THE USE OF VISUAL AIDS IN FINANCIAL ACCOUNTING COURSES
James M. Moore, Ph.D., C.P.A.
Assistant Professor, Goodman School of Business
Brock University, St. Catharines, Ontario, Canada
[email protected]
THE USE OF VISUAL AIDS IN FINANCIAL ACCOUNTING COURSES
INTRODUCTION
Existing literature suggests that visual aids increase learning, particularly where complex
materials are being presented. Baker, Jones and Burkman (2009) provide a framework that
suggests that sensemaking will be improved by visual aids when the visual aids possess several
of the following four aspects: (1) support the four basic human visual perceptual approaches of
association, differentiation, ordered perception, and quantitative perception, (2) have strong
Gestalt properties, (3) are consistent with the viewer's stored knowledge, and (4) support
analogical reasoning.
This paper discusses my experience with two applications of visual aids in my financial
reporting courses. Although I discuss the specific application of these visual aids to the topic of
intercompany investments, the general approach should be applicable to other financial
accounting topics. The first visual aid uses a numerical example and pie charts to illustrate the
differences between the proprietary, parent company and the entity methods of consolidation.
The second visual aid uses color coding in a consolidation problem in order to facilitate student’s
understanding of the components of consolidated amounts. Anecdotal and course appraisal
evidence suggests that the visual aids increase both the speed and depth of learning.
This paper proceeds as follows. Section 2 provides a literature review on the use of visual
aids, with emphasis on their application in business education. Section 3 discusses the two
example visual aids. Section 4 discusses anecdotal and course appraisal evidence. Section 5
concludes.
LITERATURE ON THE USE OF VISUAL AIDS IN ACCOUNTING EDUCATION
Visual aids have been used in education for centuries. Visual aids in education include
charts, graphs, pictures, demonstrations, use of color and more recently power point
presentations. Visual aids can be helpful in maintaining student interest and explaining
complicated concepts.
Kinder (1942) provides one of the first reviews of the use of visual aids in education.
Turney (1983) finds that effective use of audio and visual aids improves learning in secondary
schools. Kozma, Belle and Williams (1978) find similar results for university students. “Ideas
that are linked through visual symbols are also likely to be retained in the long-term memory. It
is therefore worth a little time thinking out a visual presentation of key topics, relationships and
processes. The effort may well deepen your own understanding of the topic as well as providing
meaningful connections for your students”.
Extant business education literature also suggests that visual aids may aid learning and
improve student satisfaction with the learning process. Evans (1996) finds evidence suggesting
that accounting student satisfaction with the learning process is improved when the learning
package is prepared for both verbal and visual learners. Clarke, Flaherty and Yankey (2006) find
evidence that visual aids improve marketing students’ performance and course satisfaction.
Cognitive Fit Theory has been used to explain the benefits of visual aids. Cognitive Fit
Theory suggests that when the representation of a problem matches the task type, cognitive fit
can be achieved and decision making performance improved. Vessey (2006) provides a
comprehensive review of a number of studies that have applied Cognitive Fit Theory. Research
on the impact of visual aids in business education also suggests that visual aids may help
learning, provided that they result in a good cognitive fit. Goswami, Chan and Kim (2008)
provide experimental evidence suggesting that performance on spreadsheet error correction tasks
can be improved when visual aids result in a good cognitive fit.
Baker, Jones and Burkman (2009) discuss the application of Cognitive Fit Theory to the
use of visual representations in data exploration tasks. Baker, Jones and Burkman (2009) discuss
the impact of visual representations on sensemaking in data exploration tasks. They define
sensemaking as “the ability to comprehend complex information, assimilate it, create order from
it, and develop a mental model of the situation as a precursor to responding to the situation”1.
While, Baker, Jones and Burkman (2009) focus on data exploration tasks, they conclude (p.13):
”Our characterization of visual representations suggests a large class of problems that can be
represented by them.” They suggest that sense making will be improved by visual aids when the
visual aids possess several of the following four aspects: (1) support the four basic human visual
perceptual approaches of association, differentiation, ordered perception, and quantitative
perception, (2) have strong Gestalt properties, (3) are consistent with the viewer's stored
knowledge, and (4) support analogical reasoning.
