Chapter 12-13 Accounting

Discussion

1. Frank’s Fun Company owns 30 pizza parlors and a minor league baseball team.  During the current year, the company sold three of its pizza parlors and closed another when the lease on the building expired. Should any of these events be classified as discontinued operations In the company’s income statement?  Explain

2. Briefly state the purpose of a statement of cash flow.  Does a statement of cash flows or an income statement best measure the profitability of a financially sound business?  Explain.

Assignment

1.   Explain the significance of the following dates relating to cash dividends:  date of declaration, date of record, date of payment, ex-dividend date.   

2.  Give two examples of cash receipts and two examples of cash payments that fit into each of the following classifications:  

1. Operating Activities
2. Investing Activities
3. Financing Activities