Financial and Managerial Accounting

Front Cover......Page 1
Title Page......Page 2
Copyright......Page 3
Contents......Page 6
Preface......Page 20
About the Authors......Page 34
CHAPTER 1 Uses of Accounting Information and the Financial Statements......Page 37
DECISION POINT   A USER'S FOCUS CVS CAREMARK......Page 38
Business Goals and Activities......Page 39
Processing Accounting Information......Page 42
Ethical Financial Reporting......Page 43
Management......Page 45
Users with a Direct Financial Interest......Page 46
Governmental and Not-for-Profit Organizations......Page 47
Business Transactions......Page 48
Separate Entity......Page 49
Characteristics of Corporations, Sole Proprietorships, and Partnerships......Page 50
Organization of a Corporation......Page 52
Corporate Governance......Page 53
Liabilities......Page 54
Stockholders' Equity......Page 55
Income Statement......Page 56
The Balance Sheet......Page 57
Statement of Cash Flows......Page 58
Relationships Among the Financial Statements......Page 59
Generally Accepted Accounting Principles......Page 61
Organizations That Issue Accounting Standards......Page 62
Other Organizations That Influence GAAP......Page 63
Professional Conduct......Page 64
A LOOK BACK AT CVS CAREMARK......Page 65
STOP & REVIEW......Page 68
CHAPTER ASSIGNMENTS......Page 70
The Components of an Annual Report......Page 85
Management's Discussion and Analysis......Page 86
Financial Statements......Page 87
Notes to the Financial Statements......Page 92
Reports of Certified Public Accountants......Page 93
CHAPTER 2 Analyzing Business Transactions......Page 125
DECISION POINT   A USER'S FOCUS THE BOEING COMPANY......Page 126
Recognition......Page 127
Valuation......Page 129
Ethics and Measurement Issues......Page 130
Double-Entry System......Page 131
The T Account Illustrated......Page 132
Rules of Double-Entry Accounting......Page 133
Stockholders' Equity Accounts......Page 134
Economic Event That Is Not a Business Transaction......Page 136
Purchase of an Asset on Credit......Page 137
Payment of a Liability......Page 138
Revenue Received in Advance......Page 139
Collection on Account......Page 140
Dividends......Page 141
Summary of Transactions......Page 142
Preparation and Use of a Trial Balance......Page 144
Finding Trial Balance Errors......Page 145
Cash Flows and the Timing of Transactions......Page 146
General Journal......Page 149
General Ledger......Page 151
Some Notes on Presentation......Page 153
A LOOK BACK AT THE BOEING COMPANY......Page 154
STOP & REVIEW......Page 158
CHAPTER ASSIGNMENTS......Page 160
CHAPTER 3 Measuring Business Income......Page 177
DECISION POINT   A USER'S FOCUS NETFLIX, INC.......Page 178
Income Measurement Assumptions......Page 179
Ethics and the Matching Rule......Page 181
Recognizing Expenses......Page 183
Adjustments and Ethics......Page 184
The Adjustment Process......Page 185
Type 1 Adjustment: Allocating Recorded Costs (Deferred Expenses)......Page 186
Type 2 Adjustment: Recognizing Unrecorded Expenses (Accrued Expenses)......Page 189
Type 3 Adjustment: Allocating Recorded, Unearned Revenues (Deferred Revenues)......Page 192
Type 4 Adjustment: Recognizing Unrecorded, Earned Revenues (Accrued Revenues)......Page 193
Using the Adjusted Trial Balance to Prepare Financial Statements......Page 195
Closing Entries......Page 198
The Post-Closing Trial Balance......Page 200
Cash Flows from Accrual-Based Information......Page 202
NETFLIX, INC. A LOOK BACK AT......Page 204
STOP & REVIEW......Page 209
