ATC 14-1 (Pg. 686)
They were losing much less money on their net income but the main point is they were still losing a lot of money. With the cash flow they were also decreasing every year that they were operating. Also looking at the data they were not able to pay any of the debt that they owed until 2008.
I doesn’t seem that they were ever able to improve their position. Every year they were showing that they were losing more money and getting more in debt. The operating cash flow was decreasing but they were not able to show any type of profit.
They had a positive amount of money on their marketable securities. They had a turn in profits in 2008 and were able to start paying off debt that they owed. They also had restricted cash that came available.
Up until 2008 it seems that they were deteriorating at a very fast rate. In 2008 they started showing some improvement in how they were doing business and the amount of losses that they were showing. They were also able to decrease their operating expenses and start paying off some of the debt that they had incurred.
According to Gibson (1994) the balance sheet and income statement data are presented in dollars and common size. The common size is presented in percentages which can be converted into dollars. The reason this is more useful is that it will give all of the ratios in percentages so you will know the actual amount that is being figured. Presenting this in only a dollar amount would not give a true representation of how the figures were compiled. References
Gibson, C. (1994). Library gems: Relevant source of data for the accountant. CPA Journal, 64(4), 52
The information that you are able to look at that has been trended is much more important than looking at a onetime picture of what is has happened. Trending is not only used in a financial it is also used in many other areas. In an engineering sense when you are evaluating of equipment operates you want to look at the performance over a long period of time. On
I doesn’t seem that they were ever able to improve their position. Every year they were showing that they were losing more money and getting more in debt. The operating cash flow was decreasing but they were not able to show any type of profit.
They had a positive amount of money on their marketable securities. They had a turn in profits in 2008 and were able to start paying off debt that they owed. They also had restricted cash that came available.
Up until 2008 it seems that they were deteriorating at a very fast rate. In 2008 they started showing some improvement in how they were doing business and the amount of losses that they were showing. They were also able to decrease their operating expenses and start paying off some of the debt that they had incurred.
According to Gibson (1994) the balance sheet and income statement data are presented in dollars and common size. The common size is presented in percentages which can be converted into dollars. The reason this is more useful is that it will give all of the ratios in percentages so you will know the actual amount that is being figured. Presenting this in only a dollar amount would not give a true representation of how the figures were compiled. References
Gibson, C. (1994). Library gems: Relevant source of data for the accountant. CPA Journal, 64(4), 52
The information that you are able to look at that has been trended is much more important than looking at a onetime picture of what is has happened. Trending is not only used in a financial it is also used in many other areas. In an engineering sense when you are evaluating of equipment operates you want to look at the performance over a long period of time. On
References: Gibson, C. (1994). Library gems: Relevant source of data for the accountant. CPA Journal, 64(4), 52 The information that you are able to look at that has been trended is much more important than looking at a onetime picture of what is has happened. Trending is not only used in a financial it is also used in many other areas. In an engineering sense when you are evaluating of equipment operates you want to look at the performance over a long period of time. On our robots we use trends to be able to predict when the equipment might fail, this way we are able to be much more preventive to keep the equipment running correctly. In financials it is much the same. You can use trends to see problem areas which would enable you to put measures in place to correct problems.