Financial Accounting

arzarzo19 Financial Accounting “This document i authorized for use only by GONDANE ASHISH. Copy o posting is an infringement of copyright Financial Accounting Pretest Introduction ‘ideome othe presse es frie Fol Aout Online Course, Tite willow yo ses oar knowledge bse ad vance tc counig Navigation: ‘Tondanse fom one gustion the next st ne ofthe anor hles ,aple, compte wth ou own cole nd clei” ato, Aer sbmiting yor awe, {uwilot beable change ty so mae se you easel with scton Ere on abn se You tay pagan peso rw oe Fie isa yc ens ans singe one us onthe anal re ae Agha, ‘Your oa wil be display immediatly aon copetin ofthe nam. Aer competion, yaa ev ou noes tytn by rearing thes ‘ood act ‘Welcome to Financial Accounting ‘Youare abouts bia tern experince tat wl ede yu yal awa th langage of ses Sues competion of couse wea yout deste Low aoutng ena ed ed he tn rotate sis ad eeteeprs nh ae el ao proms ‘Urers Business Decisions Using the Tutorial ‘estat oh #5 Fan Acute abd itso sarcomas yee relight ou mst aed onthe vgn a aed ee ikon th lpi he upper igh corer ofthe uri tow able animation on howto eth ‘The Setting ‘hi Pisa Account Tauri erases cate tp oer ed etl fal craig, ‘Youaresesng op ator calle stl Grier wil ery one fed and onment smal pce and speci then implements fm allow the wed lal re is Franchise bases itil py anhsing eran, los roe nero esi theo he ate nor mrtg ep. You ar paige haves and ‘oe opening en Speer wes bie ons lel ao al endless ra ew a Soa sok lune and ae xt om ue vstar, You wil beeping best oF saaarzarzo19 Financial Accounting ‘The Accounting Process “Thiol inka on ode of he assanting renin mal busi ‘mac esuntingea ancl infomation te ht ack esr an rnin usps nso nd agree thio rps for decon makrbth nie “ocuebebusbese Attn ios eat at ha cosequns suse Gun cna The va td eer ena ore eh ass (ase & the rnsing obsidian an pleated eben tection, For esp ns typi sos, mage wil capil rot ed ‘arc erbuy un aod pace del eae evans iu aston end on oes per of aco pring, vesting ed ncn thems snp ogainons hae numero busines ranacton hat he ld ad oda ranean sally sud dal ota, Shahe omarney const ede a) Ree pearing the pron of csurting ransom attr reps hat dite the tia stata fhe ene ot perfrmance The as (leans! sateen ate ny son es isd nd ote heb For eal manaes te thet acide whether he fm aig a ro whether aloe ISninesne wothng ot wheter take alo and ep he bases Wabusnes ass capa fru ese nesters, the vetr wl exanine the campy inal etre dg ete he fds thy ave esd have bes ve wily (6) Finacial porte concept and pie tell when ad bow oma, rec an clay bse aan agit tint fel reports. By along hee ‘Secrsant cy fend opag naesprie mto i an oo baer gar (6 ios arindepenet partes bo pray exami a comps fan sateets nthe ste nena antl a ets edo pode te statement ie 8 ‘mec mange pe the on epoca ee mus na state es yaa le cot nec Thy at tt esl ‘eden cone pera ccc coats pac bey pve arn the opens aco ape (yee on bir ase of ani statment, ena sateen: week ais, ihn tie te fre aperting averting end oasing cisions may the ‘Sinton enc, the acl pring rt nro ede ap betwen sr anal aemens td theo aks wine anya Module Overview Incoch chapter tri you wile wan amusing tems and scp and hwo te thine thin te comet of he bal Gre ming Yo Wao ‘egies eres to pracice det whet jou be ae st eel pons ach chap ‘The Ter and Concepcion ecu ters od fe fuse nan evant ep. pie eoverew othe test ‘Te chaps bea “Te BalateSe"The ue Sater an “Te Statement ath ln” ex eran ew finan contin concep and he cose to ‘nts naa samen on wi ce how Gil Graces nana tates ane by Rb tararton nngthe et ots operon use Accounting Ress hap 09 wi er how onal recor lobe roe’ basins asain ots journal nde and ow ws tasers to peat ‘noc sateen In og ul ev sa rer ie eve a eed bl Goer ang test ty; oy au Yu wi se eo boeing ‘or re mead Sorc ates anaaarzarzo19 Financial Accounting re monet ovong Module Overview (continued) Chapesshrogh 8 oer the ancl reporting so, exoning in Chapter "Rereer and Rebs you willing kot mare anced sti reporting eps ‘Theadancd sant chapter kta inate fhe tops covered. Thee ince "Ivete ad Cont fee” “Depend Long Ant Lihen and “veins a fest ieee Tver ani ageat aol Or? Ply teach ese shag yos if ose are easing ‘Sheng oc GalCer, Your solos ts to est cakes lb ne basen mating koe You sea Four a of Caper As yu lun scout preci in the ete Sates are over se of aug re ler Lous evel Apt Acounig Piles (GAAP). There a canst nde atau Aceuteg paterson the Un ae se eal governed by GAAP: rata copa ole ‘he ap Brandl Hepong Standards (FR, Titataral where spp lero thea fans CaT Fevanve bRecevoba Ca ee ccedcat | MMB ChsiceExcece 1 Option ove aaearecan| Doma Sec | oan oe ee aceemah — omne Gti ene Ea Exercise 1.1 eal aecuatig aileron yt a Chose the wad a est completes he lowing sect: neil soca ognanton' bane ean a dail operating ate, ‘Soe autos ave tate the aly of compan’ nal eatemont what can important character fran suits he flowing we? ce ea and hows of ‘Terms and Concepts ln-binchaptr, yoalemlrethe hee in Socal tatementain me ena yo el eins to ie basin {ingecen Sato and mary Youn ls ar sbost to gor goto anal sesamin rotor ‘fevuning aod peer aceped curing pop i atone gus rhe aie Users Business Decisions Overview of Financial Reports hs sen, you wil beiatotuce ste the ea Goad eer ur states, Each atest wil be covered ia rede inthe owing chaptersarzarzo19 Financial Accounting “Eciccacrecer Income Statement ws Cee ma es Balance Sheet Abas at sl clea sttemen f Soa psn, na ort ofthe opti’ ran tation at plot inti ethene bien ‘Sens eur tcl lune set bc report alas oration a nity abd ower oy sem sie ltl Grose het one oath art opens fr bases. We wl steamy ancora ems The hated "he ane Sb eves ‘Bebalaner hes ore ea NS D Global Grocers ee Balance Shoot as of September 30, 201458 asses ties “oa abies and ‘Owner Ea (At po ce Goal saree name ofthe epson nye which he stent ba ben epureTe trent se to dite teseprate conan stork cee cent pre Coton pe ofan i oes po ect raati 2) Abate sot ai led sateen of ania postion, a eer of hogan aniston a past polt tie tts the eats ast bes and ‘rer uly heal ane cave parte ane or amu eat wa abd omer earn Cpls coves he bloeeshe snee (9) Each tne set prepaed a fs peed, which rca a te op ofthe rater. Inthe et chapter, ou wl gare thi pening ho fr Glebe ‘Soc ied Angst 32004 (4 asetsreconone esses seen basins ans ht ar tle oct hy an ey nd are expecta rode fare xooneones For xan, ‘hatelme soe ows thao September 2004 among oem, lal Gerba can tetera 695 30 ans arcuate proper oun lend) eed sdenteo (2A iy aa oigntion tener ecanaic are toting atthe sone hitman he caitlin years Por xa oan ffs brea aban as tb one ste on lal Groce sSptomb 90 2004 ane tet ae eam de Us thea coast bal rer ar as ogo a ‘py th ba rr wae eo. (Oper Hay, aown llr sn! eu repeets erin of he oat a uso Te ove ert whe oe fer esos rm tnt Te common ned loa re Sptemer gab0s bane shew nna tha her hae snd cal he Py, ‘Sadie return hae eed common ek een exabishing romp es Income Statement “teins semen! eae te ents opersing performance daring spe pried ime known athe acting pero ely at he oo te sateen In income ‘leet fa lal Grose bs acomating po the th of Spent 20.8 ‘eigen ate sts tbe revenue cred and eget acre dig the pei aang expense rw even els ine ease a et ne fre real ‘Te chape ale "The nce Sateen" cover the income tment in pee deta. anaarzarzo19 Financial Accounting bal Grocer @ Income Statement for Month Ending September 30th 2014 Sas $16,000 Income Before Taxes, Lose: Tax Exponce, Ne come (0.40 inthe ance set the oe steet conan tbe meme af he eat atthe op. {ay Thence tte ets beet oerting pertoremne duce. specie eile teow athena. The nome trent he evens earl pene tacred dung the pesos sreciag penetra serena! call ttc ere of tet tse fr Be pesod Caper cove cone Sate roves (Te ate idaplaed tthe top of he statement hs exampleinsame tana! or Gs Grocer, the acnatng esi ete month of epee 008. 4) ses, somes det ws Sls em of Rees th sa of eames he ny has sared durig the eoatig pro in extn te us an ‘Svein poids ustomers The ono bentey Be nee ses Coase hans (6) Espen aretha ete ado nits inca bythe ey drieg an acti per provide te pads an sev that ena rset deg he pial (Nein poet ps ier btn i ed xen the sceeting pn Bast apn te nome ent en Statement of Cash Flows ‘Testatent feah ows dete the sore and an fay th ety aver sn acoting Peso Hor the convene of func ateet was, the ttre fh ‘Bort by pe ot sss acy open, vesng ad ancl ‘hecho able “Phe Sateen of Cah How" covers te seme of es lows in sete dt )Statoment of Cash Flows mums Septambe 20,2014 Cash Flows From Operating Actes Pane ‘sn Me "cae einai “ahh ano om neg tee falco pi ia shes «© “Yelm ps daca seo ae ()ut es inte base te nem statement the ttt fh dows inne ase fe ety te, (2) Testament of ah os det hse due of by the ny over ao aecouing pve, For the convenience ol i semen er he statement cach ‘Sets crane by pe fame cy open inverng od nenciay Caper scone salem oar awe nor a (Tete i aglaed tthe top ofthe statement hi semen of sh ow for lal ree, the musing prod ie month of Septenbe 2004 honey ee ane thot sti that are eat tothe en of gaan ser The cath npc fac cin neon inthe pening ate nto te ‘eet es he lea Groce ts cnn fe ttre of es ame wou or cal, caked omen, apes copes a ca alt ‘Selon apr oft day buco ete 6) nvertng actis rthoreact a are ltd oth urchins and ong at Th pact ofc titer oa act rec he eventing ‘Stor soon ofthe emer ut de lb ras econ ofthe nee fa ows wad, ean, oa te cash ed purchase eh (1 eaming es leo brow o rng des node ncesing oc dees mer” ey inthe fm Teng of sch iso thes acount recoded in ‘heboncingate secon tate fash on A Gal Gor reba ot abd ct ceed um ova re pet ase the tee Exercise 2.1 lane set prepared ‘Av icome statement prepare een fh owe rear, ‘Coase pf words tha est completes flog stn: Ca ld by abuses wool st tes onthe balance St baka han byte ‘iecoon wo beta, Csi owing Opening, Invesing or Facing ete snaaarzarzo19 Financial Accounting chase rl ofbding Introduction to Concepts ‘rertine counting mart osbiesscmmcte od ret tone change Accacang nea oie pitance roe eugene ay ae oa ois ae nnd he i a Ann Sr U8 uig da nda of cil acing cnet Tyo aes 1 entity 2. Money Messurement 4 Going Concern 4 Consistency & Matoraity Entity Concept cnc te ht ceo re ke or an ety atic rom the pape sou rn ord bunt wt heen, Money Measurement Concept ‘Dig meancen coc ae tt frm ring del oly ith hig th ob represent ned ere, Ths ous ihe Ri uly (stem rgrnie at sees mporans tated nea be scans ose Going Concern Concept sing soncern acing wy ig in neni xi rec operation fi hindi tre Te qrngconen song thee ys shut wo gout of bain hab ca al eee anaaarzarzo19 Financial Accounting Consistency Concept ‘he cnsitene coe ae ata nisin we he same acounting meth and proere om peri to prod esta sound reason to change methods Note tht in the conte of aosning concn consatney means cnn sere Consistent Reporting Over Time 2014 2015 2016 2017 Materiality Concept aay tne aan yap ope eng ea wo matriarch ‘ice ef tsp sau vt wet tl ae ed Se es aa as Exercise 2.2 Aesoning dost pot wht he set Duss cold ofr the basset enti eal the Quality Attributes maaarzarzo19 Financial Accounting ‘many faa acoting ete thr ae ub of Gace tobe made butts orate, mba red an om to rd A hae ar fea wap to “uta the act balances ancl pat An ach ten rhe eo ei ins oalp sae tone non Tin seo arse some ae oe ‘ice dazed faunal scouting guy teeta soe othe uae tht Ao oe eae, Relevance and Reliability 1 ounce, he uty of the call dpends othe rev ad relay fhe data rset ele ert mind enn nin oie, Rey rf hsv ey nmin, Diet a foi, ‘ten, oe’ as abe edo ak the rafhtwen elvan deity Le, thea way 1rd atrncin ft wl unis th thee dia properties, Inc ete, iy = pve ea recone over kn __ Exercise 2.3 ‘eon ofthe complet fining een San owning a elm ss at ac hy, fa sigs Coase the pia word tat eat completes fling seatace:Reerance of sani inermtion eferoie, Wich fhe iawing pis aise het continent rail anil te? ‘When Sone an labia ns, anil sesuntng wl or mene Acerual Accounting ‘Seer ely that cmt Deciaoe ty asus onyeash eeopsaadoulhs crn tei uss oa the cele crass of wanna than heh fas Accrual Accounting Cash-Basis Accounting Record economic impact Record cash impact of of each transaction each transaction Accrual vs. Cash-Basis Acca aescunting topo cond the Granites op usns of ranscion tat ae ecsoomi conseqenes rth ainesin he scaring period whe the ‘tenet se thr an ry ath td be cs ened xb compa aviistage some spl cape wl ely he mean the a acer accountings cinta sh eash- bass accountng anaaarzarzo19 Financial Accounting ‘woen pple cnstny, ee cating ie us eng the een nef ancl twos Casta ecu esas a eq end sedge ‘tenets rion het sng eae Ave ol el acoumng he ceaunng emo coe gio emai ay Acca esonning tempo ea the Sani fect op usne of rants that heen onenqee forthe buinsin the scouting pv when the ‘Pema cana athr hen ny th pride en cs ese or id yh compa Arte stge some simples wl lp he ean rhe tem acer accountings conse wh casas accountng ‘Waenaptie cost, ay acemating a easing he eee of nc teres Cassi accountng real ia neq and isting eeaca eres rit he tingle nee Aa ol seal accunng he csunng em ce hugh wo ay GAAP ‘Bean accounting rept te od etn reat, epoca ns nib ofthe aero pari Sth hes tof wer cn nda ‘aca ste cota us aw eta fie a aoa wien peering nana oan pars Tae rosie, mae teresa he anne ‘Stns step aethaare tod wpa tay tempest Seana apr ‘cooly cepted Accounting Pipes (GAAP ae