Managerial Accounting, 3rd Edition

by James Jiambalvo (Univ. of Washington, Seattle)

• ISBN13: 9780470038154
• ISBN10: 0470038152
• Edition: 3rd
• Format: Hardcover
• Copyright: 2006-10-01
• Publisher: Wiley

Summary

Recognizing that most students will pursue careers as managers not accountants, Managerial Accounting omits topics of less importance and concentrates on the key accounting concepts that managers need to understand in order to make successful, informed decisions. Managerial Accounting focuses attention on decision making through incremental analysis and performance measurement. Students are motivated to learn managerial accounting by connecting concepts and techniques to the real world; using real cases and real manager's comments on real company issues. Students and instructors alike have praised this text's clear and concise writing style, to-the-point discussions, illustrated ideas, and examples that are presented to make ideas concrete

Author Biography

PROFESSOR JAMES JIAMBALVO joined the accounting faculty at the University of Washington after receiving a Ph.D. in accounting from The Ohio State University. A CPA, he has audit experience with the firm of Haskins and Sells (now Deloitte & Touche), and has served on the national academic advisory board of Deloitte & Touche LLP. Professor Jiambalvo has served as chairman of the UW Accounting Department and he holds the PricewaterhouseCoopers and Alumni Endowed Professorship.

Table of Contents

Managerial Accounting in the Information Age	3	(34)
Goal of Managerial Accounting	4	(1)
Planning	4	(1)
Budgets for Planning	4	(1)
Control	4	(3)
Performance Reports for Control	5	(2)
Decision Making	7	(1)
A Comparison of Managerial and Financial Accounting	7	(1)
Internal versus External Users	8	(1)
Need to Use GAAP	8	(1)
Detail of Information	8	(1)
Emphasis on Nonmonetary Information	8	(1)
Emphasis on the Future	8	(1)
Similarities between Financial and Managerial Accounting	8	(1)
Cost Terms Used in Discussing Planning, Control, and Decision Making	9	(1)
Variable and Fixed Costs	9	(1)
Variable Costs	9	(1)
Fixed Costs	10	(1)
Sunk Costs	10	(1)
Opportunity Costs	10	(1)
Direct and Indirect Costs	10	(1)
Controllable and Noncontrollable Costs	11	(1)
Two Key Ideas in Managerial Accounting	11	(1)
Decision Making Relies on Incremental Analysis	12	(1)
You Get What You Measure!	13	(1)
The Information Age and Managerial Accounting	14	(1)
Competition and Information Technology	14	(1)
The Impact of Information Technology on Management of the Value Chain	14	(2)
Information Flows between Milano and Customers	15	(1)
Information Flows between Milano and Suppliers	15	(1)
Using Information Technology to Gain Internal Efficiencies	15	(1)
Software Systems That Impact Value Chain Management	16	(1)
Enterprise Resource Planning Systems	16	(1)
Supply Chain Management Systems	16	(1)
Customer Relationship Management Systems	16	(1)
Ethical Considerations in Managerial Decision Making	17	(1)
Ethical and Unethical Behavior	17	(2)
Sarbanes-Oxley Act	18	(1)
A Framework for Ethical Decision Making	19	(1)
IMA Statement of Ethical Professional Practice	20	(1)
The Controller as the Top Management Accountant	20	(2)
Making Business Decisions	22	(1)
Summary of Learning Objectives	23	(1)
Appendix IMA Statement of Ethical Professional Practice	24	(1)
Principles	24	(1)
Standards	24	(1)
Resolution of Ethical Conflict	25	(1)
Key Terms	25	(1)
Self-Assessment	26	(1)
Interactive Learning	27	(1)
Questions	27	(1)
Exercises	27	(3)
Problems	30	(4)
Cases	34	(3)
Job-Order Costing for Manufacturing and Service Companies	37	(50)
Cost Classifications for Manufacturing Firms	38	(1)
