Problem 1:
(1) Investments in TS
Investments in SAS
Cash
(2) Cash
18,000
17,000
35,000
3,740
Interest Revenue
Dividend Revenue
(3) Cash
1,100
2,640
17,000
Investment in TS
Gain on Sale of Investments
Cash
Loss on Sale of Investments
Investment in SAS
(4)
Lecture 12 In-Class Exercises
Note: The in-class exercises do not cover very topic that will be tested. You are
responsible for all of the material in the textbook, everything covered in the lecture
videos, and everything covered in class unless the video
Lecture 12 Module 1
INVESTMENTS IN OTHER COMPANIES
Passive Investments less than 20% ownership
Debt Held to Maturity Investments in Bonds only
Trading Securities Investments held mostly for active
trading
Available for Sale Securities Investments that
Lecture 11 Module 1
STOCKHOLDERS EQUITY
Types of Stock
Common Stock
Is the ownership in the business.
Has voting rights.
May or may not receive a dividend.
Preferred Stock
Is a different class of ownership in the business.
Does not have voting rights
Lecture 11 In-Class Exercises
Note: The in-class exercises do not cover very topic that will be tested. You are
responsible for all of the material in the textbook, everything covered in the lecture
videos, and everything covered in class unless the video
Lecture 13 Modules 1 & 2
STATEMENT OF CASH FLOWS
Indirect Method
There are three sections on the statement:
Operating Activities
Investing Activities
Financing Activities
Operating Activities
Net Income
+ Depreciation, Amortization, and Depletion Expen
Lecture 13 In-Class Exercises
Note: The in-class exercises do not cover very topic that will be tested. You are responsible for
all of the material in the textbook, everything covered in the lecture videos, and everything
covered in class unless the video
Lecture 14 Module 1
FINANCIAL STATEMENT ANALYSIS
Vertical Analysis
With Income Statement accounts, it presents each account
balance as a percentage of sales.
With Balance Sheet accounts, it presents each account as a
percentage of assets.
Ex: Sales
Cost
Lecture 14 In-Class Exercises
Note: The in-class exercises do not cover very topic that will be tested. You are responsible for
all of the material in the textbook, everything covered in the lecture videos, and everything
covered in class unless the video
Lecture 13 In-Class Exercises
Note: The in-class exercises do not cover very topic that will be tested. You are responsible for
all of the material in the textbook, everything covered in the lecture videos, and everything
covered in class unless the video
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