Income Statement College Essays Samples For Students

Financial Statement Analysis

Introduction and overview:
The Apple Inc. is one of the leading companies in the production of smart phones and other latest hardware appliances. The main products of the Apple Inc. are Iphones, laptops, tablets and other small appliances. The Apple Inc. is listed on the major stock exchanges and they have a number of stores all over the world that are providing the best customer relation and increasing the sales. The Apple Inc. is performing business in the technology field and their main competitors are Samsung, HTC, Intel and Motorola. ("AAPL Income Statement | Balance Sheet | Cash Flow | Apple Inc. ...

Every organization is established with a certain purpose. Every organization has its own purpose and the objectives of the firm differ from one another. Regardless of this difference in the objective and purpose of the existence of the business organization, they all have a common in them. All of the organizations involve themselves in some money related transaction. They purchase some goods, sell some other things, pay salary, performs some investments and does several other financial related tasks. The business must analyze its financial position at a certain period so that it can make certain decisions. To simplify this ...

There are various differences between an income statement and a balance sheet. As a matter of fact, the difference can be focused on purpose, time period covered, as well as the subject. By definition and income statement is a financial statement that defines and measures the financial performance of the company in a specific period of time. In fact, an income statement is one of the three financial statements in an organization. On the other hand, a balance sheet is another type of financial statement that shows various financial balances. It is a snapshot of the financial condition of a company.
The income statement and ...

In the current century, the accounting and finance field have witnessed increased efforts to converge accounting standards to globally accepted universal standards. The fact owes to the dire need of increasing comparability of the financial statements of different firms in the various countries. Undoubtedly, there exist key areas of departure in different accounting standards applied in different countries. Of more interest, is the difference that exists between the two dominant accounting systems used by various corporations around the globe. That is the U.S. Generally Accepted Accounting Principles (GAAP) and the International Financial Reporting Standards (IFRS). It is, however, worth ...

Income Statement

Both absorption and contribution income statements provide the interested parties with the information on company’s revenues, expenses, profits and losses. According to Ross (2011), both types of income statements may seem similar from the first glance, as the first line depicts company’s revenues, while the bottom line shows company’s profits for the accounting period. However, the system of cost accounting is what distinguishes one type of income statement from another.
Brealey (2001) states that absorption costing is used during the preparation of financial statements for external purposes, such as tax reports, annual reports to shareholders ...

The cash flow statement provides information beyond what is shown in the income statement. Since the income statement is made on the accrual basis of accounting rather than cash basis, it will always differ from the cash flow statement. The cash flow statement provides the following information:
- Information about the company’s cash cash receipts and cash payments during an accounting period
- Information about the company’s operating, investing and financing cash flow activities
- A transparent view of company’s performance as it provides an understanding of the impact’s of accrual accounting ...

The income statement gives us a picture of one of the most important figures for a company, earnings per share. Earnings potential is one of the most important aspects of a stock's value as the investment community monitors earnings statement announcements with close scrutiny.(Barton & Simko 2002) Stock price fluctuations are highly sensitive to earnings announcements. Its important to be able to understand key parts of an income statement.
The main goal of the income statement sheet is to be able assess revenue in a coverage period and then tie expenses to that revenue. This statement gives a window ...

Single step income statement provides a straightforward view of the company’s profit or loss. All the items of revenue are added together at the top, and items of expenses are totaled below them. The difference between revenues and expenses is either profit or loss. On the other hand, a multi-step income statement provides the detailed view of gross profit and operating profit of the company. The income statement of Wal-Mart’s stores Inc. is a multi-step income statement.
The income statement of Wal-Mart includes the income from discontinued operations, net of income taxes. It represents the revenues earned ...

In order to compare the taxation practices of Egyptian and non-Egyptian firms, we will be analyzing the following list of the companies, all of which are from the telecommunication industry. Below is the list of Egyptian and Non-Egyptian firms, which we analyze for the purpose of comparing their tax reporting practices:

Egyptian Firms:

- Telecom Egypt
- Mobinil
- Etisalat

Non-Egyptian Firms:

- AT& T
- MCI
- Sprint

Egyptian Firms

I) Mobinil:
Founded in the year, 1988, Mobinil is one of the largest telecom companies in Egypt. As for the tax reporting by the company, during 2012, the company ...

