Chapter 1
Determine the amounts your company reports for total assets, total liabilities, and total stockholders’ equity in the balance sheet for the most recent year.
Does your company refer to its income statement using another name? If so what is it?
Determine the amounts your company reports for net sales and net income in its income statement for the most recent year.
Does your company refer to its balance sheet by another name? If so what is it?
Chapter 2
Is your company size increasing? Determine your answer by calculating the change in total assets and change in net sales for the most recent year.
Is your company total profitability increasing? Determine your answer by calculating the change in net income for the most recent year.
Did your company issue any common stock in the most recent year?
Do you see the term debit or credit listed in the balance sheet? Which account types in the balance sheet increase with a debit and which ones increase with a credit?
Do you see the term debit or credit listed in the income statement? Which account types in the income statement increase with a debit and which ones increase with a credit?
Chapter 3
For the most recent year, what amount does your company report for current assets? What assets are listed as current assets? What is the ratio of current assets to total assets?
For the most recent year, what amount does your company report for current liabilities? What liabilities are listed as current liabilities? What is the ratio of current liabilities to total liabilities?
List any current assets or current liabilities that likely relate to adjusting entries.
For the most recent year, what is the amount of net income reported in the income statement?
Chapter 4
What does the Report of Independent Registered Public Accounting Firm indicate about your company internal controls?
In the summary of significant accounting policies, how does your company define cash equivalents?
What is the amount of cash reported in the two most recent years? By how much has cash increased/decreased?
Determine the amounts your company reports for net cash flows from operating activities, investing activities, and financing activities in its statement of cash flows for the most recent year. What are total cash flows for the year?
Chapter 5
Determine whether the trend in net sales has been increasing or decreasing for the past three years.
Where is net accounts receivable reported?
Does your company report an allowance for uncollectible accounts in the balance sheet? If so, how much is reported for the most recent year? (hint look to the foot notes or the amount net of an allowance)
Chapter 6
In the summary of significant accounting policies, what is your company procedure in accounting for inventory?
For the most recent year, what is the amount of inventory in the balance sheet?
Does your company refer to its cost of goods sold using a different name?
For the most recent year, what is the amount of cost of goods sold in the income statement?
Calculate your company inventory turnover ratio and average days in inventory for the most recent year.
Calculate your company gross profit ratio for each of the three years.
Chapter 7
The summary of significant accounting polices is located in footnote to the financial statements. Locate the section on property and equipment. What depreciation method does your company use? What are the estimated useful lives for buildings, leasehold improvements, and property and equipment?
Find a footnote entitled Property and Equipment. What is the original cost of property and equipment?
Chapter 8
Calculate the current ratio for the past two years. Did the current ratio improve or weaken in the more recent year?
Calculate the acid-test (quick) ratio for the past two years. Did the acid-test ratio improve or weaken in the more recent year?
Chapter 9
Calculate the debt to equity ratio for the past two years. Did the ratio improve or weaken in the more recent year?
Calculate the return on equity. Would investors obtain a higher return on equity if your company borrowed more money? Show your calculations.
Chapter 10
What is the par or stated value per share for the common stock?
How many common shares were issued at the end of the most recent year?
Did the company have any treasury stock? How many shares?
How much did the company pay in cash dividends in the most recent year total and per share?
