The Income Statement This indicates financial performance over a period of time. It is usually done at the end of a financial year (30th June)‚ but an income statement can be made up at other times‚ e.g.‚ if a business wishes to apply for a loan‚ the bank may ask for a more recent income statement. The other names for this kind of statement are Revenue Statement and Profit and Loss Statement. Income Statement for Ima Mess‚ year ended 30.6.12 |
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The percentage analysis of increases and decreases in individual items in comparative financial statements is called a. vertical analysis b. solvency analysis c. profitability analysis d. horizontal analysis 2. Which of the following below generally is the most useful in analyzing companies of different sizes a. comparative statements b. common-sized financial statements c. price-level accounting d. audit report 3. The percent
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(AS) 3 (revised 1997) Cash Flow Statements Contents OBJECTIVE SCOPE BENEFITS OF CASH FLOW INFORMATION DEFINITIONS Cash and Cash Equivalents PRESENTATION OF A CASH FLOW STATEMENT Operating Activities Investing Activities Financing Activities REPORTING CASH FLOWS FROM OPERATING ACTIVITIES REPORTING CASH FLOWS FROM INVESTING AND FINANCING ACTIVITIES REPORTING CASH FLOWS ON A NET BASIS FOREIGN CURRENCY CASH FLOWS EXTRAORDINARY ITEMS INTEREST AND DIVIDENDS TAXES ON INCOME Paragraphs 1-2 3-4 5-7 6-7
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stadium transaction on Ciclón’s 2003 Income Statement and Statement of Cash Flows (under the Indirect Method)‚ and on its Balance Sheet for the year ended on December 31th‚ 2003? Items to be addressed cash payment of $ 100 million cost of building the new stadium was $ 20 million market value of the land was $ 12 million the book value of the old stadium was $ 1 million useful live of the stadium was 40 years demolition cost at end useful live estimated $ 5 million (I take it as estimated $ 5 mio in 2043)
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Disadvantage and Uses of Cash Flow Statement & Funds Flow Statement There are 3 basic financial statements that exist in the area of Financial Management. 1. Balance Sheet. 2. Income Statement. 3. Cash Flow Statement. The first two statements measure one aspect of performance of the business over a period of time. Cash flow statements signify the changes in the cash and cash equivalents of the business due to the business operations in one time period. Funds flow statements report changes in a business’s
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Note: Income Statement Format Hanna 2004-08-03 Income Statement Presentation The objective of studying the format and presentation of the income statement is to gain an understanding of the different ways that certain economic events can be presented. Sometimes‚ the type of presentation depends upon management’s intent regarding the future. Needless to say‚ there is a lot of room for the application of judgment when choosing amongst various acceptable income statement formats. Interpreting
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differences between the two statements as mentioned below: Meaning: Cash flow statement is a statement which reflects sources and uses of cash whereas fund flow statement is a statement that reflects changes in the working capital or fund. Scope: The scope of cash flow is limited and it is based on the narrow concept of fund. i.e. cash alone whereas funds flow statement is a broader term and it is a wider concept of fund. Component: Under cash flow statement‚ cash is an important factor and
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The balance sheet approach’s main goal is to properly value assets and liabilities. The assets are most commonly valued by the amount of money they can receive by selling that asset for or how much they spent for the asset. The determination of the accounting method depends on the nature of the underlying item and how the firm intends to use it. Earnings is a function of the change in net assets. The income statement approach’s main goal‚ on the other hand‚ is to determine revenues‚ expenses‚ and
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take: 1. Your answer: Multiple Choice 15-1 Cash inflows from operating activities come from a. payment for raw materials. b. gains on the sale of operating equipment. c. collection of sales revenues. d. issuing capital stock. e. issuing bonds. 2. Your answer: Multiple Choice 15-2 Cash outflows from operating activities come from a. collection of sales revenues. b. payment for operating costs. c. acquisition of operating equipment. d. retirement
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FUNCTION CLEARLY PRINT YOUR NAME AND ASSIGNMENT NAME AT THE TOP OF EACH PAGE At the beginning of last month‚ Harley Franks started a barbershop‚ Harley’s Cutters. The following events occurred during the month. Harley invested $30‚000 cash in the company. Harley purchased $15‚000 of equipment for cash. Harley paid $500 cash to rent space for the first month of operations. Harley purchased $1‚200 of equipment on a note payable. Cash received from haircutting services for the first half of the month
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