guiness, manage and tors st flow wie repaiog wd auding acount norman or eer ‘eportigprpnes a ramp GAAP egies he xo ual ring The ppl CAA relia resealable Una torte, we a pms (Seheauhytoreatnaiy desis ovo snes sey sd erfrmanc trogen scoutngicrmatin. Inches you wi ae GAAP 9 oe Global Croce bine rata Howe, yo tot ea acl po refers the Goel Act Aasounting Princes ach be Instead stor lp show Yu hor endl Gro ranma aedngo CAAP, ‘The Feel Ansuming Sands oat (FASB) termine GAAP lo he Used ut, Thee ie ase nteratoalAswuntig Stands ead (ASS, which among the International “Accounting. aoe eee ‘Standards Bass rc Board IFRS “Te lotrtionalAsoung Sands Boned (ASH pbs eternal Hoan Repatg Standard (FAS), sectarian ate les eed ater, a he ‘evi parca tran dened be tol senate nde ss GAAP ad PRS, Intemational ‘Accounting Poa eee Standards ect) Board Principles vs Rules onesarzarzo19 Financial Accounting Principles Mase versus Rules Rased TES woe to sate sin the arn eon pais contrast muh of GAAP tends oe sate in he fora of righ Sie ue Fr exaust lng wt ‘eto acrog ue, eader GAAP str aac sels pert! he tena lhe nn rer te eae wesc owt, Ot ee [an ith nem egal to 7y portant rea oh nes propery sons eer wl be sce in san oeing ere IFAS tues rent appa sens ‘edincon Serre sca san eating ee ban nn party the ooh eare- subarea the fa and era of ovmesip. ‘The dein betwen te pe bas na oe based acting sana nportat, Ue app standards mth ave teasations moe al to ‘et eta othe raanon, Ute le base saniads moe the aca ronson mere ky a et er le encom ASGAAP 2a IFRS converge tis ancped hel GAAP wee marine bed Recap Tnebischapter yuk + bri explored hee fandentl erating stem, {Tete bates coneet, he ney meaminene ons, he ung once concep, the astene const an he matric, 1 Sarto pprecsethe nerent coe ween lvoe avai th sent at wea eign preparing Kool pons, 1 Seeded ar acting GAAP ud i ota Geant accning pac ad {Sine hint ear tre GAAP yeep by TRS. Global Grocer ‘Balance Sheet os of September 30, Sessa | SREET TT ye Poe = os 3 Fab ‘The Balance Sheet nth chapter, you wl learn om alae het onan nd aot nn easing ripe he acting auton To conte hat arena the peparatio of {ican bc aspect edt os lean. Tay ib ed es te peang inverting ad Smingeaiyo ar anderen top Gat Gree ‘ready busine Pale nal ation can be ample fm he bane thera ato gal at 9 oyna be isd, Fruit loner Layout ‘Teta sb ls cn a ttt of Sans porto, nett ape pita ne ofthe ences otra yan ny ast), em apie hase ‘etait aby este leh ee a ae ie eres Global Ge lace set itil appara th ed of basins on Speer 90, ster aoa peas, ronsarzarzo19 Financial Accounting Global Grocer = Balance Sheet as of September 30, 2014 Assets rome nt opt ible an ot pasta Fanies “Sumer Cau. {a n.d tha hoe et tated Till reac st it lla wt oo Seem 9208, {alta teside-bside format shown te nyse a iste tet: bis ed omnes guy relisted oe height Note tt tal aes eel abe ps es eg Exercise 3.1 Assets Len ak tbe hands ofthe lane set Iss the set caus, which preset th eonomicrsurc ofthe em To be rected aan wea nome renuce 1 ford at metab ot ‘tied or enulaby theemty 1 Mpeced it paduc tr eonomiebentts Global Grocer ao Asset Examples zeae he et tt you wil recedes Gk Groce Aug, 204, blac het (nt howe. ac ial rier reg eae aa ae ‘YES: Cask bongs Weiks Gece | tredip tte bares Snares” "Raye Not Assets ere are see tert Global rece wl ot eats on balance set ch alo st at one te ou eer big rece aa we snaaarzarzo19 Financial Accounting Soon poe Fes entero Src at Tangibility A tem cn nt wheter roca yal sean wheter or acne ch nd es Ants ke emp big having phys atc ae ‘pe act ter ee ss and prepa expe hat ack phys ssans a nangbeat . rea : a Liquidity (thine she sire npn into stg: crea and oases inne ca end thee ni nee xpd be conc et eh reso hin ooh oft alnce Ste Sop-Saret aus a ht se xu one sno bent ar ese ng nth ar. “here sarent se on la race eptember 3, lance se ich flowy hee at what enon eet iether expected a ‘roi uring to months folowing the boe Set at Tyee ous ea oney ome to lob Gree astomes meando nest (aude oa SRS ced eeped capensis tir). ‘Teen of Sotmbebloc se ln inches sere on-curet wetland warcous we sorte or ply pepo ae che se. Thea Svaspesede poise eels etn ow ea on foe lags! dace Some tng nen econ ees waa eh ote mee ining ave ned cotnt acon ale caste pect, tn edo eared vale othe we nthe US, ne reorder oan set Curnt bets ae ted st ating wth shane der ily Le, avy ‘Sestcaet gations For euoplecnh needy evel an sca evacuees Pp expe teat eed erent ete i ‘ray ot eat a Nonesrrn erin ne, Qpcalytaring sa ts gupta Sangean ch whence ne ¥ Exercise 3.2 Consider ac tem ited th eel fhe tbl Ue the ro done en pve inde ute heim act eck fhe rt ria. matt mee ‘orate are se, anesarzarzo19 Financial Accounting 52010 comone Reece essere =—<—s ‘canpganar mouse Secon) | cecee =) | Teme) | ete m ‘nny oan meee Exercise 3.3 ohne te illness et sexed piece ens ese es tae he sn? Liabilities Sow itunes atin wh abies iy sent nun eae Terni 0 Socata ce ‘pte emery ty reap tenor cme ‘Rofemenels ee ie fom petro oa ll Global Grocer -— lance Sheet es of September 20, 2014 Examples one hei you wt ecru lh Anu 204, le (ksh ahaa ret gay = eteeewees esas ee Suey Not Liabilities teats i esti al ru St a a sas what este edi, sanaarzarzo19 Financial Accounting Liability Types Lies organi into wo steps cet an omen. Comet bie atin that ae expt cme do within moth oh balance het at Nona ates are gatons Uae expected este Jo mare tha 2 ont pas he bance set ee “There re the cent abit on lb Grae Sete 30, 204 be het acct pale nonty ave yb Gicr tos ples wh lb id sng the Geese se lly pay we et bese ns cr aon re at py bck whos bet ‘Goba roe has on an-en iby s Septenber 3, 2014 bale St a morn payabie. The mores slog ous. ees mney me by ol ‘Grocer tou bth wi payments to bee or moet a mont ome bane se oe Global Grocer 1O, Balance Shoot as of September 30, 2014 Assets Jabilties Cee a “owner Egy Exercise 3.4 Cots the ems ited inthe et column ofthe le below Use te dap down menus povided a inde whether the ten meds ec ofthe the Iai ers. es ating ‘titers es ie MOMAODOFCoUT- OIE) Saectne: = Selesione = Selctone = ‘amagestobe pad ea ‘hetomer asa ol ot ating w tet product Loaner eam aso carne > ‘areotened oe sea bya ‘asiomer for adeocine ‘rode Te compan Inwers sonal beteve ‘atin su aoes ornate ‘merit and i tbe hard mecca. Owners’ Equity ‘wna Bays thesis a ent ownersin he opany’ ess sth amount emningaeTabeis ee deducted fom ass. vanesarzarzo19 Financial Accounting OWNERS’ EQUITY = ASSETS - LIABILITIES “Sunes Ey Exercise 3.5 ‘on Jeo, a4, As compny ha tale of 50,00, tata abi 0.900,00, Wht isthe amownt of Adee egy on Seno 2042 ‘The Accounting Equation Ample reson conection epi. They ear of lane st th tl at ary ego ‘elt tetera shaw ose anal ain eto ‘helt ae ofthe acount rela sc tmsacbons ton-tlasts- topreses lof neti’ ezares hat hse babe fit cot bos tht he ety hag aad ot ota a “Targhee th equatorial ables ls one’ euly-repese's sare for se rests, Thee, toe ies est ° === 7 [ASSETS = LIABILITIES + OWNERS’ EQUITY Exercise 3.6 ‘Wich ono flowing en dia the dann acting eto? Concepts Inhis acon, we wl ide wy nore ening nee, oe the dace and hire toe. Thy rpc rewt he balance sect Tes wo ‘seeps rode aban on he ain oan nnd owns og Entity Money Measurement Going Concern Consistency Materillty 1. Dual Aspect 7. Historical Cost 8. Realization 9. Matching 40. Conservatism Dual Aspect ‘Ted apet ons irmalas thee that hr ar tu er to eer anning reanton.Reoig et eds rnacton seams dowbleentry Dookteeping asiaarzarzo19 Financial Accounting "hedge soc sa very ipa imp: er bh ier of sh assuntingranection ae sod nthe nk, the ale atoning gto shuld Exercise 3.7 Historical Cost (Gata ari pling by acne rope. The tra cnt oc yo edhe eo rey a stint of $700, ay hn worTs $75,000 Relevance/Reliability he tcl ct enn ove dee f ratte ets accounts. talons the caret ogre opinion ander seat he money ale tem ano ‘Reranch tha ne nat seen ipa web ‘ue tha th net woul et if ny mere sl ody. ei ena, he Gna tater maybe lee leva fr he pron a urs fe ent tance aban, that ‘Shrnt nahn pcs ee aes Honee, acta ot id othe eae sue Ary wl er sn ste avaeed ecutg se, ay olay es areal alan ad RELEVANCE <— wartetvatue RELIABILITY <= Historical cost osc il i do nie hae ae enon hth mt ce Exercise 3.8 Exercise 3.9 ‘Towser of catia sateen whith of te llowag sa penta Limitation te itil est sep? Review renaarzarzo19 Financial Accounting Choe the pa of worda tht best completes the fndaneotal eating eto bs Exercise 3.11 Exercise 3.12 Exercise 3.13, Exercise 3 14 ‘om sua 220s St Manag hres of $360,000 nail $900.00, x owen ye Let's Get Global Grocer Started ‘Yuna set mh of ag sng Sane a8 aking he ess ernest a r-pesing dco ot abl Ga ay open don on Spt hk eran jl fo ost, red el trae bert oat wi ae se Global Grocer ey Fianessdone Balance Sheet as ot August 31,2014 * Common Stock Assets Lebilties + Short-torm Debt + Franchise Fee + Prepaid Rent + Warehouse Property + Mortgage + Store Fixtures + Merchandise Inventory Hiring ‘Owners! Equity Common Stock Short-Term Debt Franchise Fee aiaarzarzo19 Financial Accounting Prepaid Rent ‘Warehouse Property Mortgage Store Fixtures vanesarzarzo19 Financial Accounting Merchandise Inventory Hiring Exereise Seppose Marne snd Sonshine er $100,00Bankan, payee at tay Wc oe ote abving dens the fet of hicranmaction an snc set? ‘Transaction Exercises Exercise 3.16 sanaarzarzo19 Financial Accounting Mansel recenves a 75,000 6-year bank foan Begining Change Ending Liabilies Beginning Change Ending Eo Balance Balance ‘Select an approprae asset rom ne pulléown mens Fic recon Bilin sfeld Company Snr meninne katana nn 24 Hale ie oo Coes peteaecretornd mm] SERCO aoe | tin pps *3| aan ee Smee es| tae Pro mene pat fis {0 complete the wansacton table fo that itshows the effect ofthe "Scour a espe Smt nase | Wansaetion on accounting hn oa oon Ene Tota Assots Somers equ sss Exercise 3.17 [Mansfeld purchases a Computer system for $22.00 of which $10,000 is ash the Fest ison ered fo be pala Back in 4 Installments In one year. Selec apatol scat er h puldonn mano Exercise 3.18 2oleearzarzo19 Financial Accounting (On tune 3.2014, Mansa purchases tre ana labiy insurance, paying $6,000 advance Tora years {overage beginning inmesiatly Compete te table Delow fo efat tsansacton Mansfeld prepays $6,000 fora year of insurance. ‘Select an appropriate asset fom te pulldown menus Exercise 3.19 ‘on June 4, Jule Del a mend or steven Mansa, vest $25,000 ne business, paying win a personal check In reuse reeves common stockin Nansfe’ Company. Compete tn transaction Julie Det! invests $25,000 cash in Manstia Company and receives Common rock Select an appropriate asst fom te puldown menu, Ratios _vauats in the foe statesnenin Two sip blancosbebased ration ae ittodied in this tion, They rete erent aio andthe lony-tetdebito-egty atl GLOBAL GROCER RATIO > MONTH 2aesarzarzo19 Financial Accounting Aneto met caret oblntons-thon ue within be ong eran port serfs nl ah, Tes sorte batons a aly li tal eect et esi acl hs ai won esta tes rac when ‘he coment at rato of arent ante are aii a ete cf amet aio meet mainte term lipo ‘verse ooh et be ued ta atcha crs Tee pres rec cae orth Interpretation Ie appropri sare ra vrs by inde natal eee stad fas on tn en's ctvet ase thse fate omdar nee te OS ‘Suir cece scat tgs cet ae ani scree were oe that an ot has cures to that sigan hig tan tf er thoy ma be cancer athe ny hole ash ot 287 Pharmaceutical indusiy Software industry Rxereise 3.20 Total Debt to Equity Ratio ‘saga ogni rr the i ft ap ha ora sepa a "Teta dest gy to nfl jodi a en long em Sean A te nae sgt ee ria ‘ae Thiers uate tn ererape cr dee he entrees ee oe fang ta ect ar ver froin pa When nett ens dbs act aon, cha to pnt lo ey hea ty debe lr overs ‘e-apon pedo ene ite runs ard ns ant py arog anal gts oh det les, ey on oe ently bru iy contr bn rosa not etme sogy rte ew oer da Sethe luge he fan eyed pons relative yeh rer tell deo gay ath eter the pid train on nyt keep ‘vente de blr th bg bent bake. 2aieearzarzo19 Financial Accounting ‘ea Deo Egy Ra aa ab “ot Baa Interpretation ‘eae ao age eat debt ly eo, Over the pt opt decade the US, he erage dee euty at orpble comps bs ranged an 0510 ‘nance einen they tee ave ght ea Ina van ase ae egies edo etl et ees. ‘oe Inthe Uh the efter wtih Wado rye dt ar hada oso seraplSbe ogo the pu dceafa One the any ‘ams we tol ace rey hy leven hve ha otal de oe ata oa oer ese te Yt, ‘acm hat olde eu rai iin igh ha te pees, unc stern ses ny be coed abt teil o make te required Paya ale na ompeny sng sien aye anne onthe ter hands company ha tt at egy tot sigan loner ha tht of poe, ani seme ray question whether the compat ‘hing sess ovat nursing ple goth opps by an et when pcsay ss hws pase ‘As wt ania rata, thar oe ie pact ta des oat ai foray bss, Wat portant cmpan/s ttl et equ a elie to use g gt a 1 Conpuzot Lc 1 porate Rxereise 3.21 ‘oi on othe flog cole est completes his stn: The wt et to ey atin aloud Ratio Exercises mci thi ato sng thew sta dict tio atl ht ey i, aa ment cote Exercise 3.22 ‘This ie Mansfield Compar'sJune 4, 2024 balance sheet. Calculate ts surent rate by selecting fst the numerator, and then the denomintor onthe balance sheet Gy corms sie A orc, oon: EE . , ‘Selec the numerator forthe easton fromthe shoies nthe balance sheet Exercise 3.23, paresarzarzo19 Financial Accounting Now calculate Mansfeld Comoany’s total debt to eauityrato‘on June 4 2008. Mili sfeld Company ‘Total Debt to Equity Ratio Selec the numerator or the equation om the choices nthe balance sheet Recap Inch chaptr, ou eared he line olan set ongio, ‘Ast ir otc eoy ere de ‘They reaonchip hing eet bles ad ove ety he fodanenta cating ton was xan ‘heshal peta histor cscs were oive eh we tere lal Grover sss eas in ANES ‘ow toconpute ud nt spl bu pra bln shes arth cent tad hata toca hh 8! Global Grocer -— Balance Sheet as of August 31, 2014 assets Uabites nave Core Saeeet eet | eae socogte? Scie, ER Ee sone re Warehouse bug. 40000 Owners" Equity fas a Tota Assets S500 "Owns" Eauity... $5000 ‘The Income Statement Inshis chapter, you wean mor abut the some statement en how teat. You wl ako be code the ne acouatng onceptsshe eatin, matching and ‘uur Cotes al ebay py het srr he rel ef eel Gra Danes ferns ng Ue ct of epee Fay. peu wl lens ied ‘echt ne mpm mou of opting pearance ot arin aod eso als penta, Henge Seer rps = hago ariesarzarzo19 Financial Accounting Inch sation, yoo wil arn how the nce stents rand An cone Satna oan deen oan cats opeating peoroanc dag a counting Pesod Traps thetty sts expense od et acme Sen fre pea Tae ce ate bse un ses mus per gals Ne cone ‘ee is sample incre sateen for Gabel Grover itis cutting pra the oath of Speer Genre) Income Statement for Monn Ending Soptember 30th 2014 Sales 16,000 Less: Cost of Goods Sold 7.500 Gross margin 35,500 Less: Operating Expenses. 