This case, based on Rainmaker Entertainment Inc.'s balance sheet on My Accounting Lab, will familiarize you with
Question:
Required
1. Compare Rainmaker Entertainment Inc.'s balance sheet to the balance sheet in Exhibit 4-14 on page 204. What differences in style do you notice between these two balance sheets? Describe these differences.
2. What is Rainmaker's largest current asset in 2011? In 2010?
3. What is the company's largest current liability in 2011? In 2010?
4. What were the total current assets in 2011? In 2010?
5. What were the total current liabilities in 2011? In 2010?
6. Compute Rainmaker's current ratio at December 31, 2011, and at December 31, 2010.
Did the ratio values improve or deteriorate during the year?
7. Compute Rainmaker's debt ratio at December 31, 2011, and at December 31, 2010. Did the ratio values improve or deteriorate during the year?
8. Does the company report under IFRS or ASPE in the 2011 financial statements? How do you know?
9. What is the main purpose of the notes to the financial statements?
Step by Step Answer:
Accounting Volume 1
ISBN: 978-0132690096
9th Canadian edition
Authors: Charles T. Horngren, Walter T. Harrison, Jo Ann L. Johnston, Carol A. Meissner, Peter R. Norwood