Posted: May 22nd, 2015

financial and accounting questions

financial and accounting questions

Problem 1-5
Use and Interpretation of Financial Statements

The financial statements for Wichita Riding Club, Inc., follow.

Explain how the four statements for Wichita Riding Club are related to each other.

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Which statements are most closely associated with the goals of liquidity and profitability? Why?

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If you were the owner of this business, how would you evaluate the company’s performance? Give specific examples.

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If you were a banker considering Wichita Riding Club for a loan, why might you want the company to get an audit by an independent CPA? What would the audit tell you?

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