Manufacturing Costs	39	(1)
Direct Material	39	(1)
Direct Labor	40	(1)
Manufacturing Overhead	40	(1)
Nonmanufacturing Costs	40	(1)
Selling Costs	40	(1)
General and Administrative Costs	41	(1)
Product and Period Costs	41	(1)
Product Costs	41	(1)
Period Costs	41	(1)
Product Cost Information in Financial Reporting and Decision Making	42	(1)
Balance Sheet Presentation of Product Costs	43	(1)
Flow of Product Costs in Accounts	44	(1)
Income Statement Presentation of Product Costs	45	(2)
Cost of Goods Manufactured	45	(1)
Cost of Goods Sold	46	(1)
Types of Costing Systems	47	(1)
Overview of Job Costs and Financial Statement Accounts	48	(1)
Job-Order Costing System	49	(1)
Direct Material Cost	50	(2)
Direct Labor Cost	52	(1)
Manufacturing Overhead	53	(1)
Assigning Costs to Jobs: A Summary	54	(1)
Eastlike Revisited: Using Job Cost Information	55	(2)
Relation Between the Costs of Jobs and the Flow of Costs in Work in Process, Finished Goods, and Cost of Goods Sold	57	(1)
Allocating Overhead to Jobs: A Closer Look	57	(1)
Overhead Allocation Rates	58	(1)
The Overhead Allocation Base	58	(1)
Activity-Based Costing (ABC) and Multiple Overhead Rates	59	(1)
Predetermined Overhead Rates	59	(1)
Eliminating Overapplied or Underapplied Overhead	60	(1)
Job-Order Costing for Service Companies	61	(1)
Modern Manufacturing Practices and Product Costing Systems	62	(1)
Just-In-Time (JIT) Production	63	(1)
Computer-Controlled Manufacturing	63	(2)
Total Quality Management	65	(2)
Making Business Decisions	67	(1)
Summary of Learning Objectives	67	(1)
Review Problem	68	(2)
Key Terms	70	(1)
Self Assessment	71	(1)
Interactive Learning	72	(1)
Questions	72	(1)
Exercises	72	(4)
Problems	76	(8)
Cases	84	(3)
Process Costing	87	(38)
Difference Between Job-Order and Process Costing Systems	88	(2)
Product and Cost Flows	90	(1)
Product Flows Through Departments	90	(3)
Cost Flows Through Accounts	91	(1)
Direct Material	92	(1)
Direct Labor	92	(1)
Manufacturing Overhead	92	(1)
Transferred-in Cost	92	(1)
Calculating Unit Cost	93	(1)
Equivalent Units	93	(1)
Cost Per Equivalent Unit	94	(1)
Calculating and Applying Cost Per Equivalent Unit: Mixing Department Example	94	(1)
Cost Transferred Out	95	(1)
Ending Work in Process	96	(1)
Production Cost Report	96	(1)
Reconciliation of Units	96	(2)
Reconciliation of Costs	98	(1)
Basic Steps in Process Costing: A Summary	98	(1)
Kent Chemical Revisited: Answering Stacy's Question	99	(1)
Dealing With Transferred-In Cost: Packaging Department Example	99	(2)
Process Costing and Incremental Analysis	101	(2)
Making Business Decisions	103	(1)
Summary of Learning Objectives	103	(1)
Review Problem	104	(2)
Key Terms	106	(1)
Self Assessment	106	(1)
Interactive Learning	107	(1)
Questions	107	(1)
Exercises	107	(4)
Problems	111	(8)
Cases	119	(6)
Cost-Volume-Profit Analysis	125	(54)
Common Cost Behavior Patterns	126	(1)
Variable Costs	126	(1)
Fixed Costs	126	(2)
Discretionary Versus Committed Fixed Costs	128	(1)
Mixed Costs	128	(1)
Step Costs	129	(1)
Cost Estimation Methods	130	(1)
Account Analysis	130	(2)
Scattergraphs	132	(2)
High-Low Method	134	(2)
Regression Analysis	136	(1)
The Relevant Range	137	(1)
Cost-Volume-Profit Analysis	138	(1)
The Profit Equation	138	(1)
Break-Even Point	138	(2)
Margin of Safety	139	(1)
Contribution Margin	140	(1)
Contribution Margin Ratio	140	(1)
``What-If'' Analysis	141	(1)
Change in Fixed and Variable Costs	141	(1)
Change in Selling Price	141	(1)
Taxes in CVP Analysis	142	(1)
Multiproduct Analysis	142	(1)
Contribution Margin Approach	142	(1)
Contribution Margin Ratio Approach	143	(3)
Assumptions in CVP Analysis	146	(1)
Codeconnect Example Revisited: Answering Mary's Question	147	(1)
