Rental revenues received 465000 cash paid out in 2010

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Rental revenues received$465,000Cash paid out in 2010 for—Salaries paid to employees$260,000Utilities paid18,000Advertising expenses paid15,000Supplies purchased and used24,000Interest paid on loan18,000Loan principal paid30,000Cash dividends60,000425,000In crease in cash balance for the year$ 40,000You also find that the annual rent of USD 54,000, a December utility bill of USD 4,000, and an advertising bill of USD 6,000 have not been paid.a. Prepare a written report for Andrews giving your appraisal of Drake Bowling Lanes Company as an investment. Comment on Drake’s method of computing the annual profit of the business.b. Include in your report an approximate income statement for 2010.Group project C In teams of two or three students, go to the library to locate one company’s annual report for the most recent year. Identify the name of the company and the major products or services offered, as well as gross revenues, major expenses, and the trend of profits over the last three years. Calculate trend percentages for revenues, expenses, and profits using the oldest year as the base year. Each team should write a memorandum to management summarizing the data and commenting on the trend percentages. The heading of the memorandum should contain the date, to whom it is written, from whom, and the subject matter.Group project D With one or two other students and using library and internet sources, write a paper on Statement of Accounting Standards No. 106,“Accounting for Postretirement Benefits Other Than Pensions”. This standard resulted in some of the largest adjusting entries ever made. Companies had to record an expense and a liability to account for these costs on an accrual basis. In the past they typically had recorded this expense on a cash basis, recognizing the expense only when cash was paid to retirees. Be sure to cite your sources and treat direct quotes properly.Group project E With one or two other students and using library sources, write a paper on human resource accounting. Generally accepted accounting principles do not allow “human assets” to
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be included among assets on the balance sheet. Why is this? Be sure to cite your sources and to treat direct quotes properly.
4.10.12 Answers to self-test4.10.12.1 True-false

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