
Prepare the
a.
Identify the amount of revenue that is reported on the income statement for the year 2016.
b.
Identify the amount of cash flow from revenue will be reported on the statement of
c.
Calculate the amount of net income for the period.
d.
Identify the amount of cash flow from operating activities for the period.
e.
Explain the reason for difference in the net income from cash flow from operating activities.
f.
Identify the amount of net cash flow from investing activities.
g.
Identify the amount of net cash flow from financing activities.
h.
Identify the amount of total assets, total liabilities, and total

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Chapter 2 Solutions
Fundamental Financial Accounting Concepts, 9th Edition
- Consider how the role of accountants has changed over time. Just a few short decades ago, many accountants were writing down by hand each business transaction into a general journal, manually posting to the general ledger, and physically adding ledger figures to construct trial balances and financial statements. Imagine how many people it took to perform these processes and then imagine how many organizations needed these people.” Accounting is changing once again. The relentless adoption of new technology continues to increase the automation of routine processes that accountants have performed for centuries… While this reality of machine learning and artificial intelligence could be perceived as a threat to the accounting profession, it should instead be seen as an opportunity: accountants can once again shed the responsibility for mundane, time-consuming transactions and focus instead on value-added activities. Accountants can leverage their newfound time into driving business…arrow_forwardDefine working capital and explain its importance in financial health and liquiditymanagement.2. Assess how the matching concept and accrual basis affect the reporting ofcurrent assets and liabilities.3. Using a hypothetical balance sheet (you may create one), identify at least 5current assets and 5 current liabilities and analyze how changes in theseelements affect liquidity ratios.4. Recommend at least two strategies to optimizeworking capital.arrow_forwardDiscuss and explain the picturearrow_forward
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