880 Operating income s2880 Less: Interest Expense 380 Income Bore Income Taxes $2500 ase Income Tax Expense 100 Net Income $1500 (hein (atthe erttinindetr the scoring perideonerd bythe ome tt ahi ae, the oth of September 204 (a) Sse ae irene inset dsm nities rng Pro ein som lrg ds, rndting evs o ote ath onan teat tal 4) ro ae, we tract he expense sated wi ee ney tale rendarng seen, othe es ing he lo th proponent nse cr nr in aie ding peed ening oma scigibe aie perooes Gross Margin ‘he iatepent of the nce snemen shoe the crpany' sal the nf hoe We alate yon rarsin by bracing fo altho of gates ("COGS Next we abtracth etythereapese of rnning he nent determin et rr ——— Income Statement for Mon Enaing September 30th 2014 Sales... ene $1000 Cont of Goods Sold 7500 Joross Margi. $9500 Less: Operating Expenses. 8880 Operating income 32850 ese: intrest Expense 50 Income Before income Taxes $2,500 Less: Income Tax Exponse, 1.000 Not income, $1,500 (0), Salo, we trae the sn ofthe sel daring he eoting pv (2) Tees ft ale apount ovr the cs ogous sé mont ss nau est gts olds eee to sth os mag ose rt ale pose prt ‘Sean operting pens ae et el ber ne fo ‘hei segment ofthe name tenes sb the crpany/ sale, the conf hae slender, which aon a rst arg ‘We slate margin by bracing fo cleth cot of ates "COC, Net we bach etiather epee of rnning the nent determin et 2siteearzarzo19 Financial Accounting Other Line Items ‘oui i on Chl Groner sine stem th the eee of nigh usn Tie low the roe argo are dele in re teprns openting expen, Ines expense ner tac enene. rr Income Statement tor Mont Ending September 30th 2014 ——— bc Less: Cost of Goods Sold (Gross Magi. co (Fur lba Grom epests ited bow the ross mn are opetiog expenses ners expensead inane tx expense (2) Opting expenses a thei ane ils, elt te operation ofthe toes: Te inde the matic, sling and dentate expenses incur iranig ‘Sis They ae aes peta nes ee sna cing goer and mutate SORA) expen {Germain eel operate ow kei el i mt of he pate nt dying the 4 terest expen he cost of ancg othe austin pve abel Goal ineted any exes sh dog ths ewan ped, net inca, any, ‘ould repre nt etn oe nee statement Operating pit ins nest expe is co beri ats, (6 tac ere nse ee mina tx xpent yn inne, Since tres wl the oe ni eres, be tx epee a etna fhe inst ight ve fo Sepaionthe ratte Global Gass aoor tan soe eds (Tet incre for eta he arog ofthe ny, tof epee sea all rot ret rst whe esti Ge aes have ben ter Sansa ‘pete oro ore whens bese esas hve et ashen al pes) Link to Balance Sheet ‘he dolnesexts atthe bp ded of an cousin pve ard, by econ sat or the peri troop he tie ergs cura the oer ety ‘onl he bla soe Retained Earnings ‘he retained ering act the su ofthe compy' net eco dt es ded ny, pas tthe omer. The net nae fo tepid othe eine ‘ug ers cofered on he ps vigisinglance heat tro in peso ng ced ein bane ey todd pea 2644arzarzo19 Financial Accounting t vane mae + (or Met ter) - Pensa weence Dividends vend ae tton earings omen, aly in te era fea. Te payment oa vend rede the Rettned args scant Summary numa wo eens change the tld earings aunt ug an acountg pc isthe Nemes era by ently ding he peed nceases (secrete tnd eons eur Sec ty dvodeods aetna ive) during ered rates eed ergs ce. ‘eprops ton sty cpio ws Hes tpn of eno don non ae in pane et Dividends Retained Income Eemings anitaarzarzo19 Financial Accounting ‘Stlee for hors 2035, 8? Daag the onthe Ape ao, Martel Campy ends of 000 anda expen of 3,000, Whats Manes et nere or Api a0)? Exercise 4.2 ‘eaines Net Dhidenas ‘tained Enmings Income Enmings soat20is seis oY enz0s SP ers, sors $? uring be mom a Ap ars ence 6.000 an alo pay a diviend of $300 ts ‘Suppose Masel as ead xing blanc of $20,000.09 Ap 20 Insta Watered earings ace at thee Ap 20057 Concepts Incision, we wlan the moe aecountig concep eatin, acl td conservatisn conepts. They reptile the aa seen ‘het cops pve eiance othe ting he rotons ef tals wd expense oe ered by thee hehe ber Ean ‘ences bn proper, hy ree» bance eee rane and ebay he oper amt re Cd 1. Entity 2. Money Measurement 3. Going Concern 4. Consistency 5. Materiallty 6. Dual Aspect 7. Historical Cost 8. Realization 9. Matching Realization Concept esatinisthe pro oonveting oct sch es rca ors noah eas ques or od cea eee eatin pees nprtn rein dering wen even reopens te saa Fn the retest be ara i pal aa at ‘Bocanomer bs ede poder sev Stic th oveaue a ae Ews ral rola inhng ta! he cameras dr pected aye mnewbande. 2arteearzarzo19 Financial Accounting 4 Datniton 62 Ex Buy Merchandise fram Suppliers Sell Merchandise to Customer Deliver Merchandise elation lays an important ein demining whe een roi To anne mtb atid He revenue masb cated, ih ply mean at {Beceem hao srs py rhe IFRS. oe GLE er eens open mv Bap oir re age TRS recone revenue wel the ll condos have been aa 1 tis probable thatthe economi ene anscated withthe transaction wil owt the sir aed Exercise 4.3 ‘Seletone me oenegn| ston ~ Sates > asics > olvorod next nari ane Seiden = ‘Seieione = Seiedone > Sanea rao ne iedone ‘stor fe ow Paine Sele 5 ‘ankrupand undieto ce aleearzarzo19 Financial Accounting ‘Matching Concept "hr are RS mei gin i ee when ein me. he hing cnn wht mes gid he ee Te Relation snc ll when torecogniae eee. The Mathng anceps wht pean sos he rennin when renee ed ‘od ether ees ae rene. Cons eed ote prod ns bt wich arent Oey nel to pruts ond see sl, ae expensed hs pro, "The eatin coc wes engi ete: Te ating concept dines wal expense sald be esp when een eared The Raza cot lv wen to engi eee: Te Bc concept swat expense sald be eco wen ecg eatdel ‘pei arte selva eves are recog Cots rated he rnd ses which are ot Arlyn oped and series sl ar cmp th pid soresarzarzo19 Financial Accounting Conservatism Concept Coen nl sing ety shad gi nly eves wih ih pe nec tty Wl ended tpn mtr ded an yey ens ey totale ogi mapa am ‘Tee copra nepal api the bance sac sgt rade nthe coring wats en whe ean cera) ‘aroma nan we avon hss conch at i inal aemants hy doting of non iol oe fiw by Let's Get Going - Global Grocer 2, Balance Sheet as of Spt 1, 2014 Assets ‘Waites sere mee ate 4 eee ARS AEST a tee seoa Owners’ Equity (2) The cuenta, ace seal and he wen ty ast ine caring, which hav Blanes rset, wb tly the operons tht omnes ‘a. ‘The First Few Sales suisarzarzo19 Financial Accounting "The dolar ant ahs tech snd provi cts nd rr a sou esl and the toll Grr oft god wd OR showman eee al, oo ibe deed oe cae ad ess hs ihr ben ace os epee alte by Gl Grocer The reves Svebee earned and se aed orale Tha seenue soto or gus ht Youre roves rte stay Recording Sis ana expenses roger esunts Howe they alk att te alge abt apt he tld earls zou order ul a out ‘plement endmetl ecoutingoqnton (ace ates = Ones ui) wei ans the tpn dns on bl Gres alee Bese ep tne stant renin. A cod ning pot et epae ww gte Geal G Cash Sale ete rmondthe lft git baste, bere the cstamerpi te ete amount esl of he i bas, where the cute phe ere amt in cash. ets tbat, hare caster phe tie aut nh sanaarzarzo19 Financial Accounting Credit Sale satesarzarzo19 Financial Accounting Ruch cet of eth and a eof te eck: 100 ponds of Clonbin ee are ol for $400Te caster pi onc and put S250 nacre acount ‘Cnt Grau Wai one ofthe linn es arretydeneribe ees on ene set ofthe resus ep re? ‘ow rc th snehe 0008 epee eae oh 100 pound of Calabi ee Chl Go psd .60 er pound forthe celle in smears. Which be of {Ee laing es covrellydeneives nln ex hae Sst ofthe COGS epenersrad er ane? Balance Sheet Effect ‘heeft on th blac shes fhe potable nl 00 puns of Chinn ofl for a end cre sho er The ca aot incre by 30, cane ‘bi cen iy fag, eran ela danny $269 and ene echnical by Sa Te names scan eatin as ane, co sou | ot | sstas0 | Raanseanns] seo ] suo] So Rae | | | cir [eee [ee | a Overall Effect “eth ste fit day in re 90 (ks, 10 «pes, $509 ct, $400 td ld culate COGS 600g bk, $0 et ‘foo colle $20) Sates revenue cle inc ad Sowa reared sues nertoy wan eee 850, Tee rea e ES acenin eon ering ‘athe patil nce tateeot ne resonating, we eed he cama ale fr of 00098 COGS So. Te eat marin eared 9 rie $400, enya {ctheinrensein end ernings dete thee rst ae ‘Cumulative Etfect of First Day Sales on Global Grocer's Balance Sheet on NE Mestadasinwnon | sao00 | om | Sza0n Income Statement (after Sales s1000 Les: Cost of Goods Sia 00 rose Marin. sto Let's Tally Sept. Operations anesarzarzo19 Financial Accounting ‘eet of September, as lb Grose rptation seas hs pk pDusngto st accountng pn, Speer tough Spt 3, ed 86.000 ‘Gelating ho te tis hse u00 was ated aca fo ws plc ena Cnt of gods mad annual 89900, Carlomer dn a ey ‘Pn muster elt evi Sire es rca ca a ear Reems | 0 naweaeeiney | sO ‘outeve trachea recrded sles COGS sd etd ros mars er the month of Sembee torr the therepets ofthe een psod Expenses of the Period ‘Yow ao cord he pein, interes ed inept pce. Theta cot tha reo ced wih tare so we wil ach the tothe event Expenses for September 2014 Operating Expenses Inerest expense ties ‘Monasoe Rentzapense Secon Toxexpense Salaries ‘os, wer the sles expense te employe saris. You and be wo empayees ach were pl $1,000 nash the mont’ wok fatal monty ay ‘Speserclogn00 Ths teins incur he tpetog pins a the ane tanetey 65008 Ural pene Hisense tare ed ego ‘Sst Shot Te salar ware pdms oo he cana nc a arenes S000 Income Statement for Non ening September 30th 2014 Seles. 16.000 Less: Cost of Goods Sate 7500 Gross Marin. 8.500 Less: Operating Expenses, 3.000) Utilities ‘Teese expense othe mnths $50, pln cash $500 Utiities Expense for September 2014 a co 0 nding September 30th 2014 im Income Statement Sates. 16000 Less: est of Goeds Sal. rs (Gross Margin, sss00 Less; Operating Expenses, ‘3500 asiaarzarzo19 Financial Accounting Rent Expense Sore rents 8000 per ont lal rosea already epi hee month ren refed in the rapa epee lac of 3,000 he Aut ales [eanlton abn ent eps 0p the mor of Soper reaures ty oa felon nthe pad enya Tae Special te ahs aati ‘cath cncanged a hs po bu ret expense uncaed wi tpg ote oath sor Te eral sel Depreciation ‘Theneat opting expenses we wil or arsed with he se a wg non-cren asses — the warcouse bling ed tore atures. Global Gre aud hese {Sec wih teen ta ey old proves saree benais a inber fre eeting omg et et it feat o ar ‘Rac ite inensh sting od expense esd to ef a eon in the ef te Tits nse ald Depreca Depreciation Gat rem wana wane naan Depreciation tage ned ane lo eee alae set alo tee. Thi compel sig a accumulated deprecation sunt comet ‘cate ot earn ie re erent vw ees tn cess) Nees ~ Histor Cot- Asma Drei Warehouse \Wecsimate hath wardzatedopciton eapns or ah mon fits se $00. The onte-ase —or ng ast — scot, accumulated deprecation oc {hesnreose bboy ise by So, ate Jepson expense res and erangs wane tout. Into, he So nase ee seamed tpmition cnt boats tl sey Soe, te etme reetag een anne (a te Septet obtuse uling weve ae ok uf 9,0, nis anounced athe ceo of ba roe eat SSewoikesnds Sembee + $40,000 8300 = 639.709 Store Fixtures lb crser ha aster lng depeibe tangle sat te cues. sl ale depend fl oa exerted flit eed of Satombe. ‘Speman pets ote stot ats ema et $100 This aw we od ob aly depen eee ted to treat seinearzarzo19 Financial Accounting Land lta Creer ha aster ngs: nd For Seana epering pup lan meme ohare ap nde eA ares ef ei eum to Sein ed ig eugene Tes ba tw ene Cae cei Ges ‘istinureateo $90,000 Exercise 4.5 ‘estore str mee prcased fe 5.00 athe dot Aus. tte ed of September the atlas depres on hase 00, What ste net book ‘ahseat eno tres nero he epee ofan sb? Amortization Foran camped ase rd ation nt eiaing el fe by scorig amortization expense et ely ues the vale a be ase he nse Nate tht to nda expense bth ee a ang nll lant oer eal acs eared eet ee sheet Depectsn apes ests fr each ops nse aus aaa n ee coe set au on he azn bt Aa ‘ipence rede reach torts angbe ua, thee no acted contest aout aorta eget ees tee igi ee ‘Slounton telnet Amortization eat em vag on raat racoren Franchise Fee ‘Pome get tne bth tei athe wih ln. Teeter amin cn ariasarzarzo19 Financial Accounting $750 Monthly Amortization of Franchise Fee prowsiarie [ar Truncewes [arm] sing September 20th 201 Sales. $16.00 Less: Coat of Goods Sold 7500 ‘Gross Maran 3.800 L233: Operating Expenses 5680 Operating Expenses ager wll Gabel Groce peaig epee or tenth of Sepeber, Tease le, ret deprcition nd emertizton expen tole 5650 Wilh ‘ler f'u506a,COUS a 7.500 sooner erp te, Gn roses Sepamber ceri ioaes Sao, Debt Service ‘eo rcord Gl Grover inert expen for September. The et on Gata Grices ane set abn contact olatin to py nee. ll Groce at ‘Socata et ia Short-Term Interest ‘es eta racor teeter expense he 30,000 thrterm et ae the payment deta the nde Forth lot, lol racer wl sear Speer iterat ‘Soeineof sag and $0 velason nthe acne, seinsarzarzo19 Financial Accounting Mortgage Interest ‘lal Crees meninges alon-em om with the ahon bing a clter.The ak eyment of 25 overs the 5 interes far Seteiber and ees he Skemp by Sion Fst ord te Sember teres erese of Sgo on hon ad yao Webs Ba ‘Mortgage Principal \Wesleoave to este payment fan tion iin sh he onto ssn forthe ration inte otanding morgage an icp. Thstresaton as n> "Seton thence sateen ros ah othe moa pee anti 00 ach, Interest Expense lb Greta neon the most of September 00: S50 tet apna onthe ase nan $350 tres expen oe Raa sanaarzarzo19 Financial Accounting ‘Tax Expense ‘Tocompite loa Gee September ine semen yo mt ar nama x ere athe nth You stitial ree wl owe $950 (Gedeengs txt 980) fenestra ts othe tax athe eee etna 3990 he math epee Congratulations! Congasaons! You hae cmp loa rn come tema forthe moat of Sep. Clb Gro ern ence $00 during fis eho ‘reo Income Statement tor ton Ending September 30th 2014 ‘Soles. 