HW 3 - NAME Valerie Bodden HW 3 FINANCIAL MANAGEMENT...

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NAME Valerie Bodden MATRICULA 10-0014 1. Companies typically provide four basic financial statements: the fixed income statement, the current income statement, the balance sheet, and the cash flow statement. a. True b. False 2. Assets other than cash are expected to produce cash over time, but the amount of cash they eventually produce could be higher or lower than the amounts at which the assets are carried on the books. a. True b. False 3. The amount shown on the December 31, 2011 balance sheet as "retained earnings" is equal to the firm's net income for 2011 minus any dividends it paid. a. True b. False 4. Consider the following balance sheet, for Games Inc. Because Games has $800,000 of retained earnings, we know that the company would be able to pay cash to buy an asset with a cost of $200,000. Cash $ 50,000 Accounts payable $ 100,000 Inventory 200,000 Accruals 100,000 Accounts receivable 250,000 Total CL $ 200,000 Total CA $ 500,000 Debt 200,000 Net fixed assets
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This note was uploaded on 09/15/2011 for the course ACCOUNTING --- taught by Professor --- during the Spring '11 term at Universidad Iberoamericana.

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HW 3 - NAME Valerie Bodden HW 3 FINANCIAL MANAGEMENT...

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