Indicate whether each of the following items is most closely associated with the management discussion and analysis (MD&A), the notes to the financial statements, or the auditor’s report. (a) Description of ability to pay near-term obligations. (b) Unqualified opinion. (c) Details concerning liabilities, too voluminous to be included in the statements. (d) Description of favorable and unfavorable trends. (e) Certified public accountant (CPA). (f) Descriptions of significant accounting policies.
> What is the purpose of the management discussion and analysis section (MD&A)?
> The annual report provides financial information in a variety of formats, including the following. Management discussion and analysis (MD&A) Financial statements Notes to the financial statements Auditor’s opinion Instructions For each of the following,
> How are each of the following financial statements interrelated? (a) Retained earnings statement and income statement. (b) Retained earnings statement and balance sheet. (c) Balance sheet and statement of cash flows.
> The summaries of data from the balance sheet, income statement, and retained earnings statement for two corporations, Walco Corporation and Gunther Enterprises, are presented as follows for 2017. Instructions Determine the missing amounts. Assume all ch
> Which of these items are liabilities of White Glove Cleaning Service? (a) Cash. (b) Accounts payable. (c) Dividends. (d) Accounts receivable. (e) Supplies. (f) Equipment. (g) Salaries and wages payable. (h) Service revenue. (i) Rent expense.
> Suppose the following items were taken from the balance sheet of Nike, Inc. (All dollars are in millions.) Instructions Perform each of the following. (a) Classify each of these items as an asset, liability, or stockholders’ equity, an
> (a) Define the terms assets, liabilities, and stockholders’ equity. (b) What items affect stockholders’ equity?
> Match each of the following forms of business organization with a set of characteristics: sole proprietorship (SP), partnership (P), corporation (C). (a) _____ Shared control, tax advantages, increased skills and resources. (b) _____ Simple to set up and
> Wayne Holtz is the bookkeeper for Beeson Company. Wayne has been trying to get the balance sheet of Beeson Company to balance. It fi nally balanced, but now he’s not sure it is correct. Instructions Prepare a correct balance sheet.
> What is the basic accounting equation?
> Suppose the following data are derived from the 2017 financial statements of Southwest Airlines. (All dollars are in millions.) Southwest has a December 31 year-end. Cash balance, January 1, 2017…………………………….$1,390 Cash paid for repayment of debt………………………
> What is retained earnings? What items increase the balance in retained earnings? What items decrease the balance in retained earnings?
> Although Clif Bar & Company is not a public company, it does share its financial information with its employees as part of its open-book management approach. Further, although it does not publicly share its fi nancial information, it does provide a diffe
> What are the three main categories of the statement of cash flows? Why do you think these categories were chosen?
> This information is for Williams Corporation for the year ended December 31, 2017. Cash received from lenders……………………..$20,000 Cash received from customers…………………..50,000 Cash paid for new equipment……………………28,000 Cash dividends paid……………………..…………..8,000
> Which is not a required part of an annual report of a publicly traded company? (a) Statement of cash flows. (b) Notes to the financial statements. (c) Management discussion and analysis. (d) All of these are required.
> What is the primary purpose of the statement of cash flows?
> Kellogg Company is the world’s leading producer of ready-to-eat cereal and a leading producer of grain-based convenience foods such as frozen waffl es and cereal bars. Suppose the following items were taken from its 2017 income statemen
> What are the three basic forms of business organizations?
> Indicate whether each of these items is an asset (A), a liability (L), or part of stock- holders’ equity (SE). (a) Accounts receivable. (b) Salaries and wages payable. (c) Equipment. (d) Supplies. (e) Common stock. (f) Notes payable.
> A company’s net income appears directly on the income statement and the retained earnings statement, and it is included indirectly in the company’s balance sheet.” Do you agree? Explain.
> Otay Lakes Park is a private camping ground near the Mount Miguel Recreation Area. It has compiled the following financial information as of December 31, 2017. Service revenue (from camping fees)……………………..$132,000 Dividends……………………..……………………..………………$9,00
> Some people are tempted to make their finances look worse to get financial aid. Companies sometimes also manage their financial numbers in order to accomplish certain goals. Earnings management is the planned timing of revenues, expenses, gains, and loss
> At the beginning of the year, Morales Company had total assets of $800,000 and total liabilities of $500,000. (Treat each item independently.) (a) If total assets increased $150,000 during the year and total liabilities decreased $80,000, what is the amo
> Why would a bank want to monitor the dividend payment practices of the corporations to which it lends money?
