Managerial Accounting, 3rd Edition Loose-Leaf Print Companion

Managerial Accounting, 3rd Edition, Loose-leaf Print Companion by Charles and Elizabeth Davis offers a modern, practical approach to teaching and learning managerial accounting based on a unique integration of concepts, practice, and business context within distinct and flexible learning units. Praised for its decision-making framework, Managerial Accounting, 3rd Edition, provides students with a better understanding of decisions made by organizations through the inclusion of a Continuing CaseStory, which puts business decisions into context and allows students to see the relevance of managerial accounting to their future careers.

Table of Contents:
Brief Contents iii Author Biographies iv Preface v The Development Story xiii Acknowledgments xvi Dedication xvii Chapter 1 Accounting as a Tool for Management 2 Unit 1.1 What Is Managerial Accounting? 3 Definition of Managerial Accounting 3 Comparison of Managerial and Financial Accounting 4 The Manager’s Role 7 The Managerial Accountant’s Role 10 REALITY CHECK Taking a sales route detour can be a good thing 12 UNIT 1.1 REVIEW 12 Key Terms 12 Practice Questions 12 Unit 1.1 Practice Exercise 13 Selected Unit 1.1 Answers 13 Unit 1.2 Different Strategies, Different Information 14 Matching Accounting Information to an Organization’s Strategy 14 REALITY CHECK What’s the price tag for a new strategy? 15 Market Share: Build, Hold, Harvest, or Divest 16 Monitoring Strategic Performance 16 REALITY CHECK A supply chain touchdown 19 UNIT 1.2 REVIEW 20 Key Terms 20 Practice Questions 20 Unit 1.2 Practice Exercise 21 Selected Unit 1.2 Answers 21 Unit 1.3 Ethical Considerations in Managerial Accounting 22 REALITY CHECK Blowing the whistle 27 UNIT 1.3 REVIEW 28 Key Terms 28 Practice Questions 28 Unit 1.3 Practice Exercise 28 Selected Unit 1.3 Answers 28 CHAPTER SUMMARY 29 KEY TERMS 29 EXERCISES 30 PROBLEMS 32 CASES 32 ENDNOTES 33 TOPIC FOCUS 1: C&C Sports, Managerial Accounting Context 35 C&C’s History 35 A Brief Look at C&C’s Resources 37 Industry Statistics 40 TOPIC FOCUS SUMMARY 42 ENDNOTES 42 Chapter 2 Cost Behavior and Cost Estimation 44 Unit 2.1 Cost Behavior Patterns 46 Variable Costs 46 Fixed Costs 48 Discretionary versus Committed Fixed Costs 49 Step Costs 49 Mixed Costs 50 REALITY CHECK If it looks like a variable cost 51 UNIT 2.1 REVIEW 51 Key Terms 51 Practice Questions 52 Unit 2.1 Practice Exercise 52 Selected Unit 2.1 Answers 52 Unit 2.2 Cost Estimation 53 Scattergraphs 54 High-Low Method 56 Regression Analysis 58 REALITY CHECK Where does the relevant range end? 59 Cost Estimation and the Relevant Range 59 UNIT 2.2 REVIEW 60 Key Terms 60 Practice Questions 60 Unit 2.2 Practice Exercise 60 Selected Unit 2.2 Answers 61 Unit 2.3 Contribution Margin Analysis 61 Contribution Margin 62 REALITY CHECK The contribution margin recipe 63 Contribution Format Income Statement 64 UNIT 2.3 REVIEW 67 Key Terms 67 Practice Questions 67 Unit 2.3 Practice Exercise 67 Selected Unit 2.3 Answers 67 CHAPTER SUMMARY 68 KEY TERMS 69 EXERCISES 70 PROBLEMS 74 C&C SPORTS CONTINUING CASE 78 CASES 78 ANALYTICS PROBLEM 79 ENDNOTES 79 Chapter 3 Cost–Volume–Profi t Analysis and Pricing Decisions 80 Unit 3.1 Breakeven Analysis 82 The Breakeven Point 82 REALITY CHECK Who really uses breakeven analysis? 84 Breakeven Graphs 84 Margin of Safety 85 UNIT 3.1 REVIEW 86 Key Terms 86 Practice Questions 86 Unit 3.1 Practice Exercise 87 Selected Unit 3.1 Answers 87 Unit 3.2 Cost–Volume–Profi t Analysis 88 Target Operating Income 89 Target Net Income 89 What-If Analysis 90 Cost Structure and Operating Leverage 92 REALITY CHECK Fixed versus variable costs 94 UNIT 3.2 REVIEW 95 Key Terms 95 Practice Questions 95 Unit 3.2 Practice Exercise 96 Selected Unit 3.2 Answers 96 Unit 3.3 Multiproduct CVP Analysis 97 REALITY CHECK Mixing it up on a high fl yer 99 UNIT 3.3 REVIEW 101 Key Terms 101 Practice Questions 101 Unit 3.3 Practice Exercise 102 Selected Unit 3.3 Answers 102 Unit 3.4 Pricing Decisions 103 Infl uences on Price 103 Cost-Plus Pricing 104 Target Costing 105 REALITY CHECK Big data brings dynamic pricing strategies 106 UNIT 3.4 REVIEW 107 Key Terms 107 Practice Questions 107 Unit 3.4 Practice Exercise 107 Selected Unit 3.4 Answers 108 CHAPTER SUMMARY 109 KEY TERMS 111 EXERCISES 111 PROBLEMS 118 C&C SPORTS CONTINUING CASE 123 CASES 123 ANALYTICS PROBLEM 126 ENDNOTES 127 Chapter 4 Product Costs and Job Order Costing 128 Unit 4.1 Product and Period Costs 130 Product Costs 130 Direct Materials 131 Direct Labor 132 Overhead 132 Period Costs 133 Selling Costs 133 General and Administrative Costs 134 REALITY CHECK Showing cost classifi cations in published fi nancial statements 135 UNIT 4.1 REVIEW 135 Key Terms 135 Practice Questions 136 Unit 4.1 Practice Exercise 136 Selected Unit 4.1 Answers 137 Unit 4.2 Product Cost Flows 138 Inventory Account Definitions 138 Recording of Cost Flows 140 REALITY CHECK What’s satisfying your sweet tooth going to cost? 143 Schedule of Cost of Goods Manufactured 144 UNIT 4.2 REVIEW 145 Key Terms 145 Practice Questions 145 Unit 4.2 Practice Exercise 146 Selected Unit 4.2 Answers 146 Unit 4.3 Job Order Costing 147 Accumulating Direct Job Costs 148 Allocating Manufacturing Overhead Costs 151 REALITY CHECK Tracking direct labor costs 152 REALITY CHECK Here come the robots 154 UNIT 4.3 REVIEW 155 Key Terms 155 Practice Questions 155 Unit 4.3 Practice Exercise 156 Selected Unit 4.3 Answers 156 Unit 4.4 Underapplied and Overapplied Manufacturing Overhead 157 Closing Underapplied and Overapplied Overhead to Cost of Goods Sold 158 Prorating Underapplied and Overapplied Overhead 159 UNIT 4.4 REVIEW 161 Key Terms 161 Practice Questions 161 Unit 4.4 Practice Exercise 161 Selected Unit 4.4 Answers 161 CHAPTER SUMMARY 163 KEY TERMS 164 EXERCISES 165 PROBLEMS 171 C&C SPORTS CONTINUING CASE 179 CASES 179 ANALYTICS PROBLEM 181 TOPIC FOCUS 2: Process Costing 183 Cost Flows 185 Comparison of Process Costing and Job Order Costing 186 Cost Accumulation and Reporting 188 REALITY CHECK Costs in the oyster bed 192 Process Costing Recap 193 TOPIC FOCUS REVIEW 194 Key Terms 194 Practice Questions 194 Topic Focus 2 Practice Exercise 195 Selected Topic Focus 2 Answers 195 TOPIC FOCUS SUMMARY 196 EXERCISES 197 PROBLEMS 199 CASES 201 ENDNOTES 202 TOPIC FOCUS 3: Variable and Absorption Costing 203 Absorption Costing versus Variable Costing 204 Income Effects of Variable Costing 205 REALITY CHECK Variable costing, German style 208 Reconciling Income under Absorption Costing and Variable Costing 209 TOPIC FOCUS REVIEW 210 Key Terms 210 Practice Questions 210 Topic Focus 3 Practice Exercise 211 Selected Topic Focus 3 Answers 211 TOPIC FOCUS SUMMARY 213 EXERCISES 213 PROBLEMS 216 CASE 219 Chapter 5 Planning and Forecasting 220 Unit 5.1 Planning and the Budgeting Process 222 What Is a Budget? 222 The Budgeting Process 223 REALITY CHECK What’s up with the budget? 226 UNIT 5.1 REVIEW 227 Key Terms 227 Practice Questions 227 Unit 5.1 Practice Exercise 228 Selected Unit 5.1 Answers 228 Unit 5.2 Performance Standards 229 REALITY CHECK The diamond standard 230 Ideal versus Practical Standards 230 Product Standards 231 Manufacturing Overhead 234 UNIT 5.2 REVIEW 234 Key Terms 234 Practice Questions 235 Unit 5.2 Practice Exercise 235 Selected Unit 5.2 Answers 235 Unit 5.3 Building the Master Budget: The Operating Budget 236 The Sales Budget 238 The Selling and Administrative Expense Budget 239 The Production Budget 241 The Direct Materials Purchases Budget 242 The Direct Labor Budget 245 The Manufacturing Overhead Budget 246 The Ending Inventory and Cost of Goods Sold Budget 248 REALITY CHECK Is there a crystal ball for forecasting sales? 250 UNIT 5.3 REVIEW 251 Key Terms 251 Practice Questions 251 Unit 5.3 Practice Exercise 252 Selected Unit 5.3 Answers 252 Unit 5.4 Building the Master Budget: The Cash Budget 254 Cash Available to Spend 254 The Cash Receipts Budget 256 Cash Disbursements 257 REALITY CHECK Budgeting around the world 258 Cash Excess (Cash Needed) 260 Short-Term Financing 261 Ending Cash Balance 261 UNIT 5.4 REVIEW 262 Key Terms 262 Practice Questions 262 Unit 5.4 Practice Exercise 263 Selected Unit 5.4 Answers 263 Unit 5.5 Pro-Forma Financial Statements 264 The Pro-Forma Income Statement 265 The Pro-Forma Balance Sheet 266 REALITY CHECK How the pros use pro-formas 267 UNIT 5.5 REVIEW 269 Key Term 269 Practice Questions 269 Unit 5.5 Practice Exercise 269 Selected Unit 5.5 Answers 269 CHAPTER SUMMARY 271 KEY TERMS 273 EXERCISES 273 PROBLEMS 281 C&C SPORTS CONTINUING CASE 284 CASES 284 ANALYTICS PROBLEM 289 ENDNOTES 290 Chapter 6 Performance Evaluation: Variance Analysis 292 Unit 6.1 Flexible Budgets: A Performance Evaluation Tool 294 Static Budgets 294 Flexible Budgets 296 REALITY CHECK Who’s being fl exible? 297 Using Flexible Budgets to Analyze Static Budget Variances 298 Using Variances to Evaluate the Sales Strategy 302 UNIT 6.1 REVIEW 303 Key Terms 303 Practice Questions 304 Unit 6.1 Practice Exercise 304 Selected Unit 6.1 Answers 305 Unit 6.2 Variance Analysis: Direct Materials 306 Analyzing the Direct Materials Variances 307 REALITY CHECK Going nuts over almonds 309 Interpreting Direct Materials Variances 310 REALITY CHECK A variance to remember 312 UNIT 6.2 REVIEW 313 Key Terms 313 Practice Questions 313 Unit 6.2 Practice Exercise 313 Selected Unit 6.2 Answers 314 Unit 6.3 Variance