This paper discusses the application of these four aspects to two visual aids used in a
financial reporting course that focuses on accounting for inter-corporate investments. Baker,
Jones and Burkman’s (2009) model is summarized in Figure 1. A brief discussion of these four
aspects follows. Bertin (1983) observed four human visual perceptual approaches: association,
differentiation, ordered perception and quantitative perception. Association occurs when the
viewer notes that two or more objects are similar. Differentiation occurs when the viewer notes
that two or more objects are different. Ordered perception occurs when the viewer notes that an
object has more of a particular attribute than another item. Quantitative perception occurs when
the viewer notes that an object has some multiple of an attribute of another item. Gestalt
properties allow the viewer to spot patterns in what they are viewing. Gestalt properties include
similarity, proximity, symmetry, continuity, closure or an inference of common fate (such as all
1
Baker, Jones and Burkman (2009), p.2. objects appearing to travel in the same direction)2. When a visual representation is consistent
with the viewer's knowledge, cognitive cost are reduced. Analogical reasoning allows for the
understanding of one situation in terms of a more familiar situation.
APPLICATIONS OF VISUAL AIDS IN FINANCIAL REPORTING COURSES
This section discusses two visual aids used in two financial reporting courses. Both
courses cover inter-corporate investments. One course is taught at the undergraduate level, the
other at the graduate level. The two visual aids are not heavily dependent on the use of
technology since both can be presented with overheads or on blackboards with multi-colored
chalk. They could also be incorporated into power-point presentations, problem based learning
exercises, computer-assisted learning programs and other learning instruments. For a review of
the use of technology in accounting education, readers are referred to Bryan and Hunton (2000).
The first visual aid is used when non-controlling interest is first introduced in the study of
inter-corporate investment accounting. In the absence of goodwill valuation issues, standard
setters have three viable choices for dealing with non-controlling interests: the proprietary
method, the parent company method and the entity method. The proprietary method (also known
as proportionate consolidation) has been used for joint ventures. The parent company method
was the predominant method used in North America until its recent replacement by the entity
method. The three methods move from including in the consolidated financial statements none of
the share of assets belonging to the non-controlling interests under the proprietary method to all
of the value of the assets belonging to the non-controlling interest under the equity method.
Appendix 1 presents an example of the differences in these three methods using visual aids.
Students are asked to imagine an 80% acquired subsidiary as a pie where the pie
represents the entire value of the subsidiary. The subsidiary has one asset with a book value of
$700 and a fair value of $1,000. The pie can be divided into the book value of the asset acquired
and the fair value increment that represents the difference between fair value and book value.
The pie is then further divided into the portion of book value and fair value increments owned by
the majority shareholder and the non-controlling interest. The solution pie diagrams then show
the progression of including more of the asset owned by the non-controlling interests as the
solution pie diagrams move from the proprietary method to the entity method.
The pie charts support all of the four characteristics suggested by Baker, Jones and
Burkman (2009). The pie charts support the four visual characteristics as follows. Association is
2
Baker, Jones and Burkman (2009), p. 3. supported since the visual aids are all pie charts, are divided into book value and fair value and
have common colors. Differentiation and ordered perception are supported by adding more of the
non-controlling interests’ share of the net assets as the solution diagrams progress from the
proprietary method to the entity method. Quantitative perception occurs by virtue of majority
interest being exactly four times the size of the non-controlling interest in all diagrams. Gestalt
properties exist since students should see a pattern of gradually including more of the noncontrolling interests’ share of the net assets. Some consistency with stored knowledge should
exist as students are asked to review the textbook chapter that covers the three methods. The
diagrams also support analogical reasoning as students are likely to see dividing a pie as a
familiar task since students may divide pizzas, pies, cakes, etc. at family gatherings and other
social events.
The second visual aid is used whenever consolidation problems are taken up in class.
Solutions to consolidation problems use data from the parent and subsidiary financial statements
and from calculations of fair value increments and inter-company transactions. Some of the
calculations are complicated; however, they tend to follow familiar patterns. Templates can be
developed and used for most calculations.
The following color codes were used consistently throughout the course:
Data Source
Color Coding
Parent financial statements as at the date of
acquisition.
Not color coded to reinforce that this
information is not used in subsequent
calculations.
Subsidiary financial statements as at the date of Color coded in teal.
acquisition.
Subsidiary fair values as at the date of
acquisition.
Color coded in dark red.
Fair value increments
Color coded in grey.
Parent financial statements as at the date of
consolidation.
Color coded in bright green.
Subsidiary financial statements as at the date of Color coded in bright red.
consolidation.
Downstream transactions
Color coded in turquoise.
Upstream transactions
Color coded in pink.