CHAPTER ASSIGNMENTS......Page 211
Step 2: Closing the Debit Balances S......Page 229
The Accounts After Closing T......Page 231
The Work Sheet: An Accountant's Tool......Page 233
Preparing the Work Sheet......Page 234
Using the Work Sheet......Page 237
Supplement Assignments......Page 238
CHAPTER 4 Financial Reporting and Analysis......Page 243
DECISION POINT   A USER'S FOCUS DELL COMPUTER CORPORATION......Page 244
Qualitative Characteristics of Accounting Information......Page 245
Ethical Financial Reporting......Page 247
Consistency......Page 248
Full Disclosure (Transparency)......Page 249
Conservatism......Page 250
Cost-Benefit......Page 251
Assets......Page 252
Stockholders' Equity......Page 255
Dell's Balance Sheets......Page 256
Multistep Income Statement......Page 258
Single-Step Income Statement......Page 262
Evaluation of Liquidity......Page 264
Evaluation of Profitability......Page 265
BookmarkTitle:......Page 0
STOP & REVIEW......Page 275
CHAPTER ASSIGNMENTS......Page 277
Instructions......Page 293
CHAPTER 5 The Operating Cycle and Merchandising Operations......Page 295
DECISION POINT   A USER'S FOCUS COSTCO WHOLESALE CORPORATION......Page 296
Operating Cycle......Page 297
Choice of Inventory System......Page 298
Foreign Business Transactions......Page 299
The Need for Internal Controls......Page 300
Management's Responsibility for Internal Control......Page 302
Sales and Purchases Discounts......Page 303
Terms of Debit and Credit Card Sales......Page 304
Purchases of Merchandise......Page 305
Sales of Merchandise......Page 307
Periodic Inventory System......Page 309
Purchases of Merchandise......Page 310
Sales of Merchandise......Page 311
Control Activities......Page 314
Limitations on Internal Control......Page 315
Internal Control over Merchandising Transactions......Page 316
Internal Control and Management Goals......Page 317
Control of Cash Receipts......Page 318
Control of Purchases and Cash Disbursements......Page 319
A LOOK BACK AT  COSTCO WHOLESALE CORPORATION......Page 324
STOP & REVIEW......Page 327
CHAPTER ASSIGNMENTS......Page 329
CHAPTER 6 Inventories......Page 345
DECISION POINT   A USER'S FOCUS TOYOTA MOTOR CORPORATION......Page 346
Inventory Decisions......Page 347
Evaluating the Level of Inventory......Page 348
Effects of Inventory Misstatements on Income Measurement......Page 350
Inventory Cost and Valuation......Page 353
Goods Flows and Cost Flows......Page 354
Disclosure of Inventory Methods......Page 355
Inventory Cost Under the Periodic Inventory System......Page 356
First-In, First-Out (FIFO) Method......Page 357
Last-In, First-Out (LIFO) Method......Page 358
Summary of Inventory Costing Methods......Page 359
Impact of Inventory Decisions......Page 360
Effects on Income Taxes......Page 361
Effects on Cash Flows......Page 362
Inventory Cost Under the Perpetual Inventory System......Page 363
Retail Method......Page 365
Gross Profit Method......Page 366
A LOOK BACK AT   TOYOTA MOTOR CORPORATION......Page 368
STOP & REVIEW......Page 372
CHAPTER ASSIGNMENTS......Page 374
CHAPTER 7 Cash and Receivables......Page 387
DECISION POINT   A USER'S FOCUS NIKE, INC.......Page 388
Cash Management......Page 389
Accounts Receivable and Credit Policies......Page 390
Evaluating the Level of Accounts Receivable......Page 391
Financing Receivables......Page 393
Ethics and Estimates in Accounting for Receivables......Page 394
Cash Control Methods......Page 396
The Allowance Method......Page 400
Estimating Uncollectible Accounts Expense......Page 401
