59,850 ($63,000 – $3,150)3-9$195,816,000 ($128,776,000 + $67,040,000)3-10Error (a) Error (b)Over- Under- Over- Under-stated stated stated stated1. Revenue for the year would be ............... $ 0 $6,900 $ 0 $ 02. Expenses for the year would be ............. 0 0 0 3,7403. Net income for the year would be .......... 0 6,900 3,740 04. Assets at December 31 would be ........... 0 0 0 05. Liabilities at December 31 would be ...... 6,900 0 0 3,7406. Owner’s equity at December 31would be ................................................... 0 6,900 3,740 0 3-11$175,840 ($172,680 + $6,900 – $3,740)3-12a.Accounts Receivable ......................................................... 11,500Fees Earned ......................................................... 11,500 b. No. If the cash basis of accounting is used, revenues are recognizedonly when the cash is received. Therefore, earned but unbilledrevenues would not be recognized in the accounts, and no adjustingentry would be necessary.3-13a. Fees earned (or revenues) will be understated. Net income will beunderstated.b. Accounts (fees) receivable (or assets) will be understated. Owner’sequity will be understated.3-14Depreciation Expense .......................................................... 5,200Accumulated Depreciation ................................. 5,200 3-15a. $204,600 ($318,500 – $113,900)b. No. Depreciation is an allocation of the cost of the equipment to theperiods benefiting from its use. It does not necessarily relate to valueor loss of value.3-16a. $2,268,000,000 ($5,891,000,000 – $3,623,000,000)b. No. Depreciation is an allocation method, not a valuation method.That is, depreciation allocates the cost of a fixed asset over its usefullife. Depreciation does not attempt to measure market values, whichmay vary significantly from year to year.3-17a.Depreciation Expense ....................................................... 7,500Accumulated Depreciation ................................. 7,500 b. (1) Depreciation expense would be understated. Net income wouldbe overstated.(2) Accumulated depreciation would be understated, and total assetswould be overstated. Owner’s equity would be ove rstated.3-181.Accounts Receivable (4)Fees Earned (4)2.Supplies Expense (3)Supplies (3)3.Insurance Expense (8)Prepaid Insurance (8)4.Depreciation Expense (5)Accumulated Depreciation—Equipment (5)5.Wages Expense (1)Wages Payable (1)3-19a. Dell Computer CorporationAmount Percent Net sales $35,404,000 100.0Cost of goods sold (29,055,000) 82.1Operating expenses (3,505,000) 9.9Operating income (loss) $ 2,844,000 8.0b. Gateway Inc.Amount Percent Net sales $ 4,171,325 100.0Cost of goods sold (3,605,120) 86.4Operating expenses (1,077,447) 25.8Operating income (loss) $ (511,242) (12.2)c. Dell is more profitable than Gateway. Specifically, Dell’s cost ofg oods sold of 82.1% is significantly less (4.3%) than Gateway’s costof goods sold of 86.4%. In addition, Gateway’s operating expensesare over one-fourth of sales, while Dell’s operating expenses are9.9% of sales. The result is that Dell generates an operating incomeof 8.0% of sales, while Gateway generates a loss of 12.2% of sales.Obviously, Gateway must improve its operations if it is to remain inbusiness and remain competitive with Dell.4-1e, c, g, b, f, a, d4-2a. Income statement: 3, 8, 9b. Balance sheet: 1, 2, 4, 5, 6, 7, 104-3a. Asset: 1, 4, 5, 6, 10b. Liability: 9, 12c. Revenue: 2, 7d. Expense: 3, 8, 114-41. f2. c3. b4. h5. g6. j7. a8. i9. d10. e4–5ITHACA SERVICES CO.Work SheetFor the Year Ended January 31, 2006AdjustedTrial Balance Adjustments Trial Balance Account Title Dr. Cr. Dr. Cr. Dr. Cr.1Cash 8 8 1 2Accounts Receivable 50 (a) 7 57 2 3Supplies 8 (b) 5 3 3 4Prepaid Insurance 12 (c) 6 6 4 5Land 50 50 5 6Equipment 32 32 6 7Accum. Depr.—Equip. 2 (d) 5 7 7 8Accounts Payable 26 26 8 9Wages Payable 0 (e) 1 1 9 10Terry Dagley, Capital 112 112 10 11Terry Dagley, Drawing 8 8 11 12Fees Earned 60 (a) 7 67 12 13Wages Expense 16 (e) 1 17 13 14Rent Expense 8 8 1415Insurance Expense 0 (c) 6 6 15 16Utilities Expense 6 6 16 17Depreciation Expense 0 (d) 5 5 17 18Supplies Expense 0 (b) 5 5 18 19Miscellaneous Expense 2 2 19 20Totals 200 200 24 24 213 213 20 ContinueITHACA SERVICES CO.Work SheetFor the Year Ended January 31, 2006Adjusted Income BalanceTrial Balance StatementSheetAccount Title Dr. Cr. Dr. Cr. Dr. Cr.1Cash 8 8 1 2Accounts Receivable 57 57 2 3Supplies 3 3 3 4Prepaid Insurance 6 6 4 5Land 50 50 5 6Equipment 32 32 6 7Accum. Depr.—Equip. 7 7 7 8Accounts Payable 26 26 8 9Wages Payable 1 1 9 10Terry Dagley, Capital 112 112 10 11Terry Dagley, Drawing 8 8 11 12Fees Earned 67 67 12 13Wages Expense 17 17 13 14Rent Expense 8 8 14 15Insurance Expense 6 6 15 16Utilities Expense 6 6 16 17Depreciation Expense 5 5 17 18Supplies Expense 5 5 18 19Miscellaneous Expense 2 2 19 20Totals 213 213 49 67 164 146 20 21Net income (loss) 18 1821 2267 67 164 164 22 4-6ITHACA SERVICES CO.Income StatementFor the Year Ended January 31, 2006Fees earned ........................................................................ $67Expenses:Wages expense ........................................................... $17Rent expense (8)Insurance expense (6)Utilities expense (6)Depreciation expense (5)Supplies expense (5)Miscellaneous expense (2)Total expenses ........................................................49Net income ......................................................................... $18ITHACA SERVICES CO.Statemen t of Owner’s EquityFor the Year Ended January 31, 2006Terry Dagley, capital, February 1, 2005 ............................ $112Net income for the year ..................................................... $18Less withdrawals (8)Increase in owner’s equity................................................10Terry Dagley, capital, January 31, 2006 ........................... $122ITHACA SERVICES CO.Balance SheetJanuary 31, 2006Assets LiabilitiesCurrent assets: Current liabilities:Cash ............................. $ 8 Accounts payable ....... $26Accounts receivable ... 57 Wages payable (1)Supplies ....................... 3 Total liabilities ......... $ 27 Prepaid insurance . (6)Total current assets . $ 74Property, plant, and Owner’s E quity equipment: Terry Dagley, capital (122)Land ............................. $50Equipment ................... $32Less accum. depr........ 7 25Total property, plant,and equipment 75 Total liabilities andTotal assets ..................... $149 owner’s equity.......... $149 4-72006Jan. 31 Accounts Receivable (7)Fees Earned (7)31 Supplies Expense (5)Supplies (5)31 Insurance Expense (6)Prepaid Insurance (6)31 Depreciation Expense (5)Accumulated Depreciation—Equipment (5)31 Wages Expense (1)Wages Payable (1)4-82006Jan. 31 Fees Earned (67)Income Summary (67)31 Income Summary (49)Wages Expense (17)Rent Expense (8)Insurance Expense (6)Utilities Expense (6)Depreciation Expense (5)Supplies Expense (5)Miscellaneous Expense (2)31 Income Summary (18)Terry Dagley, Capital (18)31 Terry Dagley, Capital (8)Terry Dagley, Drawing (8)4-9SIROCCO SERVICES CO.Income StatementFor the Year Ended March 31, 2006Service revenue .................................................................$103,850Operating expenses:Wages expense ........................................................... $56,800Rent expense .............................................................. 21,270Utilities expense ......................................................... 11,500Depreciation expense ................................................. 8,000Insurance expense ..................................................... 4,100Supplies expense ....................................................... 3,100Miscellaneous expense .............................................. 2,250Total operating expenses ............................ 107,020Net loss .............................................................................. $ (3,170)4-10SYNTHESIS SYSTEMS CO.Statement of Owner’s EquityFor the Year Ended October 31, 2006Suzanne Jacob, capital, November 1, 2005 ..................... $173,750Net income for year ........................................................... $44,250Less withdrawals ............................................................... 12,000Increase in owner’s equity................................................32,250Suzanne Jacob, capital, October 31, 2006 ....................... $206,0004-11a. Current asset: 1, 3, 5, 6b. Property, plant, and equipment: 2, 44-12Since current liabilities are usually due within one year, $165,000 ($13,750 ×12 months) would be reported as a current liability on the balance sheet. The remainder of $335,000 ($500,000 – $165,000) would be reported as a long-term liability on the balance sheet.4-13TUDOR CO.Balance SheetApril 30, 2006Assets LiabilitiesCurrent assets Current liabilities:Cash $31,500 Accounts payable $9,500Accounts receivable ....................... 21,850 Salaries payable1,750Supplies................................................. 1,800 Unearned fees1,200Prepaid insurance ................................ 7,200 Total liabilities$12,450Prepaid rent ........................................... 4,800Total current assets $67,150 Owner’s EquityProperty, plant, and equipment: Vernon Posey, capital 114,200 Equipment ......................................... $80,600Less accumulated depreciation 21,100 59,500 Total liabilities andTotal assets $126,650 owner’s equity $126,6504-14Accounts Receivable ............................................................ 4,100Fees Earned .................................................... 4,100 Supplies Expense ................................................ 1,300Supplies .......................................................... 1,300 Insurance Expense .............................................. 2,000Prepaid Insurance .......................................... 2,000 Depreciation Expense ......................................... 2,800Accumulated Depreciation—Equipment ...... 2,800Wages Expense ................................................... 1,000Wages Payable ............................................... 1,000 Unearned Rent ..................................................... 2,500Rent Revenue ................................................. 2,500 4-15c. Depreciation Expense—Equipmentg. Fees Earnedi. Salaries Expensel. Supplies Expense4-16The income summary account is used to close the revenue and expense accounts, and it aids in detecting and correcting errors. The $450,750 represents expense account balances, and the $712,500 represents revenue account balances that have been closed.4-17a.Income Summary ............................................................... 167,550Sue Alewine, Capital ........................................... 167,550 Sue Alewine, Capital ............................................................. 25,000Sue Alewine, Drawing ......................................... 25,000 b. $284,900 ($142,350 + $167,550 – $25,000)4-18a. Accounts Receivableb. Accumulated Depreciationc. Cashe. Equipmentf. Estella Hall, Capitali. Suppliesk. Wages Payable4-19a. 2002 2001Working capital ($143,034) ($159,453)Current ratio 0.81 0.80b. 7 Eleven has negative working capital as of December 31, 2002 and2001. In addition, the current ratio is below one at the end of bothyears. While the working capital and current ratios have improvedfrom 2001 to 2002, creditors would likely be concerned about theability of 7 Eleven to meet its short-term credit obligations. Thisconcern would warrant further investigation to determine whetherthis is a temporary issue (for example, an end-of-the-periodphenomenon) and the company’s plans to address its workingcapital shortcomings.4-20a. (1) Sales Salaries Expense ............................................. 6,480Salaries Payable ................................................... 6,480(2) Accounts Receivable ................................................. 10,250Fees Earned .......................................................... 10,250 b. (1) Salaries Payable ......................................................... 6,480Sales Salaries Expense ........................................ 6,480(2) Fees Earned ................................................................ 10,250Accounts Receivable ............................................ 10,250 4-21a. (1) Payment (last payday in year)(2) Adjusting (accrual of wages at end of year)(3) Closing(4) Reversing(5) Payment (first payday in following year)b. (1) Wages Expense .......................................................... 45,000Cash ....................................................................... 45,000(2) Wages Expense .......................................................... 18,000Wages Payable ...................................................... 18,000(3) Income Summary ....................................................... 1,120,800Wages Expense .................................................... 1,120,800(4) Wages Payable ........................................................... 18,000Wages Expense .................................................... 18,000(5) Wages Expense .......................................................... 43,000Cash ....................................................................... 43,000 Chapter6（找不到答案，自己处理了哦）Ex. 8–1a. Inappropriate. Since Fridley has a large number of credit salessupported by promissory notes, a notes receivable ledger should bemaintained. Failure to maintain a subsidiary ledger when there are asignificant number of notes receivable transactions violates theinternal control procedure that mandates proofs and security.Maintaining a notes receivable ledger will allow Fridley to operatemore efficiently and will increase the chance that Fridley will detectaccounting errors related to the notes receivable. (The total of theaccounts in the notes receivable ledger must match the balance ofnotes receivable in the general ledger.)b. Inappropriate. The procedure of proper separation of duties isviolated. The accounts receivable clerk is responsible for too many。

MBA财务管理作业答案汇总精选文档

MBA财务管理作业答案汇总精选文档M B A财务管理作业答案汇总精选文档TTMS system office room 【TTMS16H-TTMS2A-TTMS8Q8- 第03章财务报表分析与财务模型1.Y3K公司的销售收入为5 276美元，资产总额为3 105美元，债务权益率为1.40。

如果它的权益报酬率为16%，净利润是多少？2.ROE＝ROA×（1+债务权益率）16%＝净利润÷资产总额×2.4净利润=3105×16%÷2.4=$2073.一家公司的净利润为218 000美元，利润率为8.7%，应收账款余额为132 850美元。

假设销售收入中的70%是赊销，该公司的应收账款周转天数是多少？4.利润率=净利润/销售收入=8.7%销售收入=218,000÷8.7%=$2,505,747总赊销额=2505747×70%=$1,754,022.9周转天数=应收账款余额×365÷赊销总额=132850×365÷1,754,022.9=27.65天5.Ashwood公司的长期负债率为0.45，流动比率为1.25，流动负债为875美元，销售收入为5 780美元，利润率为9.5%，ROE为18.5%。

该企业的固定资产净值是多少？6.流动资产=流动负债×流动比率=1.25×875=$1093.75净利润=销售收入×利润率=5780×9.5%=$549.10权益总额=净利润/ROE=549.1/18.5%=$2968.11长期负债率=长期债务/(长期债务+权益总额)=0.45长期债务=$2428.45固定资产=资产总额-流动资产=长期负债+短期负债+权益总额-流动资产=875+2428.45+2968.11-1093.75=$5177.817.A企业和B企业的债务/总资产比率分别为35%和30%，总资产报酬率分别为12%和11%。

财务会计英语版课后答案

Chapter 1Page 81.Classify following items as either an expense (E),a revenue(R),an asset(A),or a liability( L);Cash, buildings, salaries of the sales force, $5 owed to a company for work performed, Mortgage to a bank, sales.Answer:Cash—A Buildings—A Salaries of the sales force—E$5 owed—L Mortgage to a bank—L Sales—R2. Classify each of the following as n operating (O), bank (I) , or financing (F) in a statement of cash flows; Wage paid to workers, Cash received form a bank in the form of a mortgage, cash dividends paid to a supplier of inventory, Cash paid to purchase a new machine.Answer:Wage paid—O Cash of mortgage-- F Cash dividends paid -- FCash paid to supplier of inventory—O Cash paid to purchase a machine—IPage111.List several economic decisions that rely on accounting information.Answer:·Whether to grant a loan·How much to pay for a share of common stock.·Whether to grant a rate increase to an electric utility·How much in damages the loser of a lawsuit must pay ·How much of a bonus to pay a plant manager·Whether to enter a new market2. Why do financial statements have footnotes, and what kinds of information might you find in them?Answer:Financial statements have footnotes because financial disclosure is a complex business. The notes tell us some of the specifics about the company environment , what accounting methods the company has used, what the accounting numbers might be if alternative methods had been used, and some of the major contingencies that are not formally included in the statement proper.Page 201.Describe the process of setting accounting standards. What are the roles of all the parties you mention?Answer:The FASB, a private, not-for-profit organization ,sets GAAP in the U.S. It publicly declares an agenda, promulgates "ExposureDrafts" of proposed standards, holds open meetings, and invites input from interested parties. The FASB has been delegated this authority by the SEC, a government agency with legal authority to determine GAAP.2.Think of an example, like the executive compensation example in the chapter, where incentives might exist to bias accounting numbers one way or another.Answer:There are other examples, but here is one that is different. A taxpayer has incentives to bias reported income downward in order to minimize income tax payments. However, it is important to understand that tax accounting rules are different from GAAP, and this book is about GAAP. Chapter 14 covers GAAP for taxes in more detail.Other examples include:·An entrepreneur seeking a loan from a bank or funding from a venture capitalist might have incentives to bias accounting numbers to look favorable.·A firm that is subject to scrutiny for earning excess profits(e.g.,an oil company）might have incentives to bias accounting numbers to look less favorable.·A utility subject to rate regulation might have an incentive tobias accounting numbers to look less favorable in order to gain more generous increases in its rates. (At this writing, there is a rather severe controversy about whether electric utilities in California are genuinely in financial difficulty and should be allowed to continue to impose large rate increase.)Chapter 2Page 381 Define assets, liabilities, and equities.Gave an example ofeach. How are assets valued? How are liabilities valued? Answer:An asset is a probable future economic benefit obtained or controlled by an entity as a result of a past transaction. Cash marketable securities, accounts receivable, inventories, prepaid expenses, patents, copyrights, trademarks, and property, plant and equipment are all examples of assets. A liability isa probable future sacrifice of economic benefits arisingfrom present obligations of an entity to transfer assets or provide services as a result of a past transaction or event.Accounts payable, accrued liabilities, unearned revenues, warranties, and bonds payable are all examples of liabilities.Accounting valuation of assets uses severaldifferent methods, including market value, expected realizable value, lower of cost or market, present value of future cash flows, and historical cost. Accounting valuation of liabilities is the expected amount that will be paid, perhaps adjusted for the time value of money.2. Explain what is meant by the entity concept. Answer:The entity is the person or organization about which accounting's financial history is being written.3 .A company signs a ten-year employee contract with a vicepresident. The salary is $ per year, guaranteed. Is this contract an asset? Would it appear on the balance sheet?Explain.Answer:The rights conveyed by the contrat may be an asset from an economic point of view, but they are not an asset under GAAP. The contract would not appear on the balance sheet as an asset, because GAAP does not record executory contracts, which are contracts that require future performance form both parties. That is ,GAAP views the contract as determining what services will be provided, no asset is recognized under GAAP.(Neither is a liability for payment recognized until services have beenperformed.)4 .A company purchased a parcel of land 10 years ago at a cost of $.The land has recently been appraised at $. At what value is the land carried in the balance sheet? How does the appraisal affect the carrying value in the balance sheet? Answer:The land is on the balance sheet at its historical cost of $.The carrying value of the land is unaffected by the appraisal. Page 421、Define debit and credit .What kind of balance ,debit or credit ,would you expect to find in the inventory T-account？In the Common Stock T-account?Answer:A debit is an entry on the left side of a T-account. A credit is an entry on the right side of a T-account. We would except to find a debit balance in Inventory, and credit balances in Bonds Payable and Common Stock. The reason is the convention that increases in assets are debits and increases in liabilities and equities are credits.2、If the trial balances, it means that you have analyzed all the effects of transactions correctly. True or false？Explain.Answer:False. A balanced means that the trial balance is consistent, not necessarily correct. For example. If an arbitrary entry is made that debits Cash and credits Common Stock for an equal amount, the trial balance will balance but it will be wrong. An accounting can receipt of cash and the issuance of common stock, but it alone can not make cash or additional common shares.3﹑Suppose Web sell leases a portion of its space to another company. Web sell’s accounts are debited and credited to record this transaction?Answer:Web sell would debit Cash and a liability, Rent Received in Advance, for the prepayment.Chapter 3Page 571. Define revenue and expense. How does one decide to list an item as revenue in an income statement? What is matching? Answer:Revenues are increases in net assets resulting from operations over a period of time .Expense are decreases in net assets resulting from operations over a period of time .Revenue isrecognized the earnings process is substantially complete , a transaction2. Give an example not found in the text , of an expense that is paid for in cash in a prior accounting period .In a subsequent accounting period.Answer:There are many allowable responses . An example is a patent that is purchased and paid for in one year and used in next .3. Give an example, not found in the text , of a revenue that is received in cash in a prior accounting period . In a subsequent accounting period .Answer:An example is a house painting contractor that receives payment for one-third of the contract price before beginning the painting .4. Explain why it is right to think of an asset as a cost and an expense as an expired cost .Answer:An asset is a future benefit . And there is an opportunity cost associated with not selling it for cash or exchanging it to settleChapter 6Page 120:1.The following table lists the adjustments and has an X in thecolumn indicating the approach:2. We first take adjustment for prepaid insurance and insurance expense. It would be easy to think of this adjustment as focusing on how much of the insurance coverage remained, as opposed to how much was used. In fact, the same type of logic could be used---computing a monthly rate for the coverage and applying that to the months reminding, instead of the months used.Now take adjustment for depreciation expense and accumulated depreciation. Estimating the value of the equipment at year end might be easy, for example, if there is a market for used equipment, or very difficult, for example, if the equipment was specially designed for Websell. Once a value estimate for the equipment at year end is obtained, depreciation expense would be the change in value over the year.Page 1231.$5000×(1+0.06)^10=$5000×1.79085=$8954.242.$5000×(1+0.06/2)^(10×2)=$5000×(1+0.03)^20=$5000×1.80611=$9030.563. $1000×(1.05)^3+$1000×(1.05)^2+$1000×(1.05)^1=$3310.134. ($1000×0.05/5)^13+$1000×(1+0.05/5)^10+$1000×(1+0.05/5)^5=($1000×(1.01)^15)+($1000×(1.01)^10)+($1000×(1.01)^5) =$1160.97+$1104.62+$1051.01=$3316.6Page 1241.x×.(1.07)^3=$3000 x=$3000/(1.07)^3=$2448.892. Calculate the present value at 10% of $1300 received two years from now. If that is greater than $1000, you are better offwith the $1300 to be received in two years. If its present value is less that $1000, you better off with $1000 now. $1300/(1.10)^2=$1074.38Therefore, you are better off receiving $1300 two years from now.Another way to do this problem is to take the future value at 10% of $1000. At the end of two years, the $1000 would compound up to:$1000×(1.10)^2=$1210,Which is less than you would have at that point if you took the $1300.3．The most I would be willing to pay is the present value at 8% of the stream of $1000 payment:$1000/(1.08)^1+$1000/(1,08)^2+$1000/(1,08)^3=$925.926+857.339+793.832=$ 2577.1(rounded)Chapter 8Page 1681.Aging takes the balance in accounts receivable at the end of the year, and sorts it by how long ago the transaction occurred that gave rise to that receivable. Experience has shown that “older” accounts have less likelihood of ever being collected.Percentages of likely uncollectibles for each category are applied to the totals in that category , and the results added to obtain an estimate of the allowance for uncollectibles required to value properly the estimated amount that will be collected from the accounts receivable. The bad debts expense then falls out as a “plug” in the allowance for uncollectibles.The percentage-of-sales method just estimates bad debt expense as a percent of sales, and plug the balance in the allowance account.2. Cash (118)Accounts receivable (118)12/31/2003(to recognize collection of cash from companies owing service co. from 2002 sales)Allow ance for doubtful accounts (7)Accounts receivable (7)12/31/2003(to write off accounts we know will not be collected) Ac counts receivable (125)Sales reven ue (125)12/31/2003(to recognize revenue and to anticipate collection of the receivable)If we focus on recording the bad debts expense that is associated with billings for 2003, we would record.06×$=$7500 in baddebts expense.B ad debts expense………………………………………7.5 Allowan ce for doubtful accounts…………………………7.5 12/31/2003(to record bad debt expense in anticipation of not collecting 100% of receivables)Method one: focus on the percentage of sales expected not to be collected.Allowance for doubtful accounts(10.5 is the “plug”,i.e., the number that drops out)Now we move to 2004, where events now proceed as expected . Collections are $117.5 thousand. Cash………………………………………………..117.5 Accounts receivable…………………………………117.512/31/2004(to recognize collection of cash form companies owing service co. from 2003 sales)Allowance for doubtful ac counts………………………7.5 Accounts receivable………………………………….7.512/31/2004(to write off accounts we know will not be collected)Accounts receivable (125)Sales revenue (125)12/31/2004(to recognize revenue and to anticipate collection of the receivable)If we focus on recording the bad debts expense that is associated with billings for 2004, we would record.06×$=$7500 in bad debts expense.Bad debts expense……………………………………7.5 Allowance for doubtful acco unts…………………………7.5 12/31/2003(to record bad debt expense in anticipation of not collecting 100% of receivables)The allowance for doubtful accounts using the peentage-of-sales method looks like this:Method one: focus on the percentage of sales expected not to be collected.Allowance for doubtful accountsOnly the entries recording bad debt expense are different using the aging method. Instead of the above entries recording bad debt expense, we would have the following analysis: Each year, we would adjust the balance in the allowance for doubtful accounts so that the net receivable ends up at $. That is, we would solve $-X=$,and find that the ending balance in the allowance for doubtful accounts must be $7500.Analyzing the account, we would determine that at 12/31/2003 we must add $4500 to the allowance for doubtful accounts: Bad debts expense………………………………..4.5 Allowanc e for doubtful accounts…………………….4.512/31/2004(to record bad debt expense in anticipation of not collecting 100% of receivables)At 12/31/2004, we must add $7500 to the allowance for doubtful accounts:Bad debts expense………………………………..7.5 Allowan ce for doubtful accounts…………………….7.512/31/2004(to record bad debt expense in anticipation of not collecting 100% of receivables)Using aging, the allowance for doubtful accounts T-account looks like this:Method two: focus on the ending balance in the allowance for doubtful accounts.Allowance for doubtful accountsChapter 9Page 1831.LIFO is last-in first-out. It means that in computing ending inventoryand cost of goods sold, the cost of items sold is assigned in reverse chronological order of their purchase, beginning from the most regent items purchased in a period. FIFO is first-in, first-out .It means that in computing ending inventory and cost of goods sold, the cost of items sold is assigned in chronological order of their purchase, beginning from the goods on hand at the beginning of the period. Average cost means that in computing ending inventory and cost of goods sold, the average unit cost of the beginning inventory and items purchased in a period is used to determine the cost of goods sold and remaininginventory.2.Yes, it is still a positive net present value project. In fact, its netpresent value is higher than when the purchase was made at$1.05 per unit, since the cash outflow is reduced but the cash inflow remains the same. The cash outflow on 12/31/01 when purchases are at $0.95 per unit is $114.This means the net cash flow at 12/31/01 is ($4) instead of ($16),and the NPV for Widget Company is:NPV=-100-$4/1.1+$10/ (1.1^2) +$144/ (1.1^3) =$12.82First, we redo the case of FIFO. The inventory T-account is:Widget Co. Inventory Account under FIFO Flow AssumptionInventory (FIFO)Ending inventory values can be read from the above T-account. Net incomes are:Widget Incomes using FIFONow we redo the case of FIFO. First, the inventory T-account is: Widget Co. Inventory Account under FIFO Flow AssumptionInventory (FIFO)Ending inventory values can be read from the above T-account. Net incomes are:Page 186To calculate the market-to-book ratios and accounting returns on equity: Market-to-book Ratios under Average CostAccounting Rates of Return under Average CostCollecting the results for FIFO from the chapter and these results for average cost, we have:Market-to-book Ratios under Various Cost Flow AssumptionAccounting Rates of Return under Various Cost Flow AssumptionAs is apparent, the market-to-book ratios and accounting rates of return for average cost are between for LIFO and FIFO.2. Because it has more recent costs on the balance sheet in the inventory account, FIFO has market-to-book ratios closer to 1regardless of whether prices rise or fall.Chapter 10Page 1961. The total profit on the transaction is the sales price of $880.00 less the original cost of $734.03:Sales price of securities $880.00Less : original cost ($735.03)Profit on transaction $144.97The cash flows were: $735.03 out on January1, 2001, and $880.00 in on January 3, 2003.There were profit in 2001, 2002, and 2003.In 2001, therewas a profit of $81.17.In 2003,there was a profit of $5.00.2. The unadjusted book value of the security on December 31,2002 was $793.83.If the market value of the security on that date was $790.00,an adjustment reducing its carrying value by $3.83 is required to write it down to its market value: Unrealized loss on market value securities-trading ……3.83 Marketable securities –trading ………… 3.83 If the security were sold for $810.00 on January 3, 2003, the entry would be:Cash ………………………………810.00Marketable securities –trading ………………790.00Gain on marketable securities-trading …………20.001/03/2003(To record the sale of the Marketable securities—trading )Page 1981. When a securities is classified as trading security, profits or losses show up on the income statement in every period from when the security is purchased until when it is sold. when a security is classified as available-for-sale ,profits or losses only show up on the income statement in the period in which the security is sold.2. the unadjusted book value of the security on December31,2002 was $793.83.If the market value of the security on that date was $790.00,an adjustment reducing it’s carrying value by $3.83 is required to write it down to it’s market value. however unlike the trading security case ,the unrealized loss is an equity account ,not a temporary account:Unrealized loss on marketable securities-available-for-sale 3.38 Marketable securities –trading ………………3.83To record the sale of the security for $810.00 on January 3,2003: Cash ………810.00Unrealized gain on marketable securities-available-for-sale(58.80-3.83) ………54.97Marketable securities-trading …………790.00Realized gain on marketable securities-available-for-sale ……………74.9712/31/2002(To mark-to-market the Marketable securities—available-for-sale)Chapter 111．a. Under straight-line depreciation, the depreciation expense each year is$600-$100/5 years=$100 per year.b. Under double-declining balance depreciation, the depreciation expense each year is given in the following table:c. Under sum-of-year’-digits depreciation, the depreciation expense each year is given in the following table:Sum-of years’-digits depreciation2. Intangible assets are most often shown in one line that is cost net of amortization. Tangible assets are sometimes shown in three lines: cost , accumulated depreciation, and net .3. Economic depreciation is the change in the economic value of the asset. Economic depreciation can be appreciation when the asset increases in value. We seen this already with marketable debt securities, which sometimes increase in valuebecause of unpaid interest4.It is easy and fulfills the requirement of GAAP to provide depreciation using a systematic and rational method. No GAAP depreciation method likely correctly reflects economic depreciation anyway ,so a simple expedient may be good enough.1．Sraight-line depreciation is $100 per year ($300/3 years).Double-declining balance depreciation is given in the following table:2.For straight-line depreciation,the entry is the same each year:Depreciation expense (100)Accumulateddepreciation (100)For double-declining balance depreciation,the entries are: Year1Depr eciation expense (200)Accu mulated depreciation (200)Year2Depreciation expense………………………………66.67 Acc umulated depreciation………………………66.67 Year3.declining balance because depreciation expense under straight-line is only $100,while under double-declining balance depreciation expense is $200.4.If the company buys one asset every year and each asset lasts three years,then in year 4 it will have three assets.Under straight-line depreciation,each of those assets generates a depreciation expense of $100;therefore total depreciation expense would be 3*$100,or $300.Under double-declining balance depreciation,total depreciation expense depends on the age of each asset.The company would have one asset in its first year of life,one in its second year of life,and one in its third year.Therefore,totaldepreciation expense would be:$200+$66.67+$33.33=$300,the same as under straight-line.Both depreciation methods give the same total depreciation because:1.Both methods fully depreciate the assets over their lives.2.The cost of the assets has remained constant.3.The company is in a steady state in which the number ofnew assets purchased in a period equals the number ofold assets being retired in that period.。