When analyzing solutions, students often have a difficult time seeing where the numbers
used in preparing solutions came from. During the course of taking up problems, students ask
many questions, for example “Where is the 2,000 adjustment to amortization expense coming
from?” By color coding the solution, it is the perception of the instructor that students are able to
quickly determine the components of the consolidated amounts. This has several effects from the
perspective of the developing instructor. First, the number of questions asked during problem
take-up is reduced because students are able to quickly see the source of the consolidated
amounts and do not have to ask. This reduces the amount of classroom time required to cover a
particular question. Second, students begin to see common patterns in questions and solutions.
For example, most consolidated balance sheet amounts involve adding the parent company
amount and the subsidiary amounts together and then adjusting for fair value increments and
inter-company transactions.
The use of color coding as a learning aid for consolidation problems is consistent with
several aspects of cognitive fit theory. Association is supported since the same color coding was
used throughout the course. This allows students to see, for example, that most balance sheet
accounts involve adding the parent and subsidiary amounts, then adjusting for any remaining fair
value increments or intercompany transactions as at the consolidation date. Differentiation is
supported since students are reminded that the amounts and direction (add or subtract) of fair
value increments and intercompany transactions varies from problem to problem.
Gestalt properties are increased through the use of color coding throughout the course.
The number of colors is increased as the course progresses. In early examples, consolidations are
performed as of the acquisition date and there are no intercompany transactions. As a result, only
the first three colors are used. When the course progresses to performing consolidations
subsequent to the acquisition date, two more colors are introduced. Finally, when intercompany
transactions are introduced, the last two colors are added to the problems. This allows students to
retain common reference points and to build on their existing knowledge.
Inter-corporate investments are an ideal topic to employ color coding because a well
structured inter-corporate course builds on students knowledge from the previous topic they
studied. The use of a common color coding system throughout the course reduces cognitive costs
since students are able to see common patterns with previous problems and the impact of the new
topic being introduced. For example, prior to the introduction of intercompany transactions,
consolidated asset values at time t are calculated as follows.
Asset Valuet = Parent Book Valuet + Subsidiary Book Valuet +/- Fair Value Incrementt
After inter-company transactions are introduced, consolidated asset values at time t are
calculated as follows:
Asset Valuet = Parent Book Valuet + Subsidiary Book Valuet +/- Fair Value Incrementt +
Upstream Intercompany Profitst +/- Downstream Intercompany Profitst
STUDENT EVALUATIONS AND FEEDBACK
The following table summarizes student evaluations. Students are asked to evaluate the
instructor overall and the course overall with 5 being excellent and 1 being poor.
Year
Term
Spring
2006/07 07
Fall 07
2007/08 Fall 07
Spring
08
Fall 08
2008/09
Spring
09
Fall 09
2009/10 Fall 09
Winter
09
Fall 10
010/11
Fall 10
Graduate or
Undergraduate
Undergraduate
Undergraduate
Graduate
Undergraduate
Graduate
Undergraduate
Undergraduate
Graduate
Graduate
Graduate
Undergraduate
Instructor
Enrolment
Overall
86
81
9
87
8
86
132
9
8
15
138
4.39
4.45
5.00
4.65
4.71
4.19
4.52
4.87
4.75
4.93
4.58
Course
Overall
4.00
3.98
4.60
4.15
4.71
3.84
4.25
4.62
4.87
4.31
4.79
The pie chart diagrams were introduced in 2007/08 and the color coded consolidation
solutions were first used in 2009/10. Improved course evaluations provide some evidence that
students found the visual aids to be helpful. The instructor has taught consolidations for over ten
years, so the improvement is unlikely to be due to improved instructor technical knowledge. One
potential confounding factor in interpreting these results was that during 2007-2009, students in
the course were expected to be able to complete all calculations for exam purposes using both the
parent company and entity method since accounting standards for inter-corporate investments
were in transition. Starting in 2009, students were instructed for exam purposes to concentrate on
the entity method as it became clear that this method would be GAAP in Canada for the
foreseeable future. So part of the increase in student satisfaction may be due to decreased
workload.
In addition to a quantitative evaluation, students are invited to submit comments to the
instructor. The written comments received included many favorable comments on the use of the
two visual aids presented in this paper. For brevity, these comments are not reproduced in this
paper. The thrust of these comments was that the visual aids were helpful to them in
understanding the course material. In addition, the comments suggested that the visual aids
resulted in greater long-term memory with respect to the course material.
