Financial Accounting: An Integrated Statements Approach, 2nd Edition

Chapter 11

Stockholders’ Equity: Capital Stock and Dividends 492

Nature of a Corporation 494

Characteristics of a Corporation 494, Forming a

Corporation 494

Sources of Paid-In Capital 496

Common Stock 496, Market for Common Stock 497,

Preferred Stock 498

Issuing Stock 499

Premium on Stock 499, No-Par Stock 500, Stock Options 501

Treasury Stock 501

Stock Splits 503

Analyzing Financing Alternatives 504

Accounting for Dividends 505

Cash Dividends 505, Stock Dividends 507

Reporting Stockholders’ Equity 508

Accumulated Other Comprehensive Income (Loss) 508,

Reporting Stockholders’ Equity on the Balance Sheet 509

Analyze Dividends 510

Dividend Yield 510, Dividend Payout Ratio 511

Summary of Learning Goals 512

Glossary 513

Chapter 12

Special Income and Investment Reporting Issues 536

Unusual Items Affecting the Income Statement 538

Unusual Items Reported Above Income from Continuing

Operations 538, Unusual Items Reported Below Income from

Continuing Operations 540

Earnings per Common Share 542

Accounting for Investments in Stocks 544

Short-Term Investments in Stocks 544, Long-Term Investments

in Stocks 546, Sale of Investments in Stocks 547, Investment

Reporting 548, Business Combinations 549

Investments in Bonds 549

Accounting for Bond Investments—Purchase, Interest,

and Amortization 550, Accounting for Bond Investments—

Sale 551

Market-Based Financial Measures 552

Price-Earnings Ratio 552, Price-Book Ratio 554

Summary of Learning Goals 555

Glossary 556

Chapter 13

Statement of Cash Flows 578

Reporting Cash Flows 580

Cash Flows from Operating Activities 580, Cash Flows from

Investing Activities 581, Cash Flows from Financing Activities

582, Noncash Investing and Financing Activities 582, No

Cash Flow per Share 583

Statement of Cash Flows—The Indirect Method 584

Retained Earnings 584, Cash Flows from Operating Activities

585, Depreciation 586, Current Assets and Current Liabilities

587, Gain on Sale of Land 587, Reporting Cash Flows from

Operating Activities 588, Cash Flows Used for Payment of

Dividends 588, Common Stock 589, Bonds Payable 589,

Building 589, Land 590, Preparing the Statement of Cash

Flows 591

Statement of Cash Flows—The Direct Method 591

Cash Received from Customers 592, Cash Payments for

Merchandise 593, Cash Payments for Operating Expenses

594, Gain on Sale of Land 594, Interest Expense 595, Cash

Payments for Income Taxes 595, Reporting Cash Flows from

Operating Activities—Direct Method 595

Analysis and Interpretation of Cash Flows 596

Cash Conversion Cycle 596, Free Cash Flow 597

Summary of Learning Goals 599

Glossary 599

Chapter 14

Financial Statement Analysis 630

Horizontal and Vertical Analysis 632

Horizontal Analysis 632, Vertical Analysis 633, Common-

Size Statements 635, Other Analytical Measures 635

Profitability Analysis 636

Rate Earned on Stockholders’ Equity 636, Rate Earned on

Total Assets 637, Comprehensive Profitability Analysis 638

Margin Analysis and Asset Efficiency Analysis 640

Margin Analysis 641, Asset Efficiency 641, Accounts

Receivable Analysis 642, Inventory Analysis 643, Fixed

Asset Analysis 644, Asset Efficiency Summary 645

Leverage Analysis 645

Current Ratio 646, Quick Ratio 647, Ratio of Fixed Assets to

Long-Term Liabilities 648, Ratio of Liabilities to Stockholders’

Equity 649, Number of Times Interest Charges Earned 649,

Leverage Summary 650

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