> Here are incomplete financial statements for Donavan, Inc. Instructions Calculate the missing amounts. DONAVAN, INC. Balance Sheet Assets Liabilities and Stockholders' Equity Cash Inventory Buildings $ 7,000 10,000 45,000 Liabilities $ 5,000 Account
> Rules governing the investment practices of individual certified public accountants prohibit them from investing in the stock of a company that their firm audits. The Securities and Exchange Commission (SEC) became concerned that some accountants were vi
> Marci Ling is the bookkeeper for Samco Company, Inc. Marci has been trying to get the company’s balance sheet to balance. She finally got it to balance, but she still isn’t sure that it is correct. Instructions Explai
> Listed here are some items found in the financial statements of Finzelberg. Indicate in which financial statement(s) each item would appear. (a) Service revenue. (b) Equipment. (c) Advertising expense. (d) Accounts receivable. (e) Common stock. (f) Inter
> Presented below are five independent situations. (a) Three physics professors at MIT have formed a business to improve the speed of information transfer over the Internet for stock exchange transactions. Each has contributed an equal amount of cash and k
> The following items and amounts were taken from Lonyear Inc.’s 2017 income statement and balance sheet. Instructions (a) In each, case, identify on the blank line whether the item is an asset (A), liability (L), stockholdersâ
> Indicate which statement you would examine to find each of the following items: Income statement (IS), balance sheet (BS), retained earnings statement (RES), or statement of cash flows (SCF). (a) Revenue during the period. (b) Supplies on hand at the end
> What are the three main types of business activity? Give examples of each activity.
> Consider each of the following independent situations. (a) The retained earnings statement of Lee Corporation shows dividends of $68,000, while net income for the year was $75,000. (b) The statement of cash flows for Steele Corporation shows that cash pr
> Sylvia Ayala recently accepted a job in the production department at Apple. Before she starts work, she decides to review the company’s annual report to better understand its operations. The content and organization of corporate annual reports have becom
> Eskimo Pie Corporation markets a broad range of frozen treats, including its famous Eskimo Pie ice cream bars. The following items were taken from a recent income statement and balance sheet. In each case, identify whether the item would appear on the ba
> Who are the external users of accounting data? Give examples.
> Presented here is information for Zheng Inc. for 2017. Retained earnings, January 1 ……………………..$130,000 Service revenue……………………..……………………400,000 Total expenses……………………..……………………..175,000 Dividends……………………..…………………………….65,000 Instructions Prepare the 2017
> The June 22, 2011, issue of the Wall Street Journal Online includes an article by Michael Rapoport entitled “Auditors Urged to Tell More.” It provides an interesting discussion of the possible expanding role of CPAs. Instructions Read the article and ans
> Purpose: Identify summary information about companies. This information includes basic descriptions of the company’s location, activities, industry, financial health, and financial performance. Steps 1. Type in a company name, or use the index to find co
> Here is a list of words or phrases discussed in this chapter: 1. Corporation 2. Creditor 3. Accounts receivable 4. Partnership 5. Stockholder 6. Common stock 7. Accounts payable 8. Auditor’s opinion Instructions Match each word or phrase with the best d
> Who are the internal users of accounting data? How does accounting provide relevant data to the internal users?
> Micado Corporation was formed on January 1, 2017. At December 31, 2017, Miko Liu, the president and sole stockholder, decided to prepare a balance sheet, which appeared as follows. Miko willingly admits that she is not an accountant by training. She is
> Suppose the following information was taken from the 2017 financial statements of pharmaceutical giant Merck and Co. (All dollar amounts are in millions.) Retained earnings, January 1, 2017……………………..$43,698.8 Cost of goods sold……………………..………………………..9,018.
> Presented below are a number of transactions. Determine whether each transaction affects common stock (C), dividends (D), revenues (R), expenses (E), or does not affect stockholders’ equity (NSE). Provide titles for the revenues and expenses. (a) Costs i
> “Accounting is ingrained in our society and is vital to our economic system.” Do you agree? Explain.
> Presented below is selected financial information for Rojo Corporation for December 31, 2017. Inventory $ 25,000 Cash paid to purchase equipment ………………$ 12,000 Cash paid to suppliers …………………………………104,000 Equipment 40,000 Buildings ………………………200,000 Servic
> This information relates to Benser Co. for the year 2017. Retained earnings, January 1, 2017……..$67,000 Advertising expense…………………………….1,800 Dividends……………………..…………………….6,000 Rent expense……………………..………………..10,400 Service revenue……………………..…………….58,000 Util
> Xerox was not having a particularly pleasant year. The company’s stock price had already fallen in the previous year from $60 per share to $30. Just when it seemed things couldn’t get worse, Xerox’s s
> Gray Corporation began operations on January 1, 2017. The following information is available for Gray Corporation on December 31, 2017. Accounts payable…………………$ 5,000 Notes payable………………………$ 7,000 Accounts receivable…………………2,000 Rent expense…………………………1
> Identify each of the following organizational characteristics with the business organizational form or forms with which it is associated. (a) Easier to transfer ownership. (b) Easier to raise funds. (c) More owner control. (d) Tax advantages. (e) No pers
> Indicate in which part of the statement of cash flows each item would appear: Operating activities (O), investing activities (I), or financing activities (F). (a) _____ Cash received from customers. (b) _____ Cash paid to stockholders (dividends). (c) __
> What are the advantages to a business of being formed as a partnership or sole proprietorship? What are the disadvantages?