CONCLUSIONS AND IMPLICATIONS FOR LEARNING
The two visual aids illustrated in this paper are used in an accounting class that focused
on long-term investments. The favorable feedback from students suggests that visual aids such as
pie chart diagrams and color coding may be helpful in other accounting courses. For example,
pie chart diagrams may be helpful when teaching pension accounting, with pies of potentially
different sizes representing pension plan assets and projected benefit obligations. The pension
plan assets pie could be divided into cash, debt and equity instruments. The projected benefit
obligations pie could be divided into current employees and retired employees with key
assumptions listed within the pie to reinforce their importance. Color coding may be helpful in
introductory courses to separate transactional journal entries, adjusting journal entries and
closing journal entries. I have also used color coding in foreign currency transaction accounting.
Different colors are used for transactions that are denominated in foreign versus domestic
currency. Auditing courses could use different colors to denote differing types of auditing
procedures (confirmation, analytical procedures, inspection, tests of controls, etc.). Instructors
are encouraged to use their imagination and employ visual aids when establishing a visual
pattern is likely to help students understand a process or when complex materials are being
covered.
The paper describes two visual aids and discusses how the visual aids are compatible
with Baker, Jones and Burkman’s (2009) cognitive fit model for visual aids. Course evaluations
and other student feedback suggest that the visual aids helped students learn.
Appendix 1
Pie Chart Example
80% of a company is acquired for $800k. The company has one asset with a book value of $700k
and a fair value of $1,000k.
Breakdown of Value Between Majority and Non-­‐controlling Parent BV=560 60 140 240 Minority BV=240 Parent FVI=140 560 Minority FVI=60 Proprietary Method (Proportionate consolidation)
Reported Assets = 800 Reported Parent BV=560 60 140 240 560 Reported Minority BV=240 Reported Non-­‐
Controlling Interest = 0 Parent BV=560 60 140 240 Minority BV=240 560 Parent FVI=140 Minority FVI=60 Reported Net Assets = (560+240)-0=800
Appendix 1 (continued)
Pie Chart Example
Parent Company Method
Reported Assets = 940 Reported Parent BV=560 60 140 560 240 Reported Minority BV=240 Reported Non-­‐
Controlling Interest = 140 Parent BV=560 60 140 Minority BV=240 560 240 Parent FVI=140 Minority FVI=60 Reported Net Assets = (560+240+140)-140=800
Entity Method
Reported Assets = 1000 Reported Parent BV=560 60 140 240 560 Reported Minority BV=240 Reported Non-­‐
Controlling Interest = 200 Parent BV=560 60 140 240 Minority BV=240 560 Parent FVI=140 Minority FVI=60 Reported Net Assets = (560+240+140+60)-(140+60)=800
Appendix 2
Example Color Coded Consolidation Problem
Parent Company acquired 70% of the common shares of Sub Ltd. on July 1, 2008 for cash
consideration of $117,000. The balance sheet of Parent Ltd. and Sub Ltd. and the fair value of
Sub’s tangible assets and liabilities as at July 1, 2008 were as follows:
Sub
Parent
Sub
FV-July.1
Cash
$ 140,000
$ 30,000
$ 30,000
Accounts Receivable
40,000
75,000
70,000
Inventory
80,000
35,000
40,000
Equipment
120,000
40,000
50,000
Patents
20,000
20,000
30,000
$ 400,000
$ 200,000
225,000
Accounts payable
$ 40,000
40,000
40,000
Bonds payable
100,000
60,000
70,000
Common stock
140,000
30,000
Preferred stock
50,000
Retained earnings
120,000
20,000
$ 400,000
$ 200,000
The financial statements of the two companies for the year ended December 31, 2011 are as
follows:
Parent
Sub
Cash
$ 63,000
$ 40,000
Accounts receivable
60,000
60,000
Inventory
150,000
150,000
Equipment
100,000
70,000
Patents
10,000
18,000
Investment in Sub
117,000
$ 500,000
$ 338,000
Accounts payable
140,000
128,000
Bonds payable
80,000
60,000
Common stock
140,000
30,000
Preferred stock
50,000
Retained earnings
140,000
70,000
$ 500,000
$ 338,000
Appendix 2 (continued)
Example Color Coded Consolidation Problem
Parent
$ 800,000
Sub
$ 700,000
500,000
300,000
550,000
150,000
11,000
15,000
8,000
10,000
196,000
240,000
8,000
35,000
6,000
81,000
130,000
60,000
20,000
Retained earnings, beginning of year
120,000
50,000
Dividends
(40,000)
-
Sales
Cost of Sales
Gross profit
Expenses:
Amortization (equipment, patents)
Bad debts
Interest on long term debt
Loss on sale of equipment
Other expenses including taxes
Net income for the year
Retained earnings, end of year
$ 140,000
$
70,000
Appendix 2 (continued)
Example Color Coded Consolidation Problem
Additional information:
1.