16.000 Lees: Cost of Gands Soa 7500 Grose Margin $8,500 Lees: Operating Expenses 5.650 Operating come. 280 Loss nest Expense. ‘400 Income Before Income Taxes, 2480 Loss: Tax Expense, ‘950 Nt RCM 0 nnninininninnnninne $1,500 Preparing for the future ‘As Sentomber prope, you sos tl Geer’ lc staion ad proper he coming hia season, pat om he operations whose aust ben ede ‘nCistl Grotes Sept nce ene oud andere sone eis hat et ie ons eee sae 4orteearzarzo19 Financial Accounting Exercise 4.6 ‘Spt, you pris helt Gel Gra?’ cs, et $90,900 the snes nn return che conn sack How wl is tanscion fet Exercise 4.7 ‘Buses peng ya bl Goer, nyu eed yaar growing vol of paras ed dle. Selene 0, you pra econ van. then ‘pill pe ahh lal oer gs overs oa opener Theta ote nae You pyaar ae ely a ow danke pura then on Setenbe oft nal Grae epee income tome? Exercise 4.8 Gta Gree secant oen ting roy depleted sing ie econ ft nh September oyu rere S80 of eto esti Seas aan ata enon aan ont Ca Ger saa i eet i aso op ee aon Exercise 4.9 Ase, stating coer Gaal Grocer il have op loa Gee teratina fo nso pase in September oct Asya wl need stoke the ‘peony basen All hs lane csh cody yon pet nbal Gar ecu Welete Be and 09 epee 0 aba 40000 hehe ‘etl tere ad rnc to bead ny ‘Rez tha lb Grocer has monty secaning pred Which pe then wl be te moat appropriate scouting tment of he itera eapene on thie ns End of Period ‘isis Graces Seton go balane st. ines lthe change tat oz due to opeatons ding he ont aC Septal ede thease ‘ising eta you el actopopr fr tn Boy sauna tress pee aw her espe cnr can anesarzarzo19 Financial Accounting N If Global Grocer Balance Sheet as of September 30, 2014 Liabiies Sale mia 08 Norse 2 Ceca sme Totluatgerand Serer Esai. SI Ratios sro francine nme ef asi rios edn nce tenet mann: We wl das eo fhe ore mportan ons: gs marinas pert of Sse and eta onaleptoag- But or es aps erate compan aces ot aang cus eos eee Gross Margin Percentage au mar a aprender sos marin dob les, eres prea Dla gras mari isla con fond sl. rope Ina upon hes fh protocol teompany Gross Margin _ _Dollar Gross Margin Percentage = ‘ales x 100% by expen dlr omar at a psertag of ale wean compare he ros gn of cra dpi nine orth gre margin porta of sent ‘Soper sal usc Ths fae prevelant srs bf gto eompany ving sae abd ates Comparison For example ier Company Ath $10 millon nse $0 milan a COGS. larga $40 millon an se ari perenng 40% Now ‘lose Caspany Bs thecal, ih $200 alos noha Solon COGS. Bs daar em mares 860i ood ar pce oe Income Statement for the year Income Statement for the year Ending December 2044 ($ millions) Ending December 2044 ($ millions) Stk ecnninnninnins $100 Sates. $200 Loss: Gost of Goods Sok. 60 Less: Costof Goods Sol... 140 ‘Gross Margin. $0 Gross Margin. S60 (Gross Margin Percentage... 40% ‘Gross Margin Percentage... 90% A compuny grt mana peeceg ino indy own peg eae ad thet wih hich it rode ie podand sevens Acoma ‘npn Ase Comey bs rn en prestagr unr eon Ws thre erence been the rst mage prema a capris nb ‘adore ls Company Alongs eres eat? ia Cacpany Wong date prse rate? Dns pn sls ager ley Gaon pe teres ‘her dtr ross?" eat ana s parila whee scopy pease acer ett at nny beter ans 42aFinancial Accounting Interpretation (ve the pt dead, US. sofware an pharaucsil expan have avrg rt mrs perentap of abet 7; Inman, nc the se pro, rote maga centage tate US samo nary hve eed aba 2% ~ + Phamacoutale ee Sotvare + Automate Gross Margin as @ ven Percentage of Sales ‘Average GMP 12004-2019 (Phamaceutals and Sortware) 70% en ‘Average GMP (Gutorotive) 22% Years ‘ehigh pase mara ports in ewae a harman perenne at tht tnd, eer expenses wich preset afr share {Wenn te tot ea at aT tl at tg tare programa dk ft ns oo prod ols rps ‘planer cupunythe cit rests exteiy mal ent ey ars perma lie eet, Alt, pn parton Bs poder ‘dmouse and ean higher ricer hat of roacng acme, oe hero hgh tse necing ec oa he moat vey pee Te ‘athe chity of automo comparnrts ace gh renga pentose Exercise 4.10 SSS Income Statement fer Nonth ning September 30th 2014 The ictal Geers incom setemert ‘ur September Calcute Globl Grace's goss margin percentage ert month Scam Fret sleet the naman Sale 6.000 ‘hen he denomnstor Les: Gost of Goods Soles 7.500 Gross Marg itor $40 Less: Operating Expense... un 5.650 pertng Income. 2850 Lees: nereat Expense ‘400 Inocme Bator come TAX. wn nnnnnne $2450 Loss: Tax Expense, 950 Net Income ee 2 ‘1.500 ease selec the balance to use a8 the numerator. Return on Sales Percentage utr se ecetge ial ation pedals, nse ded hy se, expend perentags Return on Net income Sales Sales — * 100% ysprig et ina a pranage fsa by ng tr on sl, can eomparthe presse os compan ern pinning eth efor ‘Sse cmpanern sarong poe Snel een srs nage eo company peng eee ab ay er oe Comparison or example Company Fh eso 10 milion, ht rast margin perenne af anh et income of $20 millon a trae es peceiage of 20%. ‘ora wih ef 200 aon slo has ose marin preg SOR uy th ein of go aon, bas nur on sae ecninge Income Statement torte Your Ending Dec. 2014 | f Income Statement forthe Your Ending Dec. 2014 Sates 10 |, Sales $200 Loss: Gost of Goode Sold 50 py Less: Cot of Goods Sold 400 ‘Grose Margin $60 YF Gross Margin $100 Less: Other Expena Less: other Expenses (6GAA intrest, taxos) 30 (SGAA, intsrost saxo). 70 Net income, 20], etincome $0 Retum on Salas Percentage 20% Z> Reuum on Salos Porcniags 15 rn ler acentgs depends he ate f th dat he opny ie om nese and ie fceeyin ering pds nd ‘eae, Bean neta fey eat nd axxo an ang prety, Wn ons Waele the can’ apal utr and 1 artearzarzo19 Financial Accounting acim Interpretation ‘ve the ps donde om le eet ah US. earner ave serge ab hati nga pent! Dee hei exec igh ot ‘nti prongs seg about 70% ep ange ope Inve bel bev urs tae Dating the sae pred. pharmacies ane rage tra fle tL, The atacand, he be tart as ih ‘at ear be sage soe gh pepe nephron te prentags or opciones, ‘tun ols eeeatgerhae teage shot ga the stoma day ong hema eid = + Pharecatzle etn Return on Sales = Ade Parentage a ES =r Avago ROS (US Companies) Promaceas) 10% a0 ‘Average ROS: (Sotwar) (9) wpe aae 0s Yeo Chatrose) 3% Exercise 4.11 iwettm_ —_aaa ED) Income Statement tor Mont Ending September 30th 2014 for September Cale Gebl Grocers fatum on sles prcariag one morh of Sesenter Fret select he numerter, Bilinipaicmisimmiinsinuticonnian S000 ‘hon theeoromnaar Less: Cos of Goods Sad 7.500 (Sr Mang 3.500 Less: Operaing Expenses... Cn 5.660 pecan Inco ans $2880 Less intrest Exponge ‘400 Income Botore Income Taxes. se S250 Less: Tax Exponce, vo ‘960 Net income. - $1,500 runes MM. Peace elect blaoo ous as be numeraer Recap In thiscaper, you arzad {ls Ged teen caer expenses doa nthe eltoneip eee he cone atemat os peri and beac hee te eponing aden othe er + Lecrvnae option, mein sd enter concep seo redo ead the Gace bl Grocers aperatons darn the moth Steaier + Refaon and ae of wo imprtanincametatemest aa — the rt mara preted the et on lepers. Global Grocer @ Income Statement tor tone Ending September 30th 2014 Sales. 16.000 Less: Cost of Goods So 7500 61065 Matghswnenninnnnninnonns $8,600 Less: Operating menses - 5.650 ‘operating Income. vs » $2850 Less: riers Expense ‘400 ‘Income Bafro Income Taxes 2.450 ess: Tax Expense ‘950 Not incom Accounting Records artesarzarzo19 Financial Accounting tush chapter you ween single vrin ote stosby which xeon esters track anor ani aconating venice dingo coting pe Yow wil a leash to peer a bln sb ad nine ttn ao a et outing pro Noyce he woo and sent ene Cn Grocer A td ‘Speer 0: accu aneconths hanter ou el ear te ae ur edge wich wl be nem prepare balance she td Income ene at ‘ac peie Ai toeen of hechupo jouw elt pense nt ou hve red Usaror * So ome Engen Overview ‘In anyaccnting yea ref temic step the ety api acvuats akan record nani acti dang an msg prod nde pep the ‘eard anil sates athe el he eri Ti ow har eis pl satin ee Tanger aS ‘asin pone er _Extomal Partios fed Baise seeat i income taieneoe pkey ‘satrgion ears "Closing Entries: Balance Sheat_| | income Statement ‘roped "rpaed ) (0,0 Ar taanctons os ae anand oe which asus an Row Tie ros awa of aounig concep ad judgment on the pr fhe person scr th rarsaron, Thats sas erred inert Spr ord neste a deren vous suns ach ee Clad Cree empl (a) Naw. tetragaon rc inurl Aural ca crn cor of tents ean hy cote Natethat ence esac anes been done, 4) tee joa ent mathe ransactinn eer uted the lege Posting the entry nto he gr 1 mshal tepThe eri oop ‘Sasecton formation yet, Avatar aed wtb ances! uns Gr emai Is acne orca uence Gat ‘camp hess aoa (6) Te scrting erie ae det ate rece rig ci, They ere site bytrinsains hetero od eter paris. At teen ote acting eater o eying caie=man be ote that ihe Son anes eet iy the taan th end the pre. Tene neti ae Teal deer partic, For eran an ety musth ade eet epeiton epee rhe pd dor esas of as (ey Ath df te esting peri rl othe rig ad tng er ane ue etre in tbo pst oh ledger vats ede acount sb line Te las het anatase cre forward oc pee, Tense Seat pare tant) ae el ed ota ay nn out ‘impletsten) her ban sad sg (@Aferthe song proses he alan nthe permanent asunt provide norton neo tpg the balan hx ah nd he swung ere Thee ‘ivemeat errant ca ee ve be nema ete to prepare the ame Seen oe ese (Oe eel seme bee he pe ie ‘aps, cena be reared hs sn). Double-Entry Accounting, Considers traansionyouhave ale enesantee sing $8,000 aby ing common ck ah Goce’ it rnection. Clea re rc chan iene Sonmon sik Aeran anes ase tat two scouts ere sted ttn he cath ant andor oman ace. The isn asountng ee ‘inky syn, ecard eae $8,000 the css ecu aed anes a 8000 ae name sok acon The om me eae ie Wann we asiieaarzarzo19 Financial Accounting ow ou ile ores thee sth a tension aig he onan of nance aecuatig ete. Journal Entries ‘Wena trust nesta ba en anand an otha be mde nthe ona Te unalone ote nytt “Wansaetons Transaction ‘ath ree] External Parties 0 21 cy C7 oy St v [RRRgeneee) Serres Income Statement “Prepared re Vy Sort a LSet ase — A091 Rate oe tha Debits and Credits tah cng oan ast ost or amount and tin tert a ea or drat sounds ofth hae ‘ec a ote wards debt so eredic Whe sig Goan een South ret yay eas ews td rel You ely Sed ‘ember the evaning ean of tse Tome 2 Journal £3 Journal? ineroae Dares ® iis ner ty Sex| ta Expos scout Debt | ak Sys debit end cod do motes bt or od Neer ham ovens reso deren ere in edYo i wh the men in aonertng, ‘thon arts eer esac data te ee. (0) Fors cota nase ered dbs, ese a coe (2) Fora andere sou, decrees ar eon a dei eros ar esd (Forth sates oa, nese (the eng fen i ead bras,n aea incease nome eu Sls can aio decesse—for ‘amp hea woe revered, tn the ed ders eae acet 9 sed (Fran rom cnt nc he eng fan xen yh ip, wn iy bt nf, epee oe oy ach ngs oan ast oss flr aout and tin wheter nen or a der) aout, wo date te dition ofthe hag ‘ec ofthe wards debit nl eredic Whe eign ee Yueh ret dy eanngs te wands Gad ert You ol Sed ‘ember he evaning ean of tte Soyoasen dit andr a not mens ba a god Nether them even mean rea o eros ey inated Yo wlan wh teers mann acting ‘thong lero er ston ae ees. ach ng an acount ost of ole amt anda dein (tet nse of ders) sconce ate dation othe ange by ‘eclalie a thwardsdebt nerd Whe ning Seances Yon rt yay ang ewes eb ts ere You ey Sed ‘ener the baring ean fe agreearzarzo19 Financial Accounting Exercise 5.1 ‘Tinian maton ding he stl Aug i pepe or it Seen pig Rackley fr econ Ne You provige $80,000 startup financing t Globe! Grocer am a a = VV mam =——= — fees Se |e mee Ssaese| fee Fil the jum erry forthe above ransacton Stat by choosing yor rt debit erry Clopsi Grocer obtain a short term loan of $50,000 Tears Taancacron ust avatar tae on eh ey ran S800 corn ck Lines and wer Equity ezoune | Creates 2. cash aod by borowng £5000 sort de Snes scout ‘Gest —[ “babe 3 faauitenhie nepetncen Expense roan Seat [Gea {re ont ane 5200 op el a Memos by sos 5400, FA al iy re abe Waco, Sia By Ronan