Financial Accounting第五版课后作业答案(部分)

Less: Net income $(40,000)
Add: Dividends 24,000) (16,000 )
Additional investment $ 12,000
(c) Total assets (beginning of year) $129,000
Less: Dividends 1,700
Retained Earnings, June 30 $ 600
DIVINE COSMETICS CO.
Balance Sheet
June 30, 2006
Assets
Retained Earnings, June 1 $ 0
Add: Net income 3,000
3,000
Less: Dividends 1,700
Retained Earnings, June 30 $1,300
Gas and oil expense 800
Advertising expense 500
Utilities expense 300
Total expenses 3,200
Net income $2,300
DIVINE COSMETICS CO.
PROBLEM 1-1A (Continued)
Key to Retained Earnings column on previous page.
(a) Rent Expense
(b) Advertising Expense
(c) Service Revenue
(d) Dividends
(e) Salaries Expense
(b) Service revenue $7,500

(完整word版)MBA财务报表分析考试题及答案

《财务报表分析》一、单项选择题1。

企业（ A ）必须对其投资的安全性首先予以关注。

A.所有者B。

债权人 C.经营者 D.国家2。

财务报表分析中最常用的一种基本方法是( B ）A。

因素分析法B．比较分析法C．比率分析法D．差额分析法3. 对资产负债表的质量进行分析，不包括的是（ D ）。

A。

资产分析B。

负债分析 C.所有者权益分析 D.收益分析4。

( A )是利润形成的主要来源A.主营业务收入B.其他业务收入C.投资收益D.营业外收入5. 现金流量表的编制基础是( B )A。

权责发生制B。

收付实现制C。

永续盘存制D。

定期盘存制6。

企业（ A ）时，可以增加流动资产的实际变现能力。

A.取得应收票据贴现款B.为其他单位提供债务担保C。

拥有较多的长期资产 D.有可动用的银行贷款指标7。

下列经济业务不会影响流动比率的是（ D ）.A.赊购原材料B。

用现金购买短期债券C.向银行借款D。

用存货对外进行长期投资8.销售毛利率+( B ）=1A.变动成本率B.销售成本率C.成本费用率D.销售利润率9。

在杜邦财务分析体系中，综合性最强的财务比率是( A ）。

A.净资产收益率B。

总资产净利率C。

总资产周转率D。

销售净利率10.（ C )的审计报告可读性最差,很难用来帮助财务报表使用者分析企业的财务状况、经营成果和现金流量。

A。

无保留意见 B.带强调事项段的无保留意见C.无法表示意见D。

否定意见二、多项选择题1.财务报表分析的主体有( ABCD )。

A。

投资者 B.债权人 C.经理人员 D.审计师2。

应收账款是企业的一项债权，一般按交易发生日或销售确立日的金额予以入账。

在分析应收账款的质量和流动性时，应注意（ABCD )。

A。

应收账款的规模 B.坏帐损失风险 C.潜在亏损风险D。

应收账款账龄3。

在公司财务中，股东权益包括( ABC ）.A.实收资本B.公积金C。

未分配利润D。

固定资产4。

由于资产都是以历史价值入账的,所以资产的账面价值与实际价值往往有一定差距，表现在：（ABCD ）A。

mbafa《financialaccounting》习题答案9

mbafa《financialaccounting》习题答案9CHAPTER 9LONG-LIVED ASSETSBRIEF EXERCISESBE9–1a. The new method, straight-line depreciation, will increase net income in the early years andreduce income in the later years versus using an accelerated method. An accelerated method of depreciation increases the depreciation charges in the early years of the life of an asset and reduces the depreciation charges in the later years.b. Allegheny may have decided that it wanted depreciation charges to be spread evenly over thelife of an asset so that the impact on net income in any one reporting period was less. It may also feel that it will make its financial statements easier to compare with its competitors.During periods of high fixed asset investment Allegheny’s results may look unfavorable versus other companies that use a straight-line method instead of an accelerated method.c. In the annual report one could look through footnote #1. This footnote typically highlights all ofthe significant accounting policies and methods used by the company to prepare the financial statements.BE9–2a. The recognition of depreciation and amortization affects the basic accounting equation byreducing assets and reducing retained earnings in the stockholders’ equity section. Fixed assets such as property, plant and equipment are reduced through depreciation charges(which are collected in the contra asset account Accumulated Depreciation) which lower net income.Intangible assets are reduced by amortization charges which reduce the net income of the company. This reduction in net income reduces the retained earnings of the company.b. Boeing recognized a gain of $117 million, computed as follows:Accumulated depreciation 2002 $12,719 million+ Depreciation charges for 2003 1,005 million– Accumulated depreciation 2003 12,963 millionAccumulated depreciation on assets sold $ 761 millionPP&E 2002 $21,484 million+ PP&E purchases for 2003 741 million– PP&E 2003 21,395 millionPP&E sold $ 830 million1Derived Journal Entry:Cash (+A) 186Accumulated Depreciation (+A) 761Property, Plant & Equipment (-A) 830Gain on Sale (R, +SE) 117The gain on the sale of property, plant and equipment would be shown in the income state ment, usually in an “other gains and losses” section. These transactions would affect the statement of cash flows in the “funds from investing activities section”. Any sales would be a source of funds in the amount of cash received.BE9–3a. Johnson and Johnson invested $122 million ($594– $472) of land during 2003.b. Accumulated depreciation increased during 2003 because of depreciation expense taken byJohnson and Johnson. Instead of reducing the asset account directly, depreciation expense is added to accumulated depreciation, which offsets the asset account to show its reduction in value.c. During 2003 Johnson and Johnson must have sold some assets that were classified in thefixed assets accounts. These accounts are carried at historical cost so that only the sale of an asset will reduce the account. Any gains or losses on the sale of these assets would be shown on the income statement. The change from 2002 ($14,314) to 2003 ($17,052) is $2,738. Since Johnson & Johnson spent $5,074 on fixed assets, then $2,336 ($5,074 - $2,738) must have been sold.d. Johnson and Johnson would show $9,846 million for property, plant and equipment on itsfinancial statement for 2003. The gross amount and the accumulated depreciation would be disclosed in the footnote.EXERCISESE9–1a. Lowery, Inc., should capitalize all costs associated with getting the equipment in a serviceablecondition and location. These costs would be the actual purchase price of $920,000, the transportation cost of $62,000, and the insurance cost of $10,000. Therefore, the total cost of the equipment is $992,000.b. The depreciation base equals the dollar amount of a fixed asset's cost that the company doesnot expect to recover over the asset's useful life, but instead expects to consume over the asset's useful life. Since the plantequipment's total cost is $992,000 and since Lowery, Inc., expects to sell the equipment for $50,000 at the end of its useful life, Lowery, Inc., does not expect to recover $942,000 of the asset's cost. Therefore, the depreciation base equals $942,000. The depreciation base always equals the capitalized cost of a fixed asset less its estimated salvage value.c. The amount that will be depreciated over the life of the plant equipment is its depreciation base.The depreciation base equals the amount of the equipment's future benefits that the company will consume. The outflow of future benefits are expenses, in this case depreciation expense.Therefore, the total amount that Lowery, Inc., will depreciate over the equipment's useful life is $942,000.E9–2Lot 1 Lot 2 Lot 3 Lot 4Revenue $ 160,000 $ 120,000 $ 60,000 $ 60,000Expenses 128,000* 96,000* 48,000* 48,000*Net income $ 32,000 $ 24,000 $ 12,000 $ 12,000_______________* Expenses were calculated as follows:1. Calculate total market value.Total Market value = $160,000 + $120,000 + $60,000 + $60,000 = $400,0002. Allocate costs to each lot based upon relative market values.Lot 1 = $320,000 × (160,000/400,000) = $128,000Lot 2 = $320,000 × (120,000/400,000) = $ 96,000Lot 3 = $320,000 × (60,000/400,000) = $ 48,000Lot 4 = $320,000 × (60,000/400000) = $ 48,000E9–3a. All costs that are necessary and reasonable to get an asset ready for its intended use should becapitalized as part of the cost of that asset. In the case of property, plant, and equipment, "ready for its intended use" means that the asset is in a serviceable condition and location.LandItem Land Improvements Building Tract of land $90,000Demolition of warehouse 10,000Scrap from warehouse (7,000)Construction of building $140,000Driveway and parking lot $32,000Permanent landscaping 4,000Total $ 97,000 $32,000 $140,000b. Land:Since land is assumed to have an indefinite life, it is never depreciated.Land Improvements:Depreciation Expense—Land Improvements (E, –SE)................... 1,600 Accumulated Depreciation—Land Improvements (–A)............... 1,600 Depreciated land improvements.Building:Depreciation Expense—Building (E, –SE)....................................... 7,000 Accumulated Depreciation—Building (–A).................................. 7,000 Depreciated building.E9–4a. Maintenanceb. Maintenancec. Maintenanced. Bettermente. Maintenancef. Maintenanceg. Bettermenth. Maintenancei. BettermentNote:The classification of these expenditures can be quite subjective. Some accountants might very well classify some of these expenditures differently. For example, one might argue that the cost of the muffler in (h) is actually a betterment expenditure if the reduced noise allows workers to work more efficiently, thereby increasing the productive capacity of the machine.E9–5a. (1) Expensed immediately:Income Statement2008 2007 2006 Revenues $ 65,000 $ 65,000 $ 65,000Amortization 0 0 (40,000)Other expenses (20,000) (20,000) (20,000)Net income $ 45,000 $ 45,000 $ 5,000Balance Sheet12/31/08 12/31/07 12/31/06 AssetsCurrent assets $ 135,000 $ 90,000 $ 45,000Long-lived assets(including land) 50,000 50,000 50,000Total assets $ 185,000 $ 140,000 $ 95,000Liabilities and Stockholders' EquityLiabilities $ 35,000 $ 35,000 $ 35,000Stockholders' equity 150,000 105,000 60,000Total liabilities & stockholders'equity $ 185,000 $ 140,000 $ 95,000E9–5 Continued(2) Amortized over two years:Income Statement2008 2007 2006 Revenues $ 65,000 $ 65,000 $ 65,000 Amortization 0 20,000 20,000Other expenses 20,000 20,000 20,000Net income $ 45,000 $ 25,000 $ 25,000Balance Sheet12/31/08 12/31/07 12/31/06 AssetsCurrent assets $ 135,000 $ 90,000 $ 45,000Long-lived assets (includingland) 50,000 50,000 70,000Total assets $ 185,000 $ 140,000 $ 115,000 Liabilities and Stockholders' EquityLiabilities $ 35,000 $ 35,000 $ 35,000 Stockholders' equity 150,000 105,000 80,000Total liabilities & stockholders'equity $ 185,000 $ 140,000 $ 115,000(3) Amortized over three years:Income Statement2008 2007 2006 Revenues $ 65,000 $ 65,000 $ 65,000 Amortization 13,334 13,333 13,333Other expenses 20,000 20,000 20,000Net income $ 31,666 $ 31,667 $ 31,667Balance Sheet12/31/08 12/31/07 12/31/06 AssetsCurrent assets $ 135,000 $ 90,000 $ 45,000Long-lived assets (includingland) 50,000 63,334 76,667Total assets $ 185,000 $ 153,334 $ 121,667 Liabilities and Stockholders' EquityLiabilities $ 35,000 $ 35,000 $ 35,000Stockholders' equity 150,000 118,334 86,667Total liabilities & stockholders'equity $ 185,000 $ 153,334 $ 121,667b. 2008 2007 2006 TotalMethod 1: $45,000 $45,000 $ 5,000 $95,000 Method 2: 45,000 25,000 25,000 95,000 Method 3: 31,666 31,667 31,667 95,000E9–5 Concludedc. The balance sheets under all three methods report identical amounts for each balance sheetaccount. Since the asset was fully amortized by December 31, 2008, the method used to amortize the asset does not affect the amounts reported on the balance sheet as of December 31, 2008.E9–6a. andb.Stork Freight CompanyIncome StatementFor the Year Ended December 3112-Year Useful Life 6-Year Useful Life Revenues $ 50,000,000 $ 50,000,000 Expenses:Operating expenses $ 25,000,000 $ 25,000,000 Depreciation expense 1,250,000 2,500,000 Total expenses 26,250,000 27,500,000 Net income $ 23,750,000 $ 22,500,000 The percentage decrease in net income would be approximately 5.26% [($22,500,000 – $23,750,000) ÷ $23,750,000].c.12-Year Useful Life 6-Year Useful Life Net income $ 23,750,000 $ 22,500,000Dividend payout percentage 30% 30%Dividends $ 7,125,000 $ 6,750,000The difference in dividends due simply to using different estimated useful lives for the planes would be $375,000 ($7,125,000 – $6,750,000).E9–7a. An asset's book value equals the asset's initial capitalized value less the associatedaccumulated depreciation. With straight-line depreciation, accumulated depreciation equals depreciation expense per year times the number of years the asset has been used. Therefore, the asset's book value would be calculated as follows: Depreciation expense per year = (Cost –Salvage Value) ÷ Useful Life= ($60,000 –$12,000) ÷ 5 years= $9,600 per yearBook Value = Capitalized Cost – Accumulated Depreciation = $60,000 –($9,600 × 3 years)= $31,200E9–7 Concludedb. Depreciation Expense = [(Cost –Accumulated Depreciation) –Salvage Value] ÷Remaining Useful Life= (Book value –Salvage value) ÷ Remaining useful li fe= ($31,200 –$12,000) ÷ 5 remaining years= $3,840Depreciation Expense (E, –SE)....................................................... 3,840 Accumulated Depreciation (–A)................................................. 3,840 Depreciated asset for 2005.E9–8Straight- Double-Declining- ActivityObjective Line Balance Method(a) x1x1x1(b) x x x(c) x x2(d) x(e) x(f) x(g) x x3(h) x x x1Under certain conditions, all three methods could meet this objective. However, for the straight-line method and the double-declining-balance method, this objective will be met only by chance.The activity method will always meet this objective because depreciation is based upon the actual use of the asset.2It is possible that the activity method would generate the largest net income in the last year of an asset's useful life. However, this result would be due to the company's use patterns of the asset and would not be due to the depreciation method per se.3See note (2). The same rationale would hold in this case too.E9–9a. (1) Straight-line depreciation:Depreciation per Year = (Cost –Salvage Value) ÷ Useful Life = ($300,000 –$60,000) ÷ 4 years= $60,000 per year for 2005, 2006, 2007, and 2008E9–9 Concluded(2) Double-declining-balance depreciation:Depreciation Depreciation Accumulated Book Date Factor Expense Cost Depreciation Value1/1/05 $300,000 $ 0 $300,00012/31/05 50% $150,000a300,000 150,000 150,00012/31/06 50% 75,000 300,000 225,000 75,00012/31/07 50% 15,000b300,000 240,000 60,00012/31/08 50% 0 300,000 240,000 60,000 ______________a Depreciation Expense = Book Value at Beginning of the Period × Depreciation Factorb Book Value ×Depreciation Factor = $75,000 ×50% = $37,500. If Benick Industriesdepreciated $37,500 in 2007, the asset's book value would drop below its salvage value. To prevent this from happening, depreciation expense for 2007 can be only $15,000.b. A manager should consider the costs and benefits associated with each depreciation method.The most likely benefit is the impact of depreciation methods on income taxes. An accelerated method decreases the present value of tax payments. However, since there is no requirement that a company use the same depreciation method for financial reporting purposes as it does for tax reporting, tax considerations are not an issue for financial reporting. A manager should also consider the bookkeeping costs associated with each method. However, with computers the bookkeeping costs should be relatively consistent across methods. Finally, since the choice of depreciation methods affects net income, managers might consider the impact of the different depreciation methods on contracts such as debt covenants and incentive compensation contracts. Comparability with other in the same industry may also be a factor.E9–10a. Computer System (+A)....................................................................335,000Cash (–A)........................................................................... 335,000 Purchased computer system.Note: Capitalizing the $10,000 of training costs could be debated. But, without incurring these costs, the computer system would not be in a serviceable condition. Hence, thetraining costs meet the requirement to be capitalized as part of the fixed asset.b. (1) Straight-line depreciation:Depreciation per Year = (Cost –Salvage Value) ÷ Useful Life = ($335,000 –$70,000) ÷ 5 years= $53,000 per year for 2005, 2006, 2007, 2008, and 2009E9–10 Concluded(2) Double-declining-balance depreciation:Depreciation Depreciation Accumulated Book Date Factor Expense Cost Depreciation Value1/1/05 $335,000 $ 0 $335,00012/31/05 40% $134,000a335,000 134,000 201,00012/31/06 40% 80,400 335,000 214,400 120,60012/31/07 40% 48,240 335,000 262,640 72,36012/31/08 40% 2,360b335,000 265,000 70,00012/31/09 40% 0 335,000_____________a Depreciation expense = Book value at beginning of the period×Depreciation factorb Book value ×Depreciation factor = $72,360 ×40% = $28,944. If Stockton Corporationdepreciated $28,944 in 2008, the asset's book value would drop below its salvage value. To prevent this from happening, depreciation expense for 2008 can be only $2,360.c. Depreciation Expense (E, –SE)................................................. 134,000Accumulated Depreciation (–A)......................................... 134,000 Depreciated fixed asset for 2005.E9–111. Activity Method:Depreciation Expense per Mile = ($100,000 –$20,000) ÷ 200,000 Miles= $0.4/MileDepreciation Expense (E, –SE)....................................................... 19,200 Accumulated Depreciation (–A)................................................. 19,200 Depreciated asset for 2005.Depreciation Expense (E, –SE)....................................................... 14,000 Accumulated Depreciation (–A)................................................. 14,000 Depreciated asset for 2006.Depreciation Expense (E, –SE)....................................................... 16,000 Accumulated Depreciation (–A)................................................. 16,000 Depreciated asset for 2007.Depreciation Expense (E, –SE)....................................................... 10,000 Accumulated Depreciation (–A)................................................. 10,000 Depreciated asset for 2008.E9–11 ConcludedDepreciation Expense (E, –SE)....................................................... 14,000Accumulated Depreciation (–A)................................................. 14,000 Depreciated asset for 2009.Depreciation Expense (E, –SE)....................................................... 4,000 Accumulated Depreciation (–A)................................................. 4,000 Depreciated asset for 2010.Cash (+A) .........................................................................................12,000Accumulated Depreciation (+A)....................................................... 77,200Loss on Sale of Truck (Lo, –SE)...................................................... 10,800 Truck (–A)................................................................................... 100,000 Sold truck.2. Straight-line Method:Depreciation Expense per Year = ($100,000 –$20,000) ÷ 5 Years= $16,000/yearDepreciation Expense (E, –SE)....................................................... 16,000 Accumulated Depreciation (–A)................................................. 16,000 Depreciated asset.Note:This entry would be made each year for five years. No entry would be made in Year 6 since the truck's estimated useful life ended at the end of Year 5, which means that the truck would have been depreciated down to its estimated salvage value.Cash (+A) ....................................................................................... 12,000Accumulated Depreciation (+A)....................................................... 80,000Loss on Sale of Truck (Lo, –SE)...................................................... 8,000 Truck (–A)................................................................................. 100,000 Sold truck.E9–12a. Depletion (E, –SE)............................................................................ 1,200,000*Oil Deposits (–A)........................................................................ 1,200,000 Depleted oil deposits.___________* $1,200,000 = ($4,000,000 ÷ 100,000 barrels)×30,000 barrels extractedb. Depletion (E, –SE)............................................................................ 2,000,000*Oil Deposits (–A)........................................................................ 2,000,000 Depleted oil deposits.___________* $2,000,000 = ($4,000,000 ÷ 100,000 barrels)×50,000 barrels extractedc. $800,000E9–13a.Depreciation Expense Correct Annual Cumulative Year Per Company's Books Depr. Exp. Difference Difference2005 $120,000 $25,000 $95,000 $95,0002006 0 25,000 (25,000) 70,0002007 0 25,000 (25,000) 45,0002008 0 25,000 (25,000) 20,000b. After adjusting entries are prepared and posted on December 31, 2007, AccumulatedDepreciation will be understated by $75,000.c. After adjusting entries, but before closing entries have been prepared and posted on December31, 2007, Retained Earnings will be understated by $70,000.d. After both adjusting and closing entries have been prepared and posted on December 31, 2007,Retained Earnings will be understated by $45,000.E9–14a. Cash (+A) .......................................................................................235,000Accumulated Depreciation—Office Equipment (+A)....................... 300,000 Office Equipment (–A)............................................................... 500,000 Gain on Sale of Fixed Assets (Ga, +SE)................................... 35,000 Sold office equipment.b. Cash (+A) ......................................................................................... 185,000Accumulated Depreciation—Office Equipment (+A)....................... 300,000Loss on Sale of Fixed Assets (Lo, –SE)........................................... 15,000 Office Equipment (–A)............................................................... 500,000 Sold office equipment.E9–15Assuming that Paris Company kept the equipment for its entire five-year estimated useful life, the depreciation schedule on the equipment would be as follows.Depreciation Depreciation Accumulated Book Date Factor Expense Cost Depreciation Value1/1/03 $25,000 $ 0 $25,00012/31/03 40% $10,000 25,000 10,000 15,00012/31/04 40% 6,000 25,000 16,000 9,00012/31/05 40% 3,600 25,000 19,600 5,40012/31/06 40% 400* 25,000 20,000 5,00012/31/07 40% 0 25,000 20,000 5,000__________________* Because the equipment's book value cannot drop below its estimated salvage value, depreciation expense for 2006 cannot exceed $400.a. Accumulated Depreciation—Equipment (+A).................................. 19,600Loss on Disposal of Equipment (Lo, –SE)....................................... 5,400 Equipment (–A).......................................................................... 25,000 Disposed of equipment.b. Accumulated Depreciation—Equipment (+A).................................. 20,000Loss on Disposal of Equipment (Lo, –SE)....................................... 5,000 Equipment (-A)........................................................................... 25,000 Disposed of equipment.c. Cash (+A) ....................................................................................... 8,000Accumulated Depreciation—Equipment (+A).................................. 19,600 Equipment (–A).......................................................................... 25,000 Gain on Sale of Fixed Assets (Ga, +SE)................................... 2,600 Sold equipment.d. Fixed Asset (new) (+A).................................................................... 30,000Accumulated Depreciation—Equipment (+A).................................. 20,000Loss on Disposal of Fixed Asset (Lo, –SE)...................................... 3,000 Cash (–A)................................................................................... 28,000 Equipment (old) (–A).................................................................. 25,000 Exchanged fixed assets.E9–16a. andb. First, let us compute the original cost of the equipment that was sold in 2005 asfollows:Equipment Equipment Equipment Equipmentat the End + Purchased – sold during = at the Endof 2004 during 2005 2005 of 2005$32,700 + $12,000 – X = $37,500X = $7,200Now, let us compute the related accumulated depreciation for the equipment sold during 2005 as follows:Accumulated Depreciation Exp. Accumulated Accumulated Depreciation at + for 2005 – Depreciation = Depreciationthe End of 2004 for the Sold at the EndEquipment of 2005during 2005$14,300 + $7,200 – X = $17,600X = $ 3,900 Now, we can reconstruct the journal entry.Cash.................................................................................................5,400*Accumulated Depreciation............................................................... 3,900 Equipment.................................................................................. 7,200 Gain on Sale of Equipment........................................................ 2,100 ___________* $7,200 + $2,100 – $3,900 = $5,400E9–17Account Financial Statementa. Property, plant & equipment Balance SheetLess: accumulated depreciation Balance SheetDepreciation expense Income StatementInvestments in property, plant & equipment Statement of Cash Flowsb. Property, plant & equipment – 2002 $36,912Plus: investments in property, plant & equipment 3,656Less: property, plant & equipment – 2003 38,692Property, plant & equipment sold in 2003 $ 1,876c. Accumulated depreciation – 2002 $19,065Plus: depreciation expense – 2003 4,651Less: accumulated depreciation – 2003 22,031Accumulated depreciation – sold property $ 1,685E9–17 Concludedd. Compute the gain on the sale:Cost of property sold $1,876Less: accumulated depreciation 1,685Book value of property sold $ 191Sales price of property $100Less: book value of property 191Loss on sale of property $ 91This loss on sale of property would appear on the income statement.E9–18a. First, let us compute the related accumulated depreciation for the equipment sold during 2005as follows:Accumulated Depreciation Cap. Accumulated Accumulated Depreciation at + for 2005 – Depreciation = Depreciationthe End of 2004 for the Sold at the EndEquipment 0f 2005during 2005$9,800 + $3,800 – X = $10,500X = $ 3,100 Now, we can reconstruct the journal entry.Cash................................................................................................. 4,300 Loss on Sale of Equipment (900)Accumulated Depreciation............................................................... 3,100 Equipment.................................................................................. 8,300 b. Equipment Equipment Equipment Equipmentat the End + Purchased – sold during = at the Endof 2004 during 2005 2005 of 2005$23,400 + X – $8,300 = $26,900X = $11,800___________Equipment purchased during 2000 = $11,800E9–19a. Swift Corporation should capitalize these costs. Assets are defined as items that are expectedto provide future economic benefits to the entity. Organization costs are costs incurred by an entity prior to starting operations. Such costs include legal fees to incorporate and accountant's fees to set up an accounting system. Without incurring these costs, most companies could not be in business. Consequently, organization costs allow a company to be in business, thereby helping it to generate future benefits. Since these costs help in generating future benefits, they should most definitely be capitalized.b. Theoretically, organization costs should be amortized over their useful life. In the extreme,organization costs provide a benefit over the entire life of a company. Since under the going concern assumption accountants assume that entities will exist indefinitely, it would seem that organization costs should be amortized over an indefinite period. Since this position is not practical, the accounting profession has decided that organization costs should be amortized over a period not to exceed forty years.Assuming that Swift Corporation amortizes its organization costs over the maximum period of forty years, the appropriate adjusting journal entry for a single year would be as follows: Amortization Expense (E, –SE)........................................................1,125 Organization Costs (–A)............................................................. 1,125 Amortized organization costs.c. As mentioned in part (b), organization costs theoretically provide benefits over the entire life ofthe company. Under the going concern assumption, the company is assumed to exist indefinitely. If the company is assumed to exist indefinitely and if organization costs provide benefits over the entire life of the company, then these costs should provide an indefinite benefit. Consequently, organization costs should provide a benefit for an indefinite period of time, which implies that they should be reported as an asset (i.e., future benefit) indefinitely.But if organization costs are amortized, the asset will at some point in time have a zero balance, and the cost of the asset cannot be matched against the benefits the asset will help generate in the future. This situation contradicts the matching principle and the concept of an asset.d. A patent gives a company the exclusive right to use or market a particular product or process,thereby providing the company with an expected future benefit. Consequently, the costs incurred to acquire a patent should be capitalized as an asset and amortized over the patent's useful life. If Swift were to immediately expense the $65,000, the company would be implying that it did not expect to receive any benefits from the patent in the future. If this were the case, one would have to question why Swift purchased the patent in the first place.e. Research and development costs may or may not provide a company with future benefits. Thecompany will not know whether or not a particular R & D。

