Denver Wholesale Sporting Goods, Inc

Abstract

This case requires students to develop an understanding of (1) the nature of various business events, and (2) how such events affect a company's reported cash flows, net current assets, total assets, and net income. The case does not require the bookkeeping activities of recording and posting journal entries; therefore, it provides an opportunity for a managerially oriented perspective focused on the important question, "How will this event affect my financial profile?"

Excerpt

UVA-C-2067

DENVER WHOLESALE SPORTING GOODS, INC.

Below is a partial list of business events entered into by Denver Wholesale Sporting Goods, Inc., during the first fiscal quarter of the current year. Determine how each event, as of the moment it occurred, would be recognized, if at all, in that quarter's financial statements. If the event should not be recognized, write not recognized.

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Keywords: financial statement analysis, management accounting