HFT 2403 EXAM 2 REVIEW. Problems to Complete 1) A departmental income statement 2) A complete...

HFT 2403

EXAM 2 REVIEW

Problems to Complete

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

Must be complete in USALI format Show all sub-titles and sub- totals Calculate all percentages

Total revenue is 100%

Balance Sheet

Complete in USALI format Total assets must = total liabilities & equity All sub-headings must be shown and calculated

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

Calculate a statement of retained earnings

Difference in dividends declared and dividends paid

Chart of Balance Sheet Items

Knowledge of where various accounts belong Current Assets Other Assets Current Liabilities Long term Liabilities Owners Equity

Financial Statement Analysis

Calculate various financial statement ratios

Formula sheet provided

Multiple Choice

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

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

Questions?

Be sure to bring a calculator Pencils Scantron not needed