Refer to the following selected financial information from Elvis Corp. Compute the company’s inventory turnover for Year 2.    Year 2   Year 1   Merchandise inventory 271,000   253,500   Cost of goods sold 486,400   433,100  

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.

When preparing the operating activities section of the statement of cash flows using the indirect method, expenses with no cash outflows are added back to net income.

Risk is the uncertainty about the return we will earn.

Baggins’s net income for the year ended December 31, Year 2 was $185,000. Information from Baggins’s comparative balance sheets is given below. Compute the cash received from the sale of its common stock during Year 2.  At December 31 Year 2 Year 1 Common Stock, $5 par value $ 500,000   $ 450,000   Paid-in capital in excess of par   948,000     853,000   Retained earnings   688,000     582,000  

In preparing a company’s statement of cash flows for the most recent year, the following information is available:         Loss on the sale of equipment $ 14,000 Purchase of equipment   225,000 Proceeds from the sale of equipment   106,000 Repayment of outstanding bonds   87,000 Purchase of treasury stock   25,000 Issuance of common stock   96,000 Purchase of land   115,000 Increase in accounts receivable during the year   33,000 Decrease in accounts payable during the year   75,000 Payment of cash dividends   35,000 Net cash flows from investing activities for the year were:

The purchase of long-term assets by issuing a note payable for the entire amount is reported on the statement of cash flows in the:

Trend analysis is a form of horizontal analysis that can reveal patterns in data across successive periods.

The purchase of supplies on credit should be recorded with a debit to Supplies and a credit to Accounts Payable.