Both Parent Ltd. and Sub Ltd. amortize patents and equipment on a straight line
basis over five years. As of July 1, 2008 any patents and equipment of Sub Ltd
had a five year remaining useful life. Bonds mature on July 1, 2028.
2.
Parent Ltd. accounts for its investment in Sub Ltd. using the cost method.
3.
Income tax expense is included in other expenses. Both Parent and Sub pay taxes
at a rate of 40%.
4.
Pre-tax intercompany sales and transactions during the year 2010 and 2011 are as
follows:
2010
Parent selling inventory
Sub selling inventory
Sub selling equipment, gain recorded
Parent selling patent, loss recorded
$ 400,000
300,000
20,000
-
2011
$ 500,000
400,000
(10,000)
As at December 31, 2010, 50% of the intercompany inventory sales during 2010
remained in inventory. The average cost of sales on intercompany sales was 60%
of the selling price. As at December 31, 2011, 60% of the intercompany inventory
sales during 2011 remained in inventory. The average cost of sales on
intercompany sales was 60% of the selling price.
Both the equipment and patent sales occurred on December 31. At the time of
their sale, both items had a four year remaining life. The loss on the patent sale is
included in other expenses.
5. Preferred shares are cumulative and pay an annual dividend of 10%. As at July 1,
2008 and December 31, 1999 there were no dividends in arrears. No dividends
were paid on these preferred shares during 2010 and 2011.
6. Goodwill write-downs are as follows: 2010 $37,500
2011 $15,000
Appendix 2 (continued)
Example Color Coded Consolidation Problem
Solution
Purchase price
Divide by
117,000
/70%
167,143
Book value acquired
Common stock
Retained earnings
30,000
20,000
(50,000)
Purchase discrepancy
Receivables
Inventory
Equipment
Patents
Bonds
117,143
BV
75,000dr
35,000 dr
40,000 dr
20,000 dr
60,000 cr
FV
70,000dr
40,000 dr
50,000 dr
30,000 dr
70,000 cr
FVI
5,000 cr
(5,000) dr
(10,000) dr
(10,000) dr
10,000 cr
(10,000)
Goodwill
$107,143
Purchase discrepancy amortization:
Receivables
Inventory
Equipment
Bonds
Patents
Goodwill
Acquisition
(5,000)
5,000
10,000
(10,000)
10,000
107,143
117,143
98-2010
(5,000)
2011
5,000
5,000
(1,250)
5,000
37,500
46,250
Ending
-
2,000
(500)
2,000
15,000
18,500
3,000
(8,250)
3,000
54,643
52,393
Appendix 2 (continued)
Example Color Coded Consolidation Problem
Intercompany Transactions to Eliminate:
Intercompany sales
-Parent
-Sub
$500,000
400,000
$900,000
Gross
Tax
After-
80,000
60,000
140,000
32,000
24,000
56,000
48,000
36,000
84,000
120,000
96,000
216,000
48,000
38,400
86,400
72,000
57,600
20,000
5,000
15,000
8,000
2,000
6,000
12,000
3,000
9,000
(4,000)
(6,000)
-
tax
Inventory profits (opening):
Parent (400,000 x 50% x 40%)
Sub (300,000 x 50% x 40%)
Inventory profits (closing):
Parent (500,000 x 60% x 40%)
Sub (400,000 x 60% x 40%)
Balance, Dec.31, 2011
129,600
Equipment sale:
Gain recognized in 2010
Realized in 2010 (none since Dec.31 sale)
Realized in 2011 (20,000/4 years)
Balance, Dec.31, 2011
Patent sale:
Loss recognized in 2011
Amortized in 2011 (none since Dec.31 sale)
Balance, Dec.31, 2011
(6,000)
(10,000)
(10,000)
(4,000)
Appendix 2 (continued)
Example Color Coded Consolidation Problem
Consolidated Income
Entity Method
Income of Parent
Unrealized profits (net of tax):
-patent
-opening inventory
-ending inventory
Realized Income of parent
Share of Sub income
Income of Sub
Less: Preferred share of income
(50,000 x 10%)
Common share income
Amortization of FV Increments
Unrealized profits (net of tax)
-equipment
-opening inventory
-closing inventory
Adjusted Sub common share income
Percentage
Controlling shareholder income
