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Read the Information About Fellsmere Corporation

question 182

Essay

Read the information about Fellsmere Corporation.
Required:
A Did Fellsmere's current ratio increase or decrease from 2013 to 2014? Make any necessary calculations and
explain your answer. Which financial statement users are most concerned with this ratio?
B The balance sheets show a large increase in retained earnings during 2014. Identify the possible reasons for this increase.


Definitions:

Disadvantages

The unfavorable or negative aspects of a particular situation or choice.

Joint Venture

A business arrangement in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task or project, often sharing revenues, expenses, and control.

Authority

The power or right to give orders, make decisions, and enforce obedience.

General Partners

General partners are individuals or entities that participate in the management of a partnership and have unlimited personal liability for its debts.

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