Business: Balance Sheet and Cash

E12-1 (Classification Issues—Intangibles) Presented below is a list of items that could be included in the intangible assets section of the balance sheet.

As part of the expansion plan, Wie will acquire some used equipment by signing a zero-interest-bearing note. The note has a maturity value of $50,000 and matures in 5 years. A reliable fair value measure for the equipment is not available, given the age and specialty nature of the equipment. As a result, Wie 's accounting staff is unable to determine an established exchange price for recording the equipment (nor the interest rate to be used to record interest expense on the long-term

The transactions completed by Franklin Company during January, its first month of operations, are listed below. Assume that Franklin Company uses the following journals: Cash Receipts (CR), Cash Payments (CP), Revenue (R), Purchases (P), and General (G). Assume that it uses Accounts Receivable and Accounts Payable Subsidiary Ledgers as well as a General Ledger. Indicate by letters which journal would be used for each transaction. Also indicate if the entry requires a posting to a subsidiary ledger.

1. Table 3.3 shows the December 31, 2009 pro- forma balance sheet and income statements for R& E Supplies, Inc. The pro- forma balance sheet shows that R& E Supplies will need external funding from the bank of $ 1.4 million. However, they show $ 1.27 million in cash and short- term securities. Why are they going to the bank when they have most of the required amount in their cash account?

1.    Currently product Axe is charged $3,635,223 depreciation on the income statement of Andrews. Andrews plans to make investment that will increase this depreciation to take advantage of changes in the tax code. Will this?a.    Decrease net cash from operations on the cash flow statementb.    Increase net cash from operations on the cash flow statementc.    Just impact the balance sheet.d.    Have no impact on the net cash from operations as depreciation appears in both cash flow and income statementAnswer

There are three liabilities at the end of the three month operating period. Two are the current liabilities accrued payroll $2,100 and accrued utilities $350. The third is the longer term obligation for the equipment ($47,310.) The liability account balance is $49,760.

Goodwill is an intangible asset, probably the most intangible of all intangible assets, hard to measure and even more difficult to account for. Goodwill today constitutes a much larger part of acquisition prices than it did previously, resulting in a much greater impact on financial statements.

1) Marvelous Entertainment Group, Inc. had net income of $32.7 million in 2005. The firm paid no dividends. If there were no further changes to the stockholders ' equity accounts, then _____ by $32.7 million.

This document contains financial analysis of the Wendy’s corporation. It highlights many of the company’s financial ratios and other calculations used to measure the success of a company.

A) Cash 14,000 Office Equipment , 7,000 B. Tanner, Capital , , , , 21,000

6)  On December 1 a company purchased $700 of supplies—approximately a three-month supply. On December 1 the asset Supplies was debited for $700. On December 31 the company needs to prepare a prepayment-type ___________ entry.

Excited to enroll in this class from the very beginning, I found it to be very informative. Not just it taught me the important terminology used in the world of finances, but also allowed to apply these concepts into my own financial life.

Humbro PLC have been successful with their Olympic themed board game, they have decided to take on a business venture of an expansion where they would be able to create a new product which can capitalise on the next football world cup. The finance director has been absent on a long term leave which has led to a lack of clarity and understanding of the various financial options among the other board members within the company. The managing director has asked for some financial advice and if this expansion will go ahead. In this report I will analyse Humbro PLCs financial information give my conclusion followed by my own recommendations for the company and if the expansion is to go ahead.

The problem to be investigated was the outcome of the ethical dilemma that occurred within the business circle leading to the violation of financial regulations and consequently eroded the confidence of shareholders on the U.S capital market. Examples of the violation of financial regulations were Enron, WorldCom and Lehman Brothers scandals that led to the collapse of the three companies. To restore the public confidence of the U.S capital market, the Senate intervened by passing the SOX (Sarbanes Oxley) Act of 2002 or Investor Confidence Act. In the Section 4.11 of the case, there are issues and activities covered by SOX that could have been handled as ethical and resolved voluntarily.

As can be seen in the above table there has been no change in the leasehold land amortization in the two years. It is only the depreciation that has increased from Rs 1493 in 2012 to Rs 1,958 in 2013. This is due to the increase in fixed assets from Rs 22477 in 2012 to Rs 25,161 in2013.