
Case 1:
(a)
To determine whether the investors have to be informed of the increase in price of raw materials as in item 1.
(b)
To determine the way item 2 has to be presented in the financial statements.
Case 2:
(a)
To organize: To organize the accounts in general order to be represented in classified
(b)
To determine the affected accounts in the balance sheet.
Case 3:
(a)
To compute: To compute the ratios of D Company.
(b)
(1)
Evaluate the loans of D Company due in 1 year: The liquidity of D Company is too good that it will be able to pay a loan up to $25,575 billion due in a year.
(2)
Evaluate the loans of D Company due in 5 years: The repayment of loans of D Company in 5 years includes additional contractual obligations of $13,119 and $8,211.
Case 4:
(a)
Particulars |
Current year ($) |
Prior year ($) |
Current assets |
31,327 |
24,625 |
Total assets |
54,505 |
40,159 |
Current liabilities |
28,089 |
22,980 |
Total liabilities |
43,764 |
30,413 |
(1) Cash provided by operations |
6,842 |
5,475 |
(2) Capital expenditures |
4,893 |
3,444 |
(3) Dividends paid |
0 |
0 |
Net loss/Net income |
(241) |
274 |
Sales |
88,988 |
74,452 |
(b)
To discuss: To discuss the potential implications of change in cash provided by the operations of the company.

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Chapter 5 Solutions
INTERMEDIATE ACCOUNTING W/ WILEYPLUS >
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