西方财务会计课后习题答案-精品

西方财务会计课后习题答案-精品2020-12-12【关键字】财务会计The Financial StatementsCheck Points(5 min.) CP 1-1 Store manager decisions:a.What food items to offer and how to market the goodsb.Where to locate a restaurantc.How to finance operationsAccounting helps managers measure the revenue from food sales, the cost of the food, and the profit (or loss) on each food item. Accounting also helps measure which Taco Bells are most profitable and which are losing money. Finally, accounting helps managers decide how to finance operations. Items on YUM! Brands’ income statement that help decide whether to invest in the company:The company earned a net income (rather than a net loss).This year’s net income is more than last year’s.Net sales revenue is increasing from year to year. Student responses may vary.(5 min.) CP 1-2 Accounting is the information system that measures business activities, processes data into reports, and communicates results to people.Bookkeeping is only a part of accounting. Bookkeeping is related to accounting as arithmetic is related to mathematics.(5 min.) CP 1-3Standards of professional conduct are designed to produce relevant and reliable information for decision making. People need relevant and reliable information in order to make wise decisions.If accountants had no ethical guidelines, companies could report inaccurate information. This could cause people to invest in the wrong companies and lose money.(5 min.) CP 1-4 1. Novak can be misled into believing that YUM! Brands ownsmore assets than it actually has.2. The entity concept applies.3. Application of the entity concept will separate Novak’spersonal assets from the assets of YUM! Brands. This will help Novak, investors, and lenders know how much in assets the business controls, and this knowledge will help all parties evaluate the business realistically.(5 min.) CP 1-5 1. Owners’ Equity = Assets – LiabilitiesThis way of determining the amount of owners’ equity applies to eBay, Coca-Cola, your household, a Pizza Hut restaurant, or any other organization.2. Liabilities = Assets –Owners’ Equity3. Total Assets = Total Liabilities + Total Owners’ Equity(5 min.) CP 1-6 1. Assets are the economic resources of a business that areexpected to produce a benefit in the future.Owners’ equity represents the insider claims of a business, the owners’ interest in its assetsAssets and owners’ equity differ in that owners’ equity is a claim to assets, whereas assets are resources.Assets must be at least as large as owners’ equity, so equity can be smaller than assets.2. Both liabilities and owners’ equity are claims to assets.Liabilities are the outsider claims to the assets of a business;they are obligations to pay creditors. Owners’ equity represents the insider claims to the assets of the business, the owners’ interest in its assets.(5-10 min.) CP 1-7a. Accounts receivable A g. Accounts payable Lb. Long-term debt L h. Common stock Ec. Merchandise inventory A i. Supplies Ad. Notes payable L j. Retained earnings Ee. Expenses payable L k. Land Af. Equipment A l. Prepaid expenses A(5 min.) CP 1-81. Revenues and expenses2. Net income (or net loss)3. Total assets are not used to measure net income. Onlyrevenues and gains, expenses and losses enter into the measurement of net income.(10 min.) CP 1-9 2003 2002Percentage of cost= $2,300$7,441= 30.9%$2,109$6,891= 30.6%of goods sold tocompany salesThis trend is unfavorable for YUM because cost of goods sold (an expense) consumed a higher percentage of sales revenue in 2003. That could cause a decrease in profits.(5 min.) CP 1-10IHOP Corp.Statement of Retained EarningsYear Ended December 31, 2003Millions Retained earnings:Balance, beginning of year…………...$274Net income ($405 –$368) (37)Less: Dividends (16)Balance, end of year…………………...$295(10-15 min.) CP 1-11Toby Landscaping ServicesBalance SheetDecember 31, 2008ASSETSCurrent assets:Cash……………………………………………………$ 13,000 Receivables…………………………………………...2,000 Inventory……………………………………………… 40,000 Total current assets…………………………………55,000 Equipment……………………………………………….85,000 Other assets…………………………………………….. 10,000 Total assets……………………………………………...$150,000 LIABILITIESCurrent liabilities:Accounts payable……………………………………$ 8,000 Short-term notes payable…………………………. 12,000 Total current liabilities……………………………...20,000 Long-term liabilities:Long-term debt………………………………………80,000 STOCKHOLDERS’ EQUITYCommon stock………………………………………….15,000 Retained earnings……………………………………… 35,000* Total stockholders’ equity………………………… 50,000 Total liabilities and stockholders’ equity…………..$150,000 _____*Computation:Total assets ($150,000) – current liabilities ($20,000) – long-term debt ($80,000) – common stock ($15,000) = $35,000(10-15 min.) CP 1-12Clearsource Cable, Inc.Statement of Cash FlowsYear Ended December 31, 2006Cash flows from operating activities:Net income………………………………………...$ 88,000 Adjustments to reconcile net income to netcash provided by operating activities…. (20,000) Net cash provided by operating activities.. 68,000 Cash flows from investing activities:Purchases of equipment…………$(300,000)Sale of equipment………………… 90,000Net cash used for investing activities……..(210,000) Cash flows from financing activities:Borrowing…………………………..$150,000Payment of dividends……………. (10,000)Net cash provided by financing activities. 140,000 Net increase (decrease) in cash………………….(2,000) Cash balance, December 31, 2005………………. 24,000 Cash balance, December 31, 2006……………….$ 22,000(10 min.) CP 1-131. Cash BS, SCF2. Net cash used for financing activities SCF3. Accounts payable BS4. Common stock BS5. Interest revenue IS6. Long-term debt BS7. Increase or decrease in cash SCF8. Dividends SRE, SCF9. Salary expense IS10. Inventory BS11. Sales revenue IS12. Retained earnings SRE, BS13. Net cash provided by operating activities SCF14. Net income (or net loss) IS, SRE, SCFExercises(10-15 min.) E 1-1 a. Proprietorship. There is a single owner of the business, sothe owner is answerable to no other owner.b. Partnership. If the partnership fails and cannot pay itsliabilities, creditors can force the partners to pay the business’s debts from their personal assets. A partnership affords more protection for creditors than a proprietorship because there are two or more owners to share this liability.c. Corporation. If the corporation fails and cannot pay itsliabilities, creditors cannot force stockholders to pay theb usiness’s debts from their personal assets. Therefore, themost an investor can lose on an investment in a corporation is the amount invested.d. Corporation. Most investors are willing to invest more in acorporation than in a proprietorship or a partnership because of their limited personal liability for a corporation’s debts.(continued) E 1-1 What form of business organization would you choose?The answer depends on your objective. If you want to maintain absolute control of the business, you may prefer to organize as a proprietorship. If your objective is to maintain a high degree of control but you need additional money or expertise, a partnership may work for you. If you want the business to grow large, or if you wish to avoid personal liability for business debts, you should organize as a corporation.Student responses may vary.(10 min.) E 1-2The income statement reports the revenues and expenses of a particular entity for a period such as a month or a year. Total revenues minus total expenses equals net income, or profit. A lender would require this information in order to predict whether the borrower can generate enough income to repay the loan.The balance sheet reports the assets, liabilities, and owners’ equity of the entity at a particular point in time. The assets show the resources that the business has to work with. Because borrowers pay loans with assets, a lender wants to know the business’s assets (especially cash). Liabilities—debts —represent creditors’ claims to the business’s assets. Owners’ equity is the portion of the business assets owned outright by the owners.Student responses may vary.(5-10 min.) E 1-3a. Entity conceptb. Going-concern conceptc. Cost principled. Entity concept (No, Comer could not determine the successor failure of the business solely from his checkbook.)e. Reliability (Objectivity) principle (PepsiCo. should wait torecord a gain or loss after it sells the land.)(5-15 min.) E 1-4 (Amounts in billions)Assets = Liabilities + Owners’ Equity Dell $19 $13 $ 6Pier 1 Imports 0.9 0.3 0.6 Boeing 53 45 8Pier 1 appears to have the strongest financial position because its liabilities make up the smallest percentage of company assets ($3 / $9 = .333). Stated differently, Pier 1’s equity is the highest percentage of company assets ($6 / $9 = .667).(10-15 min.) E 1-5 Req. 1(Amounts in millions)Assets = Liabilities + Stockholders’Equity$141 $ 60202 7767Total $410 = $137 + $273Resources to workwithcreditors stockholdersReq. 5Krispy Kreme appears able to pay current liabilities of $60 million because current assets are over twice as large as current liabilities.Krispy Kreme also appears able to pay total liabilities because total assets far exceed total liabilities.(10-20 min.) E 1-6Situation1 2 3BillionsTotal stockholders’ equit yJanuary 31, 2003 ($30 –$10)………….. $20 $20 $20 Add: Issuances of stock……………….. 1 -0- 5 Net income…………………………. 1* 4*Less: Dividends…………………………... -0- (2) (1) Net loss…………………………….. (2)* Total stockholders’ equity,January 31, 2004 ($34 –$12)………….. $22 $22 $22 Situation 2 indicates the strongestis the highest.Situation 3 is the weakest because of the net loss._____*Must solve for these amounts.(10-15 min.) E 1-7 1. Fossil Inc.(Amounts in millions)Assets = Liabilities + Stockholders’EquityBeginning $ 483 = $142 + $341 Multiplier for increase 1.217Ending $ 5882. Bed Bath & Beyond(Amounts in billions)Assets –Liabilities = Stockholders’EquityBeginning amount $2.2 –$0.7 = $1.5 Net income 0.4 Ending amount $1.9(10-15 min.) E 1-8a. Balance sheetb. Income statementc. Balance sheetd. Balance sheete. Statement of retained earnings, Statement of cash flowsf. Income statementg. Balance sheet, Statement of retained earningsh. Income statementi. Balance sheetj. Statement of cash flowsk. Income statementl. Statement of cash flowsm. Balance sheet, Statement of cash flowsn. Balance sheeto. Income statement, Statement of retained earnings, Statement of cash flows(10-20 min.) E 1-9Wells Fargo & CompanyBalance Sheet (Adapted; Amounts in billions)December 31, 2003ASSETS LIABILITIESCash $ 16 Current liabilities $290 Receivable 253 Long-term liabilities 64 Investment assets 72 Total liabilities 354 Property andequipment, net 4 STOCKHOLDERS’Other assets 43EQUITYCommon stock 12Retained earnings 22*Total stockholders’ equity 34Total liabilities andTotal assets $388 stockholders’ equity$388 _____*Computation of retained earnings:Total assets ($388) – Total liabilities ($354) – Common stock ($12) = $22(15-25 min.) E 1-10 Req. 1Wells Fargo & CompanyIncome Statement (Adapted)Year Ended December 31, 2003Billions Total revenue……………………………………….$32 Expenses:Interest expense………………………………..$ 3Salary and other employee expenses (9)Other expenses (14)Total expenses (26)Net income………………………………………….$ 6 Req. 2The statement of retained earnings helps to compute dividends, as follows:Statement of Retained Earnings (Adapted)Billions Retained earnings, beginning of year..................... $19 Add: Net income for the year (Req. 1) (6)25 Less: Dividends (3)Retained earnings, end of year (from Exercise 1-9)…… $22 earnings.(15-20 min.) E 1-11ADP, Inc.Statement of Cash FlowsYear Ended December 31, 2004Millions Cash flows from operating activities:Net income………………………………………...$ 395Adjustments to reconcile net income tonet cash provided by operating activities….. 2,330 Net cash provid ed by operating activities………… $2,725 Cash flows from investing activities:Net cash used for investing activities…………... (3,140) Cash flows from financing activities:Net cash provided by financing activities (420)Net incr ease in cash (5)Beginning cash balance (145)Ending cash balance……………………………………….. $ 150Total assets –Balance sheetTotal liabilities –Balance sheetNet income…………………………………………. $ 7,500 Adjustments to reconcile net incometo net cash provided by operations……………. 2,000 Net cash provided by operating activit ies… 9,500 Cash flows from investing activities:Acquisition of equipment………………………… $(36,000) Net cash used for investing activities………(36,000) Cash flows from financing activities:Issuance (sale) of stock to owners…………….. $ 35,000Payment of dividends................................... (2,000) Net cash provided by financing activities.... 33,000 Net increase in cash.........................................$ 6,500 Cash balance, June 30, 20X6.. 0Cash balance, July 31, 20X6…………………………$ 6,500(10-15 min.) E 1-15 TO: Owner of Kinko’s storeFROM: Student NameSUBJECT: Opinion of operating results, dividends, financial position, a nd cash flowsYour first month of operations appears to have been successful. Revenues totaled $12,400 and net income was $7,500. These operating results look very strong.The company was able to pay a $2,000 dividend, and this should make you happy with so quick a return on your investment.Your financial position looks secure, with assets of $43,700 and liabilities of only $3,200. Your stockholders’ equity is $40,500.Operating activities generated cash of $9,500, which is respectable. You ended the month with cash of $6,500. Based on the above facts, I believe you should stay in business. Student responses may vary.(15-20 min.) E 1-16 a. The single best source of cash for a business is net incomeand the related cash receipts. This source of cash is best because it results from the core operations of the business.b. Borrowing, issuing stock, and selling land, buildings, andequipment can bring in cash even when the company has losses.c. P aying large dividends will cause retained earnings to be low.d. Heavy investing activity and paying off debts can result in acash shortage even if net income has been high.e. You can finance the payment of current liabilities in severalways: Borrow money, issue (sell) stock to stockholders, or sell long-term assets such as land, buildings, and equipment.Practice Quiz1. d2. a3. b4. b5. d6. a7. b8. c9. d10. c ($140,000 – $22,000 – $8,000 – $3,000 = $107,000)11. d ($110,000 + $95,000 – $30,000 = $175,000)12. d13. b14. aBegin.ChangesEnd._____15. cBegin.–End.ProblemsGroup A(15-30 min.) P 1-1A TO: Investment committeeSUBJECT: Genome Science Corporation request for us to buy its stockI recommend purchasing Genome Science stock because:1. Operations are the main source of Genome’s cash, and thecompany is increasing cash without a lot of borrowing.Moreover, Genome has been investing lots of money in long-term assets, as shown by its investing cash flows.2. Net income has increased dramatically during the past twoyears.3. Total assets have grown from $590,000 to $990,000 duringthe past two years, and liabilities have risen more slowly.I believe Genome has a bright future and that its stock islikely to increase in value.Student responses may vary.(15-20 min.) P 1-2A Req. 1General Electric CompanyIncome StatementYear Ended December 31, 20X5Billions Sales revenue………………………..$ 53Other revenue (73)Total revenue………………………...$126Cost of goods sold (36)Other expenses (70)Total expenses (106)Income before income tax (20)Income tax expense ($20 .30) (6)Net income……………………………$ 14(continued) P 1-2A Req. 2a. Reliability (objectivity) principle. Report revenues at theiractual sale value because that amount is more reliable than what management believes the goods are worth.b. Cost principle. Account for expenses at their actual cost, nota hypothetical amount that the company might have incurredif the products were purchased outside.c. Cost principle. Account for expenses at their actual cost.d. Entity concept. Each division of the company is a separateentity, and the company as a whole constitutes an entity for accounting purposes.e. Stable-monetary-unit concept. Accounting in the UnitedStates ignores the effect of inflation.f. Going-concern concept. There is no evidence that GeneralElectric is going out of business, so it seems safe to assume that the company is a going concern.(30-40 min.) P 1-3Abillions .FedEx Corp. Coca-Cola Ford Company Corp.Beginning :Assets $12 $17 $279 – Liabilities (7) (10) (228) = Owners’ equity $ 5 $ 7 $ 51Ending :Assets$13 $19 – Liabilities (7) (11) (204) = Owners’ Equity$ 6 $ 8 $ 65Owners’ Equity :Issuance of stock $ 1 – DividendsIncome Statement :Revenues$20 $119– Expenses(19) (97) = Net income$ 1 $ 4 $ 22Statement of owners’ equi ty :Beginning owners’ equity+ Issuance of stock+ Net income– Dividends(1) (3) (9) = E nding owners’ equity$ 6 $ 8 $ 65 __________ 1$5 + Issuance of stock2Net income = $4 3Assets = liabilities + OE + $1 – $1 = $6Revenue – expenses = net income Assets = $204 + $65 Issuance of stock = $1$19 – expenses = $4 Assets = $269 Expenses = $15(continued) P 1-3AFedEx Coca-Cola FordCorp. Company Corp.Percentage of liabilities to assets = $ 7 $11 $204$13 $19 $269= 53.8% = 57.9% = 75.8% Lowest 2nd LowestPercentage of net income to revenues = $ 1 $ 4 $ 22 $20 $19 $119= 5% = 21.1% = 18.5%HighestOn these measures, Coca-Cola looks the strongest. Coca-Cola has the second lowest percentage of liabilities to assets and the highest percentage of net income to revenues.(20-25 min.) P 1-4A Req. 1ICON, Inc.Balance SheetJuly 31, 20X7ASSETS LIABILITIESCash $15,000 Accounts payable $ 9,000 Accounts receivable 12,000 Note payable 16,000 Office supplies 1,000 Total liabilities 25,000 Office furniture 10,000 STOCKHOLDERS’Land 44,000 EQUITYStockholders’ equity 57,000*Total liabilities andTotal assets $82,000 stockholders’ equity $82,000 _____*Total assets ($82,000) – Total liabilities ($25,000) = Stockholders’ equity ($57,000).Req. 2ICON, Inc., is in better financial position than the erroneous balance sheet reports. True, assets are lower than reported, but by only $10,500 ($92,500 –$82,000). But liabilities are much lower, and owne rs’ equity is $36,300 higher than reported originally. Overall, ICON has less debt and more equity than first reported.Req. 3The following accounts are not reported on the balance sheet because they are revenues or expenses. These accounts are reported on the income statement.Rent expenseAdvertising expenseService revenueProperty tax expense(20-25 min. P 1-5A Req. 1Marjorie Caballero, Realtor, Inc.Balance SheetNovember 30, 2004ASSETS LIABILITIESCash $ 6,000 Accounts payable $ 6,000 Office supplies 1,000 Note payable 40,000 Franchise 20,000 Total liabilities 46,000 Furniture 17,000 STOCKHOLDERS’Land 120,000 EQUITYCommon stock 50,000Retained earnings 68,000*Total stockholders’ equity 118,000Total liabilities and ________ Total assets $164,000 stockholders’ equity$164,000 _____*Total assets ($164,000) – Total liabilities ($46,000) – Common stock ($50,000) = $68,000.Req. 2It appears that Caballero’s realty business can pay its debts. Total assets far exceed total liabilities.Req. 3Personal items not reported on the balance sheet of the business: a. Personal cash ($10,000)b. Personal account payable ($1,800)g. Personal residence ($160,000) and mortgagepayable ($100,000)(30-45 min.) P 1-6A Req. 1Hercules, Inc.Income StatementYear Ended December 31, 20X8RevenueService revenue…………………$220,000 ExpensesSalary expense………………….$63,000Rent expense…………………….23,000Advertising expense……………13,000Interest expense………………...9,000Property tax expense………….. 4,000Total expenses………………….. 112,000 Net income………………………….$108,000 Req. 2Hercules, Inc.Statement of Retained EarningsYear Ended December 31, 20X8Retained earnings, be ginning of year…… $ 10,000Add: Net income for the year…………… 108,000118,000 Less: Dividends……………………………. (70,000)Retained earnings, end of year…………… $ 48,000(continued) P 1-6A Req. 3Hercules, Inc.Balance SheetDecember 31, 20X8ASSETS LIABILITIESCash $ 10,000 Accounts payable $ 19,000 Accounts receivable 12,000 Salary payable 1,000 Supplies 3,000 Note payable 185,000 Furniture 20,000 Total liabilities 205,000 Building 150,000 STOCKHOLDERS’Land 98,000 EQUITYCommon stock 40,000Retained earnings 48,000Total stockholders’ equity 88,000Total liabilities andTotal assets $293,000 stockholders’ equity$293,000 Req. 4a. Hercules was profitable; net income was $108,000.b. Retained earnings increased by $38,000 —from $10,000 to$48,000.c. Total liabilities ($205,000) exceeds stockholders’ equity($88,000).The creditors own more of Hercules’ assets than do the company’s stockholders.(20 min.) P 1-7A Req. 1Nike, Inc.Statement of Cash FlowsYear Ended May 31, 20X4Millions Cash flows from operating activities:Net income…………………………………………. $796 Adjustments to reconcile net incometo cash provided by operations (473)Net cash provided by op erating activities (323)Cash flows from investing activities:Purchases of property, plant, and equipment.. $(510)Sales of property, plant, and equipment (24)Other investing cash receipts (33)Net cash used for investing activities (453)Cash flows from financing activities:Borrowing………………………………………….$ 388Issuance of common stock (26)Payment of dividends (101)Net cash provided by financing activities 313 Net increase in cash....................................... $ 183 Cash, beginning (262)Cash, ending………………………………………….. $ 445 Req. 2Operations and financing provided roughly equal amounts of cash. This signals a little financial weakness. Operations should be the main source of cash.(40-50 min.) P 1-8A Req. 120X6 20X5(Thousands)STATEMENT OF OPERATIONSRevenues $94,749 = $ k $88,412Cost of goods sold (74,564) (a) = 65,586 Other expenses (15,839) (13,564)Income before income taxes 4,346 9,262Income taxes (36.95% in 20X6) 1,606 = (l) (1,581)Net income 2,740 = $ m $ b = 7,681 STATEMENT OF RETAINED EARNINGSBeginning balance 17,213 = $ n $ 9,987Net income 2,740 = o c = 7,681 Dividends (559) (455)Ending balance 19,394 = $ p $ d = 17,213 BALANCE SHEETAssets:Cash 83 = $ q $ e = 45 Property, plant and equipment 23,894 20,874Other assets 18,564 = r 16,900 Total assets 42,541 = $ s $37,819Liabilities:Current liabilities 11,454 = $ t $ 9,973Long-term debt and other liabilities 11,331 10,120 Total liabilities 22,785 f = 20,093 Shareholders’ Equity:Common stock $ 229 $ 230Retained earnings 19,394 = u g = 17,213 Other shareholders’ equity 133 283 Total shareholders’ equity19,756 = v 17,726Total liabilities and shareholders’ equity42,541 = $ w $ h = 37,819 STATEMENT OF CASH FLOWSNet cash provided by operating activities 2,383 = $ x $ 2,906Net cash used for investing activities (3,332) (3,792)Net cash provided by financing activities 987 911 Increase (decrease) in cash 38 i = 25 Cash at beginning of year 45 = y 20Cash at end of year 83 = $ z $ j = 45(continued) P 1-8A Req. 2a. Operations deteriorated during 20X6. Revenues increased,but net income fell from $7,681 thousand to $2,740 thousand.b. The company retains most of its net income for use in thebusiness. Dividends were much less than net income.c. Total assets at the end of 20X6 were $42,541 thousand. Thisis the amount of total resources that the company has towork with as it moves into the year 20X7.d. At the end of 20X5, the company owed total liabilities of$20,093 thousand. At the end of 20X6, the company owed $22,785 thousand.e. The company’s major source of cash is operating activities,and cash is increasing. Based on these two facts, it appears that the comp any’s ability to generate cash is strong despite the dip in 20X6 net income. The company is using most of its cash to expand. This is clear from the large amounts of cash used for investing activities, which indicate that the company is growing.ProblemsGroup B(15-30 min.) P 1-1B TO: Edward Jones loan committeeSUBJECT: Kaiser Corporation loan requestI recommend not lending $50 million to Kaiser because:1. Operations are generating less and less of the company’scash, and the cash balance has decreased by $120 million during the past three years.2. Revenues decreased in 2007, and net income has decreasedfor the past two years.3. Dividends have exceeded net income for the past two years.As a result, stockholders’ equity has decreased from $400 million to $330 million.4. Liabilities have increased from $260 million to $390 million,which exceeds stockholders’ equity. A $50 million loan to Kaiser would make this situation worse.I doubt Kaiser could repay this loan.Student responses may vary.(15-20 min.) P 1-2B Req. 1Chrysler Division of DaimlerChrysler CorporationIncome StatementYear Ended December 31, 20X5Billions Sales revenue……………………………..$69.4Other revenue…………………………….. 5.8Total revenue……………………………...$75.2Cost of g oods sold……………………….$59.0Selling and administrative expenses… 3.7Other expenses……………………….….. 4.5Total operating expenses………………. 67.2Income before income tax………………8.0Income tax expense ($8.0 .35)………. 2.8Net income………………………………... $ 5.2(continued) P 1-2B Req. 2a. Reliability (objectivity) principle. Report revenues at theiractual sale value because that amount is more reliable than what management believes the good are worth.b. Cost principle. Account for expenses at their actual cost, nota hypothetical amount that the company might have incurredif the products were purchased outside.c. Cost principle. Account for expenses at their actual cost.d. Entity concept. Each division of the company is a separateentity, and the company as a whole constitutes an entity for accounting purposes.e. Stable-monetary-unit concept. Accounting in the UnitedStates ignores the effect of inflation.f. Going-concern concept. There is no evidence that Chrysler isgoing out of business, so it seems safe to assume that the division is a going concern.(30-40 min.) P 1-3BAmounts in billionsBest Buy Pier 1 Wal-Mart Beginning:Assets $ 3.0 $ 0.7 $ 78–Liabilities (1.9) (0.2) (47)= Owners’ equity $ 1.1 $ 0.5 $ 31 Ending:Assets $ 4.8 $ 0.9–Liabilities (3.0) (0.3) (48)= Owners’ Equity $ 1.8 $ 0.6 $ 35 Owners’ Equity:Issuance of stock $ 0 $ 0–Dividends (0)Income Statement:Revenues $218–Expenses (211)= Net income $ 7 Statement of owners’ equity:Beginning owners’ equity+ Issuance of stock+ Net income–Dividends (0) (0) (3)= En ding owners’ equity $ 1.8 $ 0.6 $ 35。

