Question: Name at least four employer costs in

> Explain how we report depreciation expense in the statement of cash flows using the indirect method. Why do we report it this way?

> Identify and briefly describe the three categories of cash flows reported in the statement of cash flows.

> What is par value? How is it related to market value? How is it used in recording the issuance of stock?

> The articles of incorporation allow for the issuance of 1 million shares of common stock. During its first year, California Clothing issued 100,000 shares and reacquired 10,000 shares it held as treasury stock. At the end of the first year, how many shar

> Explain the difference between authorized, issued, and outstanding shares.

> Explain how an LLC or an S corporation represents the “best of both worlds” in terms of business ownership.

> Describe the primary advantages and disadvantages of a corporation.

> Creative Technology reports inventory using the lower of cost and net realizable value (NRV). Below is information related to its year-end inventory. Calculate the total amount to be reported for ending inventory.

> Which form of business organization is most common? Which form of business organization is larger in terms of total sales, total assets, earnings, and number of employees?

> What are the basic ownership rights of common stockholders?

> What does “PE” stand for in the PE ratio, and how do investors use this ratio?

> Explain why earnings per share is useful for comparing earnings performance for the same company over time, but is not useful for comparing earnings performance between two competing companies.

> Why doesn’t total stockholders’ equity equal the market value of the firm?

> How is the stockholders’ equity section of the balance sheet different from the statement of stockholders’ equity?

> What is the difference between a public and a private corporation? Provide an example of each.

> Indicate the correct order in which to report the following accounts in the stockholders’ equity section of the balance sheet: Additional Paid-in Capital, Common Stock, Preferred Stock, Treasury Stock, and Retained Earnings.

> What happens to the par value, the share’s trading price, and the number of shares outstanding in a 2-for-1 stock split?

> Contrast the effects of a cash dividend and a stock dividend on total assets, total liabilities, and total stockholders’ equity.

> Powder Ski Shop reports inventory using the lower of cost and net realizable value (NRV). Information related to its year-end inventory appears below. Calculate the total amount to be reported for ending inventory.

> How does a 100% stock dividend or a 2-for-1 stock split affect total assets, total liabilities, and total stockholders’ equity?

> Describe the declaration date, record date, and payment date for a cash dividend.

> Explain why some companies choose not to pay cash dividends. Why do investors purchase stock in companies that do not pay cash dividends?

> How is the accounting for a purchase of a company’s own stock (treasury stock) different from the purchase of stock in another corporation?

> What would motivate a company to buy back its own stock?

> Explain why preferred stock often is said to be a mixture of attributes somewhere between common stock and bonds.

> What are the three potential features of preferred stock? Indicate whether each feature makes the preferred stock appear more like stockholders’ equity or more like long-term liabilities.

> Corporations typically do not first raise capital by issuing stock to the general public. What are the common stages of equity financing leading to an initial public offering (IPO)?

> Explain the difference in each of these terms used for bonds: a. Face amount and carrying value. b. Stated interest rate and market interest rate.

> What are convertible bonds? How do they benefit both the investor and the issuer?

> Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000, with terms 3/10, n/30. On February 10, the company pays on account for the inventory. Record the inventory pur

> Contrast the following types of bonds: a. Secured and unsecured. b. Term and serial. c. Callable and convertible.

> Why do some companies issue bonds rather than borrow money directly from a bank?

> What are bond issue costs? What is an underwriter?

> What is a lease and how does a lease affect a company’s balance sheet?

> How do interest expense and the carrying value of the note change over time for an installment note with fixed monthly loan payments?

> What are the potential risks and rewards of carrying additional debt?

> Why would a company choose to borrow money rather than issue additional stock?

> Extreme Motion issues $500,000 of 6% bonds due in 20 years with interest payable semiannually on June 30 and December 31. Calculate the issue price of the bonds assuming a market interest rate of a. 5% b. 6% c. 7%

> Extreme Motion issues $500,000 of 6% bonds due in 20 years with interest payable semiannually on June 30 and December 31. What is the amount of the cash payment for interest every six months? How many interest payments will there be?

> How do we calculate the issue price of bonds? Is it equal to the present value of the principal? Explain.

> Shankar Company uses a perpetual system to record inventory transactions. The company purchases 1,500 units of inventory on account on February 2 for $60,000 ($40 per unit) but then returns 100 defective units on February 5. Record the inventory purchase

> If bonds with a face amount of $250,000 and a carrying value of $280,000 are retired early at a cost of $330,000, is a gain or loss recorded by the issuer retiring the bonds? How does the issuer record the retirement?

> Why would a company choose to buy back bonds before their maturity date?

> Explain how each of the columns in an amortization schedule is calculated, assuming the bonds are issued at a discount. How is the amortization schedule different if bonds are issued at a premium?

> If bonds issue at a premium, what happens to the carrying value of bonds payable and the amount recorded for interest expense over time?

> If bonds issue at a discount, what happens to the carrying value of bonds payable and the amount recorded for interest expense over time?

> If bonds issue at a premium, is the stated interest rate less than, equal to, or more than the market interest rate? Explain.

> If bonds issue at a discount, is the stated interest rate less than, equal to, or more than the market interest rate? Explain.

> What is capital structure? How do the capital structures of Ford and Microsoft differ?

> Name at least four items withheld from employee payroll checks. Which deductions are required by law and which are voluntary?

> Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000. In addition to the cost of inventory, the company also pays $600 for freight charges associated with the purch

> How does commercial paper differ from a normal bank loan? Why is the interest rate often less for commercial paper?

> Bank loans often are arranged under existing lines of credit. What is a line of credit? How does a line of credit work?

> Explain why we record interest in the period in which we incur it rather than in the period in which we pay it.

> Provide examples of current liabilities in the airline industry.

> Why is it important to distinguish between current and long-term liabilities?

> How would the following transactions affect the current ratio and the acid-test ratio? (a) Purchase of inventory with cash; and (b) sale of inventory for more than its cost. Assume that prior to these transactions the current ratio and acid-test ratio a

> Explain the differences among working capital, the current ratio, and the acid-test ratio.

> Current liabilities affect a company’s liquidity. What is liquidity, and how do we evaluate it?

> Your company is the plaintiff in a lawsuit. Legal counsel advises you that your eventual victory is inevitable. “You will be awarded $2 million,” your attorney confidently asserts. Describe the appropriate accounting treatment.

> How do we define current liabilities? Long-term liabilities?

> Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $40,000 and then sells this inventory on account on March 17 for $60,000. Record transactions for the purchase and sale

> You have recently been hired as the assistant controller for Stanton Temperton Corporation, which rents building space in major metropolitan areas. Customers are required to pay six months of rent in advance. At the end of 2021, the company’s president,

> Financial information for Buckle is presented in Appendix B at the end of the book. Required: 1. Calculate Buckle’s percentage change in total assets and percentage change in net sales for the most recent year. 2. Calculate Buckle’s percentage change in

> How do you think the work locus of control might influence your effectiveness as a manager?

> Do you think that your score accurately reflects your locus of control at work? Why or why not?

> What multicultural experiences can you seek out to enhance your global perspective?

> What did you do well and what could you have done better in these interactions?

> Do you think that you were equally able to think and act locally as you interacted with people from other cultures?

> In hindsight, what might have been done to resolve the conflict before it escalated so far?

> What did the two union leaders do to resolve their conflict?

> Why would strengths-based development increase employee engagement?

> Although the team scores in this exercise usually are higher than the average individual scores, under what conditions might individual averages exceed group scores?

> Are there differences in the average individual scores and the team scores? What are the reasons for the differences, if any?

> If you were a manager, how might you interact with employees differently if you were using strengths-based development rather than deficit-based development?

> Describe a situation in which you experienced escalation of commitment to an ineffective course of action. What did you do about it? Do you wish you had handled it differently? Why or why not?

> Recall a situation in which you made attributions and describe them using the framework supplied in Figure 4.5.

> Develop a framework whereby an instructor could use goal setting in running a class such as this one.

> Think of a person you know who seems to have positive affectivity. Think of another who has more negative affectivity. How constant are they in their expressions of mood and attitude?

> Which form of a flexible work schedule might you prefer? How do you think you would like telecommuting?

> What type of conflict(s) existed between the two leaders? Explain your answer.

> The chapter identifies four basic managerial functions. Based on your own experiences and observations, provide an example of each function.

> Identify examples from your own experience that support, and others that refute, Maslow’s hierarchy of needs theory?

> Do you think it is better to focus on assessing and developing employees’ weaknesses or to focus on their strengths? Why?

> What might you do in the next year to increase your global mindset? Identify and discuss three specific behaviors, activities, or other things that increase your global mindset.

> How do you think that having a higher global mindset will help you to be a better manager and leader? How can this characteristic help you succeed in your career?

> Do you think that your score accurately reflects your global mindset? Why or why not? What, if anything, is missing from the assessment?

> Did you notice differences in the types of information that you had available to make the raise decisions? How did you use the different sources of information?

> Is there a clear difference between the highest and lowest performer? Why or why not?

> What might you do in the next year to make your work locus of control consistent with your answer to question 3?

> What do you think is the ideal locus of control in a work setting and why?

> In what ways did your assignment of raises reflect different views of motivation?

> The ABC Corporation has a profit margin on sales below the industry average, yet its ROA is above the industry average. What does this imply about its asset turnover?

> The Crusty Pie Co., which specializes in apple turnovers, has a return on sales higher than the industry average, yet its ROA is the same as the industry average. How can you explain this?

> Use the following cash flow data for Rocket Transport to find Rocket’s: a. Net cash provided by or used in investing activities. b. Net cash provided by or used in financing activities. c. Net increase or decrease in cash for the ye

> Here are data on two firms: a. Which firm has the higher economic value added? b. Which has higher economic value added per dollar of invested capital?

> An analyst gathers the following information about Meyer, Inc.: Meyer has 1,000 shares of 8% cumulative preferred stock outstanding, with a par value of $100 and liquidation value of $110. Meyer has 20,000 shares of common stock outstanding, with a par v

> A firm has a tax burden ratio of 0.75, a leverage ratio of 1.25, an interest burden of 0.6, and a return on sales of 10%. The firm generates $2.40 in sales per dollar of assets. What is the firm’s ROE?

> . A firm has an ROE of 3%, a debt/equity ratio of 0.5, and a tax rate of 20%, and pays an interest rate of 6% on its debt. What is its operating ROA?

> Use the DuPont system and the following data to find return on equity. Leverage ratio 2.2 Total asset turnover 2.0 Net profit margin 5.5% Dividend payout ratio 31.8%