9th Edition

ISBN: 9781259738692

Author: Libby

Publisher: MCG

Concept explainers

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Balance Sheet

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Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It…

Owner's Capital

Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expect…

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Textbook Question

Chapter 12, Problem 12.12E

Inferring Balance Sheet Changes from the Cash Flow Statement (Indirect Method)

A recent statement of cash flows for Apple contained the following information (dollars in millions):

Operations
Net income	$25,922
Depreciation	1,814
Changes in assets and liabilities
Accounts receivable	143
Inventories	275
Other current assets	(1,391)
Accounts payable	2,515
Deferred revenue	1,654
Other current liabilities	4,495
Other adjustments	2,102
Cash generated by operations	$37,529

Required:

For each of the asset and liability accounts listed on the statement of cash flows, determine whether the account balances increased or decreased during the period.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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Chapter 12, Problem 12.11E

Chapter 12, Problem 12.13E

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Chapter 12 Solutions

Financial Accounting

Ch. 12 - Prob. 1Q Ch. 12 - Prob. 2Q Ch. 12 - Prob. 3Q Ch. 12 - What are the major categories of business...Ch. 12 - Prob. 5Q Ch. 12 - Prob. 6Q Ch. 12 - Prob. 7Q Ch. 12 - Prob. 8Q Ch. 12 - Compare the two methods of reporting cash flows...Ch. 12 - Prob. 10Q

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