Writing Off Uncollectible Accounts......Page 405
Notes Receivable......Page 407
Maturity Date......Page 408
Interest and Interest Rate......Page 409
Dishonored Note......Page 410
A LOOK BACK AT   NIKE, INC.......Page 411
STOP & REVIEW......Page 413
CHAPTER ASSIGNMENTS......Page 415
CHAPTER 8 Current Liabilities and Fair Value Accounting......Page 427
DECISION POINT   A USER'S FOCUS MICROSOFT......Page 428
Evaluating Accounts Payable......Page 429
Reporting Liabilities......Page 431
Definitely Determinable Liabilities......Page 433
Estimated Liabilities......Page 439
Contingent Liabilities and Commitments......Page 443
Interest and the Time Value of Money......Page 444
Calculating Present Value......Page 445
Deferred Payment......Page 449
Other Applications......Page 450
A LOOK BACK AT   MICROSOFT......Page 451
STOP & REVIEW......Page 454
CHAPTER ASSIGNMENTS......Page 456
CHAPTER 9 Long-Term Assets......Page 469
DECISION POINT   A USER'S FOCUS APPLE COMPUTER, INC.......Page 470
Management Issues Related to Long-Term Assets......Page 471
Acquiring Long-Term Assets......Page 473
Financing Long-Term Assets......Page 474
Applying the Matching Rule......Page 475
Acquisition Cost of Property, Plant, and Equipment......Page 476
Specific Applications......Page 477
Depreciation......Page 480
Methods of Computing Depreciation......Page 481
Special Issues in Depreciation......Page 485
Disposal of Depreciable Assets......Page 487
Plant Assets Sold for Cash......Page 488
Exchanges of Plant Assets......Page 489
Depletion......Page 490
Development and Exploration Costs in the Oil and Gas Industry......Page 491
Intangible Assets......Page 493
Goodwill......Page 496
A LOOK BACK AT   APPLE COMPUTER, INC.......Page 498
STOP & REVIEW......Page 500
CHAPTER ASSIGNMENTS......Page 502
CHAPTER 10 Long-Term Liabilities......Page 515
DECISION POINT   USER'S FOCUS MCDONALD'S CORPORATION......Page 516
Deciding to Issue Long-Term Debt......Page 517
Evaluating Long-Term Debt......Page 518
Types of Long-Term Debt......Page 519
The Nature of Bonds......Page 525
Bond Issue: Prices and Interest Rates......Page 526
Characteristics of Bonds......Page 527
Accounting for the Issuance of Bonds......Page 528
Bonds Issued at a Discount......Page 529
Bonds Issued at a Premium......Page 530
Bond Issue Costs......Page 531
Case 2: Market Rate Below Face Rate......Page 532
Amortizing a Bond Discount......Page 534
Amortizing a Bond Premium......Page 537
Calling Bonds......Page 542
Converting Bonds......Page 543
Sale of Bonds Between Interest Dates......Page 544
Year-End Accrual of Bond Interest Expense......Page 545
A LOOK BACK AT MCDONALD'S CORPORATION......Page 547
STOP & REVIEW......Page 550
CHAPTER ASSIGNMENTS......Page 553
CHAPTER 11 Contributed Capital......Page 567
DECISION POINT   A USER'S FOCUS GOOGLE, INC.......Page 568
The Corporate Form of Business......Page 569
Equity Financing......Page 571
Dividend Policies......Page 573
Using Return on Equity to Measure Performance......Page 575
Stock Options as Compensation......Page 576
Cash Flow Information......Page 577
Components of Stockholders' Equity......Page 578
Preference as to Dividends......Page 581
Convertible Preferred Stock......Page 582
Callable Preferred Stock......Page 583
Issuance of Common Stock......Page 584
Par Value Stock......Page 585
Issuance of Stock for Noncash Assets......Page 586
Purchase of Treasury Stock......Page 588
Sale of Treasury Stock......Page 589
Retirement of Treasury Stock......Page 591
A LOOK BACK AT   GOOGLE, INC.......Page 592
STOP & REVIEW......Page 596
CHAPTER ASSIGNMENTS......Page 598
CHAPTER 12 Investments......Page 613
DECISION POINT   A USER'S FOCUS EBAY, INC.......Page 614
Classification......Page 615
Disclosure......Page 617
Ethics of Investing......Page 618
Trading Securities......Page 619
Available-for-Sale Securities......Page 622
Noninfluential and Noncontrolling Investment......Page 623
Influential but Noncontrolling Investment......Page 625
Consolidated Balance Sheet......Page 628
Consolidated Income Statement......Page 633
Restatement of Foreign Subsidiary Financial Statements......Page 634
Held-to-Maturity Securities......Page 635
Long-Term Investments in Bonds......Page 636
A LOOK BACK AT   EBAY, INC.......Page 637
STOP & REVIEW......Page 640
CHAPTER ASSIGNMENTS......Page 642
CHAPTER 13 The Corporate Income Statement and the Statement of Stockholders' Equity......Page 655
DECISION POINT   A USER'S FOCUS MOTOROLA, INC.......Page 656
Performance Measurement: Quality of Earnings Issues......Page 657
The Effect of Accounting Estimates and Methods......Page 658
Write-downs and Restructurings......Page 660
Nonoperating Items......Page 661
Quality of Earnings and Cash Flows......Page 662
Income Taxes......Page 664
Deferred Income Taxes......Page 665
Net of Taxes......Page 666
Earnings per Share......Page 667
Basic Earnings per Share......Page 668
Diluted Earnings per Share......Page 669
Comprehensive Income......Page 670
The Statement of Stockholders' Equity......Page 671
Retained Earnings......Page 672
Stock Dividends......Page 673
Stock Splits......Page 676
Book Value......Page 678
A LOOK BACK AT MOTOROLA, INC.......Page 680
STOP & REVIEW......Page 683
CHAPTER ASSIGNMENTS......Page 685
CHAPTER 14 The Statement of Cash Flows......Page 701
DECISION POINT   A USER'S FOCUS AMAZON.COM, INC.......Page 702
Classification of Cash Flows......Page 703
Format of the Statement of Cash Flows......Page 705
Ethical Considerations and the Statement of Cash Flows......Page 707
Cash-Generating Efficiency......Page 708
Asking the Right Questions About the Statement of Cash Flows......Page 710
Free Cash Flow......Page 711
Operating Activities......Page 713
Depreciation......Page 715
Changes in Current Assets......Page 716
Changes in Current Liabilities......Page 717
Schedule of Cash Flows from Operating Activities......Page 718
Investing Activities......Page 719
Plant Assets......Page 720
Common Stock......Page 723
Retained Earnings......Page 724
Treasury Stock......Page 725
A LOOK BACK AT   AMAZON.COM, INC.......Page 727
STOP & REVIEW......Page 732
CHAPTER ASSIGNMENTS......Page 734
CHAPTER 15 The Changing Business Environment: A Manager's Perspective......Page 753
DECISION POINT   A MANAGER'S FOCUS WAL-MART STORES, INC.......Page 754
Management Accounting and Financial Accounting: A Comparison......Page 755
Management Accounting and the Management Process......Page 756
Value Chain Analysis......Page 762
Primary Processes and Support Services......Page 763
Managers and Value Chain Analysis......Page 764
Continuous Improvement......Page 766
Management Tools for Continuous Improvement......Page 767
Achieving Continuous Improvement......Page 768
Using Performance Measures in the Management Process......Page 770
The Balanced Scorecard......Page 771
Standards of Ethical Conduct......Page 773
A LOOK BACK AT WAL-MART STORES, INC.......Page 776
STOP & REVIEW......Page 778
CHAPTER ASSIGNMENTS......Page 780
CHAPTER 16 Cost Concepts and Cost Allocation......Page 795