your Wa GAO TF ariasarzarzo19 Financial Accounting ‘Payment of $18,000 ranchise fe to Global Grocer ntemationa! ‘130400 | -s10000 | 172000 sa | este | si8000 Trae ese Cr a rans ng 800 mmo ce sities ond Owe! Eau sours | cat oso 2. aah med bovniy S00 Sot Sees seein ‘sal oe 4 S140 anes pd es Expense 00 Debt) Cr 4 Te mart te 5000 oe ia ju ay rte Sta Tanencon Seat ciooeng you el GOR BA Global Grocer ents a sore and pre-pays 3 monthsrnt of $3,000, Pere] | "| = ies ond Owes Eouty acount | Cieai— 0b 1 Cac amt by oy rt = Se Fila tha jure ity re abo aneclon, Sta by choosing youre GOB a ‘total Grocer purchases warehouse property ~bullsing & land ~ for $70,000 cash [Eel ita (Rast eaain est rah ney $2000 conn ck Usted Overs Emiysenunls [nat [Deo 2. uated Sova Sd err et pera accos oa [ed «Pes ment ke S300 preps Starnes propery pros fe 7926 each; ‘arouse tong olcae 54 , (and ator $2000 [200 31 sate : Tire jualin fr the soe wane, Stat by choosing your Fret Gab ty artearzarzo19 Financial Accounting (tobe! Grocer takes out» £25000 mortgage | L Decreese: TRANSACTION LIST | Usain snd Onn ay ezoots | —cresl oes 2 Gash nee boenng $00 Sonam ott [0.31 siea = (cave rm» £5,000 orton oat Firth Juror tha soo transaction, Gian by checsing your ist abit ry (obs! Grocer purchases store fixtures for $5,000 64000] 85000] -§56000, 10 | +3500] ‘sso | Lsbities and Owner’ Eau accounts [Creo Debt £2 Caonrasedtaronng 30000 shore oe Expense scour Best Gr {Time mena ta pepsin Jo 37 Stee = cand a9 2500 a0 1 Soe ae prcse or 820 ilntejaral arity forthe Soom tannin, St By choosing youre dit oy (tobe! Grocer purchases inventor for $18,000, pays 8,000 sam 38.000] $51,000 Accounts payetto s7o000] $1,000 oon | $1eac0 Tas oso ae 1 aah ay nt $20,000 coo ok Lint sed Owe Eat scours [Cindi —oeba 2 cam mee soy S00 som et [Expense accounts Debt ‘Ged “4 Thee meen rent 953000 prepa ah 0.21 “Stee . «camo S200 maa |. Mecho inentey purchased er S100: 18.000 oii eo a 6109p on eat iin he jul ty rth above wane, Start by choosing yeur fist ae ry Ledger oul ay has bee ads ont oth ager wich aeans account oe for cl ac extn wT scouts an i del ney boeing Geet hp tae cargs bt a re) oder sen an when and cacy, gears obs unig eons wer ach ea aortaarzarzo19 Financial Accounting T-Accounts ach F-caontis ated wh ingle cnet, rath ae Cath, Aoi uae Coen Stk o Sale The F-ccneery large with an ascot moe ep The Jet ce oth scant std alee ae fe acon eat so, enn nang, tens ese and ea ns Mise Be ou ose yu mit memories Alany ge in cachet a aloe the monetary cutinthtcoue). An acu my hae eit side) ore ghd ene feces Poe Account Name Debts || [ crocs Putting it Together ‘ontining herald use of debit neve wit tegrated nis, meaty all sb pst ur ees the ager Fr ase oct, ‘Seu te ore on thd or nese ft Pascone Deca net econ cede oo ooo ths gh soften ery od my py a eee on the ict i ee assert adore gy asi ered he Inceesin alsa rode at eds an intents in expense rsd a ie | Taseounes 9 Pasting oo Tibiies ‘Gone! Equip Bipenses Sai Dent | Geae | | bape ] eae | |"peoe | creat | | bem | creat | | Same | Gea f 8) Ss a) ee 88a Coming rable as fia ere wt hsp meng, nell ho pt jar eri tothe ger Frm ats nro ‘Severed othe ei sherbet Fatt Decne aise eee hte ot git se a oe Pau For nity od owner ety ecu, decreses are ride on the dior hele se ack Faces in ated owner ty a rereoned othe sortedarzarzo19 Financial Accounting Post to Ledger August 31 Balance Sheet September accounts ‘ba cre bean operons on September, 2014 Lau ral track ander ptember, We wllesentaly repeat te ere we staarzarzo19 Financial Accounting First Sale ‘zl tha there opened on Wey Sperber and mad the ay th ed of rt day of persis. Te et ale ane it at or $o, pi o ncs {a once rat hy ow nepal rsd dk aban es och Tors COGS Entry ‘hele basht a eas 4. loa oe ead ase mechan inventory by $40 and ordeal os of gods ald expense. This ean db oct of {pod aidexpense ands omen seta 0 Exercise 5.2 ‘ow you mae journal nes etl othe et leon Soptmbe thea of 25 jf Talian posto, este trac jure ent to regi evens ae the ‘pus cto Large Gi Bases 25: natan pesto ues) 100 Colombian Cates 0) rl | 208 mn of 25 tape Flin he Jounal erry ore above Vansacton ‘tan by choosmng your Mt cebt entry zinearzarzo19 Financial Accounting Exercise 5.3 Rept the poi ure forthe hi slo Septber these of 06 poande of sbi cele fr eh and cet Once aise elo ea jaan ese evens the atch cont fas 8. St Journal erty fr the above vans, noosing your fst ot entry Posting Sales to Ledger "rth ag baton topo the ral erie rth nial hee it thea Eee eee) nt “ x=) ‘Third Party Transactions Wefan epee 9 ance thet fl of al Grav’ ranation with nee nities. Dsing Speer, lal Gace eso tl aie of 6,000 ‘tis Stoo marca inch atl en a gd lapse 3, Caner a make 2y peste cet sms sh oe ‘pureed On Sopterber 36, nn say epee of $00 ab tes expee of $00 mel pad nah Cave. sere pyeents ere ma You ‘Sietsk eee rhe eneagtelday ert, ‘see (or =n a= simone oa Maar taataraio O08 a Ons Bl Te gl ® ee ei o SEE aaa coe sareearzarzo19 Financial Accounting ann Adjusting Entries ‘lpn nueuse bing ore turer anche oe and aerpyabe Take alain rr 6 a me yeni ech witha hi pa : stata ast tho eh aig pi ie tang ni ee ine, Tht ih do tiv nt ae, sanaFinancial Accounting arzarzo19 te on of Setter, he fet mon of opntns ce ae sver aden ete tobe sade. We an ami the scout ta ed toe aad They ae eat ‘pent mueuse bug sur firey, nce een ae pebe Tacit asi nes ae ay eon eae wi a a. Ate nd etn het mon operons thera ating ne de. can hace ed bated Tia Exercise 5.4 Record Acusting Entries repr te a aug ea atin Onc ou hove ppae ie ‘Soph 0 Seles ‘Stan by choosing your Rt cbt enty Closing Entries ssnaaarzarzo19 Financial Accounting Prepare the Balance Sheet Ate slang thence statement (temporary) sn he balance the gran espe) asunte are trae tothe alae sel the eo he Global Grocer ‘ Balance Sheet as of september 30, 2014 Liabitties Wieicoeining coi siaana """ Owners’ Equity Tota Accte szasa | “Ganere Cay. FD Prepare the Income Statement Recap Inch shptr, ou mee nd oa sal frm othe formal ock-Aepig perform yay sccm ten. Youle that enn ae hoe Aan Sp seinsarzarzo19 Financial Accounting ‘The Statement of Cash Flows tue chapter, you wernt the sateen! cash on, ote of theese ean seme’ repre ol preseated bya ay priinormation aoa te Shoot eet cu daring tn cemang rd ‘Thetatant fh dowacan be prs in vo fret malate i mate athe nest metho You wna ow a oat and cack pe of teen ‘eGo for Cla oer Direct Method ‘test eo erent sh ws foram asoting eid smash aston that ne ee ote te ca leer cnet ting the peti, Tiina ‘Eprints peeing tnving ol ening noes Her se lal Ger et danse of she tbe on ening ARIS {ols Theindiel meal water aah Noms bens ler sae Gono) The GAAP and IFRS rules for ‘Statement of Cash Flows rns nnr Aupust2.2014 | Zjnsiiyng tosh Hows oo athor £430 Flows From Operating Aces ‘perating, Investing or nancing ‘for in several respect, but a tpn as a So, this stage in your accounting See eet ‘education hese diforences are Flite importance. “ge tigger ‘Sein Socrates | ope te tnt a pee i ei tn SEES cesnctces hat oeaniom tea coe em evens rng Aut lel Ger eth to open sts ot 80009 spp of echandae nt prepaid 3.900 .ath towards ae ret net $4,000 ‘wee roping tne dg Aap {2 toting tes elo the purse ad slo angled nts In Aue Gn Gro bal thee vesting atte aga lf whic dept cash act ie rch ote waren propery ae 70000 cy he pce stare Etre sn $009 ean the yen of he ae ee iba Genter ae ‘obo nota eng Stier ed pineal aga (9) Te inaning aint section hws the cash ft of ago rng debs, new aes or ears of gay nd the pment of any ash iene, Dring Ap ‘Gata roe rea $800 cash eo x como sok nu, ed $5000 es ascot a eae $5.00 ce ot tl ag ws Pid Sisgaoo rh rng An Assented, any ote pei to evo ctstaniing ons it ead in th stony GAAP, itis inthe operating onion fhe sateen fa on Preparation “edit mete ate of sh oe conte athe ad fa crt eid ing ah act in thle Ca ant ant Each debit cash ing ‘Beperod wan nce nto cable scare as) andthe iad (sa shy Wes ca) enh det ane tin tec acento, ‘Shera peting esting ang en aod aang her eee ates faa he ret mato Sate oh as ritearzarzo19 Financial Accounting Exercise 6.1 “This loa roe Cash Taso rhe man fSeptmr Hach uation ideal wth sal dro. For ach naan nde wher tina erin esingelneynaton, When ou hve corey eae ech eh rsa, Yum ave preted Spears die! wea Saaen fe Daws Gis ‘Statement of Cash FlOWS wanting Sept 30,204 Indirect Method ‘Tesco Sarma edo pee the ern ofeach oe stein met ts rani y open, sang, nding atte ee ar teen ‘hows Gaba Gro fred hone on ee en ist mete atement oath an oon he" stereo a fae or he Step. Both sateen sata dg te ost, operating eos frente 8.800 ch, etait ed $0,000 heh ad nc ates rove. Prenat Oot eesecanesyaeeee ‘Statement of Cash Flows mmm extn Sapt 32014 Cea lowe From Operating Actor Symone 8 Differences ‘ye two stent deri ony ete oa a lasfrtion eee in he es ow om pein ate scion, Tho nesting a anne ws sections ‘recnelfesame nts pest satamens fe ow seinsarzarzo19 Financial Accounting Accruals and De-Aceruals An Example oon Spber starting ih te sae anu 400 we wish cli the cs lt ofa anscon we havea deuce orev he 250 acouatrecble ‘Why the indirect method? ‘Secret cet towhih andthe eas wich tn etpont coe tte pode inopertagcathfewa, ons overviews norton ‘he Figen Acoutgg Sands ard eis cas that we he det media i see of present septa zoel fet acone GAAP Exercise 6.2 sanaarzarzo19 Financial Accounting 1h Flow Statement #1 ‘These ae the operating sectons of tro Salements of eash fons: lenly each as a Direct sfield Compa method or nairect method of operatng cash stant ah ae rar is Seca 34,206 owe Cash Row Staromon't;-GeBORE > Cotecen tom canamere 20 0 etn pio supper Frovoes, norte pe. (esa00)| Utes poe (24a latest (0300 Netcan sons oe by eouaing ees $2500, ro Flow Statement #2 ash Row Siaromom t2:-GeORE = lin silt Comps "Seetaein ees rote fro) teat prone ates) by apring antes S250 eta Company ais td att sh os rh 1h aw ems al indent hee ht hy ol appear oe ‘Det mde um fo operating as etn ‘late td coh ow operate ston Cash flow tems ‘eleGne: +1. OWidends paid cunng the perod ‘eletGne: «| 2. Cash paid to purchase machinery {SeletGne: «|S. Depreciation expense forthe penod SeleGne: +) Net Income ‘eleone: +5 Interest paid ‘eletGne +6 Increase in taxes payable SeleOne: +) 7. Decrease in accounts receivable SeletGne: «| 8 cash eolacted fom customers ‘SeleGne: +/ 9. Cash received from sue of long-term det SeletGne: +) 10. Cash paid for new buiing arn Son esheets by $5.00 da 2014. sng ha er, re 69.00 eash om acing an ed $1,000 cash for even ates. Wha wat or Sense con eum peng ees Saas St? ‘Net Income & Op. Cash Flows Accu meaning fats ptring th some o autor than ch fs, Thi tls itor bee pce etic ad he peat ent to eat lho hae te rs of peraton daring he ei For ape in Aaa, loa roe ad so encom us ha eae Shessag ent aw 000, Ths peur shows ow tend wed stent of sh flaws eons the iene berwee a pro's el cutis et nom ssh loo cretion 2 DeprecationiAmorization ¢ 3 Sales 4 COGS ¢'5 Other 1 Overview Net Income + Depreciation and Amortization Expense" = Change in Accounts Recelvable Change in inventories Seent asst + Change in Accounts Payable Change In Propald Expenses + Change in Othor Payables 3 88 8 88 ‘Not Cash Provided (Used) by Operating Activites rtearzarzo19 Financial Accounting (0)Aoseenaisan austen made onetime wate teeth fe of perating actives Weil aac examples of ah ype of cela, (aye ace o Peds Depectan/Anortaton A ones epee eer the eit orca side abe taste). (Sele Related De Accruals (3) 600S-Related De-Aeeranle (peace relate o caret perio erpenses aden pr perdi eam prep expense (st decreid (0) Deseret acre pre expenses tht bei in fre erie, ther pyle (aki nnd ‘festa ent aw 200, Seeing it ici oapbh are ok foe diag th peor tai a arb tv amet had Thi plture show ow the ndet etd teeth fae eons the diteene between prod srl eounting ted nt nome ch low tom retin tic opboh are ek foes dhe pe for an ap alr bat to amet Kha ePegae oating bed tinue ed eek oot ‘This pare sbon aw their med tate lsh Gwe eo thier beeen per es ounesFinancial Accounting arzarzo19 Gfeseag eat aw 00, Recap the Indirect Method ct eto atten fh ams ‘Yu have jut aad the resonng being each of sda nth [Bien ed eens or seb ees) neat eyo decrees seated expe, i ree (rr cea abet Paya, Hin eur ana rssh and by oper evi age per. ero exatng onsite cn acount a shri a > " ” Relation to Balance Sheet eaitasarzarzo19 anges assts and abies i the balance Shee sreluding cosh and short det Changes in nate set, at ost hangs in ater along dei ‘Sigs dt dvd pat Net cash provided use y operating, vesting, {id encing scobes changin cash soso Sept. Indirect Statement Global Grocer Comparative Balance Sheet Financial Accounting ‘Statement of Cash Flows tndrect ethos an Flows From Operating Aces “crue noneroeie SAS ca an reset Aen ah les ro Pacing cite ‘ead “ERE | Gus ator mw Una pean at e500 amas 5389 Owners’ Equity ot 80 S159 as Fs89 econ ecehabi See On ~ erases $200.00 ‘Shotsem de doreascs ‘iene . by ston00 evant cesses by SeaciOoe 7 sis0000| ‘Popaitespeneos aca Sec <] Iotenses by $50.00 ret aybiaccourt Seco > ireroasas by $10,000 Land cco eres Soc On zi ys ano Mansi Conpanys compat sae sts for Decembe 201, an Dome 1 2014 Sh the hangs sod athe abe soo or enh change, the op-ma ‘Begun ttdicate the adjustment at st beats 0/4 et ne the operating secon inde end tenet fa ot ee eng Dee eaiteearzarzo19 Financial Accounting Interpretation tet ow ea ey moran aca merc ay bas er of oan atmo wan