Income Statement Article Reviews Samples For Students

Executive Summary

Company A and company B have very similar as well as very different financial statements. Both the companies are showing positive sales growth. While company A seems to be growing at a very high pace, company B is growing at a steady but slow pace. However, even upon growing at a higher pace company A’s profit has declined due to not being able to manage the input cost for production appropriately (cost of goods sold). On the other hand company B is also feeling the impact of the increasing input cost but it has managed it better than Company A and ...

Lan, J.Z. (2012). Introduction to Financial Statement Analysis. American Association of Individual Investors. 1.1. 16-20

Summary

There are many users of financial statements that include the management, investors, creditors, government, and employees. This article was targeted at helping investors on how to use the financial statements in order to make informed investment decisions. The article discusses the three main financial statements that firms publish namely; the income statement, the balance sheet, and the cash flow statement.
The income statement shows the investors how much sales and income that a company generated over a period of time usually twelve months. The ...

Article summary

The SEC is investigating Barnes and Noble’s accounting. This is based on the company’s decision to restate its earnings for both 2011 and 2012 fiscal years. In 2011, there was a loss restatement from $ 68.8 million to $ 73.9 million. In 2012, there was a loss restatement from $ 64.8 million to $ 68.9 million (Trachtenberg, 2013). This matter has led to a decline in stock price of the company by 12% to $ 14.43. Earnings restatement was based on an overstatement of accruals for the two years. A deferred tax liability is another correction that Barnes and Noble wish to change. The current ...