Income statement The income statement or the profit and loss account as it is also called measures reports how much profit (wealth) has the business generated over a period of time. To measure profit the total generated revenue over a period must be identified. Revenue is a measure of inflow of economic benefits arising from the operations of the business. These benefits will either result in an increase of assets such as cash or amounts owed to the business by the customers or a decrease
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TRUE-FALSE STATEMENTS 8. Closing entries are not needed if the business plans to continue operating in the future and issue financial statements each year. 9. The dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period. 10. After closing entries have been journalized and posted‚ all temporary accounts in the ledger should have zero balances. 11. Closing revenue and expense accounts to the
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Ratio Analysis and Statement of Cash Flows Financial ratios are "just a convenient way to summarize large quantities of financial data and to compare firms’ performance" (Brealey & Myer & Marcus‚ 2003‚ p. 450). Financial ratios are very useful tools in order to determine the health of a company‚ help managers to make decision‚ and help to compare companies that belong to the same industry in order to know about their performance. Home Depot and Lowe’s are two home improvement chains in the United
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accounting‚ a cash flow statement‚ also known as statement of cash flows or funds flow statement‚ is a financial statement that shows how changes in balance sheet accounts and income affect cash and cash equivalents‚ and breaks the analysis down to operating‚ investing‚ and financing activities. Essentially‚ the cash flow statement is concerned with the flow of cash in and cash out of the business. The statement captures both the current operating results and the accompanying changes in the balance sheetAs
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B Constructing the Statement of Cash Flow: An Expanded Discussion A P P E N D I X B-1 STARBUCKS PREMIUMS IN COFFEE Starbucks Corporation is the leading retailer‚ roaster‚ and brander of specialty coffee in the world. It has more than 7‚500 retail locations in North America‚ Latin America‚ Europe‚ the Middle East‚ and the Pacific Rim. Starbucks sells high quality coffee and the “Starbucks Experience.” It also produces and sells bottled Frappuccino® coffee drinks‚ Starbucks DoubleShot™
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Table A: Condensed Income Statements‚ 1991-1993 (thousands of dollars) 1991 1992 1993 Net sales Cost of goods sold Gross profit Operating expenses Interest expense Interest income Profit before taxes Federal income taxes Net profit $5‚213 3‚597 $1‚616 1‚199 68 20 $369 125 $244 $6‚167 4‚440 $1‚727 1‚542 75 15 $125 43 $82 $7‚967 5‚577 $2‚390 1‚912 85 16 $409 139 $270 Page 1 Table B Table B: Balance Sheet at December 31‚ 1993 (thousands of dollars) Cash Accounts receivable
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UVA-C-2297 July 28‚ 2009 DOG CONCIERGES‚ LLC: TRANSACTION ANALYSIS AND STATEMENT OF CASH FLOWS PREPARATION Part I Although he owned his own business‚ Jeff Birch was a financial novice. His passion was dogs‚ and he had finally made the move to start a specialty dog services business in an upscale section of a large mid-Atlantic city. In its first two years‚ Dog Concierges‚ LLC‚ had grown to about $650‚000 in sales. Historically‚ he had left all financial concerns in the hands of his sister
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Constructing a balance sheet of Sophie’s sofas: Cash balances: $10‚000 Inventory of sofas: $200‚000 Store and property: $100‚000 Accounts receivable: $22‚000 Accts payable: $17‚000 Long-term Debt: $170‚000 Balance sheet of (insert name) Assets Liabilities & Shareholders equity cash $10‚000 accounts payable $17‚000 Accounts receivable $22‚000 Long term debt $170‚000 Inventory $200‚000 Shareholders equity $145‚000 Store and Property $100‚000 _______ ________ Total assets: $332
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CFO compared to Net Income 3. CFO>Capex? 4. CFO>Capex + Dividends 5. Excess Cash 6. Source of cash to pay Capex and/or Dividends 7. Were working capital accounts other than cash and cash equivalents primary sources of cash or users of cash? 8.What other major items affected cash flows? 1991 1. Major sources of cash are cash received from customers and proceeds from the issuance of common stock. Major uses of cash are cash paid to suppliers and
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CASH FLOWS AND FINANCIAL STATEMENTS AT SUNSET BOARDS Below are the financial statements that you are asked to prepare. 1. The income statement for each year will look like this: | Income statement | | | 2008 | | 2009 | | Sales | $247‚259 | | $301‚392 | | Cost of goods sold | 126‚038 | | 159‚143 | | Selling & administrative | 24‚787 | | 32‚352 | | Depreciation | 35‚581 | | 40‚217 | | EBIT | $60‚853 | | $69‚680 | | Interest | 7‚735 | | 8‚866 | |
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