Question: 1. Compare company's net income to its cash provided by operating activities for the most recent year-end. Which is larger?
2. Compare company's net income over the last two reporting periods. Next, compare company's cash provided by operating activities over the last two reporting periods. Which changed the most over this time period, net income or cash provided by operating activities?
3. Calculate the company's net income as a percentage of revenue over the last two reporting periods. Based on these calculations, did the company perform better in the prior year or the most recent reporting period?
4. Which of the company's assets is the result of recognizing revenue before cash is received?
5. Which of the company's liabilities is the result of recognizing an expense before cash is paid?
6. Which of the company's assets is the result of deferring recognition of an expense?
7. Which of the company's liabilities is the result of deferring recognition of revenue?
8. How much did the company's total assets increase (decrease) over the last two balance sheet dates?
9. Which of the company's accounts increased when the company issued its common stock in exchange for cash?
10. Which of the company's accounts was increased when cash was received at the time of a sale?
11. Which of the company's accounts was increased when cash was not received at the time of a sale?
12. Which of the company's accounts was decreased when cash was collected from customers from partial settlement of its accounts receivable?
13. Which of the company's accounts was decreased when cash was paid for an expense that will be incurred in the following year?
14. Which of the company's accounts was increased when cash was received for services that will be provided in the following year?
15. Does the operating activities section of the company's most recent statement of cash flows include cash inflows from revenues (or cash outflows for expenses) that were accrued at the end of the most recent reporting period?
16. Calculate the company's return on assets ratio over the last two reporting periods. Which year did the company manage its assets more efficiently?
17. Calculate the company's debt to assets ratio over the last two reporting periods. Did the company's level of financial risk increase or decrease between the two periods?
18. Calculate the company's return on equity ratio over the last two reporting periods. Which year did the company's stockholders receive a higher on invested funds?