Lesson 1- Overview

Lesson 2 -Financial Accounting Basics and Income Statements
Lesson 3- Balance Sheets and Cash Flow

Overview

- Health care finance versus business finance
It is important to study health care fiancé exclusively because health care conducts financial transactions, which are different from a normal business. Health care finance embraces a series of reimbursement protocols which do not exist in a non-health care business entity. Precisely, health care business is subsidized either by the state or through health insurance coverage.
With business financing the capital structure is different, which is the way the organization finances its assets. For example, in health ...

Chapter 1

The first chapter of the book “The Accounting Game” by Mullis and Judith provided an overview of the key factors of financial statements, such as cash, original investment, assets, expenses, and balance sheets, etc. It is indicated that debits and credits are equal (Mullis and Judith 17). For instance, one invested $5 in the business and earned $5 in this case cash (debit) and invested capital (credit) will be equal. In addition, if one borrows $ 10 from anyone, it will be cash in hand on one hand, but on the other hand, it will be one’s liability because ...

Introduction to Finance

Introduction to Finance

Part 1

The income statement of the Home Depot is simple. Unlike the income statement of other companies, it is relatively simple with fewer terms mentioned. The income statement begins with the net sales of the company followed by the cost of goods sold (The Home Depot, Inc., 2014). These two are the fundamental things in the income statement. Net sales represent total sales less any sales return while the cost of goods sold represents the cost incurred for the materials that is sold. The next important term in the income statement is gross profit, which is the ...

Personal finance

Learning is a continuous experience that starts at birth. Although formal learning takes place within learning institutions, much of human learning is a product of experiences from life. Like in other areas of professional development, financially planning is a product of both formal and informal learning experiences. In this respect, multiple experiences throughout my life have shaped my financial planning skills. My learning experience with respect to financial planning is traceable to my days in college. Being in learning institutions calls for self-discipline and control with regard to financial. This offered the first and extremely important lessons with regard to financial planning. ...

Several accounting transactions occurred during the month of December 20X5 and were as follows:

A withdrawal was made at a value of £15,000 from the business for the personal use of the owner.
An existing retail store was purchased by the company for £150,000 on December 1.
10 desktops were purchased at a total cost of £3,500. The purpose of which is for the administrative and retail operations of the business.
10 printers totalling to £500 and miscellaneous computer accessories worth £275 were purchased. The purpose of which is to improve the purchase ordering as well as the selling operations of the business.
5 security cameras and other shop fittings ...

Company Overview 3

Three Year Horizontal Analysis of Johnson & Johnson Company (JNJ) from 2013 to 2015 3
Income Statement 3
Balance Sheet Analysis 6
Financial Performance Analysis of Johnson & Johnson Company for 2014 and 2015 8
Current Ratio 8
Quick Ratio 9
Cash Ratio 10
Findings from the Analysis of Johnson & Johnson Company and Recommendation for Improvement 11

References 13

Financial Performance Analysis of Johnson & Johnson Company through Horizontal and Ratios Analysis from 2013 to 2015
Company Overview
Johnson & Johnson Company, founded in 1886, is a publicly traded organization in the Medical Equipment and Pharmaceutical industry of the United States of America. The headquarter ...

Question 1. Introduction and General Purpose of Each of Three Financial Statements

In present age, it is a common practice among different types of businesses to present three standard types of financial statements usually on annual basis. These statements include Income Statement, Balance Sheet, and Cash Flow Statement. Income statement is the simple analysis of an entity’s financial performance through a comparison of profit and loss. It shows how revenues and expenses of past result into current profit or loss, and (basing on it) suggests future roadmap (Warren, Reeve, and Duchac, 2008; Brown, and Gutterman, 2008; Keller, 2011).
Unlike Income Statement, balance sheet refers to a company’s financial position ...

Answer 1)

The role of each of the financial statement is explained hereunder:
Income Statement:
Also known as Profit and Loss Statement, income Statement, indicates the net profit or loss of the company during the year.

Balance Sheet:

Also known as the Statement of the Financial Position, Balance Sheet provides information about the financial position of an entity at a given date. Balance Sheet consist of following items:
- Assets
- Liabilities
- Equity
It works on the principle of Assets= Liabilities+ Equity

Cash Flow Statement:

Cash Flow Statement provides information about actual cash transactions in the entity held during the ...

