Financial Statements XACC/290 January 12‚ 2014 Melissa Drayton Financial Statements There are four basic financial statements: balance sheet‚ income statement‚ retained earnings statement‚ and statement of cash flows. These financial statements would include an overview of the assets‚ liabilities‚ expenses‚ and revenues of the business. Financial statements are useful not only to internal user; such as managers and employees‚ but also to external users; such as investors and creditors to
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Analysis of Financial Statements After reading this chapter‚ students should be able to: Explain why ratio analysis is usually the first step in the analysis of a company’s financial statements. List the five groups of ratios‚ specify which ratios belong in each group‚ and explain what information each group gives us about the firm’s financial position. State what trend analysis is‚ and why it is important. Describe how the Du Pont chart is used‚ and how it may be modified to include
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Amortization ($0.9) ($0.6) ($0.7) Other Income (expense) $0.0 ($1.4) $0.2 Net profit (loss)--GAAP $15.7 $10.3 $1.5 Add back amount eligible for capitalization Under SAB 104 (40% of total costs X 85%) $33.9 $25.0 $19.1 Adjusted Net Income (loss) Reported Internally $49.5 $35.3 $20.5 INVESTools should definitely capitalize these expenses. The practice of not capitalizing these expenses has led to routine recording of net losses lately due to the company’s new focus
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Financial Statements Financial statements are records of relative financial information of organizations that are highly valuable to both internal and external users of that organization. The following four basic financial statements constitute the foundation of accounting: * Balance sheet * Income statement * Retained earnings statement * Statement of cash flows Purpose of the Financial Statements The balance sheet shows a clear picture of the organization’s financial
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Section: Money‚ Pg. 01b The Starbucks siren is about to butt heads with the Red Bull. Eager to dip its influential -- if not omnipresent -- cup into the $8 billion energy drink category‚ the world’s largest coffee chain announced at its annual meeting in Seattle that it plans to roll out in April a new line of "natural" energy drinks‚ Starbucks Refreshers‚ to be sold at groceries‚ convenience stores and Starbucks stores. The fruity‚ carbonated drink that’s high in antioxidants uses unroasted‚
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Abstract Financial statements are used by so many different types of people from investors‚ to creditors‚ managers and even employees. These statements are proven useful tools that provide valuable information about a business enabling the user of the statements to make the most appropriate business decisions. Financial Statements Four Basic Financial Statements There are four basic financial statements in accounting: 1. Balance Sheet 2. Income Statement 3. Retained Earnings Statement 4
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(including wages‚ fringes‚ incentives‚ overtime‚ training‚ and severance expenses)‚ assembles and ships 800‚000 entry-level cameras and 200‚000 multi-featured cameras over the course of a year‚ has revenues of $100 million from sales of entry level cameras‚ and revenues of $150 million from the sale of multi-featured cameras‚ then the total annual labor costs allocated to the assembly and shipment of multi-featured cameras and the labor costs per multi-featured camera assembled and shipped‚ respectively
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D) The statement of comprehensive income illustrates the financial performance and results of operations of a particular company or entity for a period of time. Referring to the company’s Statement of Comprehensive Income‚ as known as Profit and Loss statement‚ we can conclude that Amway (M) Sdn.Bhd had increased the total net profit amounted of RM 11‚687‚000 from the year 2010 (Amounted at RM 78‚272‚000) to year 2011 (Amounted at RM 89‚959‚000)‚ this is because of Amway’s new strategy as throwing
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First Investment Inc.: Analysis of Financial Statements Company Information First Investments Inc owns stock of Basic Industries. Basic Industries is a diversified multinational corporation with major shares in various electrical related markets. Financial Analysis The financial analysis of the company is carried out using DuPont System of analysis. DuPont Analysis [Ref:4] There are two methods of DuPont Analysis‚ one is called three steps and other is called five steps DuPont Analysis. Three
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