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Reading 30: Financial Reporting Mechanics-LOS e 习题精选

Session 7: Financial Reporting and Analysis: An Introduction
Reading 30: Financial Reporting Mechanics

LOS e: Explain the relationships among the income statement, balance sheet, statement of cash flows, and statement of owners’ equity.

 

 

Alpha Company reported the following financial statement information:

December 31, 2006:

Assets

$70,000

Liabilities

45,000

December 31, 2007:

Assets

82,000

Liabilities

55,000

During 2007:

Stockholder investments

3,000

Net income

?

Dividends

6,000

Calculate Alpha’s net income for the year ended December 31, 2007 and the change in stockholders’ equity for the year ended December 31, 2007.

Net income Change in stockholders' equity

A)
($3,000) $2,000 increase
B)
$5,000 $2,000 increase
C)
$5,000 $2,000 decrease


 

Stockholders’ equity, as of December 31, 2006, was $25,000 ($70,000 assets – $45,000 liabilities) and stockholders’ equity, as of December 31, 2007, was $27,000 ($82,000 assets – $55,000 liabilities). Stockholders’ equity increased $2,000 during 2007. Net income for 2007 was $5,000 ($27,000 ending equity + $6,000 dividends – $3,000 stockholder investments – $25,000 beginning equity).

Wichita Corporation reported the following balances as of December 31, 2007:

Cash

$?

Accounts payable

16,000

Accounts receivable

58,000

Additional paid-in capital

42,000

Common stock

19,600

Inventory

12,000

Plant and equipment

26,800

Notes payable 20,000
Retained earnings 32,000

Calculate Wichita’s cash and total assets as of December 31, 2007 based only on these entries.

Cash Total assets

A)
$16,000 $129,600
B)
$32,800 $113,600
C)
$32,800 $129,600


Liabilities plus equity are equal to $129,600 ($16,000 accounts payable + $20,000 notes payable + $19,600 common stock + $42,000 additional paid-in capital + $32,000 retained earnings). Since assets must equal liabilities plus equity, cash must equal $32,800 ($129,600 total assets – $58,000 accounts receivable – $12,000 inventory – $26,800 plant and equipment).

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Beta Company reported the following financial statement information:

December 31, 2006:

Assets

$58,000

Liabilities

28,000

December 31, 2007:

Assets

?

Liabilities

38,000

During 2007:

Stockholder investments

15,500

Net income

18,000

Dividends

7,750

Calculate Beta’s total assets and stockholders’ equity as of December 31, 2007.

Total assets Stockholders' equity

A)
$93,750 $30,000
B)
$79,250 $55,750
C)
$93,750 $55,750


Stockholders’ equity, as of December 31, 2006, was $30,000 ($58,000 assets – $28,000 liabilities) and stockholders’ equity, as of December 31, 2007, was $55,750 ($30,000 beginning equity + $15,500 stockholder investments + $18,000 net income – $7,750 dividends). Total assets, as of December 31, 2007, are $93,750 ($38,000 liabilities + $55,570 stockholders’ equity).

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thanks a lot

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