Question 1

Finance management is significant in the making of critical decisions such as investments, capital budgeting and dividend policy decisions. The finance manager uses the financial statements provided by the accountants to make decisions that may positively influence the performance of a corporation. Based on knowledge and information provided to the finance management, the finance manager can be able to select assets, which the firm can invest. Additionally, with the finance knowledge the, finance manager can be able to conduct capital budgeting effectively. Capital budgeting relates to selection of assets that will provide long term benefits to firm. In the selection ...

Importance of Accounting

Analysis and financial decision making reasons
Financial statements produced in accounting helps businesses and make economically informed decisions since lack of accounting will result to poor decisions from business executives. Also accounting is vital since existing and potential investors of a businesses will making rely on accounting information to make investment analysis (Wild, 2007).

Record keeping

A business cannot operate effectively if accounting records are not well kept and executed. Accounting is one of the main drivers of record keeping. Organizational data is collected from different sources, systematized, scrutinized, interpreted and then communicated to the final users.

Fraud scrutiny and prevention

Fraud scrutiny and prevention ...

Income statement and balance sheet are some of the financial records that are very important for any company. These two records are very similar in many ways and they are usually all considered by any stakeholder willing to deal with a certain company. However, the two financial records are different in many ways (Warren, 2012). This research paper will contrast the information found in balance sheet and income statements.
It will be noted that the balance sheet is prepared to show the financial position of a given company as at the date when it is prepared. On the other hand, ...

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Accounting Standard Setting under the Australian Conceptual Framework and Application in Business Practices

Introduction
A conceptual framework establishes the concepts and provides the guidelines that underlie financial reporting. As a coherent system of notions that flow from an objective, which in turn serve to identify the purpose of financial reporting, a conceptual framework also provides guidance on the identification of the boundaries of financial reporting. Its concepts further provide guidance on the selection of transactions, related events, and circumstances to be presented, and how such elements should be summarized and ultimately reported (Financial Accounting Standards Board [FASB], 2008). One such conceptual ...

Intel Corporation Financial Statements

Intel Corporation is an American-based company that designs and manufactures digital technology platforms. The digital platforms are used in servers, computers, smartphones, tablets, among other products ("INTC Profile | Intel Corporation Stock - Yahoo Finance", 2016). Other products include microprocessors, security solutions, connectivity and communication products, among other products and services. It major segments are the Client Computing Group, Software and Services, Data Centre, Internet of Things Group, among other segments ("INTC Profile | Intel Corporation Stock - Yahoo Finance", 2016).
This paper uses the income statement and the balance sheet of Intel Corporation as at December 26th, 2015 to prepare ...

Introduction

The report is commissioned to provide an overview of leading American courier company, FedEx, and if the stock of the company deserves a weightage in the investment portfolio. Important to note, we are writing this report not with a psychology of a speculator, rather our analysis will be on the line of the investment theory of fundamental analysis. As part of this theory, we will be amalgamating our own research, economic trends in the industry and will also look at the views of the market analysts to provide a final recommendation on the stock.

About the company

Founded in the year 1971 and headquartered in Memphis, ...

Summary

This particular section sheds light on the measures used to assess the quality of financial reporting. The framework looks at a company's risk and success factors. The quality of the analysis depends on the inputs put into it. In addition, the quality of the measures used to assess financial reporting varies between companies, and can also be different for a single company for a period of time. Measures that are based on inventory suit retail businesses, measures that are based on depreciation suit capital intensive companies, and measures that are based on off balance sheet reporting are best suited to financial institutions. ...

Introduction

An analysis of financial statements of an ongoing concern is essential as it sheds the much needed light on the financial state of a firm and enables prudent decision making. Questions on the ability of a firm to meet its long-term obligations, use its assets efficiently, produce good returns to the shareholders or whether it possesses the optimal financing mix, can be answered through a financial analysis of the firm’s statements. Normally, the financial analysis is done using historical data and is aimed at depicting the future prospects of the firm. This is usually done through computation of ratios and analysis ...

Closing Entries

What are the reasons for closing entries?
Closing entries are passed so that each year the accounts can be started from zero balance so as to prevent overlapping of transactions of one accounting period to another.

What accounts are closed?

The accounts related to income and expenses are closed. In simple words nominal accounts are closed. Either these are transferred to trading account or profit and loss account. Personal and real accounts are carried forward to balance sheet.

How are closing entries done?

Closing entries are journalized and posted to appropriate ledger accounts in order to do close the temporary books. Following steps are followed in order to ...