mba_fa_《financial_accounting》_习题答案5

CHAPTER 5USING FINANCIAL STATEMENT INFORMATIONBRIEF EXERCISEBE5–1Coke Pepsi(a) ROE = Net Income/Average Stockholders Equity 33.6% 33.3%ROA = (Net Income +[Interest Expense (1-Tax Rate)])/Average Total Assets 17.3% 15.1% Common Equity Leverage = Net Income/(Net Income +[Interest Expense(1-Tax Rate)]) 96.9% 96.9% Capital Structure Leverage = Average Total Assets/Average Stockholders Equity 2.00 2.28 Return on Sales = Net Income + [Interest Expense(1- Tax Rate)]/Net Sales 21.3% 13.7% Asset Turnover = Sales/Average Total Assets .81 1.11Coke and Pepsi return similar percentages on equity, but Coke is slightly better at generating a return from assets. Leverage is similar with Pepsi showing higher relative debt levels, according to the Capital Structure Leverage ratio. Coke shows a large advantage on its margin on converting sales into profits, but Pepsi generates more sales from each dollar of assets.(b) ROA x Common Equity Leverage x Capital Structure Leverage = ROECoke: .173 x ..969 x 2.00 = .335 (rounding)Pepsi: .151 x .969 x 2.28 = .334 (rounding)(c) Profit Margin x Asset Turnover = ROACoke: .213 x .81 = .173Pepsi: .137 x 1.11 = .152 (rounding)(d) Coke has only a slight edge in ROE, but its ROA is over two points higher than that of Pepsi.The advantage in ROA is driven by the much higher profit margin (21.3% versus 13.7%) of Coke. Coke is better at converting sales into profits.1EXERCISESE5–1Profitability Ratios:Return on Equity = Net Income ÷ Average Stockholders’ Equity2002: $1,893 ÷ 27,888 = .0682003: $3,578 ÷ 28,342.5 = .126Return on Sales = (Net Income + [Interest Expense (1 – Tax Rate)]) ÷ Net Sales 2002: ($1,893 + [0 x (1 - .29)]) ÷ $18,915 = .1002003: ($3,578 + [0 x (1 - .29)]) ÷ $18,878 = .190Solvency Ratios:Current Ratio = Current Assets ÷ Current Liabilities2002: $ 17,433 ÷ $ 8,375 = 2.082003: $ 13,415 ÷ $ 8,294 = 1.62Leverage Ratios:Capital Structure Leverage Ratio = Average Total Assets ÷ Average Total Stockholders’ Equity2002: $36,516.5 ÷ $27,888 = 1.312003: $37,451 ÷ $28,342.5 = 1.32Overall, by examining the above computed ratios, it appears that Cisco would be a good investment. Profitability increased substantially from 2002 to 2003, while leverage remained constant. The only ratio that would be somewhat negative is the decrease in solvency, but the current ratio is still adequate.2E5–2Profitability Ratios:Return on Equity = Net Income ÷ Average Stockholders’ Equity2002: $3,117 ÷ 35,649 = .0872003: $5,641 ÷ 36,657 = .154Return on Sales = (Net Income + [Interest Expense (1 – Tax Rate)]) ÷ Net Sales 2002: ($3,117 + [194 x (1 - .24)]) ÷ $26,764 = .1222003: ($5,641 + [192 x (1 - .24)]) ÷ $30,141 = .192Solvency Ratios:Current Ratio = Current Assets ÷ Current Liabilities2002: $18,925 ÷ $6,595 = 2.872003: $22,882 ÷ $6,879 = 3.33Leverage Ratios:Capital Structure Leverage Ratio = Average Total Assets ÷ Average Total Stockholders’ Equity2002: $44,309.5 ÷ $35,649 = 1.242003: $45,683.5 ÷ $36,657 = 1.25Overall, by examining the above computed ratios, it appears that Intel would be a good investment. The ROE and Return on Sales have increased from 2002 to 2003, as has solvency. Leverage has remained low.E5–3Based on the information provided by Ginny’s Fashions, we can compute the following ratios:1.Return on Equity = Net Income ÷ Average Stockholders’ Equity2005: $17,000 ÷ $31,000 = .5482006: $18,000 ÷ $35,500 = .5072.Return on Sales = (Net Income + [Interest Expense (1 – Tax Rate)]) ÷ Net Sales2005: $17,000 + [2000 (1 - .3)] ÷ $70,000 = .2632006: $18,000 + [2000 (1 - .3)] ÷ $74,000 = .2623E5–3 Concluded3.Current Ratio = Current Assets ÷ Current Liabilities2005: $14,000 ÷ $7,000 = 2.02006: $21,000 ÷ $9,000 = 2.334.Debt/Equity Ratio = Total Liabilities ÷ Total Stockholders’ Equity2005: $33,000 ÷ $31,000 = 1.0652006: $33,000 ÷ $40,000 = .825Generally, a lot more information is available to a bank loan officer to decide upon a long-term loan. However, given the limited information, I would support only a short-term loan rather than a long-term loan. The return on equity has declined while the return on sales has remained stable, indicating that the company is not making any gains in its profitability. The current ratio is encouraging, indicating the company’s short-term solvency is not in question. In terms of cash flows, the company’s cash flow from operating activities is positive but declining considerably. It seems it is financing its asset base partly from long-term loans and partly from its own operations. Overall, as a bank loan officer, my bank’s interest will be safely protected if I approve only a short-term loan and not a long-term loan.E5–4a.Profitability Ratios:Return on Equity = Net Income ÷ Average Stockholders' Equity= $16,500 ÷ [($29,000 + $36,500) ÷ 2]= .504Return on Assets = (Net Income + [Interest Expense (1–Tax Rate)]) ÷ Average Total Assets = ($16,500 + [$5,000 x (1- .34)]) ÷ [($81,000 + $99,000) ÷ 2]= .22Earnings per Share = Net Income ÷ Average Number of Common Shares Outstanding= $16,500 ÷ [(2,000 shares + 2,000 shares) ÷ 2]= $8.25Return on Sales = (Net Income + [Interest Expense (1 – Tax Rate)])÷ Net Sales= ($16,500 + [$5,000 x (1 - .34)]) ÷ $72,000= .275Interest Coverage = (Net Income Before Taxes and Interest Expense) ÷ Interest Expense = $30,000 ÷ $5,000= 6.004E5–4 ContinuedSolvency Ratios:Current Ratio = Current Assets ÷ Current Liabilities= ($9,000 + $12,000 + $18,000) ÷ $16,500= 2.36Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) ÷ Current Liabilities = ($9,000 + $12,000) ÷ $16,500= 1.27Activity Ratios:Receivables Turnover = Net Credit Sales ÷ Average Accounts Receivable= $72,000 ÷ [($9,000 + $12,000) ÷ 2]= 6.86Inventory Turnover = Cost of Goods Sold ÷ Average Inventory= $30,000 ÷ [($15,000 + $18,000) ÷ 2]= 1.82Capitalization Ratios:Financial Leverage = Return on Equity – Return on Assets= .504 – .22= .284Debt/Equity = Total Liabilities ÷ Total Stockholders' Equity= ($16,500 + $46,000) ÷ ($20,000 + $5,000 + $11,500)= 1.71Market Ratios:Price/Earnings Ratio = Market Price per Share ÷ Earnings per Share= $36 ÷ $8.25= 4.36Dividend Yield = Dividends per Share ÷ Market Price per Share= ($9,000 ÷ 2,000 shares) ÷ $36= .125Return on Investment = (Market Price1 – Market Price0 + Dividends per Share) ÷Market Price0= ($36 – $30 + $4.50) ÷ $30= .355E5–4 Concludedb. 2006 2005Balance SheetCash 9% 9%Accounts receivable 12 11Inventory 18 19Long-lived assets (net) 61 61Total assets 100% 100%Accounts payable 17% 15%Long-term liabilities 46 49Common stock 20 25Additional paid-in capital 5 6Retained earnings 12 5Total liabilities & stockholders' equity 100% 100%Income StatementSales 100%Cost of goods sold 42Gross profit 58%Operating expenses 17Income from operations 41%Interest expense 7Income from continuing operations (before taxes) 34%Income taxes 12Net income 22%c. The company is making a handsome return of 27.5% on sales. Its return on equity is morethan 50%. Since the return on equity measures a company’s ability to use equity investor’s capital to generate net assets through operations, a return of more than 50% indicates that Ken’s Sportswear has exceptional earning power.The current ratio of Ken’s Sportswear has gone down from 2.58 for the year 2005 to 2.36 for the year 2006, but it is still very good. It is indicative of the fact that the company has more than twice the current assets to meet its short-term obligations.Just as the current ratio provides information about the short-term solvency position of the company, the debt/equity ratio provides information about the long-term solvency of the company. Ken’s Sportswear has a debt/equity of 1.79 in 2005 and 1.71 in 2006. This means that the company has more debt than equity. A ratio of 1 would indicate that 50% of the company is financed by the stockholders and the remaining 50% is financed by the creditors. Therefore, a ratio of more than 1 indicates that the company has more debt than equity, which often can be a cause for concern. In summary, the company does not have any solvency problems in the short run but could face solvency problems in the future if its return on equity, financial leverage, and other activity ratios decline.6E5–5a. Current Ratio = Current Assets ÷ Current Liabilities2002: $3,136 ÷ $2,113 = 1.482003: $5,740 ÷ $2,726 = 2.112004: $6,689 ÷ $2,492 = 2.68b. Gross Profit as a % of Sales = Gross Profit ÷ Net Sales2002: $4,144 ÷ $13,848 = .302003: $4,913 ÷ $14,455 = .342004: $5,968 ÷ $15,854 = .38c. Inventory Turnover = Cost of Goods Sold ÷ Average Inventory2003: $9,542 ÷ [($1,769 + $2,048) ÷ 2] = 5.002004: $9,886 ÷ [($2,048 + $1,704) ÷ 2] = 5.27Average Days Supply of Inventory = 365 ÷ Inventory Turnover2003: 365 ÷ 5.00 = 73 days2004: 365 ÷ 5.27 = 69 daysd. Over the three-year period, solvency has improved, as has the profitability per sale. Inventoryturnover has improved, reducing the average shelf time of the inventory by four days. The company is better able to cover its current obligations due to the improvement in the efficiency of its inventory management.7E5–6a. 20042004 Ending Cash Balance = 2004 Beginning Cash Balance + Change in Cash= $0 + $78= $78Change in Cash = Cash from Operating Activities + Cash from InvestingActivities + Cash from Financing Activities $78 = Cash from Operating Activities – $400 + $800Cash from Operating Activities = $(322)20052005 Ending Cash Balance = 2005 Beginning Cash Balance + Change in Cash$76 = Beginning Cash Balance – $22005 Beginning Cash Balance = $78or2005 Beginning Cash Balance = 2004 Ending Cash Balance= $78Change in Cash = Cash from Operating Activities + Cash from InvestingActivities + Cash from Financing Activities$(2) = $(252) + Cash from Investing Activities + $400 Cash from Investing Activities = $(150)20062006 Ending Cash Balance = 2006 Beginning Cash Balance + Change in Cash$156 = $76 + Change in CashChange in Cash = $80Change in Cash = Cash from Operating Activities + Cash from InvestingActivities + Cash from Financing Activities$80 = Cash from Operating Activities + $150 – $200 Cash from Operating Activities = $130Beecham was using debt and/or equity during 2004 and 2005 to finance the acquisition of productive assets (i.e., investing activities) and to cover cash outflows from operating activities.During 2006, the company started generating cash from operating activities and used this cash—along with selling productive assets—to reduce its debt and/or equity and to build a cash reserve.8E5–6 Concludedb. Other than at the beginning of 2004, the company always had a positive cash balance. Fromthat standpoint the company was solvent throughout the three-year period. A more detailed analysis of Beecham's solvency, however, requires an analysis of the company's operating performance, financial flexibility, and liquidity. During 2004 and 2005, Beecham did not generate cash flows from operating activities. The company remained solvent by issuing additional debt or equity. Since the company was able to acquire additional debt or equity financing in 2004 and 2005 and was able to sell off assets during 2006, it appears that Beecham does have some financial flexibility. However, without having the associated balance sheets, it is not possible to adequately assess Beecham's financial flexibility and liquidity.Based upon the limited information provided, it appears that Beecham faced some potential solvency problems in 2004 and 2005, but was able to overcome these problems by issuing additional debt or equity.E5–7a. (1) Current Ratio = Current Assets ÷ Current Liabilities2005: $385,000 ÷ $170,000 = 2.262006: $400,000 ÷ $460,000 = 0.87(2) Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) ÷ Current Liabilities2005: ($30,000 + $10,000 + $95,000) ÷ $170,000 = 0.7942006: ($15,000 + $225,000+ $90,000) ÷ $460,000 = 0.717b. Receivables Turnover = Net Credit Sales ÷ Average Accounts Receivable2005: $780,000 ÷ [($100,000 + $95,000) ÷ 2] = 8.002006: $800,000 ÷ [($95,000 + $90,000) ÷ 2] = 8.65Number of Days Outstanding = 365 ÷ Receivables Turnover2005: 365 ÷ 8.00 = 45.6252006: 365 ÷ 8.65 = 42.197c. Solvency refers to a company's ability to meet its debts as they come due. Current liabilitiesrepresent the debts that are expected to come due first. Therefore, to be solvent, a company must have sufficient cash or near-cash assets to meet these current liabilities. Total current assets is one measure of near-cash assets. As indicated by the change in the company's current ratio, the company has insufficient current assets available to settle its current liabilities.The company's quick ratio worsened during 2006. Given that the company has insufficient current assets and insufficient cash, marketable securities, and accounts receivable to meet its debts, it can probably be concluded that the company's overall solvency position is not strong.9E5–8a. Return on Equity = Net Income ÷ Average Stockholders' Equity2003: $510,000 ÷ [($100,000 + $100,000) ÷ 2] = 5.102004: $490,000 ÷ [($100,000 + $290,000) ÷ 2] = 2.512005: $515,000 ÷ [($290,000 + $315,000) ÷ 2] = 1.702006: $505,000 ÷ [($315,000 + $510,000) ÷ 2] = 1.22It appears that the additional capital provided by the owners has not been used to generate net income. The company's net income has been relatively constant from 2003 to 2006. If the company had been effective at using the additional capital, the company's net income should have increased, and return on equity should have been relatively constant or increasing over time. However, if the company has used the additional capital for long-term projects, such as a new product, these projects may not generate any net income for several years. Once these projects begin generating income, the company's return on equity may increase to more appropriate levels. Therefore, the effectiveness of the company at using the owners' capital cannot be adequately evaluated without additional information.b. It appears that the company has overinvested in inventory. The inventory turnover and thedays' supply of inventory for each year are:2003 2004 2005 2006 Inventory turnover 12.00 5.93 4.85 4.09Days' supply 30.42 61.55 75.26 89.24These ratios indicate that the company went from having one month's supply of inventory on hand to having almost three months of inventory on hand. It appears that the company has more inventory on hand than is warranted, given demand for the inventory. The company could reduce inventory on hand and invest the proceeds in income-producing assets such as marketable securities. Such a move would make the company more profitable and provide owners a greater return on their investments. This change in investment policy would increase the company's return on equity.E5–9a. Current Ratio = Current Assets ÷ Current Liabilities2003: $20,000 ÷ $8,000 = 2.5002004: $24,000 ÷ $13,000 = 1.8462005: $31,000 ÷ $25,000 = 1.2402006: $35,000 ÷ $30,000 = 1.167Debt/Equity Ratio = Total Liabilities ÷ Total Stockholders' Equity2003: ($8,000 + $15,000) ÷ ($20,000 + $10,000) = 0.7672004: ($13,000 + $35,000) ÷ ($20,000 + $20,000) = 1.2002005: ($25,000 + $40,000) ÷ ($20,000 + $32,000) = 1.2502006: ($30,000 + $40,000) ÷ ($20,000 + $38,000) = 1.20710E5–9 ContinuedReturn on Assets = (Net Income + [Interest Expense (1 – Tax Rate)]) ÷ Average Total Assets 2003: ($13,000 + [$2,000 (1 - .3)]) ÷ [($53,000] = 0.2722004: ($14,000 + [$4,000 (1 - .3)]) ÷ [($53,000 + $88,000) ÷ 2] = 0.2382005: ($21,000 + [$5,000 (1 - .3)]) ÷ [($88,000 + $117,000) ÷ 2] = 0.2392006: ($24,000 + [$5,000 (1 - .3)]) ÷ [($117,000 + $128,000) ÷ 2] = 0.224b. 2006 2005 2004 2003Current assets 27.34% 26.50% 27.27% 37.74% Noncurrent assets 72.66 73.50 72.73 62.26Total assets 100.00% 100.00% 100.00% 100.00% Current liabilities 23.44% 21.37% 14.77% 15.09% Long-term liabilities 31.25 34.19 39.77 28.30Capital stock 15.62 17.09 22.73 37.74Retained earnings 29.69 27.35 22.73 18.87Total liabilities andstockholders' equity 100.00% 100.00% 100.00% 