Analysis: Direct Labor 315 Analyzing the Direct Labor Variances 315 Interpreting Direct Labor Variances 317 REALITY CHECK Labor effi ciency strike out 319 UNIT 6.3 REVIEW 320 Key Terms 320 Practice Questions 320 Unit 6.3 Practice Exercise 321 Selected Unit 6.3 Answers 321 Unit 6.4 Variance Analysis: Overhead 322 Variable Overhead 322 Fixed Overhead 325 UNIT 6.4 REVIEW 326 Key Terms 326 Practice Questions 326 Unit 6.4 Practice Exercise 326 Selected Unit 6.4 Answers 327 CHAPTER SUMMARY 328 KEY TERMS 330 EXERCISES 330 PROBLEMS 335 C&C SPORTS CONTINUING CASE 339 CASES 340 ANALYTICS PROBLEM 344 ENDNOTES 344 TOPIC FOCUS 4: Standard Costing Systems 345 Recording Direct Materials 347 Recording Direct Labor 348 Recording Variable Overhead 349 REALITY CHECK Are standard costing systems headed for extinction? 350 Recording Fixed Overhead 351 Transferring Completed Units to Finished Goods Inventory 352 Recording Cost of Goods Sold 353 Disposing of Variances 353 Advantages of Standard Costing 354 TOPIC FOCUS REVIEW 354 Key Terms 354 Practice Questions 354 Topic Focus 4 Practice Exercise 355 Selected Topic Focus 4 Answers 355 TOPIC FOCUS SUMMARY 358 EXERCISES 359 PROBLEMS 361 Chapter 7 Activity-Based Costing and Activity-Based Management 364 Unit 7.1 Activity-Based Costing 366 Why Activity-Based Costing? 366 Classifi cation of Activities 369 REALITY CHECK At the center of activity 370 UNIT 7.1 REVIEW 372 Key Terms 372 Practice Questions 372 Unit 7.1 Practice Exercise 373 Selected Unit 7.1 Answers 373 Unit 7.2 Developing Activity-Based Product Costs 374 Step 1: Identify Activities 374 Step 2: Develop Activity Cost Pools 375 Step 3: Calculate Activity Cost Pool Rates 376 Step 4: Allocate Costs to Products or Services 378 Step 5: Calculate Unit Product Costs 379 REALITY CHECK Putting ABC in the recipe for profi tability 380 UNIT 7.2 REVIEW 382 Key Terms 382 Practice Questions 382 Unit 7.2 Practice Exercise 383 Selected Unit 7.2 Answers 384 Unit 7.3 Activity-Based Management 386 Activity Management 386 Process Improvement 388 Reassessment of Product Profi tability 389 REALITY CHECK Even doctors need to know their ABCs 390 Activity-Based Budgeting 391 UNIT 7.3 REVIEW 391 Key Terms 391 Practice Questions 391 Unit 7.3 Practice Exercise 392 Selected Unit 7.3 Answers 392 CHAPTER SUMMARY 394 KEY TERMS 395 EXERCISES 395 PROBLEMS 402 C&C SPORTS CONTINUING CASE 410 CASE 411 ANALYTICS PROBLEM 413 ENDNOTES 413 TOPIC FOCUS 5: Customer Profi tability 415 Identifying Unprofi table Customers 416 Addressing Unprofi table Customers 420 REALITY CHECK Banking on customer profi tability 421 TOPIC FOCUS REVIEW 422 Key Terms 422 Practice Questions 422 Topic Focus 5 Practice Exercise 423 Selected Topic Focus 5 Answers 423 TOPIC FOCUS SUMMARY 425 EXERCISES 425 PROBLEMS 428 ENDNOTES 431 Chapter 8 Using Accounting Information to Make Managerial Decisions 432 Unit 8.1 Identifying Relevant Information 434 What Is Relevant Information? 