Preface
xviii
Appendix 11A: Payroll Deduction Calculations...................................................................................... 343
CPP Calculation........................................................................................................................................... 343
EI Calculations.............................................................................................................................................. 344
Income Tax Calculations........................................................................................................................... 345
Workers’ Compensation........................................................................................................................... 346
Chapter 12: Using Accounting Information
Reading the Balance Sheet. ........................................................................................................................... 349
Shareholders’ Equity.................................................................................................................................. 352
Reading the Income Statement.................................................................................................................... 353
Discontinued Operation.......................................................................................................................... 354
Other Comprehensive Income.............................................................................................................. 355
Gains and Losses......................................................................................................................................... 355
Horizontal and Vertical Analysis................................................................................................................... 356
Analyzing the Statements.............................................................................................................................. 362
Liquidity Analysis........................................................................................................................................ 364
Profitability Analysis.................................................................................................................................. 366
Operations Management Analysis....................................................................................................... 371
Leverage Analysis....................................................................................................................................... 372
The Cash Flow Statement............................................................................................................................... 373
Three Sources and Uses of Cash............................................................................................................ 376
In Summary.......................................................................................................................................................... 378
Review Exercise.................................................................................................................................................. 380
Appendices
......................................................................................................................................................... 385
Glossary
.............................................................................................................................................................. 437
Index
...................................................................................................................................................................... 449
