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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 24
Using the accounting equation, preparing financial statements, and evaluating business performance
The 2012 annual report of American Express Services (AES) reported revenue of $21,000,000,000. Total expenses for the year were $14,000,000,000. AES ended the year with total assets of $30,000,000,000, and it owed debts totaling $14,000,000,000. At year-end 2011, the business reported total assets of $23,000,000,000 and total liabilities of $14,000,000,000.
Requirements
1. Compute AES's net income to 2012.
2. Did AES's stockholders' equity increase or decrease during 2012 By how much
3. Assume you are a creditor of AES. Would the company's 2012 performance be good or bad for you, as a creditor
The 2012 annual report of American Express Services (AES) reported revenue of $21,000,000,000. Total expenses for the year were $14,000,000,000. AES ended the year with total assets of $30,000,000,000, and it owed debts totaling $14,000,000,000. At year-end 2011, the business reported total assets of $23,000,000,000 and total liabilities of $14,000,000,000.
Requirements
1. Compute AES's net income to 2012.
2. Did AES's stockholders' equity increase or decrease during 2012 By how much
3. Assume you are a creditor of AES. Would the company's 2012 performance be good or bad for you, as a creditor
Explanation
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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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