Base your answers to the following questions on the 2010 balance sheet and statement of operations of
Question:
In Exhibit 2-12
Consolidated Statements of Operations
(United States dollars, in thousands, except per share data)
a. In the Shareholders' Equity section, what does the $2,207,609 in common shares represent?
b. In the Shareholders' Equity section, what does the $5,274,365 in retained earnings represent?
c. Does RIM use more liabilities or shareholders' equity to finance its total assets?
d. How much did total assets grow in 2010 over 2009? What were the major areas (or accounts) that accounted for the growth?
e. If RIM were to pay the income taxes payable, in the current liabilities section, what would be the effect on the basic accounting equation?
f. On the Statement of Operations, RIM discloses separately the revenues and cost of sales for its two lines of business: devices and other, and service and software. Calculate the gross margin (the sales revenue less the cost of sales) of each line of business, in dollars and as a percentage of revenues. Are the lines more or less profitable in 2010 than in 2009? Which line is more profitable?
Financial 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... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
Financial Accounting A User Perspective
ISBN: 978-0470676608
6th Canadian Edition
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry