Intro to Fin

Intro to Finance 1

P2-2 financial statement account identification (1 (2

Account Name Statement Type of Account

Accounts payable BS CL

Accounts receivable BS CA

Accruals IS R

Accumulated depreciation BS Contra FA

Administrative expense IS E

Buildings BS FA

Cash BS CA

Common stock (at par ) BS SE

Cost of goods sold IS Cost of goods sold

Depreciation IS E

Equipment BS FA

General expense IS E

Interest expense IS E

Inventories BS CA

Land BS FA

Long-term debts BS LTD

p Machinery BS FA

Marketable securities BS CA

Notes payable BS LTD

Intro to Finance 2

Operating expense IS E

Paid-in capital in excess of par BS SE

stock BS SE

stock dividends BS SE

Retained earnings BS SE

Sales revenue IS R

Selling expense IS E

Taxes IS E

Vehicles BS FA

P2-9 Initial sales price of common stock

Paid-in capital in excess of par on common stock 2 ,625 8 .75 per share

Outstanding common stock 300 , 000

Paid-in capital in excess of par on common stock per share 8 .75

Par on common stock 0 .75

Price per common share issued 9 .50

Intro to Finance 3

P2-12 Liquidity Management (a )Current Ratio : Current Assets Quick Ratio

Current Liabilities Cash , Marketable Securities , and Receivables

Current Liabilities based on given data

br Current Liabilities

2006 16 ,950 1 .88 2006 16 ,950 - 6 ,000 1 .22 9 ,000 9 ,000 2007 21 ,900 1 .74 2007 21 ,900 - 6 ,900...