Chapter 2, Problem 2.3APFA

1.

To determine

Whether Company B’s size is increasing by calculating the percentage change in total assets and percentage change in net sales for the most recent year.

2.

To determine

Whether Company B’s total profitability is increasing by calculating the percentage change in net income for the most recent year.

3.

To determine

To Identify: Whether Company B issued any common stock in the most recent year.

4.

To determine

Whether the term debit or credit is listed in the Balance sheet, and also identify the account types in the balance sheet which increase with a debit, and the ones with a credit.

5.

To determine

Whether the term debit or credit is listed in the Income statement, and also identify the account types in the income statement which increase with a debit, and the ones with a credit.