434 REALITY CHECK Watch out for big data 435 Relevant Cost Identifi cation: An Example 437 A Relevant Cost Decision Model 438 UNIT 8.1 REVIEW 439 Key Terms 439 Practice Questions 440 Unit 8.1 Practice Exercise 440 Selected Unit 8.1 Answers 440 Unit 8.2 Special Order Pricing 441 Characteristics of a Special Order 441 Relevant Costs of a Special Order 442 REALITY CHECK If the price is right 443 Qualitative Issues in Special Order Pricing 443 Recap of the Decision Process 445 UNIT 8.2 REVIEW 445 Practice Questions 445 Unit 8.2 Practice Exercise 445 Selected Unit 8.2 Answers 446 Unit 8.3 Outsourcing 446 Outsourcing Defi ned 447 REALITY CHECK It’s time to shore up production 448 A Basic Outsourcing Decision Model 448 Alternative Uses for Facilities 450 Qualitative Issues in Outsourcing 450 Recap of the Decision Process 451 UNIT 8.3 REVIEW 451 Key Terms 451 Practice Questions 452 Unit 8.3 Practice Exercise 452 Selected Unit 8.3 Answers 452 Unit 8.4 Allocating Constrained Resources 453 Contribution Margin per Constrained Resource 454 Allocation of Constrained Resources 456 Theory of Constraints 456 REALITY CHECK Money doesn’t grow on trees 457 Recap of the Decision Process 458 UNIT 8.4 REVIEW 458 Key Terms 458 Practice Questions 458 Unit 8.4 Practice Exercise 459 Selected Unit 8.4 Answers 459 Unit 8.5 Keeping or Eliminating Operations 460 Identifi cation of Common Costs 461 Segment Margin Analysis 462 REALITY CHECK Sometimes less is more 464 Additional Factors to Consider 464 Recap of the Decision Process 465 UNIT 8.5 REVIEW 465 Key Terms 465 Practice Questions 465 Unit 8.5 Practice Exercise 466 Selected Unit 8.5 Answers 466 CHAPTER SUMMARY 468 KEY TERMS 469 EXERCISES 469 PROBLEMS 474 C&C SPORTS CONTINUING CASE 481 CASES 482 ANALYTICS PROBLEM 487 ENDNOTES 487 Chapter 9 Capital Budgeting 488 Unit 9.1 Capital Budgeting Decisions 490 Investing in Capital Assets 490 Making Capital Budgeting Decisions 491 REALITY CHECK How much capital are we talking about? 493 UNIT 9.1 REVIEW 495 Key Terms 495 Practice Questions 495 Unit 9.1 Practice Exercise 495 Selected Unit 9.1 Answers 496 Unit 9.2 Time Value of Money 497 Present Value of $1 497 Present Value of an Annuity 500 REALITY CHECK If you build it, they will stay 502 UNIT 9.2 REVIEW 502 Key Terms 502 Practice Questions 502 Unit 9.2 Practice Exercise 503 Selected Unit 9.2 Answers 503 Unit 9.3 Discounted Cash Flow Techniques 504 Net Present Value 505 REALITY CHECK Don’t discount the choice of a discount rate 507 Internal Rate of Return 510 Screening and Preference Decisions Using NPV and IRR 512 UNIT 9.3 REVIEW 513 Key Terms 513 Practice Questions 514 Unit 9.3 Practice Exercise 514 Selected Unit 9.3 Answers 515 Unit 9.4 Other Capital Budgeting Techniques 515 Payback Period 516 Accounting Rate of Return 518 REALITY CHECK So many choices, so little money 519 UNIT 9.4 REVIEW 520 Key Terms 520 Practice Questions 520 Unit 9.4 Practice Exercise 520 Selected Unit 9.4 Answers 520 CHAPTER SUMMARY 521 APPENDIX 9-1 523 APPENDIX 9-2 523 KEY TERMS 524 EXERCISES 524 PROBLEMS 528 C&C SPORTS CONTINUING CASE 532 CASES 532 ANALYTICS PROBLEM 534 ENDNOTES 535 Chapter 10 Decentralization and Performance Evaluation 536 Unit 10.1 Centralized versus Decentralized Organizations 538 Why Decentralization? 