Q1 Use the accounting equation to answer each question that follows Show any calculations you make 1)The assets of Caton Corporation are $800,000, and the stockholder's equity is $310,000 What is the amount of the liabilities 2)The liabilities and stockholder's equity of Sung Corporation are $72,000 and $53,000, respectively What is the amount of assets 3)The liabilities of Plumb Corp equal one third of the total assets, and stockholder's equity is $240,000 What is the amount of the liabilities 4)At the beginning of the year, Wilde Corporation's assets were $220,000 and its stockholder's equity was $120,000 During the year, assets increased $60,000 and liabilities decreased $18,000 What is stockholder's equity at the end of the year Q2 Match each of the numbered descriptions with the principle or assumption it best reflects Enter the letter for the appropriate principle or assumption in the blank space next to each description A Cost principleE General accounting principle B Matching principleF Business entity assumption C Specific accounting principleG Revenue recognition principle DFull disclosure principleH Going concern principle 1 Revenue is recorded only when the earnings process is complete 2 Information is based on actual costs incurred in a transaction 3 Usually created by a pronouncement from an authoritative body 4 Financial statements reflect the assumption that the business continues operating 5 A company reports details behind financial statements that would impact user's decisions 6 A company records the expenses incurred to generate the revenues reported 7 Derived from long used and generally accepted accounting practices 8 Every business is accounted for separately from its owner or owners Q3 Download the CVS 2018 annual report at the link below Starting at page 50 of the report, answer the following questions https s2 q4cdn com 447711729 files doc financials annual 2018 annual report 2018 pdf 1 What names does CVS give its four basic financial statements 2 Prove the accounting equation works for CVS as of 12 31 18 by finding the amounts for the following equation Assets Liabilities Stockholder's Equity 3 What were the total Revenues of CVS for the year ending 12 31 18 4 Was CVS profitable in the year ended 12 31 18 How much was the net income (loss) in that year, and did it increase or decrease from the year ended 12 31 17 What was the source of this change 5 Did the company's cash and cash equivalents increase or decrease from 12 31 17 to 12 31 18 By how much In which two places in the statements can this number be found or computed 6 Did cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities increase or decrease from 2017 to 2018 Now access the Walgreens 2018 annual report at the link below Starting on page 67 of the 10k report, answer the following https s1 q4cdn com 343380161 files doc financials annual 2018 WBA 2018 Annual Report pdf 7 Which company is larger in terms of assets and in terms of revenues What do you think is the best way to measure the size of a company 8 Which company is more profitable in terms of net income What is the trend of profitability over the past three years for both companies 9 Which company has more cash Which increased cash the most in the last year Which has more liquidity as measured by cash flows from operating activities 10 Who is the auditor for each company Why is the auditor's report that accompanies the financial statements important

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Q1 Use the accounting equation to answer each question that follows.Show any calculations you make. 1)The assets of Caton Corporation are $800,000, and the stockholder's

Use the accounting equation to answer each question that follows.Show any calculations you make.

1)The assets of Caton Corporation are $800,000, and the stockholder's equity is $310,000.What is the amount of the liabilities?

2)The liabilities and stockholder's equity of Sung Corporation are $72,000 and $53,000, respectively.What is the amount of assets?

3)The liabilities of Plumb Corp equal one-third of the total assets, and stockholder's equity is $240,000.What is the amount of the liabilities?

4)At the beginning of the year, Wilde Corporation's assets were $220,000 and its stockholder's equity was $120,000.During the year, assets increased $60,000 and liabilities decreased $18,000.What is stockholder's equity at the end of the year?

Match each of the numbered descriptions with the principle or assumption it best reflects.Enter the letter for the appropriate principle or assumption in the blank space next to each description.

A.Cost principleE.General accounting principle

B.Matching principleF.Business entity assumption

C.Specific accounting principleG.Revenue recognition principle

DFull disclosure principleH.Going - concern principle

_______ 1. Revenue is recorded only when the earnings process is complete.

_______ 2. Information is based on actual costs incurred in a transaction.

_______ 3. Usually created by a pronouncement from an authoritative body.

_______ 4. Financial statements reflect the assumption that the business continues operating.

_______ 5. A company reports details behind financial statements that would impact user's decisions.

_______ 6. A company records the expenses incurred to generate the revenues reported.

_______ 7. Derived from long-used and generally accepted accounting practices.

_______ 8. Every business is accounted for separately from its owner or owners.

Download the CVS 2018 annual report at the link below.Starting at page 50 of the report, answer the following questions:

https://s2.q4cdn.com/447711729/files/doc_financials/annual/2018/annual-report-2018.pdf

1.What names does CVS give its four basic financial statements?

2.Prove the accounting equation works for CVS as of 12/31/18 by finding the amounts for the following equation: Assets = Liabilities + Stockholder's Equity.

3.What were the total Revenues of CVS for the year ending 12/31/18?

4.Was CVS profitable in the year ended 12/31/18?How much was the net income (loss) in that year, and did it increase or decrease from the year ended 12/31/17?What was the source of this change?

5.Did the company's cash and cash equivalents increase or decrease from 12/31/17 to 12/31/18?By how much?In which two places in the statements can this number be found or computed?

6.Did cash flows from operating activities, cash flows from investing activities, and cash flows from financing activities increase or decrease from 2017 to 2018?

Now access the Walgreens 2018 annual report at the link below.Starting on page 67 of the 10k report, answer the following:

https://s1.q4cdn.com/343380161/files/doc_financials/annual/2018/WBA-2018-Annual-Report.pdf

7.Which company is larger in terms of assets and in terms of revenues?What do you think is the best way to measure the size of a company?

8.Which company is more profitable in terms of net income?What is the trend of profitability over the past three years for both companies?

9.Which company has more cash?Which increased cash the most in the last year?Which has more liquidity as measured by cash flows from operating activities?

10.Who is the auditor for each company?Why is the auditor's report that accompanies the financial statements important?