Business Plan

Discuss the importance and purpose of the Income Statement (Profit & Loss Statement) and list some of the line items included in this report.
The Income Statement is a crucial part of a business report as it indicates the business revenues and expenses. The income statement reveals the company’s profitability, operational costs and income retention among others. In a business plan, the income statement is important since it helps the investor to forecast the cost of running the business, and its viability. It is also important to lending institutions as it helps them assess the profitability of the business and the ...

Income Tax SLP2

Income Tax SLP2

Introduction

The initial income statement of Nybrostrand Company does not reflect year-end adjustments to be made. On making these adjustments, final version of the income statement is prepared for the period ending 31 December 2014 in accordance with US GAAP.

Adjusting entry: inventory

As the purchase of products worth of 42,500$ has not been effected by the client, and the sales account has already been adjusted for the amount of the revenues for these goods, cost of goods sold (COS) should be adjusted as well in accordance with matching concept (FASB,1985). The adjusting entry will increase year-end inventory ...

Introduction

In this paper, we will be conducting financial analysis for the UK based supermarket chain, J Sainsbury PLC. The sole objective of this report will be to arrive at a conclusion related to the investment opportunity in the stock. Therefore, as part of the traditional analysis, we will be unearthing the financial trend using the tool of horizontal analysis and liquidity analysis for the period of past two years.

About the company

Founded in the year, 1869, J Sainsbury PLC is a UK based supermarket chain. By the end of 2014, the company operated 1304 supermarkets and convenience stores around the nation, making it ...

Q: Explain the difference between a product and period expense?

The world of accounting categorizes the costs into two categories, Product Costs and Period Costs.
Product Cost: Also referred to as Inventoriable Costs, these costs are associated with the manufacturing activity and includes, direct labor, direct materials and all the other manufacturing overheads such as factory expenses, indirect manufacturing expenses, etc.
Period Costs: These costs are not associated with the manufacturing of the product and thus, cannot be assigned to the total product costs. The primary period costs includes, selling and administration expenses, interest expenses, etc.

Q: Discuss the matching concept as it relates to accounting for revenues and inventory.

As for revenue, the matching principal concept requires that the revenues ...

Query 1. In most major contracts, contractors negotiate for advance payments, which ordinarily range from thirty to fifty per cent of the contract value. This poses the risk for the buyer. To address this risk on advance payment to supplier, RTE should ask for repayment or advance payment guarantee assuring the repayment of the down-payment in the vent of non-performance. They are issued for the full amount of advances. The specific risk covered by repayment guarantee is ordinarily described in general terms, namely non-performance. Accordingly, the text of most repayment guarantees does not indicate whether the beneficiary can only ...

What causes differences between available balances and book balances?

Available balance refers to the cash balances that a firm has as the bank statements. This is the ending balance of a firm reflected on bank records of its bank. It represents the maximum amount a firm can withdraw without taking an overdraft. Book balance refers to the bank balance as per the firm’s books of account. Normally, the available balance and book balances do not agree for the reasons discussed below.
The first reason is outstanding checks. Some checks received by a firm may have not been deposited in time. These checks will therefore appear in the records of the ...

Introduction

In the recent days, consuming a soft drink is part of daily living because people need beverages to deliver the great taste, inspiration and hope. They also want non-alcoholic beverages for stimulation and refreshments. However, soft drinks sectors are flourishing industries since the provide refreshment, soft drinks that are in high demand almost in every nation. This industry started in the 1770s and it captures domestic and global markets. Additionally, firms that are in soft drink industry are under intense competition as they try to emerge as the overall players in the world market. Therefore, the key companies in ...

IFRS and US GAAP: Similarities and Differences (Financial Assets)

IFRS and US GAAP: Similarities and Differences (Financial Assets)

Introduction

The US GAAP (Generally Accepted Accounting Principles) is a set of accounting standards followed in the United States. With the emergence of internationalization, cross border flow of capital, people, cultures, and ideas became very common and the situation in turn contributed to the rapid growth of multinational corporations. Since different countries followed different accounting standards earlier, it was very difficult for MNCs to record their financial/accounting transactions in a unified manner. It persuaded regulators and businesses worldwide to think of a globally recognizable accounting standard leading to the development of ...