539 Advantages of Decentralization 539 Disadvantages of Decentralization 540 Responsibility Accounting 540 REALITY CHECK Taking center stage—or not 541 Cost Centers 541 Profi t Centers 542 Investment Centers 542 UNIT 10.1 REVIEW 543 Key Terms 543 Practice Questions 543 Unit 10.1 Practice Exercise 543 Selected Unit 10.1 Answers 544 Unit 10.2 Segment Evaluation 544 Defining a Segment 545 Segment Margin Income Statements 545 REALITY CHECK The whole isn’t always greater than the sum of its parts 546 When Traceable Fixed Costs Become Common Costs 547 Segment Reporting, Segment Margin, and GAAP 547 UNIT 10.2 REVIEW 548 Key Terms 548 Practice Questions 548 Unit 10.2 Practice Exercise 549 Selected Unit 10.2 Answers 549 Unit 10.3 Return on Investment 550 Return on Investment 550 The DuPont Model 552 Shortcomings of Return on Investment 554 REALITY CHECK Getting a healthy ROI 555 UNIT 10.3 REVIEW 556 Key Terms 556 Practice Questions 556 Unit 10.3 Practice Exercise 557 Selected Unit 10.3 Answers 557 Unit 10.4 Residual Income and EVA® 558 Residual Income 558 Shortcomings of Residual Income 559 Economic Value Added (EVA) 559 EVA Compared to Residual Income 561 REALITY CHECK Finding value in compensation 562 UNIT 10.4 REVIEW 562 Key Terms 562 Practice Questions 563 Unit 10.4 Practice Exercise 563 Selected Unit 10.4 Answers 563 Practice Questions 563 Unit 10.4 Practice Exercise 564 Chapter 10 Appendix: Transfer Pricing 564 Selecting a Transfer Price Base 565 REALITY CHECK The taxing transfer 566 Determining the Minimum Transfer Price 567 APPENDIX REVIEW 570 Key Terms 570 Practice Questions 570 Appendix Practice Exercise 570 Selected Appendix Answers 571 CHAPTER SUMMARY 572 KEY TERMS 573 EXERCISES 574 PROBLEMS 580 C&C SPORTS CONTINUING CASE 583 CASES 584 ANALYTICS PROBLEM 585 ENDNOTES 586 Chapter 11 Performance Evaluation Revisited: A Balanced Approach 588 Unit 11.1 Performance Measures 590 Lagging Indicators 590 Leading Indicators 591 Financial versus Nonfi nancial Measures 592 REALITY CHECK Batter up 594 Choosing the Right Measures 594 Using Measures to Drive Performance 595 UNIT 11.1 REVIEW 597 Key Terms 597 Practice Questions 597 Unit 11.1 Practice Exercise 597 Selected Unit 11.1 Answers 597 Unit 11.2 The Balanced Scorecard 598 The Four Balanced Scorecard Perspectives 599 Learning and Growth Perspective 599 Internal Business Processes Perspective 600 Customer Perspective 601 Financial Perspective 601 Building a Balanced Scorecard 602 C&C Sports’ Strategy Map 603 Learning and Growth Perspective 604 Internal Business Processes Perspective 604 Customer Perspective 604 REALITY CHECK Not your typical balanced scorecard 605 C&C Sports’ Balanced Scorecard 605 UNIT 11.2 REVIEW 607 Key Terms 607 Practice Questions 608 Unit 11.2 Practice Exercise 608 Selected Unit 11.2 Answers 608 Unit 11.3 Benchmarking 609 REALITY CHECK Benchmarking in health care 611 UNIT 11.3 REVIEW 612 Key Terms 612 Practice Questions 612 Unit 11.3 Practice Exercise 612 Selected Unit 11.3 Answers 612 Chapter 11 Appendix: Measures of Meeting Delivery Expectations 613 Delivery Cycle Time 613 Manufacturing Cycle Time and Effi ciency 615 APPENDIX REVIEW 616 Key Terms 616 Practice Questions 616 Appendix