100.00%c. Solvency measures a company's ability to meet its debts as they come due. The current ratioprovides one measure of a company's solvency. Based upon this ratio, Lotechnic has sufficient current assets to meet its current obligations. However, the trend in its current ratio indicates that the company's excess of current assets over current liabilities is decreasing. Therefore, the company has relatively fewer current assets available to meet its current obligations. This trend indicates that Lotechnic Enterprises' solvency position may be worsening.The debt/equity ratio provides an indication of a company's capitalization, which, in turn, indicates how risky a company is. Lotechnic is relying increasingly on debt relative to stockholders' equity to finance operations. At some point in time, the company will have to repay this debt. The company will either have to repay this debt by (1) generating cash from operations, (2) selling assets, (3) borrowing additional cash, or (4) acquiring cash by issuing stock. From the statement of cash flows,the cash generated from operations has been decreasing and is now negative;therefore, it appears that the company cannot rely on operations to generate cash. The statement of cash flows also indicates that the company has been using cash for investment purposes every year. This implies that the company may have some assets that it could sell. But if these assets are used in operations, the company's operations may be adversely affected by selling them.Since total assets equal the sum of total liabilities and stockholders' equity, the proportion of total liabilities to the sum of total liabilities and stockholders' equity reported on the common-size balance sheet equals the proportion of total liabilities to total assets. This measure indicates the proportion of total assets (based upon book value) that would have to be sold to satisfy all the company's obligations. To meet its obligations, Lotechnic Enterprises would have to sell approximately 55% of its total assets, which would virtually decimate its asset base.Based upon the trend in the current ratio, the debt/equity ratio, cash flows from operations, and the proportion of total liabilities to total assets, it appears that Lotechnic Enterprises may face severe solvency problems as its long-term debt matures.E5–9 ConcludedEarning power is defined as a company's ability to increase its wealth through operations and to generate cash from operations. Earning power and solvency are closely related. A company must have adequate resources to generate wealth. If a company experiences solvency problems, it will most likely have to divert its resources to paying its obligations.Therefore, due to its solvency problems, Lotechnic Enterprises may not have strong earning power.Although Lotechnic's net income has increased every year, the company's effectiveness at managing capital, as indicated by ROA, has decreased every year. This trend indicates that the company may have limited earning power. This conclusion is also supported by the trend in the company's cash flows from operations.It must be remembered, however, that this analysis is based on very limited information. To adequately analyze a company, additional information would be plete financial statements, financial information for similar companies, and general economic information should all be considered when analyzing a company's earning power and solvency position.E5–10Transaction Quick Ratio Current Ratio Debt/Equity Ratio(1) – – +(2) N E N E +(3) – – –(4) – – +a(5) + + –b(6) + + –_________________a Wage Expense would be closed into Retained Earnings at the end of the accounting period aspart of the closing process. Thus, recording wage expense would decrease stockholders' equity, and thereby increase the debt/equity ratio.b This transaction would increase both Sales and Cost of Goods Sold. Both of these accountswould be closed into Retained Earnings as part of the closing process. Since the sales price exceeds the cost of the inventory, the net effect of this transaction would be to increase Retained Earnings. Thus, total stockholders' equity would increase, and thereby decrease the debt/equity ratio.E5–11a. Debt/Equity Ratio = Total Liabilities ÷ Total Stockholders' Equity= ($130,000 + $150,000) ÷ $200,000= 1.40b. The maximum debt that Montvale can have outstanding is 1.5 times its total stockholders'equity. This means that the total debt Montvale can have outstanding is $300,000 (1.5 ×$200,000). Since Montvale already has $280,000 of outstanding debt, it can incur an additional $20,000 in debt without violating its debt covenant.E5–11 Concludedc. The minimum level of stockholders' equity that Montvale can have is total debt divided by 1.5.This means that the total stockholders' equity Montvale can have is $186,667 ($280,000 ÷ 1.5).Since Montvale currently has $200,000 of stockholders' equity, and since dividends decrease stockholders' equity, the maximum dividend that Montvale can declare is $13,333.d. If Montvale had declared, but not paid, a $20,000 dividend prior to obtaining the loan, then the$20,000 is already included in the current liabilities reported on the balance sheet. Paying the dividend would decrease both current assets and current liabilities by $20,000. Thus, the debt/equity ratio after paying the $20,000 would be 1.3 ([($130,000 – $20,000) + $150,000] ÷ $200,000). Since this ratio is less than the maximum debt/equity ratio allowed under the debt covenant, Montvale could pay the $20,000 dividend without violating its debt covenant.E5–12a. 2001: $288 ÷ $1,637 = 17.6%2002: $297 ÷ $ 894 = 33.2%2003: $504 ÷ $1,471 = 34.3%b. Price Earnings Ratio = Market Price per Share ÷ Earnings per Share= Market Price per Share ÷ (Net Income ÷ Average Number ofCommon Shares Outstanding)2002: $16.08 ÷ {$894 ÷ [(1,276 + 1,289) ÷ 2]} = 23.12003: $24.83 ÷ {$1,471 ÷ [(1,268 + 1,276) ÷ 2]} = 21.4Dividend Yield = Dividends per Share ÷ Market Price per Share2001: ($288 ÷ 1,289 shares) ÷ $26.47 = .00842002: ($297 ÷ 1,276 shares) ÷ $16.08 = .01452003: ($504 ÷ 1,268 shares) ÷ $24.83 = .0160Stock Price Return = (Market Price1 – Market Price0 + Dividends per Share) ÷Market Price02002: ($16.08 – $26.47 + $.23) ÷ $26.47 = -38.4%2003: ($24.83 – $16.08 + $.40) ÷ $16.08 = 56.9%E5–12 Concludedc. An investment in McDonald’s stock from 2001 to 2003 would not have provided an adequatereturn for investors. The driving factor appears to be the substantial drop in Net Income in 2002, which caused a drop in the stock price of over $10 per share. While 2003 Net Income rebounded from the depressed 2002 levels, it did not reach the 2001 dollar amount; the stock price movement mirrored the earnings changes: the stock increased in value but not quite all the way back to the 2001 levels. The dividend returns were not enough to compensate for the lack of capital appreciation in the stock price.E5–13a. (1) Earnings per Share = Net Income ÷ Average Number of Common SharesOutstanding= $6,831 ÷ [(2,976 + 2,953) ÷ 2]= $2.30(2) Price/Earnings = Market Price per Share ÷ Earnings per Share= $46 per Share ÷ $2.30 per Share= 20.00(3) Dividend Yield = Dividends per Share ÷ Market Price per Share= ($3,250 ÷ 2,953 Shares) ÷ $46 per Share= .024(4) Stock Price Return = (Market Price1 – Market Price0 + Dividends per Share) ÷Market Price0= ($46 – $57 + $1.10) ÷ $57= -17.4%b. Return on equity equals net income divided by average stockholders' equity. Thus, only thoseitems that affect net income or stockholders' equity would affect a company's return on equity.Declaring and paying dividends would decrease stockholders' equity but would not affect net income. Thus, the return on equity ratio would increase for item (1).A change in the market price of a company's stock would not affect return on equity.Repurchasing common stock would decrease stockholders' equity, but it would not affect net income. Thus, the return on equity ratio would increase for item (3).E5–14The formulas that are used by the DuPont model are as follows:ROE = ROA * Common Equity Leverage * Capital Structure LeverageandROA = Profit Margin * Asset TurnoverThe first item that stands out is the steady increase in ROE from 2004 through 2006. This is being driven completely by the increase in Capital Structure Leverage. Both ROA and Common Equity Leverage have been decreasing over the three years. ROA has dropped because of the drop in Asset Turnover. From 2004 through 2006 both ROA and common equity leverage have decreased slightly. But the significant increase in capital structure leverage has more than offset the declines in the other components so that ROE has risen in both 2005 and 2006. These ratios show that the improvement in ROE is due primarily to increased debt leverage used by the company.ROA has decreased because of the decrease in asset turnover. ROA can be computed by multiplying profit margin x asset turnover. In this example, while the profit margin has increased from 2004 through 2006 asset turnover has deteriorated significantly. This reduction in ROA could be due to slowing sales or a large increase in the asset base of the company. With the increase in the capital structure leverage the most likely reason is an increase in the assets of the company.E5–15The formulas that are used by the DuPont model are as follows:ROE = ROA * Common Equity Leverage * Capital Structure LeverageandROA = Profit Margin * Asset TurnoverFrom 2004 through 2006 both the common equity leverage and the capital structure leverage have remained fairly stable. ROA has dropped significantly which has caused the decline in ROE.In this example asset turnover has remained stable from 2004 through 2006. During this same time the company’s profit margin has declined precipitously. Therefore the drop in LBS Products’ profit margin has caused its ROA to fall, which in turn caused its ROE to also fall.。

mba财务管理试题及答案详解

mba财务管理试题及答案详解一、单项选择题1. 以下哪项不是财务杠杆的效应？A. 财务杠杆可以增加企业的收益B. 财务杠杆可以增加企业的财务风险C. 财务杠杆可以降低企业的权益成本D. 财务杠杆可以提高企业的资本回报率答案：C2. 以下哪种情况下，企业应选择发行债券而不是股票？A. 企业需要大量资金进行扩张B. 企业的股票价格高于其内在价值C. 企业希望保持控制权D. 企业预计未来现金流稳定答案：D3. 什么是净现值（NPV）？A. 投资项目现金流的现值减去初始投资B. 投资项目现金流的现值加上初始投资C. 投资项目现金流的总和D. 投资项目初始投资的现值答案：A二、多项选择题1. 以下哪些因素会影响企业的资本结构？A. 企业的经营风险B. 企业的财务风险C. 企业的税务状况D. 企业的市场地位答案：A, B, C2. 在进行资本预算时，以下哪些现金流应被考虑？A. 初始投资B. 运营成本C. 折旧和摊销D. 净营运资本的变化答案：A, B, D三、简答题1. 什么是资本成本，它为什么对企业重要？答：资本成本是指企业为筹集和使用资金所支付的成本，包括债务成本和权益成本。

它对企业重要，因为它直接影响到企业的净现值和投资回报率，是企业进行资本预算和决策的关键因素。

2. 解释什么是现金流量表，并说明其在企业财务管理中的作用。

答：现金流量表是一种财务报表，记录了企业在一定时期内现金和现金等价物的流入和流出情况。

它在企业财务管理中的作用是帮助管理者和投资者了解企业的现金流动性状况，评估企业的偿债能力和财务健康状况。

四、计算题1. 假设一个投资项目需要初始投资100万元，预计未来三年的净现金流分别为30万元、40万元和50万元。

如果企业的资本成本为10%，计算该项目的净现值。

答：首先计算每年的现金流的现值：- 第一年：30万元 / (1 + 0.1)^1 = 27.27万元- 第二年：40万元 / (1 + 0.1)^2 = 29.63万元- 第三年：50万元 / (1 + 0.1)^3 = 34.86万元然后计算总现值并减去初始投资：总现值 = 27.27 + 29.63 + 34.86 = 91.76万元净现值 = 91.76 - 100 = -8.24万元该项目的净现值为负，意味着按10%的资本成本计算，该项目不可行。

mba会计试题及答案

mba会计试题及答案近年来，MBA（Master of Business Administration）学位的需求不断增加。

作为一个广受欢迎的专业学位，MBA能够为学生提供领导力和管理技能的培养，使他们在商业世界中脱颖而出。

而会计作为MBA的一个重要方向，被广大学生所关注。

本文将给大家呈现一些MBA会计试题及答案，以供学习参考。

第一部分：选择题1. 以下哪个是“会计身份”原则的体现？A. 第三方原则B. 业主权益原则C. 同一会计期间原则D. 主客观结合原则答案：A2. 企业日记账属于会计账簿中的哪一种？A. 主日记账B. 分类账C. 辅助账D. 明细账答案：A3. 以下哪个是财务会计的报表？A. 利润表B. 预算表C. 销售表D. 生产表答案：A4. 公式“资产=负债+所有者权益”是会计的哪个基本公式？A. 成本公式B. 双重记账公式C. 会计等式D. 货币计量公式答案：C5. 以下哪个是管理会计的目标之一？A. 提供财务报表B. 帮助决策-makingC. 进行遗传等位基因的研究D. 进行市场调研答案：B第二部分：解答题1. 简述会计的定义及其作用。

会计是指对财务活动进行分类、记录、分析、说明和报告的一系列过程。

其作用包括但不限于：- 为企业提供财务信息，使管理者能够做出明智的决策；- 为投资者和债权人提供有关企业财务状况和经营成果的信息；- 为税务机关提供征税依据；- 为员工提供薪资和福利信息；- 为其他利益相关者提供了解企业财务状况的途径。

2. 解释会计等式的含义，并说明其重要性。

会计等式是指“资产=负债+所有者权益”，它表明了企业的所有资源（资产）是通过借债（负债）或者投资（所有者权益）来融资的。

这个等式是会计核算的基础，确保了会计记录的准确性和一致性。

会计等式的重要性体现在以下几个方面：- 提供了企业财务状况的清晰概述；- 保证了会计记录的平衡性，确保准确的财务报表；- 为企业的资金管理和投资决策提供了基础。

《财务会计学》课后习题及答案

《财务会计学》习题答案.第二章货币资产与短期投资1.（1）借：管理费用850现金150贷：其他应收款1000（2）借：应付票据20 000贷：银行存款20 000（3）借：其他应收款 1 200贷：现金1200（4）借：其他货币资金150 000贷：银行存款150 000（5）借：现金50 000贷：银行存款50 0002.（1）借：短期投资35 000应收利息 3 000贷：银行存款38 000（2）借：短期投资45 000应收股利400贷：银行存款45 400（3）借：银行存款50500贷：短期投资45 000应收股利200投资收益 5 300（4）借：银行存款 6 800贷：短期投资 5 000应收利息300投资收益 1 500第三章应收项目1.贴现所得=50000-50000*9%*90/360=50000-1125=48875借：银行存款48875财务费用1125贷：应收票据50000借：应收账款50000贷：短期借款500002.借：应收账款35100贷：主营业务收入30000应交税金—应交增值税5100借：银行存款34749财务费用351贷：应收账款351003.97年应提取的坏账准备=120万*8‰=9600借：管理费用 9600贷：坏账准备 600098年应提取的坏账准备=300万*8‰-9600=14400借：管理费用 14400贷：坏账准备 1440099年借：坏账准备 5000贷：应收账款 500099年应提取的坏账准备=250万*8‰-19000=1000借：管理费用 1000贷：坏账准备 10002000年借：应收账款 2000贷：坏账准备 2000借：应收账款 1000贷：坏账准备 10002000年应提取的坏账准备=190万*8‰-20000=-6800借：坏账准备 6800贷：管理费用 68004.借：应收票据 234000贷：主营业务收入 200000应交税金—应交增值税（销项税额） 34000到期值=234000+234000*10%*96/360=234000+6240=240240到期日=3月21天+4月30天+5月31天+6月14天=96天6月14日为到期日贴现期=4月14天+5月31天+6月14天=59天贴现所得=240240-240240*12%*59/360=240240-4724.72=235515.28 借：银行存款 235515.28贷：应收票据 234000财务费用 1515.28借：应收账款 240240贷：银行存款 240240借：银行存款 240240贷：应收账款 240240第四章存货1.（1）.借：原材料40000应交税金--增值税（进）6800贷：应付票据46800（2）. 借：原材料50300应交税金--增值税（进）800贷：应付账款58500银行存款300（3）. 借：在途物资80800应交税金--增值税（进）13600贷：银行存款94400（4）. 借：应付账款58500贷：银行存款57500财务费用1000 50000*2%（5）. 借：原材料80800贷：在途物资808002. 发出金额结存金额（1）加权平均法 4 550 4 550（2）移动加权平均法 4 364 4 736（3）先进选出法 4 200 4 900（4）后进选出法 4 700 4 4003.（1）借：物资采购8200应交税金--增值税1394贷：银行存款9594借：原材料10000贷：物资采购10000借：物资采购1800贷：材料成本差异1800（2）借：生产成本25000贷：原材料25000（3）借：物资采购32000应交税金--增值税5440贷：预付账款37440借：预付账款7440贷：银行存款7440借：原材料30000贷：物资采购30000借：材料成本差异2000贷：物资采购2000（4）借：生产成本40000贷：原材料40000（5）借：物资采购18400应交税金--增值税3060贷：银行存款21460（6）借：原材料20000贷：物资采购20000借：物资采购1600贷：材料成本差异1600（7）借：管理费用5000贷：原材料5000（8）650-1800+2000-1600差异率=----------------------------------×100%=-0.75%40000+10000+30000+20000借：生产成本-487.50管理费用-37.50贷：材料成本差异-525（9）计算月末结存材料的实际成本：月末结存材料的计划成本=（800+1200-1400）*50=30 000月末结存材料的成本差异=650-1400-525= -225 或=30 000* -0.75%= -225月末结存材料的实际成本=30 000-225=297754. 4月销售成本=71000×（1-8%）=653204月末结存商品成本=84000+55000-65320=736805月销售成本=76000×（1-8%）=699205月末结存商品成本=73680+63000-69920=667606月末结存商品成本=644406月销售成本=84000+55000+63000+59000-64440-65320-69920=61320（71000+76000+69000）-（65320+69920+61320）第二季度实际毛利率=------------------------------------------×100%=9% 71000+76000+690005.（1）借：物资采购 30000应交税金--增值税（进） 5100贷：银行存款 35100借：库存商品 41000贷：物资采购 30000商品进销差价 11000（2）借：物资采购 45000应交税金--增值税（进） 7650营业费用 500贷：银行存款 53150（3）借：银行存款 74880贷：主营业务收入 64000应交税金--增值税（销） 10880借：主营业务成本 74880贷：库存商品 74880（4）借：库存商品 58500贷：物资采购 45000商品进销差价 13500（5）借：物资采购 60000应交税金--增值税（进）10200贷：银行存款 70200借：库存商品 80000贷：物资采购 60000商品进销差价 20000（6）借：库存商品 3000贷：商品进销差价 3000（7）借：银行存款 58500贷：主营业务收入 50000应交税金--增值税（销） 8500借：主营业务成本 58500贷：库存商品 58500（8）可供分配的商品进销差价=5670+11000+13500+20000+3000=53 170 本期已销商品零售价=58 500+74 880=133 380期末结存商品零售价=71 12053 170差价率------------------ = 26%133 380+71 120本期销售商品实现的进销差价=（74880+58500）×26%=34678.80借：商品进销差价 34678.80贷：主营业务成本 34678.80结存商品未实现的进销差价=53 170-34678.80=18491.20结存商品的实际成本=71120-18491.20=52628.80贷：存货跌价准备 4975第五章长期投资1．（1）计算投资成本成交价(50 000×24．24) 1 212 000加：税费 6 400投资成本 1 218 400（2）购入时的会计分录借：长期股权投资——股票投资（开通公司投资成本） 1 218 400贷：银行存款 1 218 400（3）开通公司宣告分派1998年现金股利借：应收股利 20 000(50 000× 0.40)贷：长期股权投资——股票投资（开通公司投资成本） 20 000（4）开通公司宣告分派1999年现金股利兴华公司1999年应享有的投资收益 =50 000×4×（10/12）=166 667（元）兴华公司分派现金股利应冲减的投资成本=50 000×5—166 667 = 83 333（元）借：应收股利 250 000（50 000×5）贷：长期股权投资—股票投资（开通公司投资成本） 83 333投资收益 166 6672．（1）计算投资成本成交价 1 400 000加：税费 3 600减：应收股利150 000投资成本 1 253 600购入时的会计分录借：长期股权投资——股票投资（丙企业投资成本） 1 253 600应收股利150 000贷：银行存款 1 403 600结转投资差额借：长期股权投资——股票投资（丙企业股权投资差额）128 600贷：长期股权投资——股票投资（丙企业投资成本）128 600借：银行存款150 000贷：应收股利150 000（2）乙企业宣告分派股利借：应收股利—乙企业320 000贷：长期股权投资——股票投资（乙企业损益调整）320 000确认投资收益借：长期股权投资——股票投资（乙企业损益调整）640 000贷：投资收益640 000（4）确认对丙企业投资收益借：长期股权投资——股票投资（丙企业损益调整）112 500（600000×25%×9÷12）贷：投资收益112 500（5）摊销股权投资差额借：投资收益9645贷：长期股权投资——股票投资（丙企业股权投资差额）9645(12 8600÷10×9÷12) ÷123．（1）①购入债券借：长期债权投资——债券投资—（面值） 160 000长期债权投资——债券投资—（溢价） 10 800贷：银行存款 170 800②2000年12月31日结算应收利息、摊销溢价直线法摊销溢价票面利息=160000×10%×6÷12=8000（元）摊销溢价=10800÷（4×2） =1350（元）投资收益=8000—1351 =6650（元）借：应收利息 8 000贷：长期债权投资——债券投资（溢价） 1 350投资收益 6 650以后3年半中，每年12月31日和6月30日同上。