tokzow’haw mach uh ws neste ord ses rng ‘Sevag pre and how ts rowetd oe The frees te ye ee eet of ah dows dee nk pe omg heen epee ISdctytiinanc the estapei nt Arp stare oepey inp toes sigan rat pater or hse oa matress or nex buns i laa rer, te ofthe ety Gael atements afr evidence thatthe basins iraing fice: ash o spp the nese mete ed Fatp up of pets thu he ny pers of slow wake a ales om estore The tae of eal fms saad othe ena For exo bal Creer ‘Asi tee ah lo shows tha Aug pera er oy th i at hy ome a) lle sea as nee es aang ete ee, [climes oft che ar ed spose op the bnear Ae nal Gaver stats op peraonysmponeents wit comes rm operons il Inshe caf amare mtr aes, fam ey’ acl amen loko edo tai opestons ae pneing gh ash, and tha tng ann Prey enough seppart sow, pa ded an vet inane, pdt sets The Sent fash ows ea aso salts ef nal Analysis of Indirect Statement byrne eermaion na peril way, sini method tata fash rove important armas fn est nl etter hat inet ‘Salem ane matt stent of ak ows The opertie ston of heart ntl ant ah ows expel povids the dprelation we amortation expense fae pt ormation tht wos ohare ‘rastred he aane eet sd ele in sou copens scouts cn he inconesatenenIsexpeced hte ture ecg cial expenttes “aca pests ‘eSecurity wag gtd rare eer gene ‘Surpaea smany ha sigan ihr tae than neta fe om opens in sie pela Tiare exon yf hath company rong ‘ay making lr once and tng te hecray eth ot Gna ce, Ba ald loon tcp, eps eae eee ain eet (throm aster ns ney mane Tae a es no be cy sen rms change in ecb inte opertiageton feat oa tae ‘Theeare many eat oe of ns tht my ond wit he ffrn sala nan nest mth sateen ath oo sth eth =o tenia the ‘alhof-amenty Ty ar ayond te scpe of hs intrest ra Recap Inch ehaptr, you ered about these of ash flows anita anal tenet rear ecties, Yea ero that “Te latmentof ih ows case and ones inforaton hot he hon dng macnn pid operating Invi or ang. 2 SSS EE SSS SS RS ni a ES ee pcan em + Thetperatng secon intend meta st wth tbe nt inome an maa ref dearer eases iin orde dev the net enh rom operons Final Exam 1 Introduction ‘dcome othe posse et orth HBS Fnac Acting Trl Ts ot wa you asses your hse Ean canting endenal Navigation: ‘Nite fom one qution othe next sl ne a th aver hie, fap, compte wth yor own choice an lik the Submit. Afr abmiting yar anew, ‘il ot beablto changeit so make se yur atl wi so ston before on abn each wer Yon tay kp gastos wa ae Bete ate tou can rete oaipe” qa ng mp ume queso’ men ore aan rows ty ne Altos yu cessp ene at anytime ting the oa, 008 at Final Exam 2 Introduction ‘Wiscome othe soe posses al rhe HBS Fae Acomating Tatra Ties wil allow you tase your kale of Gon acemating osdaneta Navigation: Toate fom ne qoion th net st ne fh sneer ces or, apple, comple wth oa own she and elke "Seat batan.Afer bmn oar ane, {ounlwt Delete sbanget some soe you sel wis or santn tere oa subnet wer Yon tal gutsy aa wat ae ariesarzarzo19 Financial Accounting Pas ote that ou can et spe" onstions singh “Fump to unanswered question ston men or he naan rows tay ine lho youcan skip ‘quan Yuma sate nck aia ster gsins mb some fore ram bese. [BAPORTANT Tate his exam only after taking the previous ial nseniment exam, There are thre inal amensment exams. Thu ifyou di not receive ‘pauing core onthe See oritia tha you even the course material careflly before king tie exam ‘our a wb dpe ined yon completion othe xm Ae compat, son ein our anes yi yaar he xe a Lt Revenue and Receivables ‘oferta he wer oa hav be inode oe cousin one the wasting receding sen ad te bse atl attest rest ote taaial you se wigs Ibok mar dnta he vos rape pening venting a naa aeons nina youl xan yor ntnig asuig rie prem reno hi acai ree An cia ola rongh ing. You (( es si Bane . ) users of * a enanys ‘cording |Report anc System men Review + thecsomertas grt ay he ued and eves 1 hepenisorersices hve ben dele 1 theSeris porn sustain othe bayer ‘ealizable: The rend rebrand teers reed payment or rnonaly expecta be pi Exereise 7.1 Daag the onto cakes, Gab Groce’ uso picked up ate ait Otel were areas esl September etre conadering some atonal ele rented atts tht ou lao aaa moment he company made ath sale 9000, ceisler $45,000 an alte ‘S500 rom enters stay op ther asent Te bane nxn esis Oar et 95,00, ache he jour ees fa the Octubre, ede an eiletians, andthe a the othe Gener Lae, asiteaarzarzo19 Financial Accounting Ons eat SSO) ‘oc. 31 Filia the ural ety or the abe waraaction Stat by choosing your fst Sales debt enty “he leger lanes are ow rare tothe Blinc Stet an Income Sree, nthe Sle ecu i anda Slr oul ah ep cae 2 Acoma wnt ala mala pls ths mon’ sles she months elaions hom esos Comicon Income Statement rr mont ending October 31, 2014 IN! Global Grocer Balance Sheet as of October 31,2014 soe secon ae ema sxe ST ‘Em Gross Margin. $20,500 Sache 32] coramvastoe es asi ase irae Operating Income. $14,000 erties ‘s treme Bios torreiims aa Coren ae $i fen ‘aus Issues ‘Woe preparing ne enfsnomh Sauna tment for Other, er cota re. You dade a tne ae venta your nal aeons oh hte oud hand en the rope conte ete They were ‘Acute rae i cere darig October. bs ot ben eeu thd of Ober. 1 inter to generace cash, yo pve your lara easton the opportunity to eve a dsc’ they pal coun within ody of her parchases, i ri nts Soh tne {98002 nthe npr ta ety 2 Discount psd in ul iin 10 doy Unredeemed Gift Certificate Inca stb, Gb Gracer nent ersanes. Two cereaeshad been sold at only a hed boi emo fr mechani ihn the month. Thea eres e-waste ‘Fr necting peop te tle et he enon eed ace the enor pai forthe catia ben it pct Home ‘adler ad at nen ere ofthe ed of ceber he enor ‘Soe one ofthe seer eri espn revenues NOT Ben mat th pif sae hold at eine in the ae rns or the mth How then sot reared itedarzarzo19 Financial Accounting Global Grocer A Gift Por You ~ This certificate entitles _ Garah Jane 10 $80.00 worth of Gourmet goodies at Global Grocer: Deferred Revenue Inrdeoecan SurahJpes 80 etfs, on nora eae ene sce cle "Defer Defer eve eta even ht ha ray en called Henican town thea an tan etn aba Grit tp canto eo ce a Redeeming Certificates oniiasarzarzo19 Financial Accounting Exercise 7.2 Assume ater if rit db loa reef hn October bad nt et on redo. Tiere or. Mate nce at ante lo O37 Seine 7 Sta by choosing yours eb erty In November th So gif cette sald in Octobe seemed for merchande, The cst ofthe mercandse 40. Mak the seceastg etry er te redemption fhe it “hen maketh ty forthe mercantile etry ants, shakta Assi Recon ‘epee acon COU Ey Filie Teoual arty forthe above vansaation Sta by choosing yours abt nt Bad Debts Inca ute, Global Groce made eet te of itso ae pany A wk ‘eo hope cpg te noe ome ol Greer You wrath ony la Creer hat he company bad lard basket and hare woh wonder oul er ar stanton ke ae Wc reveme near Late ee bow i dee, oarteearzarzo19 Financial Accounting Estimation of 4 tants you wil be ble to ae out seourts recetable y how ok they ae ‘por thc ste prenatal fhe allman forbade Pregl te For eagle fr les Greer, eater scouts rechabletuae 000 you expec 6900 a 2% of tee eae wl at Be alae, you wwe S909 ake ‘ae to mats nate oe, Allowance Set Up ‘Step: Set wp amallowance acount & record bad debt expense eres he ond of month Obra statements afore eseding a allomans fara bs, And before hese gots we wl est) aiteearzarzo19 Financial Accounting Write-offs ‘epg: Record bad debt writeatt Aso ets jump ahead tw Nove: Youle at le 55 mde in Otel eer epi by he cue. Here he ara et Sette lates hepato Exercise 7.3 Refunds fiefné and wrote ft so oft rtrd bed tomas Atte cag cab estou here mgt be mores produce sald io Ober in November. Yo (Save Le Tone Estimating ‘ae ttarns of tomatoes a wel as sre ater gods, hat had been ol in Ocaber for $200. " ” rainsarzarzo19 Financial Accounting Allowance Set Up ‘Step 2 Set up the Laity allowance account and sles refund allowance deduction from gross sles account Toren the retrsan sscompanying finds you cee ability wenn cleo fr les eran The sont eprenns the meant of find he omy Actual Returns tbe rr ora ef in Nove minesarzarzo19 Financial Accounting Exercise 7.4 tn Nebr stor lb Gre ces he fd allonano aunt thea of star, ref fr $90 a hen oa estmr,what wald be the et fhe 90 rehnd on Ga roo November ana ate” Prompt Payment Discounts sown of hl Gre, on ela go old arate ah ater fr elt omer a for mean a 0 a ple Toe he an acon mad then afOnoeryou began ennga enue he moun ome sees a iso ays pare Ts aoe a pres pee Ses ea. Into out of tenes Osta, Sud already the adage te fle Ate oof Ober, our mate cams ere ol leo bent am the cau Se {than smomen ta son the stern anager pam Sean Noember on stab ste cleaner be esate, Yo “tideto me upamllovane scant for bouts apt f omy Paes ew fs cases Estimation ‘You fatlawe hese step yo Bi forte heal eons ‘Step Estimate the Allowance for Cash Discounts Uke te other woaowance metas, oa we be compan’ ps epeince to eit te loner Im Oaaterg out of gt dou. so goto emaining castor ight ake te darn rod alt the orcas ao Discount estimate = 64860/2estonesXthe discount. 62 Allowance Set Up ‘Step 2 Setup the Liability allowance account and cash dacount allowance deduetion fom gros ses necoun ‘Tae alone rah scantily cout. The oerpndig suk Easel ah discounts is sh i einem tee! adda em sce ‘Sofa Teli fare tame oe aloe see ransarzarzo19 Financial Accounting Cash Collections ‘Step a Customer pays and tabs discount Asn lets eve sea to November Acuramer py nine eive the cask cout Tiscntomer pcs $300 worhof gonad wl reve 0 denn Exercise 7.5, ex recone patina eh Stn Koncept a, Wht ation pment rainsarzarzo19 Financial Accounting eee et eet a File he jul rt rhe above waneacton. Stat by choosing your et debt oy Adjusting Allowances: Month's End Ata let's jap abe to Novem, Thine November, Yxte oe mi of prepriog he end-aonh sateen fo Nove. As fore ener leer oun, “outhen end ut the slowness th correct nd November lane, eating the new ciate for ba eb, rf and sets oar erie mt sho {ate scot the eosin sue etna rom he preva th For example, bare are th Nove tations posed te nt lowe eon Yo eta oly tat id bs Oc resi nt 300, 5 ‘naman lanes tt cnt er Then year youre nd et ou wer ao Updating Laven maketh dhs thease the ad dit allowance sent pings elt = new intra bea thew of November Overestimations sheen of Otte, y estima bth atl ons tlen mold $48 nf, te sunt expense ma ol $35. You doen atthe end of Nova ‘hers nef $9 a ee co ‘oudesed os your cine his month You made ne ezine Novenber apd your tinatelor cash denial the ed of Noein $80. ‘atsannih lors uss sd there Bo gw. To sing 0 8 mh eet cen fr 57h tah oat "era he nt the aan tempt on the Geral Leder Noe that th eyo 45 smutanevat asthe se ofthe etinatin eo fom tbr Wel {2 stent sce ew eliune foes conus Mover rainsarzarzo19 Financial Accounting Underestimations analy taka he allowance or reds. at month, 30 a dla etn S20 frends. Reine were stall So. You underestimate he mero [tate ina rb alnees$20 nsec fares rends roan Tas most corned, For Nove, you cide ine the ellowane 6300. The blac in the llonince cna sou tesa 300 gin forward ‘Tobeingikeaowance scout or rand to oo, arly of $0 must be made and ecrrponiag it etry oS tthe ented fad aot, ‘ote tha heat for Sst mehe ne ofthe a etinatin er fu Ober a wear the nla erste naw allowance orf op November eee TEDGER. nsusries ‘Assevs cnmens’ ear Anes oles fas ev.20 $20] $320, sine ales tins smo Exercise 7.6 evan example ofa cmpny with abd de llonanee As ou can seh ylang oe mont of Jae, the alae nthe debt allowance neo 4500 Shown ‘Mec aoaltb treacle nthe owas nro ay te oh For duly he company wats tate sal del ean to 600 ake abe nese once te ba db avant Stoo ese aoa eid, rsaarzarzo19 Financial Accounting Flin a oral ety a the above vansocon, Sia by choosing your ft deb ent, Ratios ‘ani any ncorporate vate ination gain some nigh int th qty and why ferent bets and thsi geneate cain the tre. Te {olawag wo ator apann sine of ave moron 1 Romer atamunts eco a ose or "apse oustanding” Snpy "DSO Lets ee aw ea cleat a interete Bad Debt Ratio ‘he ad debe rat tbe peep ofa companys pos reba oes not expecta pul Acompy wih lu ad et ao bees tiene eso cee are more is eer uta tgs crow sha eat a Paclanders Enon he aed ‘nue an nya sonst lay te smu at ana ec lanes Te arse flows Bad debt allowances at the end of the period BAD DEBT RATIO = “Gross receivables at the end of the period x 100% Interpretation ‘ed det ration var consider eam eds indy an ‘eevee aay high a sompaed wih oman ons oe i ATT 16% ‘all South 12% ‘Century ine 9% (Clizens Communiostens 15% ‘Qwest Communeatons 1% ‘Sprit Noxto \rizon Communications Anat ok tow fa company’s debe co nrg oer igo nical ete ht fr cmp nnd nthe ett might Indatthat bs compra ating rome sere pote cets bore orn er at might ds mea ae compan pug seeeionry earners ‘pomp opera sales whiten ee ‘rma manages perpen these you company’ et alo ihe are con you een creo our ceases Ifyou ae tempting analy the ‘ncreent rab ome coe poo ceo a caumer one stem cle Annee ie a feeding sot ens eee a tect eam ase Exercise 7.7 ‘Wont loa Goer ad det ati or Ober? resume leat es owas rbd S800 ‘Gh crans seals 5.000 Days Receivable Ratio ‘es ese o the "dys ls etstandng (DSO rt nates th average umber of Gye ec rte company to alt it uttning counts eo The sebastian bcs tls oh ast tenet arn ner tn ered itch reinearzarzo19 Financial Accounting Toca dys cca, formas oye Rede Setacauntrelehe X- ods the period ‘Teale epee Interpretation sate wind et rain, days rebar comity bene ada Repel chs have verse days ese ie