Suggested Questions and Answers
Q1) Penguin Pucks, Inc., has a current assets of $4,800, net fixed assets of $27,500, current
liabilities of $4,200, and long-term debt of $10,500. What is the value of shareholders
equity account for this firm?
Flexible Budgets and
Variance Analysis Cycle
Prepare a flexible
Characteristics of Flexible Budgets
are prepared for
a single, planned
level of activity.
1) What is Margin?Explain short sales.
Operating margin is a margin ratio used to measure a company's
pricing strategy and operating efficiency.
Operating margin is a measurement of what proportion of a
company's revenue is left over after paying for vari
1. What effect would the following actions have on a firms current ratio? Assume that net working
capital is positive.
Firstly, we must define what the current ratio is. The current ratio is a liquidity ratio that measures a
company's ability to pay short
A.k.a. statement of condition or statement of
Ol just lo -An
Sections of 10-K
Contents & valuation
14. Gordon Industries had the following operating results for 2011: sales= $27,360; cost of goods
sold= $19,260; depreciation expense= $4,860; interest expense= $2,190; dividends paid= $1,560.
At the beginning of the year, net fixed assets were $16,380, c
C H A P T E R
This chapter covers a new topic, budgeting.
The chapter begins by explaining the reasons for
operating a budgetary planning and control system,
explains some of the key terms associated with budgeting
and reminds you of the steps in the prep