Solutions Manual For Financial Reporting, Financial Statement
Analysis and Valuation 9th Edition By James M. Wahlen;
Stephen P. Baginski; Mark Bradshaw 9781337614689 ALL
Chapters .
Balance Sheet: - ANSWER: Assets = Liabilities + Equity
(Investing = Nonowner financing + Equity)
_____ and _____ are the two ways a company can finance its assets - ANSWER: -Owners Financing
(Raise money from stockholders)
-Non-owners Financing: (banks, creditors, suppliers)
Investing activities are represented by the company's _______ - ANSWER: assets
_____ are at the top of the balance sheet in order to their nearness to cash - ANSWER: Short-term
assets
*Cash then accounts receivable, and then inventories
*Can be sold quickly
_____ are assets that will generate cash over a long period of time - ANSWER: Long-term assets
*Land, buildings, and equipment (PPE)
Income statement - ANSWER: Revenue - Expenses = Net Income
(Top line- Expenses = Bottom line)
______ reports on a company's performance over a period of time and lists amounts for its top line
revenues and its expenses - ANSWER: Income statement
Revenues less expenses equals the bottom-line _________ amount - ANSWER: Net Income
______ and ______ are the two basic kinds of operating expenses - ANSWER: Cost of goods
sold(COGS)
-Selling, general, and administrative expenses (SG&A)
_______ include the amount paid to purchase or manufacture the goods (inventories) that it sold to
customers - ANSWER: Cost of goods sold
_______ is the overhead expenses that include salaries, marketing costs, occupancy costs, HR and IT
costs, and all other operating expenses - ANSWER: SG&A
______ reports on year-over-year changes in the equity accounts that are reported on the balance
sheet - ANSWER: Statement of stockholders' equity
______, _______, and ______ are the three categories listed on the statement of stockholders' equity
- ANSWER: -Contributed capital
-Retained Earnings
-Other equity
_____ represents assets the company received from issuing stock to stockholders
, Example: The balance sheet of UA account at the beginning of the year was 508.4 During the year, UA
sold additional shares for 22 and recorded miscellaneous adjustments of 106.3. What is the year-end
balance for contributed capital - ANSWER: Contributed capital
*636.7 million
______ represents the cumulative total amount of income the company has earned and that has been
retained in the business
(Ending retained earnings= beginning retained earnings + Net income for period- Dividends for
period) - ANSWER: Retained earnings
______ Reports the change in a company's cash balance over a period of time. (cash inflows and
outflows from operating, investing, and financing activities over a period of time) - ANSWER:
Statement of cash flows
What are the five important forces that confront the company and determine its competitive intensity
- ANSWER: -Industry competition
-Buyer power
-Supplier power
-Product substitutes
-Threat of entry
_______ requires the CFO and CEO to personally sign a statement attesting to the accuracy and
completeness of the financial statements - ANSWER: Sarbanes-Oxley Act (SOX)
What are the 5 declarations that the CEO and CFO must sign off on - ANSWER: -Both personally
reviewed the annual report
-No untrue statements that could make the statement misleading
-Statement fairly present in all material respects the financial condition of the company-
All material facts are disclosed to company's auditors and board of directors
-No changes are made to internal controls unless properly communicated
Several line items and account titles are listed below. For each, indicate in which of the following
finan-cial statement(s) we would likely find the item or account: income statement (IS), balance sheet
(BS), statement of stockholders' equity (SE), or statement of cash flows (SCF).
a.Cash asset b. Expenses c. Non cash asset
d. contributed capital e. cash outflow from capital
f. retained earnings g. cash inflow for stock
h.cash outflow for dividends i. net income - ANSWER: a. BS
b. IS
c. BS
d. SE
e. SCF
f. SE & BS
g. SCF & SE
h. SE and SCF
i. IS
To be recorded on a balance sheet, an asset must... - ANSWER: -Must be owned (or controlled) by the
company
-Must confer expected future economic benefits that result from a past transaction or event
Analysis and Valuation 9th Edition By James M. Wahlen;
Stephen P. Baginski; Mark Bradshaw 9781337614689 ALL
Chapters .
