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FINANCE 2 QUESTIONS

FINANCE 2 QUESTIONS.

  • Huff Company and Mesa Company are similar firms that operate in the same industry. See Exercise 1-10 for the table.

Write a short essay comparing Huff and Mesa using the available information. Your discussion should include their ability to meet current obligations and to use current assets efficiently.

 

 

  • Some financial statement users criticize the timeliness of annual financial statements.

Required:

a. Explain why summary information in the income statement is not new information when the annual report is issued.

b. Describe the types of information in the income statement that are new information to financial statement users when the annual report is issued.

 

FINANCE 2 QUESTIONS

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