ey eum ‘penser hy compara he mach one dase ere are aaa verge rom client nasi. The an Sem afew a3 dy for nani neice roa anya yor te ming ity. Restaurants 1 Financ Services 1 ‘Appar otal 2 (General merchandise real 4 Senvees 6 Leathertextio menutatring Pa Constucion a ‘Chemicalpetoeum rst cmpare company days resale to tht finds per, The owing ofa compan’ days esabie oa igh days erable compared it oper ise negate pct on my es cata tht attheewia br ed fan ox cocina ets, An easing da ecb ‘Stobeamindcton tt nore ofthe recable il braeBad debe In pris of ecnonie dota, may compan experince a rene indy rece and bad debt she astemes fit more tometer elton Exercise 7.8 ‘Tee Dewsiy Campy proce plat ins orconking pets ee resme lot Sores cnccnng ht cvs rhe et 20565 dae ‘ea ae $15,080 ln Ne Acaat Reale 29 milion ‘oats Dest Companys ys Roce for 205? ‘Atbeend ofall yz of operations, bal Groce ol ead erable are allows You want toon what lobe Gra aye eels are $274.6 se, Stein am rece (skate atl Grose days eee singe formal Ws oye Recap Inshischaplr, yo rd mre bot ato ac for pif ansactoscnersng evens aso rele. + fare yn enteric feral oe own tart rar meng tat Feb at fad ed pom pay cas, yo umd eat vnc rnd eel ho nag hve seis rc wih acon i {uy ouwae se fatedocdo empresa teu sna clei dye eae a el he de ere are he pds sateen with theta ft of te mon taacton nena. ‘ss Sooo “an Inventories and Cost of Sales Inte cape, even or lola for inetd thst fae Sofarwehave assumed ht neti cos nf parchasl isd gods imme ready fr se. Thess inventors ae know shag merchandise investors We ‘sft einen or bog merchandise ves (ba ew thane tc it manufacturing and you wees elt the co of us far a nautcsing operon and ecu or ‘Sense votre eet fc laps un sed po Later th chapter, lb Gr w f hath pat pr fr some of he merch ht it ha urchalhave hangd aking qusian bt hw eed invety ‘hut fans You wb inode ferent apn vig eves hat el wih eng parce at Ty, Pet Oo LIPO abd Fst ‘a ut FO) thd Ech these meno latin for mearrng eel oe Bah one fa Gace ieniyni be ange dy nd tones orm ehh einer ee rinaaarzarzo19 Financial Accounting Asin th carer cups so wien howe doing Yu wil save bl Gos’ saber eeu sms ate th cont fn sl and venti forth new ‘Palactrtyperation ad prep he compet vember ind hemes ‘Financia Reporting mn weer’ oe ‘Recording *| | Report - i Somme [Rete ger |f==. | se Tis Fe al ee I Se Review of Matehing foe maving on eee th cones tat fo the eon inary nd cost fs: th histrc ese main ones sue erie, Ayu wl cl oval sated etry loa Grea the ct a ish hey ere pushed Tat tis ost When the aventiy el he ‘Satake toms best ofc gud sl (COS) ore psd cag the oo ts are acl othe vena ale zee eae om Caper The nem Stee The Ins Sete: Concept Matching Cane which unmet eee fo epee eseion ‘Sango he angst Aan sae ft litre Co cone canbe ead Cope ane the Cone: ital Ga Matching Concept “A perc incured be gaaraon wane eld be Feoapnted tie same paragasite eeruce oe alte ‘Ate sosty wt products and eevee fod ‘ors fom owe pacts an ares recngnne Rexogled s xpanen ne sare pro’ se overue Notansodle recy wh acu se var oe ‘HO tare pros roves Assroaiac wth re pore evnane Bought Merchandise Flow cis pas np eo ost apt ton ecorced es sans ne pcos Inthe ey we rates cance ester a treTue verso eso te Gand ae preset rad fr se rt eps an ld invest tl tee 15d Whenfhey reir raed he oof gael (C58) ssa Ars hey tare rhe Bln het ence See Merchandise COGS rainsFinancial Accounting Inshe:nont of November, el ocr rer 69.000 nba were sales You a tet te cot of ans (COGS) ete oes es ToGo 0, ea {Hate cag avery dara rer sp edierene betes Purch ean tat) ed rs oe etary cot odes wh aces {Eves Ceat of gots el nen bead sng inant oe gana aden ivi les od pucese inlaw on of Cans Slt ageing Inventory + pechser-ending rectory arzarzo19 Exercise 8.1 ong ereand inventor ond on saber 20: was f,000 Dering November 2014 Gl Grace puch dtiznal merhandi cong $6000. Acuat of opt merchandise nvr on November oo indeed tt etary sang 84,00 Toad ‘oot sth st of ods a orb mean nec sls daring be anh o Novena? Journal Entries Lat now mothe Nove orm exis obo meee, We bei wth he 2.000 November merande nventary press Ase the press wee all ‘ude ea Neste ml ear be November ees as a ods a Remeber, begining vestry at $5,000; the cl of ods was $7,200, nd oli ecay we 46,00. rich her et Tinie onto fe soo Fancarion Sty ehooeng eu Wt eny Update the Financials “oe cat fund macnn elt oat tothe num Stata therein leer lace ance he Blanc Set. parlr update ble sheet ‘nd name rent ar weber 3 sot are shown eo Ayo soo aso, se sional usatins wie ind ae eel @ Global Grocer foc Balance Sheet as of November 0, 2014 2 se 3 Accous ayaa ys, $1000 ‘ae Nene $820 Ives aac Saez | Sune equ same vse 0 ‘New Challenges InNovenber, ou enor sel tonal aesuting calles ated ba + Jam natcsingoperstins were uae dig the moa ad ys Woode baw ts rine cot of sl unde ee tances 1 Yolvecened me iments aoe cane Df musa tiers ces Now ou eds deere COGS ar he estan {Dts many sur some tera yor pare reach es wee damped You tends th angen lent Yor neon Cres aventry coun that se a yet bee en ransarzarzo19 Financial Accounting Jam Production In Xowember oa Gras anced am manta oertn. yh ofthe nth the company bd etre of nce ba, nd oma ha ‘econ had sever ied jus jr aang ae shh lead 3 other. Thebes you ed aes ae Ju prado rs nw ut Graber nein trial How soa thee aly be eo? Sine ajen nena hd Nave How ose ont aly rg ting pe? ow dou devrait at eo sand asco th wd in ete? | GLOBAL GROCER Gourmet and Specialty Foods Process era lagram hating fw of sts eo naacsing operons ke Gaal Gow’ jam prodsion In contest othe dag for eal pms. ‘mult operand has ee spre very sens Rae Stet, Workin Progreso ished Goo (Clckon the moe iano te dag tose which ot shoul yo nach of he ants bbrentone ae eget sed to fhe ccna. The workin vein cst ten reed WIP and the coat foes cashew at Bought ventory Cost Model a ae —— ST our ests | uae a ee core ra =e Tt” } cone “Fasobay me av Materials the cor ofa on hand bt tt pled ist prodasion. Dery sts alata ong thera teil wou albino bare ‘Work-tn-Progres (WIP) the ato at meals un which pylon hs ba stare ut ot compete she aor pp pec os marl ad Pinihed Goods: ts det with complete a nad unison had a them of he csuting pero Con of Goods Sold (CUS) cn Hein with te goad lester rng the mcoing Pid Exercise 8.2 ee iin fet rama paghe remauring crpan As then cat esc whe otha thy Stina the nara cet ying at ote4arzarzo19 Financial Accounting + cxmltese ee: ae | snares, i [= Costs Lat ek how oan fer Gla rset malate produc, ed gery Tomar red rary, lab Grae cometh back ofthe srchcnent hon Aone td sing eps ns Poae sng Ravens ha owing stays ars ce rd 1: $u4o fro agpertes sua an gas ar 2 Spoon der ches opon rea he perce nd the mates {Mitel apr ay your oer mange S500 (ara nl sonkng eg (inet) - 480 In deprecation expense tobe aude per oath 9. ego staennce atest cokng ens!” 4 Sioin pac samen theo aes Sune threes chou oo thenwentry sou nse oe enue You wl eed detemin wera cck oe pe Costs Included ‘teandconvering them ons produ. These netted prod ot ‘Alla cass remain in vet wot be gods rs The, stot od sata o COGS ath nf acomating ped ‘There te ern nds of pout ast The la ons elated ee + Labor The conpenaton al maractrieg or that canbe el the proation lth pdt 1 Atenas Aeon costs ofall tris ht veatay bce pe 1 Manutaeuring Overhead: Wanstacring hte don retest tng ofthe rod ht hat reat spiel routine or atria Beprelaton on ates elpmeat sas ale Costs Excluded Sling pens, aii eps ae tind in moteured avery css ano COGS. Tey te cose be operating expen a ofa ShUdrecrpensel tered aplesae 1 Avetsng ofr he proce ‘Face ofthe rang the pha department Otic caning eens ‘Sought mrcape intent male he sated ie acount sie separa etary ecu antesarzarzo19 Financial Accounting Product Costs atest he iat of at apd charge saad whl Gc’ jam operation a Nov Wich arnt eta the paducton rs a belaca in Inet noe GS Whi soe ele ‘singe op dm es, nate whether yo hk ht te cet hold bende ia veto? ‘he pos ih cove uk towels ere rll product odie ati within the companys haown aos suing you waka ere ‘par sbout co senting tr tes et cenenting caine tana he asad nse Sto Paes se Inventory Accounts yb en of Novem Graver raspy sls F000, Flowing te mstching pall the tf prong hm hat baba sl sh be ‘Cased whe C008 acount ‘Wont mount shoo be transfered? Whi cons went prac tha th wold? ‘Todtermio thie Lnkeor cael atthe re prac nena acuta Mate, Wor. Proca and Fished Gods Raw Materials ‘oes ep nthe pructon poe ihe wegen aw ales, Oe purchases colar debited cee ie Rae Mats ivetoy erie test of lbel Greco fr oy trl parca, Make the eis an cick "pe ito pate the geen nr. Allpuchase were ade acd + $24.50 fr beso agar ae 1 Spooitdley eas ‘Fast doth cate forth $14.50 pure andthe beet ore deer cat, aiaarzarzo19 Financial Accounting Tilney Ter the stv Waneacion | Stab choosing your deb enty Work-in-Process nur cpa ont go he quay of meal sed athe recta paces ut hehe cust thea teil away ee had atthe ed the ‘sung pes Te gnu done byes beatin Myusknoethenvctory aautin the rv mater acest tthe ning fhe accunting psd andthe ew materia inventor amount st heendfthe ating ‘ei nba oherinorenton wold ou nods este ew marr lo pcan! Finished Goods by November, lol Grr ad mae ooo a fam, though ome il remand n padi, Ye deters that g.00 a ata ae ers ‘Split lod ite Tl S000 cst fle ons ale Waster othe Pied Goons aca the ished Gods inventory aust sd uate the ‘Tomaterhe oral ney tater Cum he worknocessacoat te st oe amas de a Nove eur iadgr oan, nthe POST baton bon —Workinorocess ___Finsned goods —_imenutactnedh_—_ woe woe sr2z2y at nse “Somade. rete fo oe amt Tracking Inventory ‘Tete to appenehsobwpng ak nventos Tey rete pcan the petal tad. Ue the perp meted thelavetory acuta ‘edbedton sd wie wna We doo tte tae mt be ‘he peso meta i menses, adjust loner cout prolly edo ctl iver oes. er example tthe en of euch acount esi, [Moen mand outed sna fist brome th cng ive. The pve method ma ut loa roe tdetemin the ending raw mati, rnp ad ihe nvr {* Cost of Goods Sold ‘ofthe 60904 fm cating 5,000 made by lal Crs 400 rs coxing 0.0 wer sll fe at ofthe jar of am tion han 85,000 reais inthis outs veo sce Tee ised ps on a shan betes oat fos emer’ co S00 as ere CO ‘abel of ie ated etm ‘owner ei ttre the cot othe arcane COGS aceut Ckonhe "pat ate o uplate the peel age ate sitedarzarzo19 Financial Accounting De a lin te journal ny er he abv tarsaction ‘Stat by choosing you fst debt ey Financial Statement Update ‘es upate thHlane Sheet sd name Sttment rth per jan praduton, We il db pote it for he jam ale 60,000 ($0.00 sewer deine ‘Socom erste general ges anes et the Sinan stati or te moth ending November 39 Ta lk mare dan the vars depron caus kon he Inoussonthe bale chert The te at amounts the set ong cart io ste ns abe dapat aeons ano tt wor. You wal ers ‘octet costing tbe met epee a 'Biokal Grocer at Labiities run Exercise 8.3 ‘om ow naw at pradesh 4.00 rs oan invest bl Gace ws $30.00. ‘osalo how at he eves eer the se of he 000 jes ms $36,000. ‘Ws sth daar oe ro ain apbeyun pot sld by Gl Gracia Nove? Price Change ets oa at anther Naver inet counting cle This one ives bought merchant ‘hinge masirde be in Sime’ eftao jen $20 we aan these tpt a sf00 Al heed Nvenne youre hat ou else ‘amar rar oth pment st ys hot ue nom mary ach pment neon bt of di ndtgsiahae rm ster en rea {etry nig poe abd You wonder wa ou sb wand ta very aes COGS ye eto tubo ist Shipment Received: $2.00/jar 2nd Shipment Received: $2.20/jar 2,160 jars 1,440 jars pein wn per pt ingle an rte a prc ech Ay hangin rp re alt ‘When nsotor es change oar managers must choose which pods the hangs in int or prchas pis shoul fect hae that have een oh iin artearzarzo19 Financial Accounting 1,840 jars Inventory Valuation orator ha cnt fhe mustard parca fr sneezed with th change the echagerae faa $0019 $2.20 4a jae nce eed $3.00 382360 Jie 20h n Noor a nd cat ote 398 a emi or nn, ys ST oh he we ‘you ssame ht leh cond shits 220 mesa juste sel ore the 2.00 one thes COOS woul be higher nd edng vent awe thay sue {Bata efte snipe’ Sage mtr js wee he oes ence COS nod blower an nding nay ger D(a Flow Assumptions ‘ne way think oth tae invent an OOS when sere are cot changes tian thats soe in lang bn sce ayers To eth ‘natty tg ern empty iho stam he oom the op. Two ft toque ed very ate appeal ae PIP an LIPO” ORO, tlt Ft nF Oa snes that ou eye fr tbe Day wo he est ae of iver cos wou be oe et eon npn COS, Tato, an nF Out sss that os den an to tah th! he et ey aa erent ae wo be te nan Cost vs. Physical Flows ‘siento remember at dileet neler auntie td sch FIO sa LIFO, eft ilerel spins tone ow aft of iaveey ‘chun Shae ot somo doo econ eee! peal Sow Sto Pa sry whch yor ey cea gee ‘sin want tr let aes it Otero oa pil ead leony wold one aya nn uncameloaeingbexne sitedarzarzo19 Financial Accounting v19H6d notelyod FIFO FIFO Cost Flows Exercise 8.4 asiaarzarzo19 Financial Accounting Ena 606s imvenaty Total FiFOVaues $2040 Suan S762 FiFOVeues $4992 $2640 S762 FiFOvaues $4992 $2112 87108 LIFO Tee FO as rt-Ou) approche topo ot fa tacpin to FPO, Ukr LPO coo ade eld ict aun he ot of eel ‘ee ook at ob sing the IFO cot aston. Under LPO thc ayes in ou tb are avn fom he TOP andthe no thems ented yee ‘noe fren he esatom COGS Bore Pe (Ee LIFO IS NOT PERMITTED UNDER IFRS Exercise 8.5 ‘tocol lobe recess inven abd COGS eg the FO meta erent Atti in th iat dey ast $2.00 2,160 i these delivery csi 62.20 and 2.40 of mesa wares Inventory