Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter dollar amounts. (Note that "Not Affected" means that the event does not affect that element of the financial statements or the event causes an increase in that element that is offset by a decrease in the same element.)Increase = IDecrease = DNot Affected = NAGulfshore Oil Company recognized $2,000,000 of depletion expense related to an oil reserve. AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(D) (NA) (D) (NA) (I) (D) (NA)
Recognizing depletion expense decreases assets (oil reserve) and stockholders' equity (retained earnings). It increases expenses, which decreases net income. It does not affect the statement of cash flows.
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A company's capital structure consists of common stock only, which amounts to $14 million. However, this year, the company plans to issue $7 million of debt, and use the proceeds to repurchase $7 million of its existing equity. The stock repurchase should not change the size of the company. As a result, any change in the firm's earnings per share (EPS) must be a result of the change in its:
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Marcy owns land in North Dakota under which deposits of oil shale are discovered. Marcy sells the rights to the shale to Oil Mining & Refining Inc Once the oil in the rock is removed, it will be considered? A) personal property
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Discuss the revolution in Internet marketing technologies. What are the four main broad impacts the Internet has had on marketing?
What will be an ideal response?
Did the non-statutory labor exemption from the antitrust laws expire upon the parties reaching bargaining impasse?