In cash basis of accounting, revenues are stated on the income statement in the period that the cash was received from the clients. Similarly, the expenses are also recorded on the income statement at the time customers are making cash payment (Warren, Reeve & Fess, 2009). On the other hand, the accrual system report revenues only when they are earned on the income statement. Additionally, this always occurs before the reception of cash from the clients. Moreover, expenses are recorded during the periods of their occurrence or when they expire. That is the period from the date of payment. However, ...

Evaluation of Corporate Performance: Apple Inc.

Apple, Inc. is a U.S. based company that has its registered office in Cupertino, California. The company has a long history of innovative progression and it will not be wrong to state that the company has changed the ways of telecommunication. It has opened up new arenas of technology development and competition between electronic companies has become fierce in the last 15 years or so due to the company’s ability to develop new and unique products. The company sells computers, laptops, hard drives, tablets, music accessories, phones, etc. The company has its own operating system that runs on ...

Introduction

Report’s aim
Comprehensive analysis of a company is crucial for decision making regarding its inclusion in a portfolio. That requires forecasting a company’s performance to estimate the expected value of the stock and comparing it with the current market price so as to decide whether it is overvalued or undervalued. In that view, this analysis seeks to analyze the IMB Company with application of the Discounted Cash Flows method as well as WACC. With the values calculated, the value per share is compared with the current market price to make recommendations whether the stock is a buy, ...

Company Overview

Apple manufactures designs, and markets communication mobiles as well as media devices, portable digital players and personal computers in addition to making sales of the related software, accessories, services, network solutions as well as digital third-party content and applications. The management of the company`s business primarily is on the basis of geographic region including the Europe, America, Japan, Greater China, Rest of the Asia-Pacific as well as Retail.
The Company has a commitment to bring the best customers experience onto its customers via its innovative software, hardware as well as services. It leverages its unique ability in designing ...

Income Statement MD2

Income Statement MD2

Part 1

In the recent times, the most efficient mean of measuring a business's strength is the revenue. The revenues are considered to be most critical as the profits and the potential to increase the equity rely on the revenues. Due to the fact the businesses need to attain a proper method of managing the revenue recognition. The revenue recognition is sometimes simple for example in the case of a company that sells the products that have non-warranty products. The revenue is recognized when the price of the product can be determined, the collections from the sales are probable, the agreement ...

TELUS is an innovative telecommunications company of Canada. It began is journey from the provinces of Alberta and British Columbia; going on to become the country’s second largest telecommunications company. Today, they provide a range to internet solutions for home, workplace or on the move. They provide a wide range of communication products and services such as data, Internet Protocol (IP), voice, wireless, entertainment and video.
We would like to provide you with the brief history of TELUS to highlight major landmarks in its recent history. In the year 2009, it acquired Black’s Photography, a chain of small format ...

Understanding the Cash Flow Statement

The cash flow statement is the financial statement which provides information beyond what is available in other financial statements i.e, Income Statement and Balance Sheet. Cash Flow Statement provides following information to its users:
- Complete information about the company’s cash receipts and cash payments during an accounting period.
- Information about a company’s operating, investing and financing activities.
- An understanding of the impact of accrual accounting events on cash flow.

There are two methods relating to payment of cash flow statements, namely:

- Direct Method
- Indirect Method
Although, both the methods are permitted under US GAAP and IFRS and the difference in ...

Formulation of an Income Statement

In the newly formed and adjusted Income Statement, all the adjustments have been made by adding $42,500 worth of units to the ending inventory and decreasing the Cost of Goods Sold by the same amount. In this regard, the latest Income Statement is as follows:
In addition to the designing of the required income statement from the given Trial Balance, the total amount of Retained Earnings (As at December 31, 2012) is found to be $131,850.

Importance of the Matching Concept

The matching concept is one of the prime accounting practices where expenses incurred by the business are recognized in the ...

Analysis of Coca-Cola and PepsiCo

- Description of the companies

Coca-Cola is a beverage company that owns or licenses and markets non-alcoholic brands. The company started as a Coke brand in Atlanta back in the year 1886. The brand was started by Dr. John S. Pemberton, who was a pharmacist. Large scale bottling of the product commenced in 1899. Coca-Cola currently operates in more than 200 countries, with its daily sales averaging 1.9 billion beverage servings. The company distributes its products through its controlled and distribution stores. It offers a variety of non-alcoholic drinks including Coca-Cola, Diet Coke, Coco-Cola zero, Sprite, Fanta, water, juices and juice drinks, among ...