Operating Leverage	148	(1)
Constraints	149	(1)
Making Business Decisions	150	(1)
Summary of Learning Objectives	150	(5)
Review Problem	155	(1)
Key Terms	156	(1)
Self Assessment	157	(1)
Interactive Learning	158	(1)
Questions	158	(1)
Exercises	158	(6)
Problems	164	(10)
Cases	174
Appendix Using Regression in Excel® to Estimate Fixed and Variable Costs	151	(1)
Setting Up the Spreadsheet	151	(1)
Interpreting the Output of the Regression Program	152	(27)
The Plot	152	(1)
R Square	152	(2)
Intercept and Slope of the Regression Line	154	(1)
P-Value	154	(25)
Variable Costing	179	(30)
Full (Absorption) and Variable Costing	180	(1)
Variable Costing Income Statement	180	(2)
Effects of Production on Income for Full Versus Variable Costing: The Clausentube Example	182	(1)
Quantity Produced Equals Quantity Sold	183	(2)
Quantity Produced is Greater Than Quantity Sold	185	(2)
Quantity Produced is Less Than Quantity Sold	187	(1)
Explaining What Happened at ClausenTube	188	(1)
Impact of JIT on the Income Effects of Full versus Variable Costing	188	(1)
Benefits of Variable Costing for Internal Reporting	189	(1)
Variable Costing Facilitates C-V-P Analysis	189	(1)
Variable Costing Limits Management of Earnings with Production Volume	189	(1)
Making Business Decisions	189	(1)
Summary of Learning Objectives	190	(1)
Review Problem	190	(2)
Key Terms	192	(1)
Self Assessment	192	(1)
Interactive Learning	193	(1)
Questions	193	(1)
Exercises	194	(2)
Problems	196	(9)
Cases	205	(4)
Cost Allocation and Activity-Based Costing	209	(52)
Purposes of Cost Allocation	210	(1)
To Provide Information for Decision Making	210	(1)
To Reduce Frivolous Use of Common Resources	211	(1)
To Encourage Evaluation of Services	212	(1)
To Provide ``Full Cost'' Information	213	(1)
Process of Cost Allocation	214	(1)
Determining the Cost Objective	214	(1)
Forming Cost Pools	214	(1)
Selecting an Allocation Base	215	(1)
Allocation Service Department Costs	216	(1)
Direct Method of Allocating Service Department Costs	217	(1)
Allocating Budgeted and Actual Service Department Costs	218	(1)
Problems with Cost Allocation	218	(1)
Responsibility Accounting and Controllable Costs	219	(1)
Arbitrary Allocations	219	(1)
Unitized Fixed Costs and Lump-Sum Allocations	220	(2)
The Problem of Too Few Cost Pools	222	(1)
Using Only Volume-Related Allocation Bases	223	(1)
Activity-Based Costing	223	(1)
The Problem of Using Only Measures of Production Volume to Allocate Overhead	223	(1)
The ABC Approach	224	(2)
Relating Cost Pools to Products Using Cost Drivers	226	(1)
The ABC Approach at Gardenrite Manufacturing: A Comprehensive Example	226	(3)
Gardenrite's Costs under the Traditional Approach	226	(1)
Gardenrite's Costs under the ABC Approach	227	(2)
Pros and Cons of ABC	229	(2)
Benefits	229	(2)
Limitations	231	(1)
Activity-Based Management (ABM)	231	(1)
Remember---You Get What You Measure!	232	(1)
Making Business Decisions	233	(1)
Summary of Learning Objectives	233	(1)
Appendix Activity Based Management	234	(1)
Step 1: Determine Major Activities	234	(1)
Step 2: Identify Resources Used by Each Activity	235	(1)
Return Merchandise to Stock if Not Acceptable to Customer or Customer Not Home to Receive Delivery	235	(1)
Wash Delivery Trucks	235	(1)
Step 3: Evaluate the Performance of the Activities	236	(1)
Step 4: Identity Ways to Improve the Efficiency and/or Effectiveness of the Activities	236	(1)
Conclusion	236	(1)
Review Problem	237	(2)
Key Terms	239	(1)
Self Assessment	239	(1)
Interactive Learning	240	(1)
Questions	240	(1)
Exercises	240	(5)
Problems	245	(11)
Cases	256	(5)
The Use of Cost Information in Management Decision Making	261	(41)
Incremental Analysis	262	(2)
