Questions from Financial Reporting

Q: Flight Training Corporation is a privately held firm that provides fighter pilot

Flight Training Corporation is a privately held firm that provides fighter pilot training under contracts with the U.S. Air Force and the U.S. Navy. The firm owns approximately 100 Lear jets that it e...

Q: Texas Instruments primarily develops and manufactures semiconductors for use in technology-

Texas Instruments primarily develops and manufactures semiconductors for use in technology-based products for various industries. The manufacturing process is capital-intensive and subject to cyclical...

Q: Tesla Motors manufactures high-performance electric vehicles that are extremely slick

Tesla Motors manufactures high-performance electric vehicles that are extremely slick looking. Exhibit 3.18 presents the statement of cash flows for Tesla Motors for 2010 through 2012. Exhibit 3.18:...

Q: Gap Inc. operates chains of retail clothing stores under the names

Gap Inc. operates chains of retail clothing stores under the names of Gap, Banana Republic, and Old Navy. Exhibit 3.19 presents the statement of cash flows for Gap for Year 0 to Year 4 Exhibit 3.19:...

Q: Sirius XM Radio Inc. is a satellite radio company, formed

Sirius XM Radio Inc. is a satellite radio company, formed from the merger of Sirius and XM in 2008. Exhibit 3.20 presents a statement of cash flows for Sirius XM Radio for 2006, 2007, and 2008. Sirius...

Q: Sunbeam Corporation manufactures and sells a variety of small household appliances,

Sunbeam Corporation manufactures and sells a variety of small household appliances, including toasters, food processors, and waffle grills. Exhibit 3.21 presents a statement of cash flows for Sunbeam...

Q: John Rigas founded Adelphia Communications Corporation with a $300 license in

John Rigas founded Adelphia Communications Corporation with a $300 license in 1952, took the company public in 1986, and built it into the sixth largest cable television operator by acquiring other sy...

Q: Frate Company was formed on January 1, 2017. The following

Frate Company was formed on January 1, 2017. The following information is available from Frate’s inventory records for Product Ply: A physical inventory on December 31, 2017, shows...

Q: Information from Jacob Perez Company’s records is available as follows for the

Information from Jacob Perez Company’s records is available as follows for the year ended December 31, 2017: Net sales …………………………………………………………………$1,600,000 Cost of goods manufactured: Variable ……………………...

Q: The time frame in each of these scenarios is after the effective

The time frame in each of these scenarios is after the effective date of the new revenue recognition rules in ASC Topic 606. For each of the following independent situations, determine the point at wh...