COGS_—_Total UFO Vekes $2400 $5,100 $7,500, UFO Veues $2400 «$5232 7.652 UFO Vekes $2600 $4900 7.652 os Tae ‘eames vento 222 Speedin tain trom 2p Corporation Prices por pace Begining mvener, 500 at 27.00 Purcases dung the month 4.500 at 90.00 nang vert 300 pices ‘gosto: fe apy wats to hep COGS for ths a ode ow node toes ihe pay, which ventory told opt? The cmp sl 700 22 Sei ia came nist pd Comparison ee i Glob Grce'inventoy end COGS under FIFO wn IF. For ll Grose, LPO re nih COGS lower erigs) ad lms nent auton than IF. pho 08 and merit ariesarzarzo19 Financial Accounting Inventory COGS Total UFO Vaves $2400 $5252 7.632 FiO Vales $2610 S92 S762 ams chose o FIFO for avait sn. Bt one pert condrton tn. de the US ax serpy ke LPO frat aro at {oe LiPo for tans reporting parpnes Aves ie US aeons wore mechan ron crt ae ng won tea ote IPO se LIFO Reserve ‘Yor la Gre he FO tse ol apples othe lon masa evento ah dof Navn. Ths ics, par tom he Do mustard op cbangee ‘red lr an of oer pode in Gb Gree aan. As his Gt not hat Global Geb parase ipa stand ao, hs ete heHFO weno ‘Wont wl Bethe mount fhe LO ev fr Gaal Gre? ‘la Gree? Dijon musta avery and COGS unde eto seth shoe here. Exercise 8.6 ee sth frst om Ferd Motor Cosy’ 20: Aantal Repr sowing 201th 01a ives a FIFO bere clei fhe AFD reserve ios) Ford Motor Company a) Porn se sows fer he rte fr the LIPO eve a $76 BM fr 25, what ite ams LIFO see sat? LIFO Accounting ‘Stree user nen anata fr Yuta ta he eons he ot hentai COS aesring LO, -eramber, th meats nde LO ar area ow, We wl pete hela sho sn inane steno eit he et inventory sn CUS wner IED ‘nfo 6065 Inventory Tota UFO values 55252 $2400 $7532 eee ere cost of oad sold Merchandise inventory ce sae | | aE ia eg mera Geauiee = Ceberibe marae vase a0 sa nar ae is Fa Specific Identification ventory motos tes thn LIPO a IRD hat you soa be war ica te pie entton and average nt meade. These methods arene ppl UFO {nUTHFO a wel a the tal ‘you eel hap ac cach and ener mtr jar at lal Groce, you mgt bese twa he "Spec seat’ methodolaventry vation becuse ould ow exw You sold swt ay cos et ete est sin vee tag te hang igen rcs ithe vir tied ps tothe ie ‘he spielen ovary metho ih se for amply dele in ravages who flonase thea of ache, atedarzarzo19 Financial Accounting Average Cost Another math athe "Avrge Cat” mea To tering th ct of entorysb COGS, the phe trae co a the zai the pad ean ventory ad al sine ninety Sn prod calcite The eee ae er a isa ca COS a nog ey or example Tl Gacers sad te igh weap rie wold bec allows reenter lal Crd ot ave egoning mista entry Sao [1,440 jars in 45 shipment x $2.00) + (2,160 Jars in 2% shipment x §2.20)] $2.12 a jor 6 (1,440 jars +2,160 jars) “is woul me COGS = 80.1212 40 sol = 5.088, "vestry welthen be 821251200 Gt Inova = $2.48 Exercise 8.7 >a te lining dsr te pope every allie med by ing aro: Hi sme tha ple pods ere bogey Inventory Write-down (Ga November a thre a erie rin lr. Ando in te warhol pes ad the dco paper pckaging a 90 cas f ote Frese x wa dete, ‘Tatenaneintinsana) renamed untanchedPrtnatey the camage te ols besa ‘oui $atn or the tsa ow ned scout ote pared vale of he inser in our acl satenen’s You wondered wat ave toe othe dated ns of {en Yo bee ha rn based iavetory mol aye damage es or Lower of Cost or Market ‘aol atria tm en a wig thot Tie wa hwo orte4arzarzo19 Financial Accounting ‘edit cata gods sll onze wee do icone) Crediietery ows tener dawnt se) Entries ‘ae ys have denied en ile for he dae you edo mae nea bal Groves costing cris tet the cang in avery ae lal Gree 00 ing of mage ects la real 6 30 = 62,700; em vais $5 900 $1.50, Thar was mcs of spa. The out of he srstedawe ix Sayoo-Sigo0™ Sea00. ake hejoarnal xr low a kon “ott to haveil anf i te Genel age ect dare te Til the junal ety forthe above varsacon Sar by choosing yours abi ty Updating the Financials, ‘et ao pe lal roe’ ai estes wt the changes te nventoi od Cot of Goode Sod EEE Income Steet mot 8 4 ff Global Grocer Balance Shoot az of November 30,2014 overeat oa) Pass a Sec 00 a Sorsim soa es Serco nnn $008 ‘esegeees™™ 8) aaa 17 otal isles and ota Asset swan Somer ego Inventory Ratios facie inventory angen peta detersnet fb wel company anaes ts working cpa current el -cret bn) The shrebe ine ped wt ‘inner ei egress ey, oon ttnr aed riya gag che fi st Turnover ‘The "inventory turnover" rato sues the average umber os inven si uring the year Tarotr icmp ying Cat of Gods Sly he snr Inveatoy onan dng they. ost of Goods Sold Inventory Turnover = " ‘Average Inventory Beginning inventory + Ending inventory Average Inventory = a 0144arzarzo19 Financial Accounting lat okatan example seowit woes Heels the data frais company Fes Corporation forth fal yen 20 Fisol year 2014 Beginning ventory: § 350.000 Engng Ivontery: $400,000 Gost of Goods Sols: $5,400,000 $5,400,000 Inventory Turnover for Foosie = = 0000 ines ($350,000 + $400,000) / 2 Days Inventory ‘he "dayrinventory”alcaltin casera the trove aise day equal The form or camping ay inet diay the arn ai 5 /C06S/Arerge ven) Cost of Goods Sold 365 + ‘Average Inventory at ak eat Hose Corporation, ose Capua sir turover ae T ut ave ie 965 yh ventiy utero 4.4 ge ys Ifseatry of On tere tsk das 4 fo Fete Corporat sel fasta eat eels i Rant (Ze a) (ZZ) —s —a ZZ) wri —s —s lw rie Z| [77 = FI Z| 14.4 times a year! Interpretation Desiableinventarytucnoves ay cider oo indy tedty pd en ty copay Mages eps ea vet nav ois five Woe cgay ts IFO or FFD Ra a acto ety np cat ae nteaing dee vey ors ump andr LPO wl be iwe thaander FP. Thiscan make eo o compare be mest of competes when seu he LPO mod andthe ne FPO tthe One wa tees robe to Covet sO venay count ts FED ae sale! yang LPO reser beso LINO fever nol a then igh LIPO isto FPO Exercise 8.8 Lee socal as inven fr lb Groce Geral as nena cleat fr yar pin. Since ne do at hve ear worth of ces a lal ce ‘ttc thetrnne earths mnt ve ante) fades taaeer snk eerie isn analy eli aoe ey ‘Welsow tat bal Grocer bya pets Spur i 5.000 fenton saver (out ees with mtu) bance ou Nove 0, 2014 st feos Duriag th prt he com of patna tae 4 (6.0 Stamey, Sas is Oat and $0542 Namen) ‘Waat sth nonlin neta anor le andthe sine fr bal Gee? ‘TURNOVER DAYS INVENTORY ‘tne sseaye seems 2eaaye mes St aays ss80imes reas ovisarzarzo19 Financial Accounting Recap ‘nth chapeyuleane om assaf nvatarie act of gd ol, bah a merchandising operon pa nutri pea, + for manaticorng yo eared what expense >in te costfpdtsing god and wee nto tothe heave caus sed by manictig ‘Stan ow mer wake se fbed pode + ake calgon net hm ytd tate een ey a eng Ot TD «Yebare tow Senaged tenn lou we sw ot appt th owe nt cr ar a ak eae tate ened when he markt eof Jerr etry tes blow steal eo + hy oa centred to eae rar Dae entra Tera tarener These ti provienarmaton about baw fect iets are being mage ‘ig your new nodes, yo pdt abl Gras alan set anincme taser the month eading Novembro, 2:4 Heeatetheupated ete aarp P (Reo State mnt ay Nomi 3 256 18! Global Grocer -— at Soe 9000 Balance Sheet + 0f November 3, 2014 fra Uebities aes =< un Spot osm #5 | eget nt | pean tom = =) See 5s noes owen oe) Senor tay Depreciation and Non-Current Assets ‘i tiscapersu wil ar abst ng non-monetary sce phot acount fr them Key management clengs youl even + Howto sant rhe ction trove ad pan olang ved ats, 1 Hawoctimate and score te ngs aan ne ts nc acoutan feta eeciaton, 1 Athens resample along ast ‘Goba Grocers sins has yrown rons oer he ps nn tds aoe ieee ts one ses, Weare now heed of Deer eyo wl ve the ‘pretty wnt otto ene te seals Deter tel to bl Groen ved ms late ar by reverng ws oa sea eared out aes and depen. ‘What's an asset? ‘ou pov ane tht tbe allotan eet areurechato meet ora hasta be “aerate spy oul caren sna tang led sant: Lag ted net der fom arent ata hat hey ae apc a aie enschede ‘neyo whan cret he ar genera oman romero cas whines yo0 wuld eo evew mare thou wat oleae both Gefen ofan ast, you myer bck:o the ston eid The Bae Set: AS, Categories Loni ses i into oe aft egies: tangle sen itangle ass. Tangle ses can be sen toe es ang east oe ‘bet pied tae ‘ample tne sets ae lad ulin, sta, oneal sad eatural resources ein pein sucka mite ak eerie td hear inte, sitesarzarzo19 samples oft ‘ampiointange ais ats super iba are patents copyiths anhs eos an adm, Some tye ast eee 0a Financial Accounting otal peop” Wow ty othe ma an = oe = T169" you ‘The asasing lange ve.monea ass los the corel ut ano, de the hore east concep ong el non non ass fered talon ‘Stine chaptr) re recorded iat co. wc hen lated ung pec owed oe Pesach he ete buses 7. Wistoe Cost Challenges + Aegon Cs. bl Grover ceed a pchagigtachine fr $8000, Dery nd insallation cats wer $2,000 al cst $20,000), How sould you rhe (her ae etalon care? { sAatt Sle: Global Grocer ld dtvery van ws soldi December How sbould ou wor ihe ale? Acquisition Cost (on bronber 204, Cll Grcer pratense cages machin fr te packaging ofan a. tit $00 and adler he ae day. yh ca ft dy, the ‘cise no up and fon The ost er nal we 82,00, ‘At ia: ewig prt of he acasog machin, yo ed act he a of hs gtr at rhe mo Decee. {prommens usng thet, you spt stones repi a gre beara lw sad hay be ested nou ancl ates? Inte ase Cat! Genes oer abd Glee eae ee at wl be wel et oa You even eve asap ely at wonder ‘Uisgaw Dcee, 2014 you ned tort the pce the east orton and evry. Are he dlvery ad iestlation cst expense or sbld hey be ene arte te preven ace? oatsarzarzo19 Financial Accounting Capitalization ‘The ego ofa ed anc sch Cla Gacer parcanef he acagog mai often needy tpl avs. Cts united wth be ago of he ‘Stet tht eos epigastric arp ee tl eb a! hat ap on ‘bebalane sec Exercise 9.1 (a Dane Foe Crp. eid ae ca sam a del 2.00, The copy lo pi 1 slam he uch, $200 rhe seal aera fn Sst ak wth ar Wha woulsbe the vel he ect 2th comps bots telling ete Waar” Accounting atta! Go’ pacasing machin. Yo ow ko thatthe ot capa mvs in the packing machine the ot of eon 8,200 andthe sat gt ‘Semaine avandia 3,00 ata Gr pd cal Soa rors vet i 0.00 aah ae ik te pat bata pda th generar. eet] ‘Bee? Seied One = iin te ural any forthe abo raneacton Sta by choosing you fst det ey Asset Usage anesarzarzo19 Financial Accounting ‘The Deer aegistion oh pelaging chine fo 26,000 (seus revs) asthe quetion a how ostinato east of wing be mache drag he aah ‘ou el tos of geal depen In eer taal capes, we tid you the deresaon ht ak ath Bu ows tea ear ow heats > > ———s Depreciation Asa ut se aby race fre nna ene forth cmp tao "depen Th of tare bly to prado bees resets cit othe ‘een nich second oer te see ob ee In pcan t mathng phe oe ting pred apres expetse bse ess Accumulated Depreciation rei tbe brew of mache ad egies set asco ll Grocer the end of Nove show esh fh tng alone by Gb Gree {he aces open on November 20 faeepeaacerbant ae — eames sem — es Methods Manager ae permite ae ember of itet metas eerie ir pee depecition co. GAAP rie the precio meted ape beet and ‘ona Feuer ne dopocton method ado refactor ar expecta oan yh earn ry Te Innes sls peste se Stright-Line Depreciation: Under the "tsi me, he deprection epee on lang ast the sae dlr ae or enh rad fe aes EERE ROSCtbe deans tetrad me efoto pd gad apni ‘Accelerated Depreciation: Te sity sme sts a fre som bn ied pata denigrate if Te "morro depen” thd Ite evtped allow tr eatloaed wage pater, eee perce depres apna ec ste oer tees el ie asiaaarzarzo19 Financial Accounting nn Straightline method ‘acer hese wd he annul deprecated allows Ae Ci Tama Sage ae ‘timate Salvage Valoe the age le fn et ala ompany ote made a the ine beset purchased tthe thant tecomge expect ‘ini tom dupnengf he anette ede sxe et Se atiated Years of Useful Ase Life: osfiloroeunone) Meu an ast ie ompanyesinate mde thei he set pte ased sated y lysis or exapl act fsa fn. 00 apc lish owner ean eed al ie ers 3.6m amon ey ‘Sus.na0 $008 ~ $3.20 pe ea Here isa raph ofthe year depron epee rth car sing he "ihe ha Hah year 208 of theca dap ae ts $1,000 ot ast etn ‘egies 6.00) wile deprcaea Aer yur he casihava asa it cet seu pein eq oie enim ager of $3000. le. ean chang tee etme stint the ‘Aer seaa yas of sing na a.cupey may tvs stots ote set se ead sa sed deprecation coe reas ‘peat epee rth ant orate Buty nt ese depression ements a 3.00 1 23 45 YEARSOFLiFE Exercise 9.2 Accelerated Methods ‘Toe os commented alerted eprint tha he doubedening bance (ODD) method. rhe DDS at, the sl depen eet ‘sumed a on ramlege ete of 000 and aud le af 2 x Ast Bexinning Bok Vane anal Yar TURAL Tis thea of depen nd under DDB. Nafta be fe ano the anal depen rae eed der thst mtd Awe’ Reginning ook Valu: T depeition exenteration teased pesto), Resa ‘Seocksha orks at Sosnes on er, he baal apecn expense unr he DDB aed so Sins oe he Notch in pst tte sight eee, DDB depron does nt ely low oa ast’ eget alge io, sed thease cntoes ob epeinted tsb alge eqns aap soa eh pt no ares expense reed ets tow DDI depen mh fora ait cat 200, tl eof ers tare ve of 000, The epeitin rate 2/s 0 40%, eis iahictheZoS te ana nde te raphe met The taal dopecton epee rhe tar xa lo Tar Goplnng avah Van Dupecoeen Rife Dypviaon penne Bang Book Vai 1 $19.00 4% ‘co 511.400 2 ‘11400 a. ‘1560 600 4 S040 0% 2.738 S404 4 108 40% uso ‘$00 5 $300 om a $00 ‘aca sda down ts slae vl of $900 ter ny er. Atul fl ourth yur deprecation wold ane ben 54 60 (40% 84108) whch wold eth ening bo ae ethan sage We hrf yi Soa eect a Ya at hee et aed iow savage Here a ‘heyents depen opens rte carn the DD eho ena

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