In a Company's Annual Report, the Reader Will Find a Company's

question 20

Essay

In a company's annual report, the reader will find a company's income statement, statement of changes in stockholder's equity, balance sheet, and statement of cash flows. These financial statements can help the reader to answer specific questions. Identify which financial statement would be most useful in answering the following questions. If more than one financial statement can answer the question, please identify all applicable statements.How much cash was collected from accounts receivable during the current year?What was the total amount of land owned by the company?What was the total revenue earned by the company during the most recent year?What were the types of claims that the company has against its assets?What was the total amount of cash received by the issuance of common stock?Was the company profitable during the most recent year?What was the amount of cash dividends paid to the stockholders during the most recent year?What was the total amount of cash borrowed by the company during the most recent year?What was the ending balance of retained earnings?What was the amount of change in the cash balance during the current year?

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Definitions:

Present Value CCA Tax Shield (PVCCATS)

The present value of potential tax savings obtained from the capital cost allowance on depreciable assets, discounted back to the present.

Capital Cost Allowance (CCA)

A taxable expense in Canada that allows a business to claim depreciation on capital assets according to the rates prescribed by the Canada Revenue Agency.

Required Rate Of Return

The minimum annual percentage earned by an investment that will induce individuals or companies to put their money into a particular security or project.

Annual Before Taxes

The total income or earnings generated by an entity during a fiscal year before any tax deductions.