Balance Sheet: - ANSWER: Assets = Liabilities + Equity
(Investing = Nonowner financing + Equity)
_____ and _____ are the two ways a company can finance its assets - ANSWER: -Owners Financing
(Raise money from stockholders)
-Non-owners Financing: (banks, creditors, suppliers)
Investing activities are represented by the company's _______ - ANSWER: assets
_____ are at the top of the balance sheet in order to their nearness to cash - ANSWER: Short-term
assets
*Cash then accounts receivable, and then inventories
*Can be sold quickly
_____ are assets that will generate cash over a long period of time - ANSWER: Long-term assets
*Land, buildings, and equipment (PPE)
Income statement - ANSWER: Revenue - Expenses = Net Income
(Top line- Expenses = Bottom line)
______ reports on a company's performance over a period of time and lists amounts for its top line
revenues and its expenses - ANSWER: Income statement
Revenues less expenses equals the bottom-line _________ amount - ANSWER: Net Income
______ and ______ are the two basic kinds of operating expenses - ANSWER: Cost of goods
sold(COGS)
-Selling, general, and administrative expenses (SG&A)
_______ include the amount paid to purchase or manufacture the goods (inventories) that it sold to
customers - ANSWER: Cost of goods sold
_______ is the overhead expenses that include salaries, marketing costs, occupancy costs, HR and IT
costs, and all other operating expenses - ANSWER: SG&A
______ reports on year-over-year changes in the equity accounts that are reported on the balance
sheet - ANSWER: Statement of stockholders' equity
______, _______, and ______ are the three categories listed on the statement of stockholders' equity
- ANSWER: -Contributed capital
-Retained Earnings
-Other equity
_____ represents assets the company received from issuing stock to stockholders
, Example: The balance sheet of UA account at the beginning of the year was 508.4 During the year, UA
sold additional shares for 22 and recorded miscellaneous adjustments of 106.3. What is the year-end
balance for contributed capital - ANSWER: Contributed capital
*636.7 million
______ represents the cumulative total amount of income the company has earned and that has been
retained in the business
(Ending retained earnings= beginning retained earnings + Net income for period- Dividends for
period) - ANSWER: Retained earnings
______ Reports the change in a company's cash balance over a period of time. (cash inflows and
outflows from operating, investing, and financing activities over a period of time) - ANSWER:
Statement of cash flows
What are the five important forces that confront the company and determine its competitive intensity
- ANSWER: -Industry competition
-Buyer power
-Supplier power
-Product substitutes
-Threat of entry
_______ requires the CFO and CEO to personally sign a statement attesting to the accuracy and
completeness of the financial statements - ANSWER: Sarbanes-Oxley Act (SOX)
What are the 5 declarations that the CEO and CFO must sign off on - ANSWER: -Both personally
reviewed the annual report
-No untrue statements that could make the statement misleading
-Statement fairly present in all material respects the financial condition of the company-
All material facts are disclosed to company's auditors and board of directors
-No changes are made to internal controls unless properly communicated
Several line items and account titles are listed below. For each, indicate in which of the following
finan-cial statement(s) we would likely find the item or account: income statement (IS), balance sheet
(BS), statement of stockholders' equity (SE), or statement of cash flows (SCF).
a.Cash asset b. Expenses c. Non cash asset
d. contributed capital e. cash outflow from capital
f. retained earnings g. cash inflow for stock
h.cash outflow for dividends i. net income - ANSWER: a. BS
b. IS
c. BS
d. SE
e. SCF
f. SE & BS
g. SCF & SE
h. SE and SCF
i. IS
To be recorded on a balance sheet, an asset must... - ANSWER: -Must be owned (or controlled) by the
company
-Must confer expected future economic benefits that result from a past transaction or event
