Financial Reporting I
Financial Reporting Problem Part 1
XACC/290
March 1, 2015
Financial Reporting Problem Part 1 J.P. Morgan is a company in the banking industry. J.P. Morgan was established in 1799 and despite multiple stock market crashes and recessions; it is a company that continues to do well in its sector (JP Morgan, 2014). J.P. Morgan Bank is the publicly traded company that I chose to analyze the 2013 annual report. At the end of 2013, the total assets of J.P. Morgan was 1,945,467,000,000; one trillion, nine hundred forty-five billion, four hundred sixty-seven million dollars in total assets (JP Morgan, 2014). The total assets of a company are important because it shows if the company makes enough to cover their debts (Kimmel, Weygandt, & Kieso, 2011). Assets are equal to liabilities and stockholders’ equity, and if they do not match up, the company could be making serious mistakes (Kimmel, Weygandt, & Kieso, 2011). According to J.P. Morgan Bank’s Annual Report (2014) the 2012 total assets were $1,896,773,000,000; there was a 48,694,000,000 increase from 2012 to 2013. J.P. Morgan Bank had both cash and cash equivalent accounts at the end of 2013. The total cash flow from operating activities was 107,953,000,000; combined with the total cash flow from investing activities and financing activities equals 286,778,000,000 worth of cash and cash equivalent for J.P. Morgan Bank’s 2013 accounting period. At ending of J.P. Morgan Bank’s accounting period for 2013, the amount of accounts payable (in millions) were 74,853. However, in 2012, J.P. Morgan Bank posted 84,152 (in millions) to the accounts payable (JP Morgan, 2014). For the last three annual reporting periods, J.P. Morgan Bank has reported a continuous loss of net revenue. According to the J.P. Morgan annual report of 2013, the net revenue was $71,650 (in the millions). In 2012, the net revenue for J.P. Morgan was $71,670 (in the millions) and for 2011, J.P. Morgan reported their highest net revenue for the three
XACC/290
March 1, 2015
Financial Reporting Problem Part 1 J.P. Morgan is a company in the banking industry. J.P. Morgan was established in 1799 and despite multiple stock market crashes and recessions; it is a company that continues to do well in its sector (JP Morgan, 2014). J.P. Morgan Bank is the publicly traded company that I chose to analyze the 2013 annual report. At the end of 2013, the total assets of J.P. Morgan was 1,945,467,000,000; one trillion, nine hundred forty-five billion, four hundred sixty-seven million dollars in total assets (JP Morgan, 2014). The total assets of a company are important because it shows if the company makes enough to cover their debts (Kimmel, Weygandt, & Kieso, 2011). Assets are equal to liabilities and stockholders’ equity, and if they do not match up, the company could be making serious mistakes (Kimmel, Weygandt, & Kieso, 2011). According to J.P. Morgan Bank’s Annual Report (2014) the 2012 total assets were $1,896,773,000,000; there was a 48,694,000,000 increase from 2012 to 2013. J.P. Morgan Bank had both cash and cash equivalent accounts at the end of 2013. The total cash flow from operating activities was 107,953,000,000; combined with the total cash flow from investing activities and financing activities equals 286,778,000,000 worth of cash and cash equivalent for J.P. Morgan Bank’s 2013 accounting period. At ending of J.P. Morgan Bank’s accounting period for 2013, the amount of accounts payable (in millions) were 74,853. However, in 2012, J.P. Morgan Bank posted 84,152 (in millions) to the accounts payable (JP Morgan, 2014). For the last three annual reporting periods, J.P. Morgan Bank has reported a continuous loss of net revenue. According to the J.P. Morgan annual report of 2013, the net revenue was $71,650 (in the millions). In 2012, the net revenue for J.P. Morgan was $71,670 (in the millions) and for 2011, J.P. Morgan reported their highest net revenue for the three
References: JP Morgan. (2014). JP Morgan Chase Bank, National Association. Retrieved from https://www.jpmorgan.com/cm/BlobServer/New_Zealand_bankstats13.pdf?blobkey=id&blobwhere=1320637390828&blobheader=application/pdf&blobheadername1=Cache-Control&blobheadervalue1=private&blobcol=urldata&blobtable=MungoBlobs Kimmel, P. D., Weygandt, J. J., & Kieso, D. E. (2011). Financial accounting: Tools for business decision making (6th ed.). Hoboken, NJ: John Wiley & Sons.