DECISION POINT   A MANAGER'S FOCUS THE HERSHEY COMPANY......Page 796
Cost Classifications and Their Uses......Page 797
Cost Traceability......Page 798
Cost Classifications for Financial Reporting......Page 799
Income Statement and Accounting for Inventories......Page 801
Statement of Cost of Goods Manufactured......Page 802
Cost of Goods Sold and a Manufacturer's Income Statement......Page 804
Document Flows and Cost Flows Through the Inventory Accounts......Page 805
The Manufacturing Cost Flow......Page 807
Elements of Product Costs......Page 809
Computing Product Unit Cost......Page 810
Product Cost Measurement Methods......Page 811
Computing Service Unit Cost......Page 813
Allocating the Costs of Overhead......Page 814
Allocating Overhead: The Traditional Approach......Page 816
Allocating Overhead: The ABC Approach......Page 818
A LOOK BACK AT   THE HERSHEY COMPANY......Page 820
STOP & REVIEW......Page 822
CHAPTER ASSIGNMENTS......Page 825
CHAPTER 17 Costing Systems: Job Order Costing......Page 841
DECISION POINT   A MANAGER'S FOCUS COLD STONE CREAMERY, INC.......Page 842
Communicating......Page 843
Product Costing Systems......Page 844
Job Order Costing in a Manufacturing Company......Page 846
Materials......Page 847
Overhead......Page 849
Sold Units......Page 850
Reconciliation of Overhead Costs......Page 851
A Manufacturer's Job Order Cost Card and the Computation of Unit Cost......Page 852
Job Order Costing in a Service Organization......Page 853
A LOOK BACK AT COLD STONE CREAMERY, INC.......Page 856
STOP & REVIEW......Page 858
CHAPTER ASSIGNMENTS......Page 860
CHAPTER 18 Costing Systems: Process Costing......Page 879
DECISION POINT   A MANAGER'S FOCUS DEAN FOODS......Page 880
The Process Costing System......Page 881
Patterns of Product Flows and Cost Flow Methods......Page 882
Cost Flows Through the Work in Process Inventory Accounts......Page 883
Computing Equivalent Production......Page 884
Equivalent Production for Direct Materials......Page 885
Summary of Equivalent Production......Page 886
Accounting for Units......Page 887
Assigning Costs......Page 890
Process Costing for Two or More Production Departments......Page 892
Accounting for Units......Page 894
Assigning Costs......Page 896
A LOOK BACK AT   DEAN FOODS......Page 899
STOP & REVIEW......Page 902
CHAPTER ASSIGNMENTS......Page 904
CHAPTER 19 Value-Based Systems: ABM and Lean......Page 917
DECISION POINT   A MANAGER'S FOCUS LA-Z-BOY, INC.......Page 918
Value-Based Systems and Management......Page 919
Value Chains and Supply Chains......Page 920
Process Value Analysis......Page 921
Activity-Based Management......Page 922
Activity-Based Costing......Page 923
The Cost Hierarchy and the Bill of Activities......Page 924
Just-in-Time (JIT)......Page 927
Accounting for Product Costs in a JIT Operating Environment......Page 929
Backflush Costing......Page 931
Comparison of ABM and Lean......Page 935
A LOOK BACK AT   LA-Z-BOY......Page 936
STOP & REVIEW......Page 939
CHAPTER ASSIGNMENTS......Page 941
CHAPTER 20 Cost Behavior Analysis......Page 957
DECISION POINT   A MANAGER'S FOCUS FLICKR......Page 958
The Behavior of Costs......Page 959
The Scatter Diagram Method......Page 965
The High-Low Method......Page 966
Contribution Margin Income Statements......Page 968
Cost-Volume- Profit Analysis......Page 969
Breakeven Analysis......Page 971
Using an Equation to Determine the Breakeven Point......Page 972
The Breakeven Point for Multiple Products......Page 973
Applying C-V-P to Target Profits......Page 976
A LOOK BACK AT FLICKR......Page 979
