Question: Q1 Prepare a multi step Income Statement for both companies in

Q1. Prepare a multi-step Income Statement for both companies in the space provided below.
Q2. Assuming all transactions are cash transactions, prepare a Statement of Cash Flows. Also prepare the Supplement Schedule—Indirect Method that reconciles net income and net cash from operating activities.
Q3. Prepare a Balance Sheet for both companies in the space provided below.
Q4a. Which company appears to be more profitable? (_________ / Lasco / the same)
b. Which company generated more cash during the year? (Frasco / Lasco / _________)
c. Which company presents a stronger balance sheet? (_________/ Lasco / the same) Why?
Q5. On the Income Statement, why is net income different for Frasco and Lasco?
Q6. On the balance sheet, which accounts report different amounts? (Cash / _________/ _________/ Notes payable / _________) Why?
Q7. On the Statement of Cash Flows, which totals differ between Frasco and Lasco? Net cash from (operating / investing / financing / _________) what conclusions can you draw from this Activity?
Q8. Different accounting methods, such as FIFO or LIFO and SL or DDB, affect (cash- / _________) basis accounting.

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