MBA财务报表分析考试题及标准答案

MBA财务报表分析考试题及答案————————————————————————————————作者：————————————————————————————————日期：《财务报表分析》一、单项选择题1.企业（ A ）必须对其投资的安全性首先予以关注。

A.所有者B.债权人C.经营者D.国家2. 财务报表分析中最常用的一种基本方法是（ B ）A.因素分析法 B．比较分析法 C．比率分析法 D．差额分析法3. 对资产负债表的质量进行分析，不包括的是（ D ）。

A.资产分析B.负债分析C.所有者权益分析D.收益分析4.( A )是利润形成的主要来源A.主营业务收入B.其他业务收入C.投资收益D.营业外收入5. 现金流量表的编制基础是( B )A.权责发生制B.收付实现制C.永续盘存制D.定期盘存制6.企业（ A ）时，可以增加流动资产的实际变现能力。

A.取得应收票据贴现款B.为其他单位提供债务担保C.拥有较多的长期资产D.有可动用的银行贷款指标7.下列经济业务不会影响流动比率的是（ D ）。

A.赊购原材料B.用现金购买短期债券C.向银行借款D.用存货对外进行长期投资8.销售毛利率+（ B ）=1A.变动成本率B.销售成本率C.成本费用率D.销售利润率9.在杜邦财务分析体系中，综合性最强的财务比率是（ A ）。

A.净资产收益率B.总资产净利率C.总资产周转率D.销售净利率10.（ C ）的审计报告可读性最差，很难用来帮助财务报表使用者分析企业的财务状况、经营成果和现金流量。

A.无保留意见B.带强调事项段的无保留意见C.无法表示意见D.否定意见二、多项选择题1.财务报表分析的主体有( ABCD )。

A.投资者B.债权人C.经理人员D.审计师2.应收账款是企业的一项债权，一般按交易发生日或销售确立日的金额予以入账。

在分析应收账款的质量和流动性时，应注意（ABCD ）。

A.应收账款的规模B.坏帐损失风险C.潜在亏损风险D.应收账款账龄3.在公司财务中，股东权益包括( ABC )。

mba fa 《financial accounting》习题答案-app_a

APPENDIX ATHE TIME VALUE OF MONEYEXERCISESEA–1Time Periods (Years)Compound InterestRates 5 10 155% $150 × 1.27628 $150 × 1.62889 $150 × 2.07893= $191.44 = $244.33 = $311.84 10% $150 × 1.61051 $150 × 2.59374 $150 × 4.17725= $241.58 = $389.06 = $626.59 15% $150 × 2.01136 $150 × 4.04556 $150 × 8.13706= $301.70 = $606.83 = $1,220.56EA–2Time Periods (Years)Compound InterestRates 5 10 155% $10,000 = $7,835.26 $10,000 = $6,139.15 $10,000 = $4,810.171.05^5 1.05^10 1.05^1510% $10,000 = $6,209.21 $10,000 = $3,855.44 $10,000 = $2,393.921.10^5 1.10^10 1.10^1515% $10,000 = $4,971.76 $10,000 = $2,471.85 $10,000 = $1,228.941.15^5 1.15^10 1.15^15The above problem has also been attempted in an alternate way to demonstrate the use of formulas.EA–3Time Periods (Years)CompoundInterestRates 5 10 155% $150 × 5.52563 $150 × 12.57789 $150 × 21.57856= $828.84 = $1,886.68 = $3,236.78 10% $150 × 6.10510 $150 × 15.93743 $150 × 31.77248= $915.77 = $2,390.61 = $4,765.87 15% $150 × 6.74238 $150 × 20.30372 $150 × 47.58041= $1,011.36 = $3,045.56 = $7,137.06 EA–4Time Periods (Years)CompoundInterestRates 5 10 155% $150 × 5.80191 $150 × 13.20679 $150 × 22.65749= $870.29 = $1,981.02 = $3,398.62 10% $150 × 6.71561 $150 × 17.53117 $150 × 34.94973= $1,007.34 = $2,629.68 = $5,242.46 15% $150 × 7.75374 $150 × 23.34928 $150 × 54.71747= $1,163.06 = $3,502.39 = $8,207.62 EA–5Time Periods (Years)CompoundInterestRates 5 10 155% $10,000 × 4.32948 $10,000 × 7.72173 $10,000 × 10.37966= $43,294.80 = $77,217.30 = $103,796.60 10% $10,000 × 3.79079 $10,000 × 6.14457 $10,000 × 7.60608= $37,907.90 = $61,445.70 = $76,060.80 15% $10,000 × 3.35216 $10,000 × 5.01877 $10,000 × 5.84737= $33,521.60 = $50,187.70 = $58,473.70EA–6Time Periods (Years)CompoundInterestRates 5 10 155% $10,000 × 4.54595 $10,000 × 8.10782 $10,000 × 10.89864= $45,459.50 = $81,078.20 = $108,986.40 10% $10,000 × 4.16987 $10,000 × 6.75902 $10,000 × 8.36669= $41,698.70 = $67,590.20 = $83,666.90 15% $10,000 × 3.85498 $10,000 × 5.77158 $10,000 × 6.72448= $38,549.80 = $57,715.80 = $67,244.80EA–7a. ($50 × .85734) + ($100 × .68058) + ($80 × .54027)= $42.87 + $68.06 + $43.22= $154.15b. ($100 × 3.31213) + ($100 × .54027)= $331.21 + $54.03= $385.24c. ($60 × .68058) + ($60 × .63017) + ($60 × .58349) + ($60 × .54027) + ($100 × .46319)= $40.83 + $37.81 + $35.01 + $32.42 + $46.32= $192.39d. ($90 × .58349) + ($90 × .54027) + ($90 × .50025)= $52.51 + $48.62 + $45.02= $146.15EA–8a. ($50 × .85734) + ($100 × .68058) + ($80 × .58349)= $42.87 + $68.06 + $46.68= $157.61b. ($100 × 3.57710) + ($100 × .58349)= $357.71 + $58.35= $416.06c. ($60 × .73503) + ($60 × .68058) + ($60 × .63017) + ($60 × .58349) + ($100 × .50025)= $44.10 + $40.83 + $37.81 + $35.01 + $50.03 = $207.78d. ($90 × .63017) + ($90 × .58349) + ($90 × . 54027)= $56.72 + $52.51 + $48.62= $157.85EA–9a. Dollar amount = $25,000 × Future value factor for i = 10% and n = 4= $25,000 × 1.46410 (from Table 1)= $36,603Dollar amount = $36,603 × Future value factor for i = 12% and n = 3= $36,603 × 1.40493 (from Table 1)= $51,425Dollar amount = $51,425 × Future value factor for i = 15% and n = 5= $51,425 × 2.01136 (from Table 1)= $103,434b. Ben should not accept $36,000 for $25,000 at the end of 4 years. Why not? Because if heinvests the initial $25,000 at 10 percent per annum compounded annually, he will have a total of $36,603, $603 more than the amount the person offered him.EA–10a. Dollar amount = ($40,000 × Present value factor for an ordinary annuity factor fori = 10% and n = 10) + ($500,000 × Present value factor fori = 10% and n = 10)= ($40,000 × 6.14457 from Table 5) + ($500,000 × .38554 from Table 4)= $245,782.80 + $192,770.00= $438,552.80b. There are two different ways to calculate the dollar amount. The two ways are shown below.Dollar amount = ($40,000 × Present value factor for an annuity due for i = 10% and n= 10) + ($500,000 × Present value factor for i = 10% and n = 10)= ($40,000 × 6.75902 from Table 6) + ($500,000 × .38554 from Table 4)= $270,360.80 + $192,770.00= $463,130.80Dollar amount = $40,000 + ($40,000 × Present value factor for an ordinary annuity factorfor i = 10% and n = 9) + ($500,000 × Present value factor fori = 10% and n = 10)= $40,000 + ($40,000 × 5.75902 from Table 5) + ($500,000 ×.38554 from Table 4)= $40,000 + $230,360.80 + $192,770.00= $463,130.80EA–11Option 1Present value = $500,000 × Present value factor for an ordinary annuity for i = 10%and n = 20)= $500,000 × 8.51356 (from Table 5)= $4,256,780Option 2Present value = $4,500,000Option 3Present value = $1,000,000 + [($2,100,000 × Present value factor for an ordinaryannuity for i = 10% and n = 3) × Present value factor for i = 10% and n = 4] = $1,000,000 + [($2,100,000 × 2.48685 from Table 5) × .68301 from Table 4]= $1,000,000 + $3,566,941= $4,566,941Option 3 should be chosen because it has the highest present value. In other words, if receiving the equivalent amounts for each of the 3 payment patterns, alternative 3 would yield the largest payout today.EA–12Ordinary Annuity Annuity Due a. $700 × 2.48685 (from Table 5) $1,740.80$700 × 2.73554 (from Table 6) $1,914.88b. $700 + ($700 × 1.73554 from Table 5) 1,914.88($700 × 1.10000 from Table 1) + $700+ ($700 × .90909 from Table 4) 2,106.36c. ($700 × 1.10000 from Table 1) + $700+ ($700 × .90909 from Table 4) 2,106.36$700 × 2.31000 (from Table 3) + $700 2,317.00d. $700 × 3.31000 (from Table 2) 2,317.00$700 × 3.64100 (from Table 3) 2,548.70e. The present value is the value of future cash flows at the current point in time. Thus, thevalues in Part (a) represent the present value of the two different annuities.f. The future value is the value of future cash flows at a future point in time. Since the ends ofPeriods 1, 2, and 3 are all in the future, the value of the cash flows at those points in time all qualify as future values.g. Annuity due is most valuable. The present value of annuity due is $174.08 more than thepresent value of ordinary annuity. In other words, if we were to receive $700 each year for the next 3 years, the payment pattern of the annuity due (payment to be received at the beginning of each year) should be more preferable to us than the payment pattern of the ordinary annuity (payment to be received at the end of each year).EA–13a. Option 1Present value = $240,000Option 2Present value = $500,000 × Present value factor for i = 12% and n = 8= $500,000 × .40388 (from Table 4)= $201,940Option 3Present value = $600,000 × Present value factor for i = 12% and n = 10= $600,000 × .32197 (from Table 4)= $193,182Option 4Present value = $50,000 × Present value factor for an annuity due for i = 12% and n = 6= $50,000 × 4.60478 (from Table 6)= $230,239b. By computing the present value of each option's future cash flows, the cost of each option iscomparable. Since Option 3 has the lowest present value, it appears to the best deal for Dunn Drafting Company.c. Option 1:Present value = $240,000Option 2:Present value = $500,000 × Present value factor for i = 8% and n = 8= $500,000 × .54027 (from Table 4)= $270,135Option 3:Present value = $600,000 × Present value factor for i = 8% and n = 10= $600,000 × .46319 (from Table 4)= $277,914Option 4:Present value = $50,000 × Present value factor for an annuity due for i = 8% and n = 6= $50,000 × 4.99271 (from Table 6)= $249,636Option 1 now minimizes the present value of future cash flows. Thus, it appears that Option 1 is now the best option for Dunn Drafting Company.EA–14a. Since the Croziers plan to invest a lump sum today and then withdraw the money in the form ofan annuity, two steps are required to determine how much the Croziers must invest today to pay for Ryan's college education. The first step is to calculate how much money they will need fifteen years from now when Ryan enters college to make the four payments at the beginning of each year Ryan is in college (i.e., the value of the annuity). The second step is to calculate how much they would have to invest now so that it will grow to the value calculated in the first step over the next fifteen years. The calculations are shown below.Present value of college expenses fifteen years in the future:Value = $40,000 × Present value factor for an annuity due for i = 10% and n = 4= $40,000 × 3.48685 (from Table 6)= $139,474.00Present value of college expenses today:Value = $139,474.00 × Present value factor for i = 10% and n = 15= $139,474.00 × .23939 (from Table 4)= $33,389.00b. The present value of fourteen annual payments must equal the present value of $33,389calculated in part (a). By using the following formula, the amount of the annual payments can be calculated.Present value = Annuity payment × Present value factor for an ordinary annuity fori =10% and n = 14$33,389 = Annuity payment × 7.36669 (from Table 5)Annuity payment = $4,532.43c. Current investmentPresent value of college expenses fifteen years in the future:Value = $40,000 × Present value factor for an annuity due for i = 8% and n = 4= $40,000 × 3.57710 (from Table 5)= $143,084Present value of college expenses today:Value = $143,084 × Present value factor for i = 8% and n = 15= $143,084 × .31524 (from Table 4)= $45,106Annuity paymentPresent value = Annuity payment × Present value factor for an ordinary annuity for i = 8%and n = 14$45,106 = Annuity payment × 8.24424 (from Table 5)Annuity payment = $5,471.21EA–15a. ($30,000 × .46319) + ($30,000 × .42888) + ($30,000 × .39711) + ($30,000 × .36770)= $13,895.70 + $12,866.40 + $11,913.30 + $11,031.00 = $49,706.40b. $49,706.40 ÷ 6.24689 = $7,956.98c. ($30,000 × .55839) + ($30,000 × .52679) + ($30,000 × .49697) + ($30,000 x .46884)= $16,751.70 + $15,803.70 + $14,909.10 + $14,065.20 = $61,529.70The yearly installment under 6% will be $61,529.70 ÷ 6.8017 = $9,046.22PROBLEMSPA–1The price that Christie is willing to pay for the stock is comprised of two components: the present value of the dividends she expects to receive from holding the investment and the present value of the proceeds she will receive when she sells the investment. The total present value is calculated as follows.Present value = Present value of dividends + Present value of proceeds= [($5 × .89286 from Table 4) + ($6 × .79719 from Table 4) + ($7 × .71178from Table 4) + ($8 × .63552 from Table 4)] + ($100 × .63552 from Table 4) = $4.46 + $4.78 + $4.98 + $5.08 + $63.55= $82.85PA–2a. Investment 1Future value = ($1,000 × Future value factor for an ordinary annuity for i = 10% and n = 5) × Future value factor for i = 12% and n = 5= ($1,000 × 6.10510 from Table 2) × 1.76234 from Table 1= $10,759.26Investment 2Future value = $3,000 × Future value factor for an ordinary annuity for i = 15% and n = 7 = $3,000 × 11.06680 from Table 2= $33,200.40Therefore, Wharton's total investment at the end of ten years will equal $43,959.66.b. Current investment = Future value × Present value factor for i = 12% and n = 10= $43,959.66 × .32197 from Table 4= $14,153.69Therefore, Wharton would have to invest $14,153.69 for ten years earning 12% compounded annually to have an amount equivalent to the two investments.PA–3a. Contract 1Present value = $8,000 × Present value factor for an annuity due for i = 6% and n = 10= $8,000 × 7.80169 (from Table 6)= $62,413.52Contract 2Present value = $8,000 + ($20,000 × Present value factor for i = 12% and n = 10)= $8,000 + ($20,000 × .32197 from Table 4)= $14,439.40Contract 3Present value = ($8,000 × Present value factor for an ordinary annuity for i = 10% and n = 3) × Present value factor for i = 10% and n = 3= ($8,000 × 2.48685 from Table 5) × .75131 from Table 4= $14,947.16PA–3 Concludedb. (1) Equivalent values at the end of Year 5:Contract 1Present value = ($8,000 × Future value factor for an annuity due for i = 6% and n = 5) +($8,000 × Present value factor for an annuity due for i = 6% and n = 5= ($8,000 × 5.97532 from Table 3) + ($8,000 × 4.46511 from Table 6)= $47,802.56 + $35,720.88= $83,523.44Proof:$83,523.44 × .74726 = $62,413 = Present value of Contract 1 in Part (a)Contract 2Present value = ($8,000 × Future value factor for i = 12% and n = 5) + ($20,000 ×Present value factor for i = 12% and n = 5)= ($8,000 × 1.76234 from Table 1) + ($20,000 × .56743 from Table 4)= $14,098.72 + $11,348.60= $25,447.32Proof:$25,447.32 × .56743 = $14,439 = Present value of Contract 2 in Part (a)Contract 3Present value = ($8,000 × Future value factor for i = 10% and n = 1) + $8,000 +($8,000 × Present value factor for i = 10% and n = 1)= ($8,000 × 1.10000 from Table 1) + $8,000 + ($8,000 × .90909 fromTable 4)= $24,072.72Proof:$24,072.72 × .62092 = $14,947 = Present value of Contract 3 in Part (a)(2) Equivalent values at the end of Year 10:Contract 1Present value = $8,000 × Future value factor for an annuity due for i = 6% and n = 10= $8,000 × 13.97164 from Table 3= $111,773.12Proof:$111,773.12 × .55839 = $62,413 = Present value of Contract 1 in Part (a)Contract 2Present value = ($8,000 × Future value factor for i = 12% and n = 10) + $20,000= ($8,000 × 3.10585 from Table 1) + $20,000= $24,846.80 + $20,000.00= $44,846.80Proof:$44,846.80 × .32197 = $14,439 = Present value of Contract 2 in Part (a)Contract 3Present value = ($8,000 × Future value factor for an ordinary annuity for i = 10% and n = 3) × Future value factor for i = 10% and n = 4= ($8,000 × 3.31000 from Table 2) × 1.46410 from Table 1= $38,769.37Proof:$38,769.37 × .38554 = $14,947 = Present value of Contract 3 in Part (a)PA–4Option 1Present value = $25,000Option 2Present value = $60,000 × Present value factor for i = 9% and n = 8= $60,000 × .50187 (from Table 4)= $30,112.20Option 3Present value = $5,000 + ($27,000 × Present value factor for i = 9% and n = 3) +($20,000 × Present value factor for i = 9% and n = 20)= $5,000 + ($27,000 × .77218 from Table 4) + ($20,000 × .17843 fromTable 4)= $5,000 + $20,848.86 + $3,568.60= $29,417.46Hartney should accept bonus option 2 because it has the highest present value. In other words, in terms of today’s dollars, bonus option #2 gives Hartney the most amount of money. PA–5a. Value = $5,000 + ($10,000 × Present value factor for an ordinary annuity for i = 10%and n = 5) + ($15,000 × Present value factor for i = 10% and n = 5)= $5,000 + ($10,000 × 3.79079 from Table 5) + ($15,000 × .62092 from Table 4)= $5,000 + $37,908 + $9,314= $52,222b. Value = ($5,000 × Future value factor for i = 10% and n = 2) + ($10,000 × Future valuefactor for i = 10% and n = 1) + $10,000 + ($10,000 × Present value factor foran ordinary annuity for i = 10% and n = 3) + ($15,000 × Present value factor fori = 10% and n = 3)= ($5,000 × 1.21000 from Table 1) + ($10,000 × 1.10000 from Table 1) + $10,000 + ($10,000 × 2.48685 from Table 5) + ($15,000 × .75131 from Table 4)= $6,050 + $11,000 + $10,000 + $24,869 + $11,270= $63,189c. Value = ($5,000 × Future value factor for i = 10% and n = 4) + ($10,000 × Future valuefactor for an ordinary annuity for i = 10% and n = 4) + [($10,000 + $15,000) ×Present value factor for i = 10% and n = 1)]= ($5,000 × 1.46410 from Table 1) + ($10,000 × 4.64100 from Table 2) +($25,000 × .90909 from Table 4)= $7,321 + $46,410 + $22,727= $76,458d. Value = ($5,000 × Future value factor for i = 10% and n = 5) + ($10,000 × Future valuefactor for an ordinary annuity for i = 10% and n = 5) + $15,000= ($5,000 × 1.61051 from Table 1) + ($10,000 × 6.10510 from Table 2) + $15,000= $8,053 + $61,051 + $15,000= $84,10411PA–5 ConcludedProof:Value of each equivalent value todayOption 1 Option 2 Option 3 Option 41. $52,222 × 1.00000 $52,2222. $63,189 × 0.82645 $52,2223. $76,458 × 0.68301 $52,2224. $84,104 × 0.62092 $52,222PA–6Present valuesa. Value = $10,000b. Value = $2,000 × Present value factor for an ordinary annuity for i = 8% and n = 8= $2,000 × 5.74664 from Table 5= $11,493.28c. Value = $5,000 × Present value factor for an annuity due for i = 8% and n = 3= $5,000 × 2.78326 from Table 6= $13,916.30d. Value = $3,000 × Present value factor for an ordinary annuity for i = 8% and n = 5= $3,000 × 3.99271 from Table 5= $11,978.13e. Value = $25,000 × Present value factor for i = 8% and n = 7= $25,000 × .58349 from Table 4= $14,587.25f. Value = $3,000 × Present value factor for an ordinary annuity for i = 8% and n = 2= $3,000 × 1.78326 from Table 5= $5,349.78g. Value = $4,000 × Present value factor for an annuity due for i = 8% and n = 3= $4,000 × 2.78326 from Table 6= $11,133.04Future valuesa. Value = $10,000 × Future value factor for i = 8% and n = 4= $10,000 × 1.36049 from Table 1= $13,604.90b. Value = $2,000 × Future value factor for an ordinary annuity for i = 8% and n = 8= $2,000 × 10.63663 from Table 2= $21,273.26c. Value = $5,000 × Future value factor for an annuity due for i = 8% and n = 3= $5,000 × 3.50611 from Table 3= $17,530.5512PA–6 Concludedd. Value = ($3,000 × Future value factor for an ordinary annuity for i = 8% and n = 5) × Futurevalue factor for i = 8% and n = 5= ($3,000 × 5.86660 from Table 2) × 1.46933 from Table 1= $25,859.91e. Value = $25,000f. Value = $3,000 × Future value factor for an ordinary annuity for i = 8% and n = 2= $3,000 × 2.08000 from Table 2= $6,240.00g. Value = $4,000 × Future value factor for an annuity due for i = 8% and n = 3= $4,000 × 3.50611 from Table 3= $14,024.44PA–7a. To determine whether the offer of $110,000 today is a good deal, the future cash flows must beconverted into equivalent values in present dollars (i.e., present values). The contract specifies two types of future cash flows: $2,000 at the beginning of each year for ten years and a lump-sum receipt of $300,000 in ten years. The present value of the two types of cash flows are calculated below.(1) Present value of annual receipts:Value = $2,000 × Present value factor for an annuity due for i = 10% and n = 10= $2,000 × 6.75902 (from Table 6)= $13,518.04(2) Present value of lump-sum receipt:Value = $300,000 × Present value factor for i =10% and n = 10= $300,000 × .38554 (from Table 4)= $115,662.00(3) Total present value:Value = $13,518.04 + $115,662.00= $129,180.04Since the present value of the future cash flows exceeds $110,000, it would not be wise for Joy Don Corp. to accept $110,000 in cash today in place of the note. By accepting the cash of $110,000 now, Joy would be worse off by more than $19,000.b. As the discount rate increases, the present value of future cash flows decreases. Since thepresent value of the future cash flows discounted at 10% exceeds $110,000, the discount rate at which Joy Don would be wise to accept $110,000 in cash instead of the note must be greater than 10%. Try i = 12%.Present value = ($2,000 × 6.32825 from Table 6) + ($300,000 × .32197 from Table 4)= $12,656.50 + $96,591.00= $109,247.50With a discount rate of 12%, the present value of the future cash flows is slightly less than $110,000, which implies that Joy Don would be better off accepting $110,000 in cash today rather than accepting the note.13。

