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Your finance professor said that the indirect method is a better way to prepare the statement of cash flows because it starts with a known number-net income.
However, in 1985, Home Depot had a very large negative cash flow from operating activities and later turned into a very large, successful company.
Write a memo to the president with the objective of convincing her of the usefulness of the statement of cash flows.
It has been your policy for the past several years to routinely classify all investments as available-for-sale.
What are cash equivalents, and how are they treated on a statement of cash flows?
What supplemental disclosures are likely to be required in connection with a statement of cash flows?
The accounts receivable balance at the beginning of the year was $512, and the ending balance was $481.
The company purchased $12,000 of its own common stock to be held in the treasury.
Consider that disclosure tends to drive behavior toward some expected level. Briefly discuss whether more disclosure (or less) should be required for firms.
At what amount will Skull Valley's trademark be recorded on the books of Fishing Creek, the acquiring company?
If John can't make the payments from what is left in the business, who will the bank look to for payment?
Does buying back the company's own stock add value to the company as a whole?
What is the process for adjusting the value of a trading or available-for-sale security after a valuation account has been established?
Why does the amortization of a discount increase the amount of interest revenue earned on a held-to-maturity security?
What is the key criterion for using the equity method of accounting for equity securities?
What financial statement accounts are shown only in consolidated financial statements and never in the financial statements of individual companies?
In which type of business entity do all owners have limited liability?
Why would a company repurchase its own shares of stock that it had previously issued?
What is accumulated other comprehensive income? Why was this concept adopted by accounting-standard-setters?
Discuss ability to focus the reader's attention on the subject of the research paper in a thorough paragraph which effectively leads into the thesis statement;
Prepare all journal entries relating to the two notes for 2008, 2009, 2010, and 2011.
Prepare the journal entries made on May 1 and July 1 to record the issuance of these two notes.
On July 1, 2009, Paramount, Inc. issued $500,000, 8%, 30-year bonds with interest paid semiannually on January 1 and July 1.
Record the depletion expense for 2008, assuming that 30,000 tons of coal were mined during the year.
Compute depreciation expense on this bulldozer for 2007, 2008, and 2009.