Part I: Identify which of the four financial statements will


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Part I: Identify which of the four financial statements will report the following: 1. Dividends declared by the board of directors _______________________ 2. The amount of cash received from customers during the current accounting period ________________ 3. Whether the company was profitable or not _____________________ 4. Whether the company’s assets were financed primarily with debt or equity _______________ 5. The revenues of the company ______________________ 6. The liabilities of the company ______________________ 7. The balance of the company’s retained earnings at the beginning of the accounting period ________________ 8. Information as of a specific point in time 9. Information over a period of time. Part II: 1. Identify whether the following items are classified as revenues (R), expense (E), gain(G), loss (L), or not reported on the income statement (N) a. Service revenue __________ b. Cost of goods sold ___________ c. Salary expense ____________ d. Sales ____________ e. Gain on the sale of equipment ___________ f. Prepaid insurance ___________ g. Salaries payable ___________ h. Income tax expense __________ i. Loss on the sale of common stock _________ 2. Describe the nature of depreciation expense Part III: 1. Assets can be financed with either __________ or _____________ 2. Identify the accounting equation for the Home Depot for year ending February 3, 2013: Assets $________________ = Liabilities $________________ + Equity $_____________ 3. Identify whether the following items (accounts) are an asset (A), a liability(L), or a part of stockholder’s equity(E): a. Cash ________ b. Accounts receivable ________ c. Notes Payable _____________ d. Retained earnings ____________ e. Equipment _____________ f. Prepaid Insurance ______________ g. Payroll taxes payable ___________________ h. Inventory _____________________ i. Building ________________ 4. How much money is owed to Home Depot by its customers on February 3, 2013? $____________ 5. How much did Home Depot receive from its Shareholders when it originally sold its stock? $_________ 6. How many shares of stock has Home Depot sold (par value is an arbitrary value assigned to each share of stock)? $__________________ 7. Since they incorporated, how many dollars has the Home Depot earned in profits that have not been paid to their shareholders as dividends? $_______________________ 8. Describe the nature of treasury stock. 9. Why would Home Depot have a year-end other than a calendar year end (December 31 year-end)? Part IV: Questions for Part IV: 1. Earnings is another word for ______________________ 2. Do the earnings of a corporation belong to the owners of the company or to the managers of the company? ______________ 3. Identify whether the following accounts are assets, liability, equity, revenues or expenses and whether they appear on the income statement, the balance sheet, or the statement of retained earnings ==== See Attached Document Part V: 1. Give an example of how cash flow from investing activities could be a negative number. 2. Give an example of how cash flow from financing activities could be a negative number. ATTACHMENT PREVIEW Download attachment Accounting Review Home Depot Case Spring 2013.docx BFIN 322 Project 1 Review of Financial Accounting Part I: Identify the Four Financial Statements 1. The Income Statement (Profit and Loss, P&L) reports the results of the company’s operations. It reports revenues (amounts received from customers), expenses (costs incurred in generating revenues, gains and losses. The Income Statement reflects and entire accounting period which is generally a year but could also be quarterly, monthly, weekly, etc. Company Income Statement For the year end 12/31/2012 Revenues (Less Expenses) Plus Gains (Less Losses) = Net Income 2. The Statement of Retained Earnings reports whether the earnings of a company (earnings = net income) are paid out to the owners (shareholders) as dividends or reinvested (r…

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