Essays on Income Statement

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 ...

Analysis of Samsung Corp.

Introduction Samsung Corporations operates as a multinational company operating in electronics industry with the headquarter in Suwon, South Korea. It is a blue chip company listed in Dow Jones. The company makes profits in terms of trillion with over 200 trillion of assets and 168.088 trillion of equity (Michell, 2010). As of 2015, the company had around 307,000 employees contributing to its operations. This makes the company a big corporation thereby forming a platform for practicing how to analyze businesses. The profitability of a Samsung’s operation is dependent on the efforts put by the management towards ensuring ...

Inventory Analysis

The paper contains an inventory analysis of Wal-Mart Stores Inc. and one of its competitors Target Corporation. Wal-Mart Stores Inc. operates a chain of retail stores across three segments: Wal-Mart US, Sams Club and Wal-Mart International (Yahoo Finance). On the other hand Target Corporation operates as a general retailer in US and Canada (Yahoo Finance). In 2014, Target Corporation had an inventory turnover of 6.04 times (50,039,000/8,278,000) as compared to Wal-Mart Inventory turnover of 7.98 times (358,069,000/44,848,000) indicating that Target Corporation is turning over its inventory more slowly than Wal-Mart. Over ...

The usefulness of the balance sheet

a. No, the focus of accrual accounting, different to cash accounting, gives more accurate information about the company in the financial behavior. The accrual accounting matches the revenues and expenses operation in the generation date and not when there is cash transference. The income statement is more important than the balance sheet because the income statement explains the behavior of the company in the fiscal year and explains the capacity of the company to generate value to stakeholders. The balance sheet gives a "static photograph" of the current situation of the company. Only making the comparison of balance sheets ...

Volvo Group- research and development costs

Volvo’s research and development expense include costs such the cost of developing new products, production systems as well as software. New product development costs also include the cost of market research, formulating and design of the products. Besides, research and development costs include the expenditure on improving the existing products. In this case, it incurred research and development in developing new as well as improving existing products such as buses, construction equipment, among other products. Others may include research to gain new knowledge, cost of evaluating alternatives, among other costs.

Factors considered in classifying R&D expenses

Certainty of the expected benefits: If the group ...

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 ...

Analysis Tools

Analysis Tools The aim of this financial and analysis report is to evaluate the performance of Ford Motors as one of the companies enlisted in Fortunes 500.

Accounting for assets The Ford’s net property is valued at a cost, less the accumulated impairments and depreciation. The company capitalizes new assets when the management expects to utilize such an asset for more than 12 months. The company also expenses the repair and maintenance costs as they occur. The cost of depreciation is calculated by the use of the straight-line approach over the approximated useful asset life. The straight-line method ...

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 ...

Company Analysis: Ford Motors

Company Information 1 Name of Company:

Ford Motors

2 State of Incorporation:

Delaware

3 Stock Symbol: ‘F’ 4 What is the company’s main product?

Automobiles

5 What is the URL for company’s website? What does it contain? http://www.ford.com/. The URL guides the investor about the company, its products, investor relations, media relations, et cetera 6 Who is the company’s auditor? (Not audit committee)

Pricewater House Coopers

7 On what page are the four financial statements located

Statement of Operations (or Income Statement)- Page 102

Balance sheet (or Statement of Financial Condition)- Page 104 Statement of Owner’s Equity – Page 102 Statement of Cash Flows- Page 106 Weekly Stock Price(4thJan’ ...

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 ...

Question 1

Income Statement Classified Balance Sheet Mark’s venture successful Given the income statement, the Mark’s business is shown as profitable generating a profit of $2700 which is an indication of success.

Question 2

Inventory method used by each business and how one can determine that from the provided information The clothing store uses the perpetual system where it continuously updates its sales and purchase transactions. That can be determined from the information given that the shop assistant could check the availability of clothes in their store and the other stores just by looking at the computer. On the other hand, ...

Workshop Management Database3

Normalization CTelNo as the key attribute..3

Normalization of Job number as the key attribute based on the Bill

of Material file 5 Normalization of Inventory Book, Part No. as key attribute..7 Entity Relationship Diagram for 3NF..9 Protoype design Microsoft Access..11

Introduction to United Kingdom’s Bicycle Industry14

Peleton Ltd ..14

Income Statement/ Financial and Non-Financial Performance15

Financial and Non-financial Performance16 Additional Financial and Non-financial Performance.16 Other Areas of Concern18 Recommendation.19

Introduction

In today’s business world, an up-to-date, complete, and reliable financial database system is a must for organizations that aim for efficient, secure, and orderly operation. The succeeding sections will discuss the logical design for a prototype relational database of Peleton, a distributor of bicycle, accessories, and related services for its workshop management. Peleton ...

