Business Transaction or Event Ratio Current ratio 1. Declared a cash dividend. 2. Sold inventory on account at cost. 3. Issued bonds with an interest rete of 8%. The company's return on assets is 10%. 4. Net income decreased by 10% between last year and this year. Long-term debt remained unchanged. 5. Paid a previously declared cash dividend. 6. The market price of the company's common stock dropped from $24.50 to $20.00. The dividend paid per share remeined unchanged. 7. Obsolete inventory totaling $100,000 was writen off as a loss. 8. Sold inventory for cash at a profit. 9. Changed customer crecit terms trom 2/10, n30 to 2/15, n/30 to comply with a change in Industry practice. 10. ksued a stock dividend to commen stockhoiders Acid-test ratio Retum on equity Times interest earned Current ratio Dividend payout ratio Inventory turnover ratio Debt-to-equity ratio Accounts receivable turnover ratio 11. The market price of the company's common stock increased from $24.50 to $30.00. 12. Peid $40,000 on accounts payabie. 13. Issued a stock dividend to common stockholders. 14. Paid accounts payoble. Book value per share Book value per share Working capital Earnings per share Debr-to-ecuity retio Acid-test ratio 15. Purchased inventory on account. 16. Wrote off an uncollectible account agoinst the Alowance for Bad Debts 17. The market price of the company's common stock increased from $24.50 to $30.00. Earnings per share remained unchanged. 18. The market price of the company's common stock increased from $24.50 to $30.00, The dividend paid per shore remained unchanged Current ratio Price-earnings ratio Dividend yigld ratio Effect on Ratio Reason for Increase, Decrease, or No Effect 1. Etc.

Identify how each of the following separate transactions 1 through 10 affects financial statements. For increases, place a "+" and the dollar amount in the column or columns. For decreases, place a "-" and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example. Required: a. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total equity. For the income statement, identify how each transaction affects net income. b. For the statement of cash flows, identify how each transaction affects cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities. Transaction 1. Owner invests $900 cash in business in exchange for stock 2. Receives $700 cash for services provided 3. Pays $500 cash for employee wages 4. Buys $100 of equipment on credit 5. Purchases $200 of…

1. How often should income statements be prepared? 2. Which is more important a. Statement of financial position (balance sheet) or b. Statement of results of operation (income statement)? 3. Explain the following: a. Balance sheet for a specific date (for example, December 31, 20X1) b. Income statement is for a period of time (for example: For the Year Ended December 31, 20X1) 4. What are the advantages of multistep income statement over a single-step income statement? 5. Relate accounts in the income statement with those in the balance sheet. Discuss how the income statement accounts affect balance sheet accounts.

Identify how each of the following separate transactions through 10 affects financial statements. For increases, place a "+" and the dollar amount in the column or columns. For decreases, place a "-" and the dollar amount in the column or columns. Some cells may contain both an increase (+) and a decrease (-) along with dollar amounts. The first transaction is completed as an example. Required a. For the balance sheet, identify how each transaction affects total assets, total liabilities, and total cq- A1 P1 uity. For the income statement, identify how each transaction affects net income. b. For the statement of cash flows, identify how each transaction affects cash flows from operating ac- tivities, cash flows from investing activities, and cash flows from financing activities. 2 3 4 5 6 7 8 9 10 Transaction Owner invests $800 cash in business in exchange for stock Purchases $100 of supplies on credit Buys equipment for $400 cash Provides services for $900 cash Pays $400 cash for rent…

Which financial statement reports the results of operations for a business and reports either a net profit or a net loss for the accounting period? Group of answer choices Income Statement Balance Sheet Statement of Cash Flows Statement of Owner's Equity

For each transaction, indicate whether each account would be classified in the balance sheet as (a) an asset, (b) a liability, or (c) stockholders’ equity; in the income statement as (d) a revenue or (e) an expense; or in the statement of stockholders’ equity as (f) a dividend. Account Classifications Accounts Related Transactions 1. ____________ Utilities payable Amounts owed for utilities. 2. ____________ Cash Cash available for use. 3. ____________ Salaries expense Cost of salaries. 4. ____________ Common stock Shares of ownership sold to investors. 5. ____________ Service revenue Sale of services to customers.

For each transaction, indicate whether each account would be classified in the balance sheet as (a) an asset, (b) a liability, or (c) stockholders’ equity; in the income statement as (d) a revenue or (e) an expense; or in the statement of stockholders’ equity as (f) a dividend. Account Classifications Accounts Related Transactions 1. _________ Rent expense Cost of rent. 2. __________ Interest revenue Interest earned on savings account. 3. __________ Dividends Cash payments to stockholders. 4. __________ Land Land used for operations. 5. ___________ Accounts payable Amounts owed to suppliers.

Identify how each of the following transactions affects the company's financial statements. For the balance sheet, Identify how each transaction affects total assets, total llabilities, and equity. For the Income statement, Identify how each transaction affects profit. If there is an Increase, select a *+" In the column or columns. If there is a decrease, select a "-" In the column or columns. If there is both an Increase and a decrease, select a *+/-" In the column or columns. The Iline for the first transaction Is completed as an example. Income Statement Balance Sheet Total Total Transaction Equity Profit Assets Liabilities 1 Owner invests cash 2 Seli services for cash 3 Acquire services on credit 4 Pay wages with cash 5 Owner withdraws cash 6 Borrow cash with note payable 7 Sell services on credit 8 Buy office equipment for cash 9 Collect receivable from (7) 10 Buy asset with note payable

Financial ratios utilized to manage a business falling under the categories of profitability,asset utilization,liquidity,& debt utilization.

The financial statement that shows the profitability of a business entity is known as: Group of answer choices Balance sheet and statement of retained earnings Balance sheet and income statement Income statement Statement of retained earnings