Midterm Tips and Topics:
Combination of multiple choice and problems
Proper form is important (ie, journal entries, financial statements)
I will provide present/future value tables
I will specify any ratios or formulas you should know prior to final
Include a list of references used in preparing your report, including your
companys financial statements (I/S, B/S, SCF only) as an appendix to your paper.
Here is a list of companies that I think would make excellent subjects for your
The contents of this report were prepared by us. Ideas, other than those cited,
Evaluation Form: Immediately following your title page, attach a copy of the
evaluation form (see the last page of this handout) that follows the description of
Analyze the performance of your company using trend analysis,
common size financial statements, and segment disclosures.
(a) Trend Analysis compares financial changes from one year to the next
and identifies patterns that have occurred in the past. The
Handout 2-2: Analyze each of the following transactions of World Wide Webster and
prepare the journal entry required to record the related transaction.
We can sum up the rules as follows:
Liabilities & SE
Additional Chapter 8 PPE exercises:
General Electric has been criticized for having a bloated balance sheet. For example, the 2010
annual report of the company contained the following ($ in millions):
Total land, buildings, and equipment $113,29
To assess short-term liquidity use the current ratio, the quick ratio,
Accounts receivable turnover, and inventory turnover.
To assess long-term solvency use the total debt to equity ratio, and the
times interest earned.
To assess profitability use RoE, g
Name (front and back):
1. Halbur Company reported the following for its recent year of operation:
From the income statement
Gain on sale of equipment
From the comparative balance sheet:
Beginning balance, equipment
Name (front and back):
May 6, 2013
1. Depreciation is added back to net income in a statement of cash flows prepared using the indirect method
because it: 2 points
A. is a revenue.
B. is a cash inflow.
C. is a valuation concept.
D. reduces net income but
The ARP is designed to give you practice in interpreting and analyzing company
financial information. The intended learning outcomes are as follows:
1) To interpret annual report information and to analyze a companys performance
using that information;