会计学horngren_acct7_ch05-3.ppt

S5-8 $65,000 (per books) - 63,900 (physical count) $1,100 (shrinkage) S5-9 S5-9 S5-10 S5-10 Multiple-Step Income Statement Balance Sheet – “Current Assets” Current Assets: Cash $ 346 Accounts receivable 500 Less allowance for doubtful accounts 25 475 Inventory 812 Total current assets $1,633 Balance Sheet – “Noncurrent Assets” Balance Sheet Balance Sheet E5-25 Net sales $65 Cost of sales (33) Gross profit $32 Gross profit percentage: E5-25 Inventory Turnover: $1,500 Net Income 3,500 Operating Expenses $5,000 Gross Profit 20,000 Cost of Goods Sold $25,000 Net Sales Revenue Carolina Communications Income Statement For the Year Ended January 31, 2009 $1,500 Net Income 3,500 23,500 Operating Expenses $20,000 Cost of Goods Sold $25,000 Net Sales Revenue Carolina Communications Income Statement For the Year Ended January 31, 2009 The presentation divides information into major sections. 1. Operating Section 2. Nonoperating Section 3. Income tax Accounts Receivable – Presentation Options Current Assets: Cash $ 346 Accounts receivable, net of $25 allowance 475 Inventory 812 Total current assets $1,633 1 2 Property, Plant, and Equipment Assets of a durable nature used in the regular operations of the business. “Obligations that a company reasonably expects to liquidate either through the use of current assets or the creation of other current liabilities.” Current Liabilities “Obligations that a company does not reasonably expect to liquidate within the normal operating cycle.” Long-Term Liabilities Use gross profit percentage and inventory turnover to evaluate a business * * Carefully watched measure Gross Profit Net Sales Small increase may indicate rise in income Small decrease may indicate trouble Percentage of dollar sales available to cover expenses and provide a profit Cost of goods sold Average inventory * Measures how rapidly inventory is so