1. Identify characteristics of a corporation, record issuance of stock, and illustrate retained earnings transactions.
2. Prepare and analyze the income statement, balance sheet, and statement of cash flows.
3. Distinguish between managerial accounting and financial accounting and apply ethical standards to decision making.
4. Differentiate between job order costing and process costing.
5. Perform Cost-Volume-Profit (CVP) analysis and calculate break-even point; describe a Just-In-Time production system and develop activity-based costs (ABC).
6. Examine relevant factors for making short-term special business decisions.
Task 1: Statement of Cash Flows
Use ITT Tech Virtual Library and research two public companies. Review the statements of cash flows and report on how much cash was generated from operating, investing, and financing activities. Remember to cite the source where you found the required information.
Task 2: Calculating Financial Ratios
Calculate a set of financial ratios for each of the two public companies you researched. Also, calculate the following set of ratios:
Current ratio
Inventory turnover
Gross profit percentage
Days' sales in receivables
Debt ratio
Task 3: In 50-75 words, explain which corporation you would invest in and why.