Accounting Adjustments and
Constructing Financial Statements
The fiscal year is the annual accounting period that a firm adopts. A firm that uses
December 31 as its year-end is on a calendar-year basis. Traditionally, f
Financial Accounting for MBAs
E1-27. (15 minutes)
a. Targets inventories consist of the product lines it carries: clothing, electronics, home
furnishings, food products, and so forth.
b. Targets Property and Equipment assets consist of
Introducing Financial Statements and
E2-27. (20 minutes)
For Year Ended December 31, 2013
Sales revenue .
Cost of goods sold .
Constructing the Statement of
E B-28. (15 minutes)Indirect Method
Add (Deduct) Items to Convert Net Income to Cash Basis
Accounts Receivable Increase
Prepaid Insurance Increase