Practice Exercise 616 Selected Appendix Answers 617 CHAPTER SUMMARY 618 KEY TERMS 618 EXERCISES 619 PROBLEMS 621 C&C SPORTS CONTINUING CASE 624 CASES 624 ANALYTICS PROBLEM 625 ENDNOTES 626 Chapter 12 Financial Statement Analysis 628 Unit 12.1 Horizontal Analysis of Financial Statements 630 Preparing a Horizontal Analysis 630 Interpreting a Horizontal Analysis 632 Preparing a Trend Analysis 632 REALITY CHECK How to slice an apple 634 UNIT 12.1 REVIEW 634 Key Terms 634 Practice Questions 634 Unit 12.1 Practice Exercise 635 Selected Unit 12.1 Answers 635 Unit 12.2 Common-Size Financial Statements 636 Preparing the Common-Size Balance Sheet 637 Preparing the Common-Size Income Statement 638 Interpreting the Common-Size Statements 639 REALITY CHECK Hospitals suffer from bad debts 639 UNIT 12.2 REVIEW 641 Key Terms 641 Practice Questions 641 Unit 12.2 Practice Exercise 641 Selected Unit 12.2 Answers 642 Unit 12.3 Ratio Analysis 643 Liquidity Ratios 644 REALITY CHECK Cash flow in a global supply chain 647 Leverage Ratios 650 Profitability Ratios 652 Market Measure Ratios 654 Limitations of Financial Statement Analysis 656 UNIT 12.3 REVIEW 656 Key Terms 656 Practice Questions 656 Unit 12.3 Practice Exercise 657 Selected Unit 12.3 Answers 657 Unit 12.4 Industry Analysis 659 Published Industry Ratio Analyses 659 REALITY CHECK Growing strong farms 660 Industry Statistics 660 UNIT 12.4 REVIEW 663 Practice Questions 663 Unit 12.4 Practice Exercise 663 Selected Unit 12.4 Answers 663 CHAPTER SUMMARY 665 KEY TERMS 666 EXERCISES 666 PROBLEMS 671 C&C SPORTS CONTINUING CASE 674 CASES 674 ENDNOTES 679 Chapter 13 Statement of CashFlows 680 Unit 13.1 Categorizing Cash Flows 682 Operating Activities 683 REALITY CHECK What’s in your wallet? 684 Investing Activities 684 Financing Activities 684 UNIT 13.1 REVIEW 686 Key Terms 686 Practice Questions 686 Unit 13.1 Practice Exercise 686 Selected Unit 13.1 Answers 687 Unit 13.2 Cash Flows Provided by Operating Activities: The Indirect Method 688 REALITY CHECK Running out of cash? 692 Unit 13.2 REVIEW 692 Practice Questions 692 Unit 13.2 Practice Exercise 693 Selected Unit 13.2 Answers 693 Unit 13.3 Cash Flows Provided by Investing and Financing Activities 694 Cash Flows Provided by Investing Activities 694 Cash Flows Provided by Financing Activities 696 UNIT 13.3 REVIEW 699 Practice Questions 699 Unit 13.3 Practice Exercise 700 Selected Unit 13.3 Answers 700 Unit 13.4 Constructing and Interpreting the Statement of Cash Flows 701 Analyzing the Statement of Cash Flows 703 UNIT 13.4 REVIEW 704 Practice Questions 704 Unit 13.4 Practice Exercise 705 Selected Unit 13.4 Answers 706 Chapter 13 Appendix: Cash Flows Provided by Operating Activities: The Direct Method 706 Collections from Customers 707 Payments to Suppliers 708 Payments to Employees 709 Payments for Operating Costs 709 Payments for Income Taxes 710 APPENDIX REVIEW 712 Practice Questions 712 Appendix Practice Exercise 712 Selected Appendix Answers 712 CHAPTER SUMMARY 714 KEY TERMS 716 EXERCISES 716 PROBLEMS 722 C&C SPORTS CONTINUING CASE 728 CASE 728 Endnotes 730 Glossary G-1 Company Index CI-1 Subject Index SI-1