Mgmt_200_Spring_2008_Chap_2_Balance_Sheet(1,9)

Mgmt_200_Spring_2008_Chap_2_Balance_Sheet(1,9) - MGMT 200...

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MGMT 200 INTRODUCTORY FINANCIAL ACCOUNTING Chapter 2: Investing and Financing Decisions Objectives of financial reporting The balance sheet reexamined Transaction analysis Processing accounting transactions Debit and credit rules Journal entries and ledger accounts Ratio analysis The statement of cash flows E2-2, E2-4, E2-6, E2-15, E2-16, P2-5, P2-6
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The Conceptual Framework (FASB) Objectives of Financial Reporting Elements of Financial Statements Qualitative characteristics of Accounting information Usefulness characteristics Assumptions Principles Constraints
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Primary Objective The primary objective of external financial reporting is to provide useful economic information about a business to help external parties make sound financial decisions
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Key Assumptions Accounting Entity Assumption Monetary Assumption Going Concern Assumption Time Period Assumption
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Key Principles Historical Cost Principle Revenue Recognition Principle Matching Principle Full Disclosure Principle
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Elements of Financial Statements Asset Liability Stockholders’ Equity Revenue Expense Gain Loss
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The Balance Sheet Re-examined Assets in order of liquidity (decreasing) Liabilities in order of maturity Classified: separate sub-totals for Current assets and current liabilities Stockholders’ Equity: Contributed capital and retained earnings Comparative data (two years: current year and prior year)
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THE HOME DEPOT, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS amounts in millions, except per share data January 28, 2007 January 29, 2006 ASSETS Current Assets : Cash and Cash Equivalents $ 600 $ 793 Short-Term Investments 14 14 Receivables, net 3,223 2,396 Merchandise Inventories 12,822 11,401 Other Current Assets 1,341 665 Total Current Assets 18,000 15,269 Property and Equipment, at cost: Land 8,355 7,924 Buildings 15,215 14,056 Furniture, Fixtures and Equipment 7,799 7,073 Leasehold Improvements 1,391 1,207 Construction in Progress 1,123 843 Capital Leases 475 427 34,358 31,530 Less Accumulated Depreciation and Amortization 7,753 6,629 Net Property and Equipment 26,605 24,901 Notes Receivable 343 348 Goodwill 6,314 3,286 Other Assets 1,001 601 Total Assets $52,263 $44,405
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amounts in millions, except per share data January 28, 2007 January 29, 2006 LIABILITIES AND STOCKHOLDERS’ EQUITY Current Liabilities: Short-Term Debt $ — $ 900 Accounts Payable 7,356 6,032 Accrued Salaries and Related Expenses 1,295 1,068 Sales Taxes Payable 475 488 Deferred Revenue 1,634 1,757 Income Taxes Payable 217 388 Current Installments of Long-Term Debt 18 513 Other Accrued Expenses 1,936 1,560 Total Current Liabilities 12,931 12,706 Long-Term Debt, excluding current installments 11,643 2,672 Other Long-Term Liabilities 1,243 1,172 Deferred Income Taxes 1,416 946 STOCKHOLDERS’ EQUITY Common Stock, par value $0.05; authorized: 10,000 shares; Issued 2,421 shares
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This note was uploaded on 11/22/2009 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue University-West Lafayette.

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Mgmt_200_Spring_2008_Chap_2_Balance_Sheet(1,9) - MGMT 200...

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