Income Statement Vertical Analysis

The gross profit as a fraction of total revenue (gross profit margin) was 60 percent in 2012. There was a slight improvement to 61 percent in 2013 and 2014. Selling and administrative expenses was constant at 37 percent of revenues for all the three years. However, other expenses increased by one percent in each year between 2012 and 2014. The income before taxes as a fraction of revenues declined slightly between 2012 and 2013 by one percent before declining by 4 percent to 20 percent in 2014. Similarly, the consolidated net income as a fraction of the revenues declined ...

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 ...

About the report

In this report, we will undertake an in-depth financial analysis of American Express and its core rival VISA Inc. using the 5-point Du-Pont analysis. The core objective of framing this report is to unearth the real drivers of ROE of each company, while the paper will be concluded with a recommendation for American Express to improve the sustainability in the ROE multiple.

5-Point Dupont Analysis

The 5 point DuPont system of analysis is the extended version of three-point DuPont analysis method, and just like the traditional method, it also decodes the ROE multiple of the company into function of different ratios to ...

1. Explain the main differences between absorption and contribution income statements. Will net income always be the same under the two approaches? If not, explain the difference.

An absorption costing income statement is created for stakeholders apart from the company’s own employees and internal management. This method ensures that all overhead costs are included in the inventory of the company. In other words, all costs that are directly linked to manufacturing including; labor and material are added to the inventory. Consequently, the cost of manufacturing is transferred from the inventory costs to ...

Abstract

This paper presents the ideal purpose of adopting a unitary global set of accounting standards to be applied across the globe. It presents the major characteristics of both the dominant accounting standards used worldwide, the IFRS and the US GAAP. It examines whether the IFRS or US GAAP works best for the present and the future needs of a global finance system. The various differences of these two accounting standards were shown. The major applications of the IFRS as the leading accounting standards and principles were also highlighted in the paper. It also provided various guidelines in this seemingly ...

Accounting Standard followed by the company:

i) General Mills Inc:

General Mills Inc, for the purpose of its financial reporting, follows Generally Accepted Accounting Principle(GAAP).

ii) Meiji Holdings: The company, for the purpose of the financial reporting and also for its subsidiaries, follows Generally Accepted Accounting Principle(GAAP). The company declares that the accounting standards are different from International Financial Reporting Standard(IFRS).

Accounting Standard followed by the auditors:

i)General Mills Inc: The financial statements of the company are audited by KPMG LLP, which are the external auditors of the company. The external auditors have used standards of Public Company Accounting Oversight Board(United States). The standards obligates the auditors to ensure that all the financial statements of the company are free from any material ...

Abstract

The major financial systems in management of any finances of an institution include balance sheets, income statement, statement of owner’s equity and statement of cash flows (Baker & Baker, 2014). The balance sheet is an important tool in the assessment of the organization’s ability to meet its long term obligations. The income statement, on the other hand, gives a summary of the organization’s transactions over a set period. The statement of owner’s equity is a financial statement that uses information from the income statement and provides the same to the balance sheet. It analyzes the changes in profits of a ...

The income statement refers to a system that operates the activities and operations of a company or organization and seeks to give a detailed report and evaluation on its performance during a certain year. The statement provides the details of the expenditure and income of the company for the financial year. Where the sales revenue exceeds the costs, there is production of a profit; where there is the occurrence of the reverse, losses results. As such, the statement acts as a profit and loss account. Elemental components of the income statement include the profit considerations, presentation formats, the details, depreciation and profits, ...

- Introduction

1.1 Background developments

Traditionally, accounting standards have been developed by different countries on the basis of local legal, economical and cultural institutions frameworks (Elliott and Elliott, 2009, p. 158). As a result, the standard setting was very country specific. With the globalization process at work for the last 3-4 decades and increasing mobility of capital internationally accepted accounting standards have become necessary to facilitate cross border transactions and make financial reporting comparable between countries and companies thereby leading to a greater transparency for investors (Nobes, 2004). IASB has been set up as a private international standard setter with a mandate to create high quality accounting standards ...

