Q1. From the following balance sheet accounts,
a. construct a classified balance sheet for 2015 and 2014
b. list all working capital accounts (names, not amounts)
c. find the net working capital for the years ended 2015 and 2014.
d. is there an increase or decrease in networking capital?
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Balance Sheet accounts of UMPI Corporation
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Account
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Balance 12/31/15
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Balance 12/31/14
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Accumulated depreciation
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4,866
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4,234
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Accounts payable
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3,210
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2,900
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Accounts receivable
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3,644
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3,160
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Cash
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1,490
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1,210
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Common stock
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7,278
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4,778
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Inventory
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5,166
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4,347
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Long-term debt
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2,430
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3,600
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Plant, property, and equipment
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9,840
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8,675
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Retained Earnings
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2,356
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1,880
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Q2. From the Income Statement accounts,
a. produce a mulitple step income statement for the year
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Income Statement accounts for the Year Ending 2015
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Account
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Balance
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Cost of goods sold
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1,419,000
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Interest expense
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288,000
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Taxes
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318,000
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Revenue
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2,984,000
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Selling, general, and admin expenses
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454,000
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Depreciation expense
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258,000
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Q3. True or False- EBIT (earnings before interest and taxes) is revenue less various operating expenses.
Q4. True or False- another name for EBIT is operating profit or operating income.
Q5. Out of the following 5 main accounts, Revenue, Equity, Assets, Liablities, Expenses, identify the
a. Balance sheet accounts
b. Income statement accounts
Q6. Which of the following is a feature of the Sarbanes-Oxley Act?
A) The company and auditors must annually assess the effectiveness of financial controls.
B) The company must maintain effective internal financial controls.
C) The CEO and CFO must attest to the fairness of the financial reports.
D) All of the above
Q7. True or False - the three major requirements resulting from the Sarbanes-Oxley Act are
(1) The CEO and CFO attest to the fairness of the financial reports.
(2) The company maintains an effective internal control structure around financial reporting.
(3) The company and auditors assess the effectiveness of the controls over the most recent fiscal year.
Q8. Name the 3 main legal categories of business organizations?
And name the two other forms of business organizations beside the 3 main forms.
Q9. Go to finance.yahoo.com. Find 2 news articles for discussion. Give a brief description of topic.