When Your Boss Asks ``What Does This Product (Service) Cost?'' You Should Say ``Why Do You Want to Know?''	264	(1)
Analysis of Decisions Faced by Managers	265	(1)
Additional Processing Decision	265	(2)
Make-or-Buy Decision: the General Refrigeration Example	267	(3)
Dropping A Product Line	270	(2)
Beware of the Cost Allocation Death Spiral!	272	(1)
Summary of Incremental, Avoidable, Sunk, and Opportunity Costs	272	(1)
Decisions Involving Joint Costs	273	(1)
Allocation of Joint Costs	274	(2)
Additional Processing Decisions and Joint Costs	276	(1)
Qualitative Considerations in Decision Analysis	277	(1)
Making Business Decisions	278	(1)
Summary of Learning Objectives	279	(1)
Appendix The Theory of Constraints (Toc)	279	(1)
The Five-Step Process of Toc	279	(1)
Step 1: Identify the Binding Constraint	280	(1)
Step 2: Optimize Use of the Constraint	280	(1)
Step 3: Subordinate Everything Else to the Constraint	281	(1)
Step 4: Break the Constraint	281	(1)
Step 5: Identify a New Binding Constraint	281	(1)
Implications of TOC for Inspections, Batch Sizes, and Across the Board Cuts	281	(1)
Inspections	282	(1)
Batch Sizes	282	(1)
Across the Board Cuts	282	(1)
You Get What You Measure and Toc	282	(1)
Review Problem	282	(1)
Key Terms	283	(1)
Self Assessment	283	(1)
Interactive Learning	284	(1)
Questions	285	(1)
Exercises	285	(5)
Problems	290	(8)
Cases	298	(4)
Pricing Decisions, Analyzing Customer Profitability, and Activity-Based Pricing	302	(27)
The Profit Maximizing Price	302	(1)
Pricing Special Orders	303	(1)
Cost-Plus Pricing	304	(2)
Target Costing	306	(2)
Analyzing Customer Profitability: Revisiting the Wholesale Office Supply Case	308	(3)
Activity-Based Pricing	311	(1)
Making Business Decisions	312	(1)
Summary of Learning Objectives	312	(1)
Review Problem	313	(2)
Key Terms	315	(1)
Self Assessment	315	(1)
Interactive Learning	316	(1)
Questions	316	(1)
Exercises	317	(4)
Problems	321	(5)
Cases	326	(3)
Capital Budgeting and Other Long-Run Decisions	329	(45)
Capital Budgeting Decisions	330	(1)
Evaluating Investment Opportunities: Time Value of Money Approaches	331	(1)
Basic Time Value of Money Calculations	332	(1)
The Net Present Value Method	333	(3)
Steps in the NPV Method	334	(1)
An Example of the NVP Approach	334	(2)
The Internal Rate of Return Method	336	(1)
The Internal Rate of Return Method With Unequal Cash Flows	337	(2)
Summary of Net Present Value and Internal Rate of Return Methods	339	(1)
Considering ``Soft'' Benefits in Investment Decisions	339	(1)
Calculating the Value of Soft Benefits Required to Make an Investment Acceptable	340	(1)
Estimating the Required Rate of Return	341	(1)
Additional Cash Flow Considerations	342	(1)
Cash Flows, Taxes, and the Depreciation Tax Shield	342	(3)
Adjusting Cash Flows for Inflation	345	(1)
Other Long-Run Decisions	345	(2)
Simplified Approaches to Capital Budgeting	347	(1)
Payback Period Method	347	(1)
Accounting Rate of Return	348	(2)
Conflict Between Performance Evaluation and Capital Budgeting	350	(1)
Wilson Air Example Revisited	351	(1)
Making Business Decisions	352	(1)
Summary of Learning Objectives	353	(1)
Appendix A: Using Excel® to Calculate NPV and IRR	354	(3)
Appendix B: Present Value Tables	357	(1)
Review Problem	358	(1)
Key Terms	359	(1)
Self Assessment	359	(1)
Interactive Learning	360	(1)
Questions	361	(1)
Exercises	361	(2)
Problems	363	(7)
Cases	370	(4)
Budgetary Planning and Control	374	(45)
Use of Budgets in Planning and Control	374	(1)
Planning	374	(1)
Control	374	(2)
Developing the Budget	376	(1)
Budget Time Period	377	(1)
Zero-Base Budgeting	377	(1)
The Master Budget	378	(1)
Sales Budget	378	(1)
Production Budget	379	(2)
