The Following Accounts Appear on Treetop Inc

question 135

Essay

The following accounts appear on Treetop Inc.'s 2017 financial statements.The accounts are listed in alphabetical order,and the balance in each account is the normal balance for that account.All amounts are in millions of dollars.List the accounts and their amounts that will be closed out when the closing process occurs at the end of 2017 for Treetop.

$\begin{array}{lr}\text { Cash Dividends Paid } & \$ 104 \\\text { Cost of Sales and Rel ated Buying and Occupancy Costs } & 4,317 \\\text { Credit Card Revenues } & 325 \\\text { Income Tax Expense } & 207 \\\text { Interest Expense, net } & 126\\\text { Other Income and Expense, net } & 13 \\\text { Net Sales } & 7,172 \\\text { Selling, General, and Admini strative Expenses-Credit } & 275 \\\text { Segment } & \\\text { Selling, General, and Admini strative Expenses-Retail Stores, } & 2,228 \\\text { Direct and Other Segments } &\end{array}$

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Definitions:

NPV

Net Present Value, a calculation that discounts all cash flows associated with a project or investment back to the present value to assess its profitability.

Operating Cash Flow

A measure of the cash generated by a company's normal business operations, reflecting its capacity to sustain and grow operations.

Financial Break-Even

The point at which total revenue exactly covers total costs, leaving no profit or loss.

Financial Basis

The underlying value or cost used for tax purposes, to calculate capital gain or loss upon the sale of an asset, including adjustments for improvements, depreciation, and costs of sale.