Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN: 9781337902571
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
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Chapter 3, Problem 16P

a.

Summary Introduction

To prepare: The statement of stockholders’ equity for December 31, 2019.

Financial Statements: A part of annual report that is attributed to the financials of the company for an accounting period is called financial statements. These include income statement, statement of retained earnings, balance sheet and cash flow statement.

Statement of Stockholders’ Equity: Statement of stockholders’ equity reports the opening and closing balance of stockholder’s equity with the changes incurred during the accounting period.

b.

Summary Introduction

To identify: The amount reinvested in the firm over the years.

Retained Earnings: The companies retain some portion of their net income to support the business operations, expansion plans and other long term assets. That remaining portion of a company’s net incomes is called retained earnings.

c.

Summary Introduction

To identify: The maximum amount of check that could be written and cleared.

d.

Summary Introduction

To determine: The amount needs to be paid to creditors within the next year.

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a. Construct the statement of stockholders’ equity for December 31, 2018. No commonstock was issued during 2018.b. How much money has been reinvested in the firm over the years?c. At the present time, how large a check could be written without it bouncing?d. How much money must be paid to current creditors within the next year?
REQUIRED: In the December 31, 2021 statement of financial position, how much should be reported as current liabilities?
Prepare a Projected Statement of Financial Position of Sky Company dated December 31, 2019. Below is the list of accounts. Follow the Pro-forma Statement of Financial Position. Lists of accounts & their respective amount: Net, PPE – 7,627,900 Cash - 640,000 Accounts payable -5,189,350 Accounts receivable -4,224,948 Owner’s Equity -16,240,316 Short-term investments – 9,495,393 Short-term borrowings: Inventories – 1,076,000 Payable to PPE supplier - 1,200,000 Accrued taxes – 434,575
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