The Financial Statements provided by Jackson and Associates and the Financial Statements provided by PMI use different
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Question:
The Financial Statements provided by Jackson and Associates and the Financial Statements provided by PMI use different accounting methods (cash vs. accrual) and are, therefore, not compatible.
Required
a. Recompute the Income Statement and Balance Sheet provided by PMI on December 31, 2011, to make the two years comparable.
b. Recalculate the Statement of Cash Flows provided by PMI for December 31, 2011using the recalculated Income Statement and Balance Sheet as well as the correct
beginning account balances.
c. Discuss the differences between the Statement of Cash Flows provided by PMI and the Statement of Cash Flows prepared by you.
Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
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