HFT 2403 EXAM 2 REVIEW Problems to Complete

HFT 2403 EXAM 2 REVIEW

Problems to Complete n n n 1) A departmental income statement 2) A complete balance sheet 3) A statement of retained earnings 4) A chart demonstrating where various account belong on the balance sheet 5) A cost of goods sold statement 6) Financial statement analysis

Department Income Statement n n n Must be complete in USALI format Show all sub-titles and sub- totals Calculate all percentages ¡ Total revenue is 100%

Balance Sheet n n n Complete in USALI format Total assets must = total liabilities & equity All sub-headings must be shown and calculated ¡ ¡ ¡ n Current assets Fixed assets Current liabilities Long term liabilities Equity All percentages must be calculated ¡ ¡ Total assets = 100% Total liabilities and equity = 100%

Statement of Retained Earnings n n Calculate a statement of retained earnings Difference in dividends declared and dividends paid

Chart of Balance Sheet Items n Knowledge of where various accounts belong ¡ ¡ ¡ Current Assets Other Assets Current Liabilities Long term Liabilities Owners Equity

Financial Statement Analysis n n Calculate various financial statement ratios Formula sheet provided

Multiple Choice n n n Definition of current and long term liabilities Definition of departmental versus overhead expenses How are current assets listed? Gains and losses Internal versus external users of financial statements Current ratio - calculate

Multiple Choice n n Net Working Capital Additional Paid in Capital (Par Value) Treasury Stock What is liquidity?

Questions? n n n Be sure to bring a calculator Pencils Scantron not needed