Financial Accounting

Answer 1)

Referring to the ratios calculated of both the companies, having an overview indicates that the competitor of Tyson Foods, i.e. Pilgrim Pride Corp is more profitable company. The latter company is operating with high net profit margins of 6.53% as against 2.26% net margin of Tyson Foods. Not only net profit margins, Pilgrim Pride knows how to keep its shareholders happy. The company is operating with high return on equity of 45.87%, while Tyson Foods has significantly low Return on Equity of 12.74%. Pilgrim pride also has high Return on Total Assets, indicating that ...

Cash flows

The statement of cash flows is used by the company as a measure of a company’s financial health. This financial statement equals the cash receipts less the cash payments over a period of time, alternatively, it is the net profit summed with the amounts charged off depletion, depreciation, and amortization.

The statement of cash flows organizes and reports the cash generated as is used in;

Cash from operating activities; this converts the items that are reported on the income statement from the accrual basis of accounting into cash basis. This is the generated cash earnings before interest and taxes summed up with the depreciation less the taxes.

The company Andrews has its round one cash ...

Interrelationship of Cash Flow Statement with Other Financial Statements

Cash flow statement is the statement that shows the position of cash inflows and cash outflow in the given period. It is directly related with other financial statements. The statement of cash flow is divided into three parts as cash flow from operating activities, cash flow from investing activities and cash flow from financing activities. The Cash flow from operating activities shows the cash flows from the activities done on the regular basis to run the business. It includes the net income of the business, which is obtained from the income statement and some accounts recorded in the balance ...

Background:

With a rich history of success, Pepsi was an establishment of the 1898, in Carolinas. The drink was an original invention of Caleb Bradham. Based in New Bern, North Carolina, he was a pharmacist and drugstore owner ("Pepsi History," n.d.).

It was five years after the introduction of Coke that Pepsi came into existence, in the year 1893. This was the time when the inventor Caleb Bradham decided serving customers his soda machine produced ‘Brad’s Drink’. In response to the positive feedback that he received from the drinkers, he began advertising his samples in 1898, after naming ...

Analysis of Financial Statements

Referring to the above income statement, we find that since the start up, the revenue figures of the company has consistently increased with the revenue for Quarter 4 surging high by 144.4%. However, the profit margins of the company are not so encouraging, in fact despite of such a significant rise in the revenue figures, the company ended the latest quarter under the loss of -$3011373 and EPS of -$33/ share. An in-depth insight of the company’s income statement reveals that although the revenue figures of the company has been increasing, but it is not able ...

It is the aim of any company to expand its commercial activities across its national borders despite the many risks associated with the same. The main risk may be changes in political systems, which mainly occur when the party in power loses the elections. For example, in 1977 in India when the opposition party won the elections, there were some changes in policies, and this action negatively affected the Coca-Cola company operations in the country. Other risks include the loss of assets due to fighting or nationalizations and financial factors that may affect wages, commodity prices, exchange rates and ...

1. Balance Sheet

The term Balance Sheet is commonly used in the domain of Financial Accounting. The balance sheet is a statement that makes a declaration about determined financial position of all monetary and finance related input and output of a particular company, organization, or association. According to Northcentral University (2011), “The balance sheet, or statement of financial position, lists the firm’s assets and liabilities, providing a snapshot of the firm’s financial position at a given point in time (p. 20).”

The core objective is to keep track of financial balances related to the organizational activities and maintain awareness about the kind of ...

Managers as well as accountants need financial information to help them make managerial and accounting decision that are very crucial for both internal and external consumers of this information (Drury 2008). To be successful in this area both managers and accountants need to have full understanding on the different types of cost and their calculations. There are different ways of classifying cost for example, manufacturing costs verses Non-manufacturing costs, fixed costs versus variable cost and finally product cost versus period costs. The most important thing that managers and accountants need to know is how to treat variable costs and ...

Introduction

British Telecom and Vodafone are two giants in the telecom industry. After the financial burst of 2008 in the US Economy and the financial troubles in Europe, the telecom sector got badly impacted. In fact the whole sector instead of growing has slid into a negative growth which has affected almost all the telecom companies. British Telecom and Vodafone are trying to diversify their portfolios by making efforts to come up with innovative product packages to fuel growth. So far the initiatives have not shown much improvement in the results. In such conditions it is becoming very difficult for those ...