Source: (MDD, 2013)

Whenever a merchandise sales is made on credit, the sales information is recorded in the sales day book. This is the first document where the records are entered, and they are also known as books of prime entry. In the general ledger, there are accounts for Cash, Accounts Payable, Sales, Purchases and Depreciation. The sales will be recorded in the sales account of the general ledger. The account of the customer who has purchased the goods from the company is going to be debited. At the ends of the period the difference of the debt side and the credit side ...

Which of the primary financial statements is the most significant?

The financial statements of any company are highly significant as they contain the financial information required by the creditors and the investors to be used for the evaluation of the financial performance of the company. These statements are also important for the management as it is the way they communicate with all the stakeholders of the organization (Goldwater & Fogarty, 2011). The primary financial statements include the Income Statement, Balance Sheet, Cash Flow Statement and the Statement of Owner’s Equity. It is a general belief that the income statement must be the most important one as it contains all those ...

Why do some financial analysts and advisors consider the Statement of Cash Flows to be the most significant of the audited financial statements? How is the information presented in the Statement of Cash Flows different from the information presented on the Income Statement? Is it possible for an organization to incur a net operating loss for the year and have positive cash flow from operations? Why or why not? In the long run, is it more important for a business to have positive cash flows from its operating activities, investing activities, or financing activities? Why?
Although many owners believe that ...

There are several objectives that guide the setting up of these standards. Below is brief discussion on the importance of accounting standards and especially in the New Zealand context. These include:
Accounting standards usually set the minimum level of disclosure of financial information. This ensures that all interested parties and stakeholders are adequately informed of the financial happenings in a company. Well prepared financial statements will serve all stakeholders and thus they will be able to make informed choices guided by the financial statements.
These standards remove variations that may arise in the treatment of several aspects of ...

Financial statements are basically records that indicate a business or organizations financial status. In essence, they quantitatively report on company’s financial health. Financial statements are normally prepared quarterly or annually. In the accounting profession, there are basically four financial statements that have to be prepared and maintained. These are Income statement, balance sheet, cash flow and statements of retained earnings.

Purpose of the financial statements

Income Statement

The income statement reports on the primary yardstick of business performance, net income. While the common term used is profit, accountants normally prefer to use the term net income. It actually shows the revenues the company has ...

This paper is a review of the book titled, Finance for nonfinancial managers: 24 lessons for understanding and evaluating financial health, by Katherine Wagner. The book will help managers from non-financial background to understand the languages and techniques used in finance. It can enhance the participation of these managers in financial matters and decision making. Complex financial lessons are presented in a form that could be understood by people from non-financial backgrounds. (Wagner, 2005)
The first chapter of the book reviews basic terms used in recording, classifying and summarizing financial transactions. Knowing these terms will help the manager to ...

Assumptions

In the preparation of the above ProForma income statement, the following assumptions have been made;
The base year for the ProForma income statement is 2015 as presented by the data on YAHOO finance (finance.yahoo.com).

All revenues to the company will grow by 12% for the next 5 years beginning 2016.

All expenses incurred by the company will grow by 10% for the next five years beginning 2016. The growth in expenses is attributed to the growth/increase in revenues generating activities.

Income tax expense and interest expenses will grow at the same rate as all the other expenses

The company will not make significant capital investments within the period represented by the ProForma statement.
All the above assumptions have been made to help predict the possible income that will be earned by Tesla ...

Question one

The coca cola Enterprise was incorporated in Delaware 2010. Additionally, it is a publicly traded firm that is listed in New York Stock Exchange. It is a marketer, distributor, and producer of the nonalcoholic drinks of Coca-Cola Company via a licensed territory agreements in Belgium, great Britain, Monaco, and Sweden (2015 Annual Report:23). The coca cola Enterprise Inc. acts as the anchor bottler in West Europe, and North America. The products of Coca-Cola Enterprise Inc. are Diet Coke, Sprite, Fanta, and Coca-Cola among others. Its primary strategy is to be the bottling partner in Western Europe as well as ...

Introduction

The information relayed by financial statements is the mirror through which an entity is viewed by the owners, shareholders, creditors, the regulatory authorities (governments), potential investors and all other stakeholders. The information obtained from these financial statements forms a reliable basis for the interested parties to evaluate the efficiency, profitability, and general performance of the business in a periodic manner, usually annually, semi-annually or quarterly. This paper seeks to examine the usefulness of such financial statements as the income statement, balance sheet and cash flows for Starbucks Corporation.
The income statement is an analytical presentation of the total amount ...

