Cash to accrual trips me up without writing it all out. But I'm going to go with you add increases in CA because you are saying you sold more than you received so you have to add that extra to revenue even though you didn't collect the funds for it. You would subtract the decreases in CL because you are saying that you paid for old liabilities that were expensed in previous periods so it would be included in cash, but not in accrual. Is that right?
Not sure if my logic is even close but I am blindly guessing as one does on the CPA, since Div/Shares and Price/Earn, going with denominator and denominator.
During the first quarter of year 2, Lead Co. had income before taxes of $300,000, and its effective income tax rate was 15%. Lead’s year 1 effective annual income tax rate was 30%, but Lead expects its year 2 effective annual income tax rate to be 25%. In its first quarter interim income statement, what amount of income tax expense should Lead report?
jrosen92770, what formula, can you write it out? I am weak in cash to accrual…it takes me forever to work out a problem.
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Authorized common stock is sold on a subscription basis at a price in excess of par value. Additional paid-in capital should be recorded when the subscribed stock is
CPAMommmy, now that I think about it, I think I may have mis-spoke when I said subtract decreases of liabilities. I believe the above formula is correct. Can someone confirm, do not want to mislead.
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