09class4

09class4 - Logue Shoe Store Year Three: Assets Acct. Rec....

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Assets Balance Sheet Change Operations Investing Financing Acct. Rec. +102 (102) Inventorie s +7,198 (7,198) Oth. Curr. Assets (3,591) 3,591 Prop., Plant, Equip. +1,651 (1,651) Accum Dep. +7,985 7,985 Other Assets 1 Logue Shoe Store Year Three:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Liabilities Balance Sheet Change Operations Investin g Financin g Acct. Pay -6,126 (6,126) Notes Pay 0 Curr. Portion Long- term Debt -7,259 (7,259) Other current liabilities +2,559 2,559 Long-term debt -9,536 (9,536) Common Stock 0 A.P.I. Capital 0 Retained Earnings +16,634 16,634 Cash -1,103 17,343 (1,651) (16,795) 2 Logue Shoe Store Year Three:
Background image of page 2
One additional factor: Sale of assets for a gain or loss. Suppose that the change in the land account is a decrease of 25. Suppose we are told that land was sold at a gain of 15. What is the correct solution to the change in land account using Exhibit 3.12? 3 Change in Acct. Operation s Investing Financing Land -25
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Summary. 1. The quality of earnings ratio equals (cash flow from operations – net income)/total assets. In the past investors have made positive abnormal returns buying stocks with a high quality of earnings ratio. 2. The key equation for the preparation of the statement of cash flows is Cash = Liabilities + Owner’s equity - Noncash assets 4
Background image of page 4
5 Interpreting Ratios (page 238-239 of the textbook) There are two main ways to interpret ratios. A ratio should be compared with those of other companies in order to know if it is high or low. A ratio should also be compared with the company’s own ratio in
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/21/2009 for the course MGMT 126 taught by Professor Miller during the Winter '09 term at UCLA.

Page1 / 19

09class4 - Logue Shoe Store Year Three: Assets Acct. Rec....

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online