What purpose do financial ratios serve? Why would anyone look at a ratio when analyzing a company? After all, it’s just a number. Actually, financial ratios do serve a purpose. A big purpose actually. By themselves, they don’t tell us much. But when compared against other companies and the industry as a whole, they are very valuable. But we have to remember not all industries are the same. Capital intensive industries like energy are much different than healthcare. What may be a good ratio in one may not be in another. So what can a ration tell ...

Question 1

Within an organisation, accounting plays an active role to ensure that all business transactions of monetary value are classified, recorded, measured, summarised and reported in an accurate manner by adhering strictly to basic reporting rules such as International Financial Reporting Standards (IFRS) or US GAAP. Accounting rules make sure that financial statements are prepared and reported accurately by complying strictly with all reporting principles. Additionally, accounting steps confirm that all financial information is included in reporting mechanism while financial statements contain no error or any material misstatement having huge financial consequences.
When the industry follows one accounting mechanism, it ...

The companies tell their stories through financial statements. Liquidity, earning potential and how companies leverage debt is just some of the information that can be gleaned from financial statements. Understanding the elements that make up the financial statements leads to a better understanding of how changes in financial elements from one year to the next affect the health and viability of an organization. The following are some basic financial statements and the financial elements comprised within them.

Balance Sheet

The balance sheet is a snapshot of assets, liabilities and owner’s equity for a company. Assets should equal to liabilities plus ...

28th Februar, 2014

Financial Analysis
Answer 1)
Liquidity Analysis:
These ratios are used to judge short term solvency of a company i.e if it can honr its short term obligations. Generally two liquidity ratios are calculated:
i) Current Ratios = Current Assets/ Current Liabilities
ii) Quick Ratios= Current Assets- Inventory/ Current Liabilities
ii) Solvency Ratio:
These ratios are used to adjudge the long term solvency of the company i.e if the company can honor its long term obligations.
i) Debt to Equity Ratio: Debt/ Equity
ii) Interest Coverage Ratio: Operating Income/ Interest Expense
iii) Profitability Ratio:
...

Abstract

This paper has three purposes. The first is to briefly explain the important relationship some key concepts have to the financial statements. The second is to provide a brief explanation of the financial statements’ format. The third purpose is to illustrate examples of accounts that exist within the asset, liability, and stockholder’s equity categories by use of a table.

Concepts Important to Financial Statements

Generally Accepted Accounting Principles (GAAP)
Maintaining the consistency and reliability of financial statements within various business industries and sectors is important to prospective investors and creditors who rely on the data presented in the financial statements. This consistency is accomplished ...

Part A: Journal Entries to record accounting transactions

1. On December 31st the company sells on credit $5,000 of goods which had been bought a month previously at a cost of $3,500:

Debtors A/cDr5000

Cost of Goods Sold.Dr..3500
2. On December 31st the company sells an unwanted machine for $1,500. The machine was bought at the beginning of 2012 for $8,200 and was expected to be used for three years after which its value had been forecast to be $1,000.

Cash A/c.Dr 1500

Depreciation of Machinery A/c..Dr 7200
3. On January 2nd the company paid $500 by check for a three year buildings insurance policy.
Insurance Premium ...

INTRODUCTION:

The clothing industry is the most emerging market in today’s world. It has a great potential to grow and prosper. The business presented in the report is a clothing business, named “Xyra’s Clothing." The report has presented the financials of the business to propose the investment idea to its potential investors. Xyra’s clothing is a start-up business, in which initial investment is made by four partners. Each partner has made equal investment of $50,000 which accumulated to $200,000 in total as an initial investment. The business has not dealt on credit basis from the start; hence it ...

Section 2: Costs Involved in Employing New Staff

- Cost Involved in Employing Staff

The costs incurred on the recruitment of new staff can be quantified as the opportunity costs. The human resources is the most valued assets of the business. Salaries and bonuses are not comparable to the value of a particular employee. The true cost of turnover includes easy-to-quantify, out-of-pocket expenses and intangible opportunity costs associated with lost productivity.
Th total cost of hiring not only includes the cost of recruitment, but it also includes the cost of training, salary, benefits and the cost of workplace integration. It also the cost of need assessment, cost ...