Chapter 3, Problem 1CCTC

(1)

To determine

Analysis of Financial Statements

A financial statement is the complete record of financial transactions that take place in a company at a particular point of time. It provides important financial information like assets, liabilities, revenues and expenses of the company to its internal and external users. It helps them to know the exact financial position of the company.

To identify: Name of the balance sheet that is to be labelled by Corporation T

(2)

To determine

To identify: The amounts for various items that are reported in the balance sheet as on January 30, 2016 of Corporation T.

(3)

To determine

To identify: The largest current asset and the largest current liabilities of the Corporation T.

(4)

To determine

To calculate: The current ratio and debt to equity ratio.

(5)

To determine

To comment: On Corporation T liquidity and long-term solvency position.