Financial Statement Analysis 693
Summary of Ratios
Ratio Formula Significance
Working capital Current assets Current liabilities Measures the companys ability to repay
current liabilities usi
Southwest Airlines, Inc
At December 31, 2010
Property and Equipment
ACTG HW 1
January 20, 14
Q1: Accounting is the action or process of keeping financial records.
Q2: The advantage of being a Sole Proprietor is that it is owned by one person. It also doesnt require
any legal matters. All Valeri would have to do is get a b
January 27, 2014
Q1: Assets: Resource presently owned by a business that generate future economic benefits
Current Assets: Assets that will be used up or turned into cash within 12 months or the next operating
cycle, whichever is longer.
ACTG HW 2
January 23, 14
Q11: The three major components reported on the balance sheet are assets, liabilities, and stockholders
equity. The basic accounting equation is: assets equal liabilities plus stockholders equity.
Q12: The equation that provides t