Worksheet 3.2- Show me the money.

Follow –up exercises

a. Complete the statements below logically based on the information provided in the text
“Show me the money”. The number in [ ] indicates which section of the reading it is based
on. Make sure that you write a COMPLETE sentence.

1. Items used to operate the business such [1] as trucks, office furniture and other property
(fixed
assets) ......................................................................................................................................
...............

2. Trademarks and patents are referred to as

intangibles ......................................................... because
[1] ......................................................................................... they can't be touched.

3. A company can earn money not only from its own business activities but also by
[2]investing in other businesses buying sharws in them or from their cash in interest-bearing
savings accounts ..............

4. The total net income divided by the number of outstanding shares tells a shareholder how
[2] the earning per share (how much money the shareholders would receive for each share
they owned if the comoany distributed all of its net income for the
period) ...................................................................

5. COGS, which stands for “Cost of goods sold”, refers to the expenses associated [2] with
the production of goods the company sold during the accounting
period ................................................................... ....................................................................
.................................................................................

b. Here are some answers. Write a logical question based on the information in the text.

1. ...............................................................................................................................................
........................ What are salaries and wages payables? It refers to the shares, or the total
amount of capital that the owners have invested in the company. [1]

2. ...............................................................................................................................................
........................ Payroll owed to a company’s employees. [1]

3. Where do liabilities usually appear? They usually appear on the right side of the balance
sheet above shareholders’ equity. [1]

4. ..................................................... What does the company have to pay for the money they
borrow? It has to pay interest expense. [2]

5. .......................................................................................................... What is net income

also known as? The bottom line. [2]