> On June 1, 2017, Elite Service Co. was started with an initial investment in the company of $22,100 cash. Here are the assets, liabilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first m
> The financial statements of Louis Vuitton are presented in Appendix F. Instructions for accessing and using the company’s complete annual report, including the notes to its financial statements, are also provided in Appendix F. Instructions Visit Louis V
> The Bonita Vista Golf & Country Club details the following accounts in its financial statements. Accounts payable _____ Accounts receivable _____ Equipment _____ Sales revenue
> Amazon.com, Inc.’s fi nancial statements are presented in Appendix D. Financial statements of Wal-Mart Stores, Inc. are presented in Appendix E. Instructions (a) Based on the information contained in these financial statements, determine the following fo
> Match each of the following types of evaluation with one of the listed users of accounting information. 1. Trying to determine whether the company complied with tax laws. 2. Trying to determine whether the company can pay its obligations. 3. Trying to de
> What are the advantages to a business of being formed as a corporation? What are the disadvantages?
> Financial decisions often place heavier emphasis on one type of financial statement over the others. Consider each of the following hypothetical situations independently. (a) The North Face is considering extending credit to a new customer. The terms of
> What is the benefit of a single set of high-quality accounting standards?
> The financial statements of Apple Inc. for 2014 are presented in Appendix A. Instructions Refer to Apple’s financial statements and answer the following questions. (a) What were Apple’s total assets at September 27, 2014? At September 28, 2013? (b) How m
> What are the three time estimates used with PERT?
> What are dummy activities? Why are they used in activity on arrow= (AOA) project networks?
> Define earliest start, earliest finish, latest finish, and latest start times.
> In December, General Motors produced 6,600 customized vans at its plant in Detroit. The labor productivity at this plant is known to have been 0.10 vans per labor-hour during that month. 300 laborers were employed at the plant that month. a) How many hou
> Describe how expected activity times and variances can be computed in a PERT network.
> What is the use of Gantt charts in project management?
> What are some of the questions that can be answered with PERT and CPM?
> How can we determine the probability that a project will be completed by a certain date? What assumptions are made in this computation?
> What is the difference between the waterfall approach and agile project management?
> Name some of the widely used project management software programs.
> How the variance of the total project is computed in PERT?
> Would a project manager ever consider crashing a noncritical activity in a project network? Explain convincingly.
> Students are sometimes confused by the concept of critical path, and want to believe that it is the shortest path through a network. Convincingly explain why this is not so.
> What would a project manager have to do to crash an activity?
> Refer to Problems 1.12 and 1.13. Problem 1.12: Charles Lackey operates a bakery in Idaho Falls, Idaho. Because of its excellent product and excellent location, demand has increased by 25% in the last year. On far too many occasions, customers have not
> What is the significance of the critical path?
> What is the difference between an activity-on-arrow (AOA) network and an activity-on-node (AON) network? Which is primarily used in this chapter?
> Define work breakdown structure. How is it used?
> What are the three phases involved in the management of a large project?
> Explain the purpose of project organization.
> Give an example of a situation in which project management is needed.
> How would you summarize outsourcing trends?
> How must an operations strategy integrate with marketing and accounting?
> Given the discussion of Southwest Airlines in the text, define an operations strategy for that firm now that it has purchased AirTran.
> How does an OM strategy change during a product’s life cycle?
> Refer to Problem 1.12. The pay will be $8 per hour for employees. Charles Lackey can also improve the yield by purchasing a new blender. The new blender will mean an increase in his investment. This added investment has a cost of $100 per month, but he w
> Identify the mission and strategy of your automobile repair garage. What are the manifestations of the 10 strategic OM decisions at the garage? That is, how is each of the 10 decisions accomplished?
> What global operations strategy is most descriptive of McDonald’s?
> What potential cost-saving advantages might firms experience by using outsourcing?
> There are three primary ways to achieve competitive advantage. Provide an example, not included in the text, of each. Support your choices.
> As a library or Internet assignment, identify the mission of a firm and the strategy that supports that mission.
> Describe how an organization’s mission and strategy have different purposes.
> Define strategy.
> Define mission.
> Coca-Cola is called a global product. Does this mean that Coca-Cola is formulated in the same way throughout the world? Discuss.
> List six reasons to internationalize operations.
> Brown’s, a local bakery, is worried about increased costs—particularly energy. Last year’s records can provide a fairly good estimate of the parameters for this year. Wende Brown, the owner, does not
> Based on the descriptions and analyses in this chapter, would Boeing be better described as a global firm or a transnational firm? Discuss.