mba财务会计试题及答案

mba财务会计试题及答案一、单项选择题（每题2分，共20分）1. 会计的基本假设包括（）。

A. 会计主体B. 持续经营C. 货币计量D. 会计分期E. 以上都是答案：E2. 财务报表中，资产负债表反映的是（）。

A. 利润情况B. 资产状况C. 现金流量D. 所有者权益变动E. 以上都是答案：B3. 会计要素中，负债是指（）。

A. 企业拥有的资源B. 企业欠下的债务C. 企业的收入D. 企业的支出E. 企业的净资产答案：B4. 利润表中，利润总额的计算公式是（）。

A. 营业收入 - 营业成本 - 营业税金及附加B. 营业收入 - 营业成本 - 营业费用C. 营业收入 - 营业成本 - 营业费用 - 营业外支出D. 营业收入 - 营业成本 - 营业税金及附加 - 营业外支出答案：D5. 会计信息的质量要求中，可靠性是指（）。

A. 信息的及时性B. 信息的可比性C. 信息的准确性D. 信息的完整性E. 信息的可理解性答案：C6. 会计政策变更对财务报表的影响，通常需要（）。

A. 追溯调整B. 直接计入当期损益C. 计入其他综合收益D. 计入资本公积E. 以上都不是答案：A7. 存货的计价方法中，先进先出法（FIFO）与加权平均法相比，当物价上涨时，会（）。

A. 增加存货成本B. 减少存货成本C. 增加利润D. 减少利润E. 没有影响答案：D8. 企业在编制现金流量表时，以下哪项属于投资活动产生的现金流量（）。

A. 购买原材料支付的现金B. 支付给职工的现金C. 购买固定资产支付的现金D. 支付的税费E. 支付的利息答案：C9. 会计估计变更属于会计政策变更的范畴吗？（）A. 是B. 不是C. 有时是D. 无法确定E. 以上都不是答案：B10. 企业在计算所得税费用时，以下哪项是正确的做法（）。

A. 按照会计利润直接计算B. 按照税法规定的税率计算C. 按照会计利润调整后的应纳税所得额计算D. 按照税法规定的税率调整后的应纳税所得额计算E. 以上都是答案：D二、多项选择题（每题3分，共15分）1. 以下哪些属于会计信息的使用者（）。

mba_fa_《financial_accounting》_习题答案4

CHAPTER 4THE MECHANICS OF FINANCIAL ACCOUNTINGBRIEF EXERCISESBE4–1Transaction Assets = Liabilities + Stockholders’ Equity Paid $3,656 to purchase + 3,656property, plant and equip. - 3,656Issued common stock + 967 = + 967for $967Recorded depreciation -4,651 = -4,651of $4,651Net effect -3,684 = -3,684b. The transaction to purchase property, plant and equipment does not appear to affect theaccounting equation. This is because both sides of the transaction affect the asset side of the balance sheet. Intel pays cash for p,p,&e; this reduces cash and increases fixed assets. All of the other transactions affect both sides of the balance sheet.BE4–2Transaction Assets = Liabilities + Stockholders’ Equity Borrowed $350 from banks, + 350 = +350issuing long-term debtPaid cash dividends of $208 - 208 = - 208Issued common stock for $28 + 28 = +28Paid $250 to reducelong-term debt -250 = -250 ___Net effect - 80 = +100 -180b. The net effect on the company’s long-term debt balance is to increase it by $100. Two sourcesthat could have provided the cash to finance the net effect of these four transactions are funds from operations and funds from investing activities. All of the transactions shown here are financing activities, which show a use of $80 for financing activities.1BE4–3Transaction Assets = Liabilities + Stockholders’ Equity Recognized revenues +953 = +953of $953, in exchange foraccounts receivable.Paid $431 for sales and -431 = -431marketing.Issued common stock for $78 +78 = +78Purchased marketable -1,166securities for $1,166 +1,166 = _____Net effect +600 = +600b. The first and second transactions would be reflected on the income statement. Yahoo wouldshow $953 of revenue on the income statement. Yahoo would also show sales and marketing expense of $431.All of these transactions would directly or indirectly be reflected on the statement of cash flows.The first two transactions would be netted in the cash from operations section, the third transaction would be in the financing section and the fourth transaction would be in the operations section.EXERCISESE4–1Assets = Liabilities + Stockholders' Equity(1) + 30,000 + 30,000(2) – 20,000+ 20,000(3) + 9,000 +9,000(4) + 8,000 + 8,000(5) – 5,500 – 5,500(6) – 500 – 500Total 41,000 9,000 32,000Note:Transactions (4), (5), and (6) are initially recorded in temporary accounts and are closed into the Retained Earnings account, which is part of stockholders' equity.E4–2Assets = Liabilities +Stockholders' EquityAccounts Notes Contributed RetainedCash + Receivable + Land = Payable + Capital + Earnings(1) + 30,000 +30,000(2) – 20,000 +20,000(3) + 9,000 +9,000(4) +8,000 + 8,000(5) – 5,500 – 5,500(6) – 500 – 500 Total 13,000 8,000 20,000 9,000 30,000 2,000Note:Transactions (4), (5), and (6) are initially recorded in temporary accounts and are closed into the Retained Earnings account, which is part of stockholders' equity.E4–3X CompanyIncome StatementFor the Year EndedRevenues..................................................................................................$ 8,000Operating expenses..................................................................................5,500Net income................................................................................................$ 2,500X CompanyStatement of Stockholders’ EquityFor the Year EndedContributed RetainedCapital EarningsBeginning balance $ 0 $ 0Net income 2,500Dividends (500)Owner contribution 30,000 _______Ending balance $ 30,000 $ 2,000X CompanyBalance SheetAs ofAssets Liabilities and Stockholders' EquityCash ....................................$ 13,000 Notes payable........................$ 9,000Accounts receivable.............8,000 Contributed capital.................30,000Land ....................................20,000 Retained earnings..................2,000Total liabilities andTotal assets..........................$41,000 stockholders' equity...........$ 41,000E4–3 ConcludedX CompanyStatement of Cash FlowsFor the Year EndedCash flows from operating activities:Cash payments for expenses..................................... $ (5,500) Cash flows from investing activities:Purchase of land......................................................... (20,000) Cash flows from financing activities:Cash contributions from owners................................ $ 30,000Proceeds from bank loan........................................... 9,000Payments of cash dividend (500)Net cash flow from financing activities.................. 38,500 Net increase in cash........................................................ $ 13,000 Beginning cash balance.. 0Ending cash balance....................................................... $ 13,000 E4–4Assets = Liabilities + Stockholders' Equity(1) +10,000 + 10,000(2) + 8,000 + 8,000(3) – 3,000 + 3,000 – 6,000(4) +12,000 + 10,000– 2,000(5) – 400 – 400(6) + 7,000 + 1,000– 6,000Total 25,600 13,000 12,600Cathedral EnterprisesIncome StatementFor the Year EndedFees earned.................................................................................................$ 8,000 Expenses......................................................................................................(6,000) Gain on sale of land.....................................................................................1,000 Net income...................................................................................................$ 3,000 E4–4 ConcludedCathedral EnterprisesStatement of Stockholders’ EquityFor the Year EndedContributed RetainedCapital EarningsBeginning balance $ 0 $ 0Net income 3,000Dividends (400)Stockholder contribution 10,000 ______Ending balance $ 10,000 $ 2,600Cathedral EnterprisesBalance SheetAs ofAssets Liabilities and Stockholders' EquityCash ....................................$ 17,600 Misc. payable.........................$ 3,000Receivables..........................2,000 Long-term note......................10,000Land ....................................6,000 Contributed capital.................10,000Retained earnings..................2,600Total liabilities andTotal assets..........................$25,600 stockholders' equity...........$25,600Cathedral EnterprisesStatement of Cash FlowsFor the Year EndedCash flows from operating activities:Cash collected from customers.................................. $ 6,000Cash paid for expenses.............................................. (3,000)Net cash increase from operating activities.......... $ 3,000 Cash flows from investing activities:Proceeds from sale of land........................................ $ 7,000Cash paid for land...................................................... (2,000)Net cash increase from investing activities........... 5,000 Cash flows from financing activities:Contributions from stockholders................................ $ 10,000Dividends paid to stockholders (400)Net cash increase from financing activities........... 9,600 Increase in cash.............................................................. $ 17,600Beginning cash balance 0Ending cash balance....................................................... $ 17,600Note: Even though $12,000 worth of land was purchased only $2,000 is shown on this statement because the balance ($10,000) was paid for with a promise to pay cash in the future (loan). So only $2,000 of cash was used this year.E4–5(1) This financial event does not have accounting significance. Entries are made to record financialevents that affect the company's current financial condition. In this case, the new contract will affect the company's future financial condition by affecting the dollar value of future events as the new contract is implemented. Simply signing the contract does not affect the company's current financial position.(2) This financial event does have accounting significance. The receipt of cash in exchange forissuing debt affects the company's current financial position by increasing both the amount of cash the company has and the obligations the company has to other entities. Thus, an entry is necessary, and the entry would be:Cash (+A)................................................................................. 200,000Bonds Payable (+L)............................................................ 200,000 Issued bonds.(3) This event does not have accounting significance. The retirement of an official does notinfluence the company's current financial position.(4) This financial event does have accounting significance. Receiving cash from a customer wouldchange the company's current financial position. The entry would be:Cash (+A)................................................................................. 10,000Accounts Receivable (–A).................................................. 10,000 Collected cash from customers.(5) This financial event does have accounting significance. Payment of a liability will change acompany's current financial position by decreasing both the amount of cash the company has and the company's obligations to other entities. The entry would be:Accrued Interest Payable (–L).................................................. 1,000Cash (–A)........................................................................... 1,000 Paid interest previously incurred.(6) This financial event does not have accounting significance. Long-lived assets are reported atoriginal cost less accumulated depreciation. Increases in market value above the reported amounts are not reported because market values on long-lived assets are not objective (i.e., are not reliable).(7) This financial event does have accounting significance. The purchase of an insurance policyrepresents a change in the company's financial position because the company has less cash and because the company has acquired the benefit of insurance coverage. However, the value of the policy has no influence on the company. The appropriate entry would be:Prepaid Insurance (+A)............................................................ 1,500Cash (–A)........................................................................... 1,500 Purchased insurance coverage.(8) This financial event does not have accounting significance. Simply placing an order does notaffect a company's financial position. That is, the company has not experienced a change in the amount of cash it has, the amount it owes other entities, and so forth. The company's position does not change until it legally owns the goods.E4–6Account Financial Statement Accounting EquationFlight Equipment Balance Sheet AssetsPassenger Revenue Income Statement Owners’ EquityRetained Earnings Balance Sheet Owners’ EquityNotes Payable Balance Sheet LiabilitiesInterest Expense Income Statement Owners’ EquityAccounts Receivable Balance Sheet AssetsDividends Balance Sheet Owners’ EquityPrepaid Expenses Balance Sheet AssetsAccounts Payable Balance Sheet LiabilitiesCommon Stock Balance Sheet Owners’ EquityFuel Expense Income Statement Owners’ EquityOther Revenues Income Statement Owners’ EquityShort-Term Investments Balance Sheet AssetsDepreciation Expense Income Statement Owners’ EquityGain - Sale of Investment Income Statement Owners’ EquityE4–7Bristol-Myers SquibbIncome StatementFor the Year Ended December 31, 2002Revenue:Sales........................................................................... $18,106Loss on sales of business (30)Total revenue......................................................... $ 18,076 Expenses:Cost of goods sold...................................................... $ 6,532Selling and adm. Expense.......................................... 4,124Advertising and product expense............................... 1,143Research and dev. expense....................................... 2,206Other expenses.......................................................... 1,934Total expenses....................................................... 15,939 Net income...................................................................... $ 2,137 E4–7 ConcludedBristol-Myers SquibbBalance SheetAs of December 31, 2002Assets Liabilities and Stockholders' EquityCash and equivalents...........$ 2,367 Accounts payable...................$ 1,551 Marketable securities...........1,622Accounts receivable.............2,968 Accrued payables..................5,087 Other current assets.............3,103 Short-term borrowings...........1,379Other current liabilities (470)Property, plant and equipment 5,334 Long-term liabilities................7,779Other noncurrent assets.......9,628 Stockholders’ equity...............8,756Total liabilities andTotal assets..........................$ 25,022 stockholders’ equity $ 25,022Bristol-Myers SquibbStatement of Cash FlowsFor the Year Ended December 31, 2002Cash flows from operating activities:Net income................................................... $ 2,137Adjustments:Total adjustments.................................... (1,192)Net cash increase (decrease)due to operating activities................... $ 945 Cash flows from investing activities:Net cash increase (decrease) due toinvesting activities............................... (2,030) Cash flows from financing activities:Net cash increase (decrease) due tofinancing activities............................... (1,117) Increase in cash balance.................................. $ (2,202)Beginning cash balance.................................... 4,569Ending cash balance......................................... $ 2,367The company appears to be in very good financial condition. The company is very profitable with a 12% net income margin ($2,137/$18,106). The company has an extremely strong balance sheet with very good liquidity; working capital is $1,573 ($10,060 - $8,487).E4–8a. Ending cash = Beginning cash + Cash inflows – Cash outflows= $9,000 + $133,500 – $99,500= $43,000Note: Since Cash is an asset, cash inflows are recorded on the debit, or left-hand side of the T account, and cash outflows are recorded on the credit, or right-hand side of the Taccount.b.Miller ManufacturingStatement of Cash FlowsFor the Year Ended December 31, 2006Cash flows from operating activities:Cash collections from customers............................... $ 95,000Payment of salaries.................................................... (26,500)Payment of miscellaneous expenses......................... (13,000)Payment of rent.......................................................... (7,000)Payment of interest..................................................... (3,000)Net cash increase from operating activities.......... $ 45,500 Cash flows from investing activities:Proceeds from sale of land........................................ $ 7,500Purchase of long-term investments........................... (10,000)Purchase of equipment.............................................. (24,000)Net cash decrease from investing activities.......... (26,500) Cash flows from financing activities:Proceeds from issuance of common stock................ $ 15,000Proceeds from borrowing........................................... 16,000Payment of bank loan................................................. (12,000)Payment of dividends................................................. (4,000)Net cash increase from financing activities........... 15,000 Increase (decrease) in cash balance.............................. $ 34,000 Beginning cash balance.................................................. 9,000 Ending cash balance....................................................... $ 43,000E4–9a.(1) Cash (+A)........................................................................... 15,000Common Stock (+SE)................................................... 15,000 Issued common stock.(2) Cash (+A)........................................................................... 4,000Fees Earned (R, +SE)................................................... 4,000 Sold services for cash.(3) Wage Expense (E, –SE).................................................... 1,600Cash (–A)...................................................................... 1,600 Incurred and paid wages.(4) Investment in Land (+A)..................................................... 9,000Cash (–A)...................................................................... 9,000Purchased land as an investment.(5) Dividends (–SE)................................................................. 2,000Cash (–A)...................................................................... 2,000 Declared and paid dividend.(6) Cash (+A)........................................................................... 3,500Land (–A)....................................................................... 3,000Gain on Sale of Land (Ga, +SE) (500)Sold land.(7) Interest Expense (E, –SE) (600)Note Payable (+L) (900)Cash (–A)...................................................................... 1,500 Made principal and interest payment.(8) Miscellaneous Expenses (E, –SE)..................................... 1,800Cash (–A)...................................................................... 1,800 Incurred and paid miscellaneous expenses.b.E4–9 Concludedc.Small and AssociatesStatement of Cash FlowsFor the Month Ended January 31, 2006Cash flows from operating activities:Collections from customers........................................ $ 4,000Payment of wages...................................................... (1,600)Payment of interest (600)Payment of miscellaneous expenses......................... (1,800)Net cash decrease from investing activities.......... $ 0 Cash flows from investing activities:Proceeds from sale of land........................................ $ 3,500Purchase of land......................................................... (9,000)Net cash decrease from investing activities.......... (5,500)Cash flows from financing activities:Proceeds from issuance of stock............................... $15,000Repayment of note (900)Dividend payment....................................................... (2,000)Net cash increase from financing activities........... 12,100 Increase in cash balance................................................ $ 6,600 Beginning cash balance.................................................. 5,000 Ending cash balance....................................................... $ 11,600E4–10a. Assets = Liabilities + Stockholders' EquityAccounts Notes Contributed Retained Cash + Receivable + Land = Payable + Capital + Earnings(1) + 12,000 +12,000(2) + 5,000 + 5,000(3) – 10,000 + 10,000(4) – 5,000 – 5,000(5) + 10,000 +4,000 + 14,000(6) – 4,000 – 4,000(7) + 2,800 – 3,000 – 200(8) – 2,200 – 2,200 Total 8,600 4,000 7,000 5,000 12,000 2,600Ed's Lawn ServiceIncome StatementFor the Year Ended December 31, 2006Revenue.......................................................................... $14,000 Rent expense.................................................................. (5,000) Miscellaneous expense................................................... (4,000) Loss on sale of land.. (200)Net income...................................................................... $ 4,800Ed's Lawn ServiceStatement of Stockholders’ EquityFor the Year Ended December 31, 2006Contributed RetainedCapital EarningsBeginning balance, January 1, 2006 $ 0 $ 0Net income 4,800Dividends (2,200)Stockholder contribution 12,000 ______Ending balance, December 31, 2006 $ 12,000 $ 2,600Ed's Lawn ServiceBalance SheetAs of December 31, 2006Assets Liabilities and Stockholders' EquityCash ....................................$ 8,600 Notes payable........................$ 5,000 Accounts receivable.............4,000 Contributed capital.................12,000 Land ....................................7,000 Retained earnings..................2,600Total liabilities andTotal assets..........................$19,600 stockholders' equity...........$ 19,600E4–10 ContinuedEd's Lawn ServiceStatement of Cash FlowsFor the Year Ended December 31, 2006Cash flows from operating activities:Cash collected from customers.................................. $ 10,000Rent payments on lawn equipment............................ (5,000)Payment of miscellaneous expenses......................... (4,000)Net cash increase from operating activities.......... $ 1,000 Cash flows from investing activities:Proceeds from sale of land........................................ $ 2,800Cash paid for land...................................................... (10,000)Net cash decrease from investing activities.......... (7,200) Cash flows from financing activities:Stockholder contributions........................................... $ 12,000Proceeds from bank loan........................................... 5,000Dividend payments..................................................... (2,200)Net cash increase from financing activities........... 14,800 Increase in cash.............................................................. $ 8,600 Beginning cash balance.. 0Ending cash balance....................................................... $ 8,600b.(1) Cash (+A)........................................................................... 12,000Contributed Capital (+SE)............................................. 12,000 Collected cash from stockholders.(2) Cash (+A)........................................................................... 5,000Notes Payable (+L)........................................................ 5,000 Borrowed cash from bank.(3) Land (+A)........................................................................... 10,000Cash (–A)...................................................................... 10,000 Purchased land.(4) Rent Expense (E, –SE)...................................................... 5,000Cash (–A)...................................................................... 5,000 Incurred and paid rent expense.(5) Cash (+A)........................................................................... 10,000Accounts Receivable (+A)................................................. 4,000Fees Earned (R, +SE)................................................... 14,000 Rendered services.(6) Miscellaneous Expenses (E, –SE)..................................... 4,000Cash (–A)...................................................................... 4,000 Incurred and paid miscellaneous expenses.E4–10 Continued(7) Cash (+A)........................................................................... 2,800Loss on Sale of Land (Lo, –SE) (200)Land (–A)....................................................................... 3,000 Sold land.(8) Dividends (–SE)................................................................. 2,200Cash (–A)...................................................................... 2,200 Declared and paid cash dividend.*The Ending Balance in the Retained Earnings account is derived by the following formula: Beginning Balance + Revenues – Expenses – Dividends.For a check, refer to the statement of retained earnings.E4–10 ConcludedEd's Lawn ServiceIncome StatementFor the Year Ended December 31, 2006Revenue................................................................................................. $ 14,000 Rent expense......................................................................................... (5,000) Miscellaneous expense.......................................................................... (4,000) Loss on sale of land. (200)Net income............................................................................................. $ 4,800Ed's Lawn ServiceStatement of Stockholders’ EquityFor the Year Ended December 31, 2006Contributed RetainedCapital EarningsBeginning balance, January 1, 2006 $ 0 $ 0Net income 4,800Dividends (2,200)Stockholder contribution 12,000 _____Ending balance, December 31, 2006 $ 12,000 $ 2,600Ed's Lawn ServiceBalance SheetAs of December 31, 2006Assets Liabilities and Stockholders' EquityCash .................................... $ 8,600 Notes payable........................ $ 5,000 Accounts receivable.............4,000 Contributed capital................. 12,000 Land ....................................7,000 Retained earnings.................. 2,600Total liabilities andTotal assets..........................$19,600 stockholders' equity........... $19,600Ed's Lawn ServiceStatement of Cash FlowsFor the Year Ended December 31, 2006Cash flows from operating activities:Cash collected from customers.................................. $ 10,000Rent payments on lawn equipment............................ (5,000)Payment of miscellaneous expenses......................... (4,000)Net cash increase from operating activities.......... $ 1,000 Cash flows from investing activities:Proceeds from sale of land........................................ $ 2,800Cash paid for land...................................................... (10,000)Net cash decrease from investing activities.......... (7,200) Cash flows from financing activities:Stockholder contributions........................................... $ 12,000Proceeds from bank loan........................................... 5,000Dividend payments..................................................... (2,200)Net cash increase from financing activities........... 14,800 Increase in cash.............................................................. $ 8,600 Beginning cash balance.. 0Ending cash balance....................................................... $ 8,600E4–11a. Ending cash balance = $8,000 + $109,500 – $90,000 = $27,500b.Holcomb ManufacturingStatement of Cash FlowsFor the Year Ended December 31, 2006Cash flows from operating activities:Cash collections from customers............................... $ 74,000Payments for inventory............................................... (34,000)Payment of wages...................................................... (16,000)Payment of administrative expenses......................... (12,000)Payment of interest..................................................... (3,000)Net cash increase due to operating activities........ $ 9,000 Cash flows from investing activities:Proceeds from long-term investments....................... $ 12,500Purchase of equipment.............................................. (11,000)Net cash increase due to investing activities........ $ 1,500 Cash flows from financing activities:Proceeds from issuance of common stock................ $ 14,000Proceeds from borrowing........................................... 9,000Repayment of bank loan............................................ (10,000)Payment of dividends................................................. (4,000)Net cash increase due to financing activities........ 9,000 Increase in cash balance................................................ $ 19,500 Beginning cash balance.................................................. 8,000 Ending cash balance....................................................... $ 27,500 E4–12a. (1) The entry is to record rent incurred but not yet paid.(2) The entry is to record the expiration of a previously purchased insurance policy.(3) The entry is to record the expiration of a portion of a fixed asset cost.(4) The entry is to record interest revenue earned but not yet collected.(5) The entry is to record the expiration of a deferred revenue.b. (1) Accrual adjusting entry(2) Cost expiration adjusting entry(3) Cost expiration adjusting entry(4) Accrual adjusting entry(5) Cost expiration adjusting entryE4–13(1) Accrual adjusting entry (7) Investing cash flow(2) Operating cash flow (8) Cost expiration adjusting entry(3) Financing cash flow (9) Operating cash flow(4) Cost expiration adjusting entry (10) Cost expiration adjusting entry(5) Cost expiration adjusting entry (11) Operating cash flow(6) Operating cash flow (12) Cost expiration adjusting entry。