STOP & REVIEW......Page 982
CHAPTER ASSIGNMENTS......Page 984
CHAPTER 21 The Budgeting Process......Page 999
DECISION POINT   A MANAGER'S FOCUS FRAMERICA CORPORATION......Page 1000
Advantages of Budgeting......Page 1001
Budgeting Basics......Page 1002
Preparation of a Master Budget P......Page 1004
Budget Procedures......Page 1007
The Sales Budget......Page 1008
The Production Budget......Page 1009
The Direct Materials Purchases Budget......Page 1010
The Overhead Budget......Page 1012
The Selling and Administrative Expense Budget......Page 1013
The Cost of Goods Manufactured Budget......Page 1014
The Budgeted Income Statement......Page 1016
The Cash Budget......Page 1017
The Budgeted Balance Sheet......Page 1020
A LOOK BACK AT   FRAMERICA CORPORATION......Page 1022
STOP & REVIEW......Page 1025
CHAPTER ASSIGNMENTS......Page 1027
CHAPTER 22 Performance Management and Evaluation......Page 1051
DECISION POINT   A MANAGER'S FOCUS VAIL RESORTS......Page 1052
Other Measurement Issues O......Page 1053
The Balanced Scorecard and Management......Page 1054
Responsibility Accounting......Page 1056
Types of Responsibility Centers......Page 1057
Organizational Structure and Performance Management......Page 1059
Evaluating Cost Center Performance Using Flexible Budgeting......Page 1061
Evaluating Profit Center Performance Using Variable Costing......Page 1062
Return on Investment......Page 1064
Residual Income......Page 1066
Economic Value Added......Page 1067
The Importance of Multiple Performance Measures......Page 1069
Linking Goals, Performance Objectives, Measures, and Performance Targets......Page 1070
The Coordination of Goals......Page 1071
A LOOK BACK AT   VAIL RESORTS......Page 1074
STOP & REVIEW......Page 1077
CHAPTER ASSIGNMENTS......Page 1079
CHAPTER 23 Standard Costing and Variance Analysis......Page 1095
DECISION POINT   A MANAGER'S FOCUS iROBOT CORPORATION......Page 1096
Standard Costs and Managers......Page 1097
Standard Direct Labor Cost......Page 1098
Standard Overhead Cost......Page 1099
Total Standard Unit Cost......Page 1100
The Role of Flexible Budgets in Variance Analysis......Page 1101
Using Variance Analysis to Control Costs......Page 1103
Computing Direct Materials Variances......Page 1106
Analyzing and Correcting Direct Materials Variances......Page 1108
Computing Direct Labor Variances......Page 1109
Analyzing and Correcting Direct Labor Variances......Page 1111
Using a Flexible Budget to Analyze Overhead Variances......Page 1112
Computing Overhead Variances......Page 1113
Analyzing and Correcting Overhead Variances......Page 1118
Using Cost Variances to Evaluate Managers' Performance......Page 1120
A LOOK BACK AT   iROBOT CORPORATION......Page 1122
STOP & REVIEW......Page 1127
CHAPTER ASSIGNMENTS......Page 1129
CHAPTER 24 Short-Run Decision Analysis......Page 1143
DECISION POINT   A MANAGER'S FOCUS BANK OF AMERICA......Page 1144
Incremental Analysis for Short-Run Decisions......Page 1145
Incremental Analysis for Outsourcing Decisions......Page 1148
Incremental Analysis for Special Order Decisions......Page 1150
Incremental Analysis for Segment Profitability Decisions......Page 1153
Incremental Analysis for Sales Mix Decisions......Page 1155
Incremental Analysis for Sell or Process-Further Decisions......Page 1158
A LOOK BACK AT   BANK OF AMERICA......Page 1161
STOP & REVIEW......Page 1164
CHAPTER ASSIGNMENTS......Page 1166
CHAPTER 25 Capital Investment Analysis......Page 1183
DECISION POINT   A MANAGER'S FOCUS AIR PRODUCTS AND CHEMICALS INC.......Page 1184
