Essay on Chapter 2 Solutions - 7502 Words

CHAPTER 2 The Financial Statements BRIEF EXERCISES BE2–1 2008 2008 2008 Beginning Ending Retained 2008 2008 2008 Retained Earnings + Revenues – Expenses – Dividends = Earnings $28.2 + $43.3 – $38.2 – X = $30.6 X = $2.7 2008 Dividends as a percentage of 2008 net income: 2008 Dividends = $ 2.7 = 52.9% 2008 Net income ($43.3-$38.2) $ 5.1 BE2–2 1) Current Liabilities financed $32 billion of the assets. Current Liabilities divided by Total assets = $32/$59 = 54.2% 2) Long-term debt financed $18 billion of the assets. Long-term debt divided by total assets = $18/$59 = 30.5% 3) Stockholders’ equity financed $9 billion†¦show more content†¦| | |or Financing | | |Flows |Stockholders Equity | |1 |Financing |Yes |No |Yes |Yes | |2 |Operating |Yes |Yes |Cannot tell |Yes | |3 |Operating |Yes |Yes |Yes |Yes | |4 |Investing |Yes |No |Cannot tell |No | |5 |Financing |Yes |No |Yes |No | |6 |Financing |Yes |No |Yes |Yes | |7 |Investing |Yes |No |Yes |No | |8 |Operating |Yes |No |Yes |No | E2–2 | |Operating, Investing,|Balance Sheet |Income Statement |Statement of Cash |Statement of | | |or Financing | | |Flows |ShareholdersShow MoreRelatedChapter 2 Solutions.1459 Words   |  6 PagesCHAPTER 2 AN INTRODUCTION TO COST TERMS AND PURPOSES 2-20 (15–20 min.) Classification of costs, manufacturing sector. Cost object: Type of car assembled (Corolla or Geo Prism) Cost variability: With respect to changes in the number of cars assembled There may be some debate over classifications of individual items, especially with regard to cost variability. |Cost Item |D or I |V or F | |A Read MoreShapiro Chapter 2 Solutions5021 Words   |  21 PagesShapiro: Chapter 2: Capital-Budgeting Principles and Techniques QUESTIONS 1. a. What is the relationship between accounting income and economic profit? Answer: Accounting income is calculated by taking revenues and subtracting all cash and non-cash expenses (such as depreciation). Accounting income also often recognizes losses for tax purposes as well, even though the economic loss may have taken place at another time. Economic profit is the sum of the present values of all the cash flowsRead MoreSolution Chapter 1 - 2 - Investment953 Words   |  4 PagesCHAPTER 1: THE INVESTMENT ENVIRONMENT 1. Ultimately, it is true that real assets determine the material well being of an economy. Nevertheless, individuals can benefit when financial engineering creates new products that allow them to manage their portfolios of financial assets more efficiently. Because bundling and unbundling creates financial products with new properties and sensitivities to various sources of risk, it allows investors to hedge particular sources of risk more efficiently. EvenRead MoreSolution exercises chapter 2 Wiley1437 Words   |  6 PagesSOLUTION MANUAL FINANCIAL ACCOUNTING 2ND SPICELAND PDF Ebook Library SOLUTION MANUAL FINANCIAL ACCOUNTING 2ND SPICELAND Are you looking for Solution Manual Financial Accounting 2nd Spiceland?. You will be happy to know that today Solution Manual Financial Accounting 2nd Spiceland is available on our online library. With our online resources, you will be able to find Solution Manual Financial Accounting 2nd Spiceland or just about any type of manual, for any type of product. Best of allRead MoreSolutions to Chapter 2 Labour Economics Essay1721 Words   |  7 PagesChapter 2 Exercises Solutions Answer to end of chapter questions: 2. The labour force is calculated as the sum of the employed and the unemployed, which in this case is 22,000,000 + 1,000,000 = 23,000,000. The labour force participation rate is calculated as the ratio of the labour force to the working age population: 23,000,000 / 30,000,000 = 77 %. The unemployment rate is calculated as the ratio of the number of unemployed workers to the size of the labour force: 1,000,000 / 23,000,000 = 4Read MoreAccounting Theory Solution Chapter 22641 Words   |  11 Pagesusers of  financial statements. 2.A pragmatic theory of accounting involves observing the practices and techniques of  working accountants and teaching these  to successive accountants. (a)Argue the advantages and disadvantages of such  an approach. (b)Do you believe this method of teaching accounting is ‘correct’? (a)A pragmatic theory is where we observe the behaviour of practising accountants and thencopy their accounting procedures and principles.Advantages: †¢ the solutions of practising accountants areRead MoreHw Solution Chapter 1-2-31171 Words   |  5 PagesLebanese International University School of Engineering Department of Electrical Engineering Fall 2012 IENG300 – Engineering Project Management Assignment # 1 Solution Exercise 2.1 (10 Points): Projects may be classified as follows: ï‚ · ï‚ · ï‚ · Compliance: d., g., i. Operational: a., c., j. Strategic: b., e., f., h. It was easy to classify the Compliance projects but not so easy to distinguish between Operational and Strategic projects. Given the limited information, we have to make judgment callsRead MoreAuditing and Assurence Services Chapter 2 Solutions5275 Words   |  22 PagesCHAPTER 2 Professional Standards LEARNING OBJECTIVES | | | | | | |Exercises, Problems, and | | |Review Checkpoints |Simulations | | Read MoreSolutions to end of Chapter Problems Part 26416 Words   |  26 Pages$800. Above $50 the profit is $800. Students may express surprise that a call which is $10 out of the money is less expensive than a put which is $10 out of the money. This could be because of dividends or the crashophobia phenomenon discussed in Chapter 19. Figure S9.8 shows the way in which the profit varies with stock price in the second case. In this case the profit pattern has a zigzag shape. The problem illustrates how many different patterns can be obtained by including calls, puts, and theRead MoreChapter 2 Tutorial Solutions Discussed In Week 31020 Words   |  5 PagesACC2131 Cost Information for Decision Making Week 3 (Chapter 2) Tutorial Solutions Semester 1, 2015 Note to students: Beware! These solutions are not necessarily model answers. In exams, you will not have demonstrated your understanding of the answers to these exercises if you seek only to memorise them. You are encouraged to use tutorial time to discuss issues that will test and clarify your understanding of these exercises, as well as expanding your analytical and critical-thinking skills. 2.5