60,000
6,000
48,000
(72,000)
42,000
20,000
(5,000)
15,000
(18,500)
3,000
36,000
(57,600)
(22,100)
X 70%
(15,470)
$26,530
Appendix 2 (continued)
Example Color Coded Consolidation Problem
Statement of Income:
Sales (800,000 + 700,000 - 500,000-400,000)
Cost of Sales (500,000 + 550,000 - 500,000
-400,000 -80,000-60,000 + 120,000+96,000)
Gross profit
Expenses:
Amortization (11000 + 8000 + 2000 + 2000
-5000)
Goodwill writedown
Bad debts (15,000 + 35,000)
Interest on long term debt (8,000 + 6,000 -500)
Loss on sale of equipment (10,000-10,000)
Other expenses (196,000 + 81,000+32,000+24,000
- 48,000-38,400+ 4,000+2000)
Consolidated income
Non-controlling interest (-22,100 x 30% + 5,000)
Net income of controlling interests
Retained earnings, beginning of year
Dividends
Retained earnings, end of year
$
600,000
226,000
374,000
18,000
15,000
50,000
13,500
0
252,600
349,100
24,900
1,630
26,530
23,525
(40,000)
$ 10,055
Appendix 2 (continued)
Example Color Coded Consolidation Problem
Opening and Ending retained earnings (equity method)
Opening retained earnings, cost method
Less: Unrealized downstream profits - inventory
Equity pickup:
Retained earnings, Jan.1, 2011
50,000
Less: Dividends in arrears
(5,000)
Retained earnings, acquisition date
Increase
Purchase discrepancy amortization
Unrealized upstream profits:
Inventory
Equipment
Retained earnings, Jan1, 2011, equity method
Net Income for the year (see above)
Dividends
Retained earnings (deficit), Dec 31, 2011
120,000
(48,000)
45,000
(20,000)
25,000
(46,250)
(36,000)
(12,000)
(69,250)
x 70% (48,475)
23,525
26,530
(40,000)
10,055
Ending retained earnings (equity method)
Ending retained earnings, cost method
Less: Unrealized downstream profits - inventory
Add: Unrealized loss - patent
Equity pickup:
Retained earnings, Dec.31, 2011
70,000
Less: Dividends in arrears
(10,000)
Retained earnings, acquisition date
Increase
Purchase discrepancy amortization (46,250+18,500)
Unrealized upstream profits:
Inventory
Equipment
Retained earnings (deficit), Dec.31, 2011, equity method
140,000
(72,000)
6,000
60,000
(20,000)
40,000
(64,750)
(57,600)
(9,000)
(91,350)
x 70%
(63,945)
10,055
Appendix 2 (continued)
Example Color Coded Consolidation Problem
Noncontrolling interest:
Share capital
80,000
Retained earnings
70,000
Preferred dividends in arrears
Unrealized upstream profits
Equipment
(9,000)
Inventory
(57,600)
Balance
83,400
Fair value increments balance
Revised balance
Noncontrolling percentage
Preferred
50,000
Common
30,000
70,000
10,000
(10,000)
(9,000)
(57,600)
60,000
23,400
60,000
x100%
60,000
52,393
75,793
x 30%
22,738
82,738
Balance Sheet:
Cash (63,000 + 40,000)
Accounts receivable (60,000 + 60,000)
Inventory (150,000 + 150,000 – 120,000-96,000)
Equipment (100,000 + 70,000 + 3,000 - 15,000)
Patents (10,000 + 18,000 +3,000 +10,000)
Deferred taxes (48,000+38,400+6,000-4,000)
Goodwill
Accounts payable (140,000 + 128,000)
Bonds payable (80,000 + 60,000 + 8250)
Non-controlling interest in equity (see above)
Common stock
Retained earnings (see above)
Total
$ 103,000
120,000
84,000
158,000
41,000
88,400
54,643
$ 649,043
268,000
148,250
82,738
140,000
10,055
$ 649,043
-
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Figure 1
Summary of Baker, Jones and Burkman (2009) Cognitive Fit Model for Visual Aids
Supports four human visual approaches: association, differentiation, ordered perception and quantitative perception Contain strong Gestalt properties Consistent with viewers stored knowledge Supports analogical reasoning Improved sense-­‐making in data exploration tasks and other tasks involving complex data