Solved

Packard Company Engaged in the Following Transactions During Year 1

question 101

Multiple Choice

Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.) 1) Acquired $950 cash from the issue of common stock. 2) Borrowed $420 from a bank.
3) Earned $650 of revenues cash.
4) Paid expenses of $250.
5) Paid a $50 dividend.During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.) 1) Issued an additional $325 of common stock.
2) Repaid $220 of its debt to the bank.
3) Earned revenues of $750 cash.
4) Paid expenses of $360.
5) Paid dividends of $100.
What is the amount of total assets that will be reported on Packard's balance sheet at the end of Year 2?

Assess the limitations of comparing basic earnings per share across companies and industries.

Analyze financial statements using horizontal analysis, including the calculation of changes over periods.

Conduct intracompany, intercompany, and industry comparisons of financial data to evaluate company performance.

Apply vertical analysis to interpret the relative size of financial statement items.

Definitions:

Sociology Class

A course that studies the development, structure, and functioning of human society.

Secondary Group

A social group characterized by formal, impersonal, and temporary relationships, often task-oriented and focused on a specific goal or activity.

Social Interaction

Involves people communicating face-to-face and acting and reacting in relation to other people. It is structured around norms, role, and statuses.

Authority Structure

The way in which power and authority are distributed and exercised within an organization or society.