mba金融试题及答案

mba金融试题及答案一、单项选择题（每题1分，共10分）1. 以下哪个不是金融市场的基本功能？A. 资源配置B. 风险管理C. 信息提供D. 产品制造答案：D2. 股票的内在价值是指：A. 股票的市场价格B. 股票的账面价值C. 股票的清算价值D. 股票的预期收益现值答案：D3. 以下哪个不是金融衍生品的特点？A. 高杠杆性B. 可交易性C. 非标准化D. 风险转移性答案：C4. 债券的到期收益率与市场价格的关系是：A. 正相关B. 负相关C. 无关系D. 先正后负答案：B5. 以下哪个不是公司财务分析的主要指标？A. 流动比率B. 资产负债率C. 市盈率D. 存货周转率答案：C6. 以下哪个不是货币市场工具？A. 短期国债B. 长期国债C. 银行承兑汇票D. 商业票据答案：B7. 以下哪个是固定收益投资？A. 股票B. 债券C. 商品期货D. 外汇答案：B8. 以下哪个不是风险管理的策略？A. 风险规避B. 风险转移C. 风险接受D. 风险创造答案：D9. 以下哪个是现代投资组合理论的核心概念？A. 风险分散化B. 风险偏好C. 风险厌恶D. 风险预算答案：A10. 以下哪个不是金融市场的参与者？A. 投资者B. 融资者C. 监管机构D. 产品制造者答案：D二、多项选择题（每题2分，共10分）11. 以下哪些属于金融市场的分类？A. 股票市场B. 债券市场C. 商品市场D. 外汇市场答案：A, B, D12. 以下哪些是公司进行资本结构调整的原因？A. 降低资本成本B. 增加股东权益C. 优化债务与权益比例D. 增加公司知名度答案：A, C13. 以下哪些是影响股票价格的因素？A. 公司盈利能力B. 市场利率C. 投资者情绪D. 宏观经济状况答案：A, B, C, D14. 以下哪些属于金融衍生品？A. 期货B. 期权C. 掉期D. 债券答案：A, B, C15. 以下哪些是公司财务分析的方法？A. 比率分析B. 趋势分析C. 垂直分析D. 水平分析答案：A, B, C, D三、判断题（每题1分，共5分）16. 股票的股息率是固定的。

FA 习题及答案

2012 Spring Midterm Exam PaperFinancial AccountingNAME：ID：1-4. For each financial statement item listed in 1 through 4 below, identify the best description by selecting from items a through f below. You may use each letter more than once or not at all. Write the letter ‘X’ for each item for which no description is listed.a. Amount of net income or loss less distributions to the owners of the companyb. Must be settled within one yearc. Converted to cash within one yeard. Amount of owners’ investmente. Portion of equity to which dividends reducef. Land used as a site for productionSolution:1. b2. f3. d4. c5.Which one of the following groups of accounts contains only assets?a. Contributed capital, retained earnings, revenues.b. Cash, contributed capital, retained earnings.c. Prepaid expenses, land, accounts receivable.d. Building, equipment, depreciation expense.Ans: C6. The amount which a company’s customers owe the company for products delivered orservices rendered is found in thea. footnotes only.b. income statement.c. balance sheet.d. statement of cash flows.Ans: C7. Retained earnings may be described asa. the total past profits retained in the business.b. a company’s future growth.c. the amount invested in the firm by its owners.d. amounts retained for payments to vendors.Ans: A8. An equity investor isa. a person who provides money to a company with the expectation that it will bepaid back with interest.b. a creditor that has a regular trade relationship.c. a person who provides money to a company as a gift with a stipulation thatit will be used as agreed.d. a person who provides money to a company, though the original money neverhas to be repaid, and who may be entitled to receive periodic cash payments. Ans: D9. Which one of the following statements is true?a. Financial accounting is the only accounting used in the United States.b. Companies that have a profit objective use not-for-profit accounting.c. Managerial accounting targets operating decisions.d. Financial and tax accounting are virtually the same.Ans: C10. Which one of the following statements best describes objectivity?a. When uncertainty exists, understating assets, overstating liabilities,accelerating recognition of losses, and delaying recognition of gains ispreferred.b. The measurement of an event is verifiable and reliable.c. Different firms use identical accounting measurement methods for similarevents.d. Objectives are laid out that are conservative or too aggressive bymanagement.Ans: B11. Jeter Company ordered 400 toy wagons from Lamar, Inc. on May 1, 2010. JeterCompany paid for them on May 20 at a cost of $2 each. Jeter sold 50 of them on June 2, 2010, for $4 each to Gilloz Company. Gilloz Company paid Jeter on June 10.On which date should Jeter Company recognize revenue?a. May 1b. May 20c. June 10d. June 2Ans: D12. Given below are several accounts from Caterpillar Company’s accounting records.Cash $ 14,000Accumulated depreciation 7,000Retained earnings, beginning of year 22,000Contributed capital 25,000Patents 2,000Dividends 5,000Net income for the year was $37,000. How much is total shareholders’ equity at the end of the year?a. $86,000.b. $82,000.c. $87,000.d. $79,000.Ans: D13. Garrison Corporation has the following transactions:1. Dividends are paid to the shareholders.2. A utility bill for July is paid in August.3. A new warehouse facility is purchased4. Principal payments on outstanding debt are paid.5. Employees wages are paid.6. Forty-five units of inventory are sold for $100 each7. Common stock is issued for $230,000 in cash.8. A delivery van used for 5-years is sold for $12,000, which is its book value.Which of the above transaction(s) are examples of financing activities?a. 1,4,7b. 1,7,8c. 3,8d. 1,3,4,7,8Ans: A14. Which account is associated with the sale of inventory?a. Cost of goods sold.b. Depreciation.c. Inventory expense.d. Equipment.Ans: A15. Which account is associated with borrowing money?a. Interest expense.b. Goodwill.c. Cost of goods sold.d. Depreciation.Ans: A16. The major accounting difference between interest expenses for creditors anddividends declared and paid to shareholders is that interest expenses:a. decrease retained earnings and dividends increase retained earnings.b. impact cash flows, while dividends do not.c. are not on the income statement while dividends declared and paid are.d. are on the income statement and dividends declared and paid are not. Ans: D17. Which of the following changes describes the purchase of $2,000 of inventory onaccount?a. Assets and shareholders’ equity increase by $2,000.b. Assets and sharehol ders’ equity decrease by $2,000.c. Assets and liabilities increase by $2,000.d. Assets and liabilities decrease by $2,000.Ans: C18. The balance sheet reported supplies of $1,900 at December 31, 2009. OnDecember31, 2010, the actual supplies on hand amounted to $1,400. During the year, additional supplies costing $1,500 were acquired and debited to the Suppliesaccount. The adjusting entry required at the end of December 31, 2010 isa. Supplies 1,900Supplies Expense 1,500Cash 3,400b. Supplies Expense 1,900Supplies 1,900c. Supplies 1,400Cash 1,400d. Supplies Expense 2,000Supplies 2,000Ans: D19. Marks Corp. purchased supplies at a cost of $2,400 during 2010. At January 1, 2010,supplies on hand amounted to $800. At December 31, 2010, supplies on hand are $400. Supplies expense for 2010 area. $1,200.b. $3,200.c. $1,600.d. $2,800.Ans: D20. On December 13, 2009, Michael Company received $8,000 in cash as a payment inadvance from a customer and credited Unearned Service Revenue. The balance in the Unearned Service Revenue account was $2,000 at the beginning of December. At the end of December, all but $500 had been earned. What adjusting entry is necessary at the end of December?a. Cash 8,000Unearned Service Revenue 1,500Service Revenue 9,500b. Unearned Service Revenue 6,500Service Revenue 6,500c. Unearned Service Revenue 9,500Service Revenue 9,500d. Service Revenue 8,000Unearned Service Revenue 8,000Ans: C21. Favre Company paid for insurance in advance. Which transaction will Favre record?a. Debit Cash and credit Insurance Expense.b. Debit Prepaid Insurance and credit Cash.c. Debit Prepaid Insurance and credit Accounts Payable.d. Debit Cash and Credit Prepaid Insurance.Ans: B22. During April, Tempe Corp. paid $4,000 on account for supplies that were purchased,recorded, and used during March. In recording this transaction, Tempe willa. debit Accounts Payable and credit Cash.b. debit Shareholders’ equity and credit Accounts Payable.c. debit Supplies Expense and credit Accounts Payable.d. accrue an expense of $4,000.Ans: A23. If the balance sheet is in balance,a. assets must equal liabilities.b. assets must exceed liabilities.c. transactions recorded must be right.d. errors may still exist.Ans: D24. On August 1, Amy Company borrowed $38,000 from another company on a 6%,one-year note. The journal entry that Amy would record on August 1 wouldinclude which of the following?a. A debit to Notes Receivable for $38,000.b. A credit to Cash for $38,000.c. A credit to Notes Payable for $38,000.d. A debit to Interest Expense for $2,220.Solution:August 1:C Cash 38,000Notes Payable 38,000Ans: C25-29. For each transaction numbered 1 through 5 below, identify the effect (a through h) on the accounting equation by placing the letter of the effect in the space provided.You may use each letter more than once or not at all.a. Debit assets and credit liabilitiesb. Debit assets and credit contributed capitalc. Debit assets and credit revenued. Debit retained earnings and credit assetse. Debit contributed capital and credit assetsf. Debit expenses and credit assetsg. Debit one asset and credit another asseth. Not communicated by the formal accounting system1. g2. c3. f4. f5. h30. Which of the following are components of the current ratio?a. Accounts receivable and short term investmentsb. Inventory, retained earnings, and accounts payablec. Accounts payable, dividends, and cashd. Short term investments, equipment, and landAns: A31. The allowance for doubtful accounts isa. an ‘other revenue’ account.b. a contra accounts receivable account.c. an ‘other expense’ account.d. a contra expense.Ans: B32. Under the allowance method of accounting for bad debts, the recognition of baddebts expensea. increases current assets and decreases net income.b. decreases current assets and increases net income.c. increases current assets and net income.d. decreases current assets and net income.Ans: D33. A company’s allowance for doubtful accounts is $4,000 and$3,000 on 1/1/11 and1/1/10, respectively. During 2010, bad debts expenses were estimated to be 6% on net credit sales of $100,000. During 2010, the amount of accounts written off as uncollectible amounts toa. $6,000.b. $7,000.c. $5,000.d. $4,000.Ans: C34. The journal entry to record the recovery of a previously written-off $2,000 accountreceivable (for customer Leno Company) under the allowance methodwould include:a. a credit to Bad Debt Expense.b. a credit to Cash.c. a debit to Accounts Payable – Leno Company.d. a credit to Allowance for Doubtful Accounts.Ans: D35. If a company uses the allowance method to account for bad debts, the company’sowners’ equity will decreasea. at the end of the accounting period when an adjusting entry to estimate baddebts is recorded.b. on the date a customer’s account is determined to be uncollectible.c. when the accounts receivable amount becomes past due.d. on the date a customer’s account is written off.Ans: A36. At the beginning of 2010, Cyrus Corp.’s allowance for doubtful accounts is $12,500.During 2010, $4,250 was written off as uncollectible. At December 31, thecompany used an aging schedule of accounts receivable and determined that $10,530 of the accounts receivable would probably be uncollectible. What would be the bad debts expense that should be reported on Cyrus’s 2010 income statement?a. $5,720b. $26,780c. $2,280d.$18,280Solution:$12,500 – $4,250 + X = $10,530 X = $2,280Ans: C37. If a company desires to increase its inventory, then it should:a. sell more goods than it purchases during the period.b. purchase more goods than it sells during the period.c. purchase the same amount of goods that it sells.d. increase its selling prices to a level that customers would not be willing topurchase.Ans: B38. During a year of decreasing prices and decreasing inventory, which cost flowassumption would measure the greatest net income?a. FIFOb. LIFOc. Averagingd. Both a and c are correct.Ans: B39. Selecting an inventory cost flow assumption will most likely be impacted by which oneof the following?a. The physical flow of the inventory goods.b. The cost of the company’s plant and equipment.c. Income taxes.d. The cost flow assumptions most often used by other companies.Ans: C40-43 Match the correct ratio category from the list below labeled a through e with each ratio that appears in items 1 through 4.b. Leverage ratioc. Solvency ratiod. Asset turnover ratioe. Market ratioSolution:1. c2.a3. b4.eKP 5 BT: K Difficulty: Easy TOT: 3 min. AACSB: AnalyticAICPA BB: Critical Thinking AICPA FN: Measurement44. Operating performance is a company’s ability toa. control acquisitions of other companies in the same industry.b. generate cash from sources other than regular operations.c. increase its net assets through regular operationsd. employ off-balance-sheet financing.Ans: C45.Assume that the following financial ratios were computed from the 2009 financialstatements of Florida Industries:If Floridaholds its other ratios constant in 2010, but increases its profit margin to 36%, what will be the 2010 return on assets?a. 5%b. 78%c. 61%d.51%Solution:ROA = Profit Margin * Asset TurnoverROA = .36 x 1.69 = 61%Ans: C KP 5 BT: AN Difficulty: Moderate TOT: 2 min. AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement。

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CHAPTER 1FINANCIAL ACCOUNTING ANDITS ECONOMIC CONTEXTISSUES FOR DISCUSSIONID1–1Security analysts and stockholders: These users would use financial statements to try to estimate the future earnings and cash flow potential of the company, which would be used to project a value for the company’s stock.Bank loan officers: These users would use the financial statements to determine the ability of a company to repay loans to the bank.A company’s customers and suppliers: These users would use financial statements todetermine whether to extend credit to the company (suppliers) or whether to rely upon the company to be a supplier (customers). Both suppliers and customers would also use the financial statements to monitor the company’s profit margins.Public utilities: This group would use the financial statements to determine the company’s growth rate and how that might impact upon the company’s utility needs. Also, they would evaluate the company’s ability to pay its bills.Labor unions: These groups would use the financial statements to monitor the profitability of the company to help determine the amount of pay raises and benefits that it will negotiate for from the company.A company’s managers: The company’s managers will use the financial statements to assessthe overall financial health of the company. This could impact the managers in a number of ways: raises, promotion opportunities, performance of other departments, etc.ID1–2The board of directors serves various functions for a company. One is to represent and protect the interests of the stockholders who are not on the board. Another is to provide oversight and input to management. The managers are involved in running the business on a day-to-day basis whereas the board is more focused on the bigger, long-term picture. A weak board may not ask probing questions of management but instead may take everything at face value and believe anything that management says to them. A healthy management team would want a strong board that delivers valuable input. A management team that wants a weak board of directors may be trying to hide something (management fraud).Auditors are concerned with management fraud because, if there is a problem, in many cases the auditors will be sued by the stockholders on the basis that the auditors should have detected the fraud.ID1–3The function of the audit committee is to provide a channel whereby the auditors report their findings and concerns, if any, to the board of directors. Typically there are outside members of the board that are on the audit committee so that if the auditors have concerns about management’s financial statements or activities, then the auditors have a way to speak directly to the board of directors.The auditors are in a sensitive position because the financial statements and activities that they are auditing are prepared by the same people who hire and pay the auditors. Therefore, they may be reluctant to jeopardize their relationship with the company by being too negative.ID1–4Since Pepsi’s profits increased by a greater percentage than sales increased, it must mean that expenses as a percentage of sales dropped. Pepsi was able to improve its profitability per dollar of sales.The growth in equity was larger than the growth in assets, indicating that Pepsi reduced its liabilities. The financing activities verify that Pepsi used a significant amount of cash, partially to reduce debt. In addition to the reduction in liabilities, the strong cash flow from operations was used to purchase additional assets for the company.ID1–5Creditors would impose these types of restrictions on Continental Airlines so that the creditors would be protected for their loans. These types of restrictions are fairly common and act as a trip wire to warn the creditors that business may not be going well. The cash restriction would force Continental to have enough cash to pay the interest on the debt, the minimum stockholders’ equity makes sure that there are assets to act as collateral for the loans, and the restriction of dividends insures that management doesn’t distribute cash or assets out to the stockholders and not leave assets in the company to satisfy the creditors.These restrictions act as trip wires in that as soon as a restriction is violated the creditors can call the debt and force the company to pay back the loans. What is more typical is for the loans to be restructured. This usually means higher interest rates and fees to do the restructuring. These all put the creditors in a better position to protect their loans.ID1–6Companies would usually engage in this type of behavior to try to improve their stock price. By showing higher revenues or lower expenses investors are more likely to reward the company with a higher stock price. Companies that have negative cash flow are under a lot of pressure to maintain a high stock price since selling stock is the only way to fund the business. This type of incentive can lead to questionable behavior.The ethical implications are significant because if investors lose faith in the financial statements that are reported this would severely impact the stock market. A strong driver to a robust economy is access to capital (stock markets). If this source is reduced because investors don’t believe the numbers that are reported, a very bad impact on the overall economy would result.ID1–7This is the normal statement that an auditor would make about a company whose books it had audited and found no significant problems. This would be part of what is called a “non-qualified opinion”. If there was a particular item that the auditors did not agree with they would issue a “qualified opinion” – they would agree with everything except the qualified item that would be identified.“In our opinion”, it is their opinion and not a fact, “fairly, in all material respects”, means that the auditors can not say that every single number is exactly accurate to the penny but that the numbers are generally about right. This reflects the concept of materiality. The auditors believe that all material items have been presented accurately. “in conformity with generally accepted accounting principles”, this means that the financial statements have been compiled in a way that meets all of the accounting principles that are called GAAP.ID1–8Corporate governance describes the relationship among the stakeholders of a company, mainly : the shareholders, the Board of Directors, management and the company’s auditors.Corporate governance mechanisms encourage management and the Board of Directors to act in the best interest of the shareholders and to provide the shareholders with accurate and timely financial information. The Sarbanes-Oxley Act was passed to upgrade the financial transparency of corporate operations, requiring increased financial disclosures and management responsibilities for the intergrity of the financial statements. Improved information provided to shareholders and other providers of capital will strenghten the confidence in the financial system, ultimately benefitting both providers and users of capital.ID1–9Management is charged with the responsibility to benefit the shareholders’ investment in the company. Choosing investments that will boost the short-term results of the company in lieu of long-term gains does not meet this requirement. While satisfying the needs of Wall Street analysts for short-term results, a management decision to forego larger long-term returns violates the relationship between the owners of the company and the management of the company. Many observers feel that short-term profit pressures from analysts have caused management to ignore its responsibility to work for the long-term benefit of the shareholder.ID1–10While the NYSE is reacting to potential rules changes based on marketing considerations, the SEC is reacting based on a desire to improve the quality of financial information that companies disclose. The SEC has a very strong argument in that the US equity markets are the largest and most liquid markets in the world. All other countries would love to have a financial market like the ones that exist in the US.One of the possible reasons that other countries don’t want to adopt the same accounting rules as exist in the US is that their companies may not compare well with US companies that have been operating under the stricter rules. To lower the accounting standards may have the impact of influencing the US capital markets to look more like capital markets in other countries, which would not be good for the US economy.ID1–11Many experts agree that one of the driving forces recently in economic growth has been the globalization of the economy, with countries across the world doing more and more business with each other. This globalization is threatened when the companies cannot agree on a uniform set of guidelines covering a business practice as important as financial reporting. The flow of capital is dependent on transparent and accurate financial information. If countries cannot agree on accounting standards, the ability of those companies to do business in each other’s markets, and the ability of capital to move from one country to another, will be limited.ID1–12Management accounting is the accounting system that generates information that is used exclusively by the managers of the company. Financial accounting refers to the financial statements that are prepared and distributed outside of the company. So in many cases management accounting information is the operational information used by the managers of the company. This can be very proprietary to the company and so is not made public.Management accounting numbers are not subject to audit and therefore are prepared in whatever form is helpful to the manager.Financial accounting information is audited and therefore has to follow GAAP. Its primary purpose is to be used by people outside of the company.ID1-13a. Home Depot is a large retailing company, focusing on hardware sales to consumers andcontractors. It is a retailer because it does not manufacture the goods that it sells. It buys products from vendors and offers those products for sale in its stores.b. The firm of KPMG audits the financial statements of Home Depot. The audit report consists of4 paragraphs. The first paragraph states what years and financial statements were auditedand therefore being commented upon by this audit report. The second paragraph explains what an audit is intended to do and how the company has gone about doing this audit. The third paragraph states the auditors’ opinion regarding the financial statements that have been audited. The final paragraph indicates a change in accounting methods by the company.c. Net income in 2003 was $4,304,000,000, for 2002 net income was $3,664,000,000 and for2001 net income was $3,044,000,000.d. 2003 2002Current liabilities $9,554 27.7% $8,035 26.8%Long-term liabilities 2,476 7.2% 2,174 7.2%Total assets $34,437 $30,011From 2002 to 2003 Home Depot increased its current liabilities by $1.5 billion and increased its long-term liabilities by $300 million. As a percentage of total assets, however, long-term liabilities remained constant. The ratio of current liabilities to total assets increased by nearly a percentage point. This shows that the increase in total assets (over $4 billion) was generated by the increase in current liabilities and net income.e. Cash from operating activities was $6,545,000,000 in 2003, in 2002 it was $4,802,000,000 andin 2001 was $5,963,000,000.f. Home Depot is considered to be one of the best-managed companies in the US. The companyis extremely profitable (see c above), growing and well-capitalized. This financial condition is reflected in the company’s cash balance of over $2.8 billion and shareholders’ equity of over $22 billion.。