Fair Value Accounting involves the recognition of changes in fair value as losses and gains on the income statement and reporting assets and liabilities on the statement of financial position at fair value. It goal is to approximate the best it could the prices at which an orderly transaction could occur given the parties’ current position. Thus, it is expected that firms must incorporate updated and relevant information on discount rates and future cash flows in the measurement of their fair values. Under fair value accounting, losses are reported when the fair values of the liabilities increase and assets ...

Analysis

Financial competitiveness and financial belongings are some of the major things and aspects from the viewpoint of an organization in total. Organizations always try to enhance their productivity and only those projects would have been selected which are essential for a company as far as enhancing the productivity is concerned (Piper, p. 59). The main objective of this assignment is to analyze the effectiveness of two different projects in total. Income statement of each of the project has been allotted and given with this analysis and the analyses of both of the projects are mentioned below simultaneously.

Analysis for Project-1

Income statement is a ...

The Generally Accepted Accounting Principles – GAAP and International Financial Reporting Standards – IFRS are the set of standards used in various countries. GAAP is generally followed in the US while the IFRS was established in 2001 and is used in most countries around the world for financial reporting. GAAP is mainly based on rules while IFRS mainly relies on principles. Albeit the functioning philosophy and viewpoint behind both GAAP and IFRS is quite similar there are several key differences which are explained in this paper. The first difference is with respect to inventory costing as the LIFO ...

Abstract

Financial statements suffice for purposes of communication of financial and non-financial information to end consumers. These consumers in one way or another use the information in the decision making situations they are confronted with. Some of the basic financial statements include; the statement of income, the statement of financial position, the statement of cashflow and the statement of changes in equity and reserves. On the other hand, consumers of financial statements can be divided into two broad groups; internal consumers and external consumers. Internal consumers include managers and employees while external consumers are creditors, investors and government regulatory bodies. ...

The cost which the organization incurs the production and acquisition of products and services which it intends to sell is very important. The pricing strategy of the organization is significantly affected by costs. Therefore, costs designed to tackle the challenges of the economic and the noneconomic factors very efficiently. The objective of the costing models is to categorize the factors of the marketing objectives of the company and the mission of the company (Gitman, 2003).

Accurately determination of cost is important in organization to remain profitable. Costing does not only require including direct and indirect cost associated with business ...

Introduction to Computer

1. What features or functions of Excel do you feel will likely be most useful to you in helping you achieve your career goals?

A function of Excel which one feels will be most useful is the different features of the spreadsheet. The built-in formulas in Excel such as percentages, averages or growth rates are very helpful. Data input, especially those that involve a lot of numbers are easier with Excel. Charts and graphs will come in handy in making some analysis which one may encounter in one’s career. In deciding on whether to move from one job to ...

Let’s say you have a fantastic business idea that you know will make money for you. You have made your calculations, you have studied the market, you have found the perfect location and you have a good idea how you will operate and make the business happen. The product you have is unique. How to make the product will be unique. You have found the people who will help you make the product. You have emptied your wallet, gathered all your money from your savings, sold your car, you now some of the cash you need to start it all ...

This paper will focus on Hotel Complimentary Products Limited whose complimentary offerings include hygiene bags and dispensers. The Hygiene bag dispensers cost £6.00 in London and are available in White and Chrome. The complementary refill packs cost £4.5 and contain up to 25 bags. In addition, loose hygiene bags are made available for customers who do not require the dispensers. Further, a discreet and convenient sanitary disposal technique is facilitated by a standard box quantity of 24 boxes x 25 bags. Their hygiene bag dispenser systems are designed to essentially provide clean, safe and convenient techniques of disposing of ...

FOREWARD

This reports aims at shedding light in the best strategy for Ahold to adopt in identify the best target company to take over its aims to expand its food retailing services. In this report the best comparison that will lead to aid in best decision making is by use of ratios since the business are reporting in different currencies and since the use of exchange rate would be biased due to volatility of the exchange rates overtime and thus such results would be quite unreliable and might lead to wrong decision making which would adversely affect the predator ...

Company Overview

Nas-T-Shirts will be the talk of the town! This new t-shirt line will allow people to wear their attitude, cause, idea or general informative messages on their shirt! Nas-T-Shirts will allow verbal artists to treat an ordinary shirt as his canvas, stating crafty messages that are brought to life using cutting edge shirt-print technology done with high quality ink, resulting in very professional looking and long-lasting works-of-art.. Nas-T Shirts will make your thoughts and musings an everyday, accessible fashion accessory!

