Net Income

Explain how would recording the $7,000 million to the Equipment account “delay expense recognition to future periods” and thus “boost net income for Year 1.

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Assume that WorldCom paid $7,000 million (i.e. $7 billion or $7,000,000,000) rental fees to other phone companies in cash at the beginning of Year 1. Explain how would recording the $7,000 million to the Equipment account “delay expense recognition to future periods” and thus “boost net income for Year 1. Besides net income in the … Read more

TGEE GLOBAL: income statement projections: create a bar chart showing gross revenues, gross profit, and net income. 

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TGEE GLOBAL Income Statement Projections  •Create a projected income statement for your business for the first four quarters and the second and third years of operations. •Create a bar chart showing gross revenues, gross profit, and net income. Break-even Analysis  •Calculate your break even to determine the number of units/break-even volume. Ratio Analysis  •Calculate all … Read more

Operating Activities: describe where Net Income is shown on the statement of cash flows and state the amount. refer back to the income statement to verify the amounts reported for Net Income are equal.  

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Operating Activities Reviewing your corporation’s statement of cash flows:  what do you learn about your SEC 10-K company as you view the four financial statements together?  Do you see net income from the income statement on your statement of cash flows?  Can you recalculate the amounts reflected as changes in current assets and current liabilities … Read more