Identify effect of product versus general, selling, and administrative costs on financial statements Required Milby Industries recognized
Question:
Identify effect of product versus general, selling, and administrative costs on financial statements
Required
Milby Industries recognized the annual cost of depreciation on December 31, 2010. Using the following horizontal financial statements model, indicate how this event affected the company's financial statements under the following two assumptions: (1) the depreciation was on office furniture and (2) the depreciation was on manufacturing equipment. Indicate whether the event increases (I), decreases (D), or has no affect (NA) on each element of the financial statements.
Also, in the Cash column, indicate whether the cash flow is for operating activities (OA), investing activities (IA), or financing activities (FA). (Note: Show accumulated depreciation as a decrease in the book value of the appropriate assetaccount.)
Financial StatementsFinancial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
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