Nas-T-Shirts Corporation is headed by founder (name of student) and its office is located at (address of student). Nas-T-Shirts ...

Individual Case Complete: Bank of America

Executive summary Mission and Vision Evaluation: The Company has maintained a plausible vision and mission statement that focuses on ensuring that it develops customer centric financial products and services that are innovatively based. Thus, through the company vision and mission statement, it has managed to ensure growth and market capture. Milestones: Among the most fundamental milestones, the organization has sustained a top position in the banking industry despite the prospect of financial crisis across US. The plausible performance has been as a result of effective policy statement that is centered on operational Excellency. With millions of customers across US, the ...

Executive Summary

This paper tries to conduct a comparative portfolio analysis for Microsoft Corporation, based on the most recent Annual 10-K Filings made by the company to the Securities & Exchange Commission for FY2011. The base year chosen is FY2010, so as to allow for a clear comparative depiction of both current & historical performance. The analysis, based on the study of the Income Statement, Balance Sheet, Statement of Cash Flows, & Statement of Changes in Stockholders’ Equity, quantifies the annual performance using the most important accounting ratios that provide a summarized diagnosis of the overall current financial health of the software giant, and a ...

Intel Corporation

In this paper, I use the annual report for Intel Corporation for the year ended 31st December, 2014 to answer the said questions.

Relevant information revealed by the income statement

The income statement for Intel gives valuable information on the total revenue for the company in the last three years. Total revenue is important since it directly determines the net profit and the profitability of the company. In the year ended December 2014, Intel total revenue was $55,870 million. In 2013, the company’s total revenue was $52,708 million while in 2012; the figure was $53,341 million. This information is important in determining ...

Discuss potential hazards associated with focusing too heavily on the bottom line.

Income statement is a financial statement, which shows the transformation of the revenue into the net income, also known as the “bottom line”. Net income for a reporting period is obtained by subtracting all the losses and expenditures from the revenue. It is often considered in financial analysis as the measure of financial performance for the period. However, there are hazards, associated with focusing too much on the “bottom line”.

One of the aspects one must consider when using the “bottom line” for performance assessment is its tendency to estimate the value of some assets. If the estimates are wrong, net ...

The Horizontal Analysis

In the horizontal analysis of the company, one considers the various line items in the income statements and the balance sheet with similar items in the previous years. Looking at the year 2008, the company did not perform well. In terms of sales, there was a decrease in the sales compared to the year 2007. There was a decrease of $ 897,000 which is 15% of the sales revenue. As a result of the low sales, the company suffered a loss in the gross profit. The profit reduced from $1.6M to $1.4M. When analysing the expenses, the website creation and maintenance is a ...

Halloran metals company. This company was among the largest two independent regional service centers in the northeast US having seven locations in deferent states like New England, New York, and Pennsylvania. It is believed that in the period of 36 years of it foundation, the company had grown to sales of $170 million and an operating profit of $6 million. This company was privately owned with a network of metal service centers across the northern United States through buying metals like primary steel and aluminum in plenty or bulky form. This company has its president known as Warren Hansen ...

About the paper

The paper is commissioned to conduct financial analysis of Jaedan Industry. As part of this analysis, we will be calculating the free cash flow of the firm for the year 2010. In addition to this, we will also run the financial figures for the year 2009 and 2010 under the microscope of financial ratios to unearth the strengths and weaknesses in the firm’s organizational architecture.

Income Statement:

Balance Sheet Cash Flow Statement Calculating Jaedan’s Free Cash Flow In order to calculate the free cash flow of the firm, we will be using the excerpts from the ...

ANALYSIS OF FORD AND GENERAL MOTORS

Introduction General Motors underwent incorporation as a Delaware corporation in 2009.The company designs builds and sells automobiles and automobile parts world over. Also, the company through GM Financial provides automotive financing services. Similarly, Ford Motor Company sells automobiles created and built by Henry Ford. The company, incorporated in Delaware in 1919, has its operations in six continents. Other than the production and sales of automobiles, it engages in the provision of financial services through Ford Motor Credit Company.

The process involves comparison of financial ratios of General Motors, Ford Company and the averages within the industry of operation. ...

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 ...

