$1.$ Please answer the following questions regarding the balance sheet.

a$.$ What is the balance sheet, and what information does it provide?

b$.$ What determines the order of the information shown on the balance sheet?

$2.$ Please answer the following questions regarding assets on a firm$$s balance sheet.

a$.$ Define an asset.

b$.$ On a firm$$s balance sheet, the assets are divided into two broad types? Define each type $($relate it

to definition of asset above$)$ and provide common examples for each on a firm$$s balance sheet?

c$.$ Assets can also be classified based on tangibility: What is the difference between tangible and

intangible assets? Provide examples of each?

d$.$ There are two types of Tangible assets: Real and Financial. Again describe the differences

between the two and provide examples of each.

$3.$ Please answer the following questions regarding the balance sheet.

a$.$ Why do changes in retained earnings occur? Explain why the following statement is true: $$The

retained earnings account, as reported on the balance sheet, does not represent cash and is not

available for the payment of dividends or anything else.$$

b$.$ What is the role of $($accumulated$)$ depreciation on the balance sheet? What is the difference

between gross fixed assets and net fixed assets?

$4.$ Please answer the following questions regarding type of assets based on purpose:

a$.$ Distinguish between operating asset and non$-$operating assets?

b$.$ What are various types $($and sub$-$types$)$ of operating assets discussed in the slides? Provide

examples of each. What are various types of Non$-$Operating Assets? Provides example of each.

$5.$ Stakeholder claims on the balance sheet can be to investor$$s or non$-$investors:

a$.$ Which line items on the right$-$side of a balance sheet are recorded due to a claim held by

investors and what terminology can be used to collectively refer to these claims? Which common

line items are claims for non$-$investor stakeholders and how can be referred to collectively?

b$.$ What do investors provide the firm, for which they receive a claim, and what is their primary goal

of entering into a financial contract with the firm? What type of claims do they receive and what

are the differences between these type of claims?

c$.$ What do non$-$investor stakeholders typically provide the firm and what is their primary goal?

$6.$ Answer the following questions regarding Book Value of Equity

a$.$ Distinguish between internal and external equity What are the key line item$($s$)$ related to i$)$ internal

equity and ii$)$ external equity on a balance sheet

b$.$ Can book value of equity be negative? If so$,$ under what situations?

$7.$ Please answer the following questions regarding the differences between book value and market

value of debt and equity.

a$.$ How is book value per share $($of equity$)$ calculated? What about market value of equity? Explain

why equity$$s market value often deviates from its book values and which one is generally higher?

b$.$ Why does market value of debt differ from book value of debt and generally which one is higher?

Is the difference between book value and market value of equity generally larger than that of

debt? Explain.

$8.$ Please answer the questions below regarding the balance sheet and income statement.

a$.$ What is an income statement, and what information does it provide?

b$.$ What is often called the $$bottom line$?$

c$.$ What is EBITDA? Why do analysts prefer it over EBIT?

d$.$ How does income statement differ from balance sheet with regard to the time period reported?

$9.$ The slides discuss four parts that an income statement can be broken into. List the four parts and

a$.$ Describe the information each part provides

b$.$ List the common income statement line items in each part.

$10.$ Answer the following questions regarding corporate and personal taxes $($details of the personal tax

are in Web Extension $6$A$).$

a$.$ What is meant by the statement that $$our tax rates are progressive$?$

b$.$ Explain the difference between marginal tax rates and average tax rates.

c$.$ Find the $2019$ personal tax rate bracket table for taxpayers on the IRS website or another

reputable source $($corresponding to Table $6-1,$ which is for corporate tax rates$).$ Joe, who files as

a single taxpayer, has a taxable income of $$92,000.$ What is his marginal and average tax rate?

d$.$ What are capital gains and losses for a corporation? How are they taxed? Does the sale of an

asset at a capital gain or a capital loss affect the income statement? The balance sheet? Explain.

e$.$ What is the difference in the tax treatment of interest and dividend paid by the corporation? Does

this favor debt or equity finance? Did the tax reform act passed at the end $2017$ impact this in any

way $($look at Web Extensions in your textbook for this last part$)$

f$.$ Briefly explain how tax loss carryback and carryforward procedures work.