Direct Material Purchase Budget	381	(1)
Direct Labor Budget	381	(1)
Manufacturing Overhead Budget	382	(1)
Selling and Administrative Expense Budget	382	(2)
Budgeted Income Statement	384	(1)
Capital Acquisitions Budget	384	(1)
Cash Receipts and Disbursement Budget	385	(2)
Budgeted Balance Sheet	387	(1)
Use of Computers in the Budget Planning Process	388	(1)
Budgetary Control	388	(1)
Budgets as a Standard for Evaluation	389	(1)
Static and Flexible Budgets	389	(2)
Investigating Budget Variances	391	(1)
Conflict in Planning and Control Uses of Budgets	392	(1)
Why Budget-Based Compensation Can Lead to Budget Padding and Income Shifting	392	(2)
Evaluation, Measurement, and Management Behavior	394	(1)
The Preston Joystick Case Revisited	394	(1)
Making Business Decisions	394	(1)
Summary of Learning Objectives	395	(1)
Review Problem	395	(2)
Key Terms	397	(1)
Self Assessment	398	(1)
Interactive Learning	398	(1)
Questions	399	(1)
Exercises	399	(4)
Problems	403	(12)
Cases	415	(4)
Standard Costs and Variance Analysis	419	(38)
Standard Costs	420	(1)
Standard Costs and Budgets	420	(1)
Development of Standard Costs	421	(1)
Ideal Versus Attainable Standards	422	(1)
A General Approach to Variance Analysis	422	(1)
Material Variances	423	(1)
Material Price Variance	424	(1)
Material Quantity Variance	424	(1)
Direct Labor Vaiances	425	(1)
Labor Rate Variance	426	(1)
Labor Efficiency Variance	426	(1)
Overhead Variances	426	(1)
Controllable Overhead Variance	427	(1)
Overhead Volume Variance	427	(2)
Computing the Overhead Volume Variance	428	(1)
Interpreting the Overhead Volume Variance	428	(1)
Calculating the Financial Impact of Operating at More or Less Than Planned Capacity	429	(1)
Comprehensive Example: Darrington Ice Cream	430	(2)
Material Variances	432	(1)
Labor Variances	432	(1)
Overhead Variances	432	(1)
Investigation of Standard Cost Variances	433	(1)
Management by Exception	434	(1)
``Favorable'' Variances May be Unfavorable	434	(1)
Can Process Improvements Lead to ``Unfavorable'' Variances?	434	(1)
Beware---Evaluation in Terms of Variances Can Lead to Excess Production	435	(1)
Responsibility Accounting and Variances	436	(1)
Making Business Decisions	436	(1)
Summary of Learning Objectives	436	(1)
Appendix: Recording Standard Costs in Accounts	437	(1)
Recording Material Costs	437	(1)
Recording Labor Cost	438	(1)
Recording Manufacturing Overhead	438	(1)
Recording Finished Goods	439	(1)
Recording Cost of Goods Sold	439	(1)
Closing Variance Accounts	440	(1)
Review Problem	440	(2)
Key Terms	442	(1)
Self Assessment	442	(1)
Interactive Learning	443	(1)
Questions	443	(1)
Exercises	444	(4)
Problems	448	(6)
Cases	454	(3)
Decentralization and Performance Evaluation	457	(50)
Why Firms Decentralize	458	(1)
Advantages of Decentralization	458	(1)
Disadvantages of Decentralization	459	(1)
Why Companies Evaluate the Performance of Subunits and Subunit Managers	460	(1)
Responsibility Accounting and Performance Evaluation	461	(1)
Cost Centers, Profit Centers, and Investment Centers	462	(1)
Cost Centers	462	(1)
Profit Centers	463	(1)
Investment Centers	463	(1)
Evaluating Investment Centers with ROI	464	(2)
Measuring Income and Invested Capital When Calculating ROI	466	(1)
Problems With Using ROI	467	(1)
Problems of Overinvestment and Underinvestment: You Get What You Measure!	468	(2)
Evaluation in Terms of Profit Can Lead to Overinvestment	469	(1)
Evaluation in Terms of ROI Can Lead to Underinvestment	469	(1)
Evaluation Using Economic Value Added (EVA)	470	(1)
Residual Income (RI)	470	(1)
Revisiting the Situation at Action Industries	471	(1)
Solving the Overinvestment and Underinvestment Problems	471	(1)
Economic Value Added (EVA)	471	(5)