Abstract

The paper gives an account of the importance of accounting. It provides information about the increasing importance of accounting in the recent years and the entities that pay attention to the information provided by the accounting system. The paper also describes about how each party makes use of accounting and its role in the process of decision-making. It also explains the need for recording and analyzing the transactions through the accounting system. Most importantly, the paper asserts the importance of accounting in assessing the performance of firms. The paper also provides a great deal of information about the role of ...

Introduction

General Motors, popularly known as GM, is one the largest automobile companies in the world. Founded in 1908 in Flint, Michigan, the company is currently headquartered in Detroit, Michigan. GM occupied the number one position in the automobile industry for 77 consecutive years from 1931 to 2007 ("General Motors Company and Subsidiaries" 2015). Currently, it is the 3rd largest automaker in the world. In 2009, due to operational inefficiencies, slowness in the automobile market in the USA and huge overhead costs, GM filed bankruptcy. However, it restored its operation within a year and came back to profitability within 2 years. ...

[Professor]

Introduction This paper reviews different literature works to evaluate the real meaning of accounting. This paper defines accounting from scratch in order to give comprehensive information for those who do not even know about this field. Further, this paper describes accounting, its reporting procedure, financial statements and their purpose. In addition to that, this paper defines various types of accounting systems that are used around the world by different types of organizations.

Analysis

Accounting is considered as the language of business, which tells the financial position an organization. It is a systematic way to record, summarize and analyze the ...

1) Introduction The report is commissioned to evaluate the investment potential of leading American courier service company, FedEx Corporation. As part of this report, we will be discussing the trends in the financial statements of the company, which will be followed by a comprehensive ratio analysis section where we will be putting the financial figures of past two years under the microscope of financial ratios. In order to widen the scope of our analysis, we will also compare the trends in the financial ratios with that of two leading competitors of the company, United Parcel Services (UPS) and Deutsche ...

Accounting for asset, liabilities and equity

Referring to the notes to the financial statements, we found that the company prepares its consolidated financial statements, according to Generally Accepted Accounting Principle(GAAP), while the assets, liabilities and equity are measured on cost basis.

Inventory Valuation

Referring to the notes to the financial statements, we found that the company is using FIFO method to value its inventory. Following FIFO method for inventory valuation, leads to higher value of inventory and lower cost of goods sold(COGS), which leads to higher gross profit and tax bills for an entity. Important to note, GAAP allows the use of both FIFO and ...

Assignment on financial planning for

This assignment is being submitted on July 12, 2015 Introduction As per the prevailing conventions in online gaming industry, the startups are often directed in the way, which their financial planning guides them to. Instead of aiming towards profit generation during initial 3-4 years, the objective behind running the business should be focused at marketing its core competencies and building the customer base (Arders, 2014). If the above two notions are maintained aptly, coupled with consequent rise in revenues and steady overhead costs, the profit attainment for the business can be ratified by the beginning of 4th ...

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, ...

Question 1

The Purpose and Usefulness of the Income Statement in Assessing Business Performance Income statement is a financial document that attempts to measure financial performance of an organization over a specified accounting period. The major purpose and usefulness of an income statement is to summarize the business revenue stream and expenses by categorizing activities into operating and non-operating accounts. Income statement is useful in business performance assessment by showing any net loss or profit earned over a specified accounting year or a quarter . The operating section of income statement is important to assess business performance of Sportswear-Kit since it discloses information about ...

According to the recent research, it is evident at Apple Inc. has successfully integrated the use of mathematics in the formulation of its financial analysis and records. The company closed its financial report with a stock of 40% as at March 2015. In addition, the market value is reported to be approximately $200 billion as compared to the initial financial year. In other terms, mathematical concept plays a major role in facilitating the financial reporting for the company. The balance and the income statement of the company borrows the ideas or concept of mathematics. It means that most of the ...

This Paper was prepared for_________ taught by___________

Introduction. Interpreting financial statements (FS) requires a thorough understanding of basic principles of accounting and reporting. This paper discusses such concepts as accounting equation and basic formats of FS, role of international financial reporting standards (IFRS), US Generally Accepted Accounting Principles (US GAAP) and The U.S.Securities and Exchange Comission (SEC) in the reporting process. Principal financial concepts. US GAAP are a set of accounting standards used by US companies for financial reporting. They are introduced by the Financial Accounting Standards Board (FASB) in compliance with SEC regulations and FASB mission of setting and improving principles of accounting and reporting which ...

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 ...