Capital Investment Analysis......Page 1185
Capital Investment Analysis in the Management Process......Page 1186
Cost of Capital......Page 1188
Ranking Capital Investment Proposals......Page 1189
Expected Benefits from a Capital Investment......Page 1190
Depreciation Expense and Income Taxes......Page 1191
Disposal or Residual Values......Page 1192
Interest......Page 1193
Present Value......Page 1194
Present Value of an Ordinary Annuity......Page 1195
The Net Present Value Method Illustrated......Page 1197
The Payback Period Method......Page 1200
The Accounting Rate-of-Return Method......Page 1201
A LOOK BACK AT   AIR PRODUCTS AND CHEMICALS INC.......Page 1203
STOP & REVIEW......Page 1205
CHAPTER ASSIGNMENTS......Page 1207
CHAPTER 26 Pricing Decisions, Including Target Costing and Transfer Pricing......Page 17
DECISION POINT   A MANAGER'S FOCUS LAB 126......Page 1222
Pricing Policy Objectives......Page 1223
External and Internal Pricing Factors......Page 1224
Total Revenue and Total Cost Curves......Page 1226
Auction-Based Pricing......Page 1228
Cost-Based Pricing Methods......Page 1229
Gross Margin Pricing......Page 1230
Return on Assets Pricing......Page 1231
Summary of Cost-Based Pricing Methods......Page 1232
Pricing Services......Page 1233
Factors Affecting Cost-Based Pricing Methods......Page 1234
Differences Between Cost-Based Pricing and Target Costing......Page 1236
Target Costing Analysis in an Activity-Based Management Environment......Page 1238
Transfer Pricing......Page 1240
Developing a Transfer Price......Page 1241
Using Transfer Prices to Measure Performance......Page 1242
A LOOK BACK AT LAB 126......Page 1244
STOP & REVIEW......Page 1247
CHAPTER ASSIGNMENTS......Page 1249
CHAPTER 27 Quality Management and Measurement......Page 1267
DECISION POINT   A MANAGER'S FOCUS AMAZON.COM......Page 1268
Managers' Use of MIS......Page 1269
Financial Measures of Quality......Page 1271
Nonfinancial Measures of Quality......Page 1272
Measuring Service Quality......Page 1276
Evaluating the Costs of Quality......Page 1277
Evaluating Nonfinancial Measures of Quality......Page 1280
The Evolving Concept of Quality......Page 1281
Recognition of Quality......Page 1283
A LOOK BACK AT   AMAZON.COM......Page 1285
STOP & REVIEW......Page 1287
CHAPTER ASSIGNMENTS......Page 1289
CHAPTER 28 Financial Analysis of Performance......Page 1305
DECISION POINT   A MANAGER'S FOCUS STARBUCKS CORPORATION......Page 1306
Financial Performance Measurement: Creditors' and Investors' Objectives......Page 1307
Standards of Comparison......Page 1308
Sources of Information S......Page 1310
Executive Compensation......Page 1312
Horizontal Analysis......Page 1314
Trend Analysis......Page 1317
Vertical Analysis......Page 1318
Ratio Analysis......Page 1320
Evaluating Liquidity......Page 1322
Evaluating Profitability......Page 1324
Evaluating Long-Term Solvency......Page 1325
Evaluating the Adequacy of Cash Flows......Page 1326
Evaluating Market Strength......Page 1328
A LOOK BACK AT STARBUCKS CORPORATION......Page 1329
STOP & REVIEW......Page 1334
CHAPTER ASSIGNMENTS......Page 1336
Management Issues Related to Investments......Page 1355
Trading Securities......Page 1357
Long-Term Investments in Equity Securities......Page 1360
Investments in Debt Securities......Page 1364
Long-Term Investments in Bonds......Page 1365
STOP & REVIEW......Page 1366
APPENDIX B Present Value Tables......Page 1369
Endnotes......Page 1373
Company Index......Page 1379
Subject Index......Page 1381