EVA Example	472	(4)
Using a Balanced Scorecard to Evaluate Performance	476	(1)
Tying the Balanced Scorecard Measures to the Strategy for Success	476	(2)
Scenario 1. Learning and Growth Dimension	477	(1)
Scenario 2. Internal Process Dimension	477	(1)
Scenario 3. Customer Dimension	477	(1)
Scenario 4. Financial Dimension	478	(1)
How Balance is Achieved in a Balanced Scorecard	478	(1)
Developing a Strategy Map for a Balanced Scorecard	479	(1)
Keys to a Successful Balanced Scorecard: Targets, Initiatives, Responsibility, Funding, Top Management Support	480	(1)
Making Business Decisions	481	(1)
Summary of Learning Objectives	482	(1)
Appendix Transfer Pricing	483	(1)
Market Price as the Transfer Price	483	(1)
Market Price and Opportunity Cost	484	(2)
Variable Cost as the Transfer Price	486	(1)
Full Cost Plus Profit as the Transfer Price	486	(1)
Negotiated Transfer Prices	487	(1)
Transfer Pricing and Income Taxes in an International Context	488	(1)
Review Problem	488	(3)
Key Terms	491	(1)
Self Assessment	492	(1)
Interactive Learning	492	(1)
Questions	493	(1)
Exercises	493	(3)
Problems	496	(7)
Cases	503	(4)
Analyzing Financial Statements: A Managerial Perspective	507	(44)
Why Managers Analyze Financial Statements	508	(1)
Control of Operations	508	(1)
Assessment of Vendors, Customers, and Other Business Partners	509	(1)
Assessment of Appearance to Investors and Creditors	509	(1)
Review of the Three Basic Financial Statements	509	(1)
The Balance Sheet	510	(1)
Current and Noncurrent Assets and Liabilities	511	(1)
The Income Statement	511	(1)
The Statement of Cash Flows	512	(1)
Operating Activities	512	(1)
Investing Activities	512	(1)
Financing Activities	512	(1)
Horizontal and Vertical Analysis	513	(1)
Analysis of the Balance Sheet	513	(2)
Analyzing the Income Statement	515	(1)
Earnings Management and the Need to Compare Earnings and Cash Flow Information	516	(1)
Other Sources of Information on Financial Performance	517	(1)
Management Discussion and Analysis	517	(1)
Credit Reports	517	(1)
News Articles	517	(1)
Ratio Analysis	518	(1)
Profitability Ratios	518	(2)
Financial Leverage	519	(1)
Summary of Profitability Ratios	520	(1)
Turnover Ratios	520	(2)
Summary of Turnover Ratios	521	(1)
Debt Related Ratios	522	(1)
Summary of Debt Related Ratios	523	(1)
A Managerial Perspective on the Analysis of HGW'S Financial Statements	523	(1)
Control of Operations	523	(1)
Stability of Vendors, Customers, and Other Business Partners	523	(1)
Returning to the Situation Facing Valley Home Loan	524	(1)
Appearance to Investors and Creditors	524	(1)
Summary of Analyses	524	(1)
Making Business Decisions	525	(1)
Summary of Learning Objectives	526	(1)
Review Problem	526	(2)
Key Terms	528	(1)
Self Assessment	528	(1)
Interactive Learning	529	(1)
Questions	530	(1)
Exercises	530	(5)
Problems	535	(11)
Cases	546	(5)
Statement of Cash Flows	551	(32)
Need for a Statement of Cash Flows	551	(1)
Types of Business Activities and the Classification of Cash Flows	552	(1)
Operating Activities	552	(2)
Investing Activities	554	(1)
Financing Activities	555	(1)
The Statement of Cash Flows Prepared Using the Direct Method	555	(4)
Preparing the Statement of Cash Flows Using the Indirect Method	559	(1)
Statement of Cash Flows for Ravira Restaurant Supply---Indirect Method	560	(3)
Interpreting Information in the Statement of Cash Flows---The Situation at Ravira Restaurant Supply	563	(1)
Making Business Decisions	563	(1)
Summary of Learning Objectives	564	(1)
Review Problem	564	(2)
Key Terms	566	(1)
Self Assessment	566	(1)
Questions	567	(1)
Exercises	568	(5)
Problems	573	(9)
Cases	582	(1)
Glossary	583	(6)
Photo Credits	589	(2)
Index	591