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The building blocks of financial statement analysis include (1) liquidity, (2) salability, (3) solvency, and (4) profitability.

If a company is using the indirect method to prepare the statement of cash flows, identify where an increase in the accounts receivable account should be reported:

A credit is used to record an increase in all of the following accounts except:

Professor Urquhart accessed               annual report from its website as an example of places to get financial information for a company. 

Total asset turnover reflects a company’s ability to use its assets to generate sales and is an important indication of operating efficiency.

Expenses always decrease equity.

The first section of the income statement reports cash flows from operating activities.

Use the following information to calculate cash received from dividends:         Dividends revenue $ 63,500 Dividends receivable, January 1   3,600 Dividends receivable, December 31   3,100

Common-size statements:

Assets are the resources a company owns or controls that are expected to yield future benefits.