Prepare a Schedule of Realized and Unrealized Profits for the Fiscal

question 14

Essay

Prepare a schedule of realized and unrealized profits for the fiscal year ended June 30,2010 for both companies.Show your figures before and after tax.

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Definitions:

Accrued Liabilities

Liabilities that have been incurred but not yet paid or recorded in the financial statements.

Indirect Method

A reporting technique used in cash flow statements that adjusts net income for changes in balance sheet accounts to calculate operating cash flow.

Cash Dividends

Payments made by a corporation to its shareholder members, typically derived from the company's profits.

Financing Activities

These activities include transactions involving debt, equity, and dividends that are used to fund a company's operations or expansions.