...Financial Statements Part 1 Accounting 497 Financial Statements Part 1 Financial statements provide investors, creditors, and employees with important information related to a company’s overall performance. Public traded companies are required by the Securities and Exchange Commission to release financial statements on quarterly and annual basis. The three main statements included in the annual report include the consolidated statement of earnings, balance sheet, and statement of cash flows. This paper will analyze Home Depot, Inc. 2008 annual report. The Home Depot, Inc. The Home Depot is a public “do-it yourself” home improvement and construction retailer. The Home Depot was founded in 1978 by Bernie Marcus and Arthur Blank (depot, 2015). The company’s website states that “today The Home Depot is the world’s largest home improvement specialty retailer, with more than 2,200 retail store in the United States (including Puerto Rico and the U.S. Virgin Islands), Canada, and Mexico” (depot, 2015). The Consolidated Statements of Earnings The consolidated statement of earnings or commonly known as the income statement is a financial statement that measures a company’s financial position over a specific accounting period. The statement includes: revenues, expenses, gains and losses. The fundamental equation used to generate the income statement is Revenues-Expenses=Profit or Loss. A consolidated statement of earnings combines all major expense accounts into broad categories...
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...With the deal came a relatively small chain of home improvement stores called B&Q. It was the start of a decade of major expansion which created one of Europe's biggest and broadest retail conglomerates. The company bought the Comet Electricals chain in 1984 and the Superdrug health and beauty stores in 1987. Meanwhile B&Q expanded its out of town presence to become the leading home improvement retailer in the UK. As conceptual framework helps us identify certain characteristics of usefulness of a financial statement, we can look at the financial report of Kingfisher, 2013/14 and say that throughout the year yet they faced difficulties in France, Russia and at the end the Scottish referendum as well they did well enough sales that can attract an investor to think to invest in this business as worthwhile. Their sales was up by 552million from 10573 to 11125 in the year of 2013/14, which is a positive sign to attract a potential investor. In the statement of chairman, he announced with delight that they launched a programme to return surplus...
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...the methods commonly used in such an environmental analysis is “SWOT” (an acronym for Strengths, Weaknesses, Opportunities and Threats), which considers the strengths and weaknesses in the internal environment as well as the opportunities and threats in the external environment. Candidates can refer to the required reading Situational Analysis Tools mentioned below for more information on how to go about doing a SWOT analysis. The next major step is to identify the issues and analyze various alternatives for addressing the major issues. In this case, a shortage of available cash is a major issue and needs to be addressed. Therefore, one of the main topics for this assignment is cash flow management, i.e. managing the movement of money into and out of a business. Many supervisors and/or managers who oversee functions such as accounts receivable, accounts payable, and finance are directly involved in cash flow management within their organizations. In some smaller companies, a single individual may manage...
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...About This Book ..................................................................... x Conventions Used In This Book .......................................................................xi Craig’s Challenge ........................................................................................... xiii The Excel Modeling and Estimation Series .................................................. xiii Suggestions for Faculty Members ..................................................................xiv Acknowledgements ........................................................................................... xv About The Author ................................................................. xvi PART 1 TIME VALUE OF MONEY ..... 1 Chapter 1 Single Cash Flow ....................................................1 1.1 Present Value ............................................................................................... 1 1.2 Future Value ................................................................................................ 2 Problems .............................................................................................................. 3 Chapter 2 Annuity ...................................................................4 2.1 Present Value...
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...accounting, identify the four basic financial statements, and explain how they are interrelated and whom they are useful to. Accounting “Accounting is an information system that identifies, records, and communicates the economic events of an organization to interested users” (Weygandt, Kimmel, & Kieso, 2008, p. 4). Economic events are accounting transactions that a company identifies and records to communicate this information to interested parties. For example, Apple computers first identifies that a computer sale is an economic event relevant to its company. An example of an economic event to Apple computers is selling an Apple iPod. When this transaction takes place, it is recorded in a systematic manner to create a chronological diary of events (Weygandt, Kimmel, & Kieso, 2008, p. 21). Four Financial Statements There are four different and interrelated basic financial statements that companies prepare from summarized accounting data. The first statement is the income statement. The income statement presents the net income (when revenues exceed expenses) or net loss (when expenses exceed revenues) of a company based on the revenues and expenses for a specific period. The next financial statement is the retained earnings statement. “A retained earnings statement summarizes the changes in retained earnings for a specific period of time” (Weygandt, Kimmel, & Kieso, 2008, p. 21). For example, if a company creates the four financial statements, and it is for the end of the month...
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...[pic] CASH FLOW STATEMENT & FINANCIAL STATEMENT ANALYSIS Submitted by: Syed Adnan Ali Gillani Roll Number: M3F14MCOM0003 M.com 1st semester Submitted to: Pro. Raja Sadaqat ACKNOWLEDGMENT In the name of Allah, Most Gracious, Most Merciful Praise be to Allah, the Cherisher and Sustainer of the worlds; Most Gracious, Most Merciful; Master of the Day of Judgment. Thee do we worship, and Thine aid we seek. The way of those on whom Thou hast bestowed Thy Grace, those whose (portion) is not wrath, and who go not astray. Ameen I am heartily thankful to our Accounting teacher, Sir Raja Sadaqat, whose encouragement, guidance and support from initial to the final level enabled us to develop the subject Accounting. With his dedicated lectures we were able to practically understand and apply what we have learned in the classes. Executive Summary This assignment is about cash flow statement and financial statement analysis. During the assignment, I’ve done the detailed study of cash flow statement and financial statement analysis. CASH FLOW STATEMENT Introduction to Cash Flow Statement The official name for the cash flow statement is the statement of cash flows. We will use both names throughout AccountingCoach.com. The statement of cash flows is one of the main financial statements. (The other financial statements are the balance sheet, income statement...
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...assessor: Student name | Student number | Analyses | Grade | Amber van Berkel | 384941 | Income statement | | Lotte Bergsma | 353604 | Balance sheet | | Roos Bijen | 336432 | Cash flow statement | | | | | | | | Elements | | Scoring Rubrics | | Group/ individual | contents | Score 1-10 | remarks | Part A Getting to know the company (30%) | group | * Business drivers * 5 year record * Directors review | | | Part B: The financial statements (30%): | individual | Income Statement | | | | | Balance Sheet | | | | | Cash Flow Statement (*) | | | Part C (30%) Investors perspective | group | * Risk analysis * performance * overall conclusions (A+B+C) | | | Part D presentational aspect (10%) | group | * Lay-out * Grading sheet * Quality and use of English | | | | | | Preface During the second year in the module Hospitality Operations Environment of the International Hotel Management School a financial analysis has to be made. This financial analysis is about the company MacDonald’s. Findings, trends and conclusions found in the annual reports of 2013 and 2014 of the McDonald’s Corporation, are summarized in this financial report. Three students of the Hotel Management School of Stenden University of Applied Science Leeuwarden have written this report. We have learned how to analyse trends in financial statements. Furthermore, we have studied how to make a Du Pont Schedule as well as how to analyse the financial...
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...4 b) Balance Sheet Analysis……………………………………………………………………………..…. 4, 5 c) Stock Analysis……………………………………………………………………………………………… 5 d) Income Statement Analysis…………………………………………………….................................. 5, 6 1. Income Reporting Methods…………………………………………………………………………… 5 2. Income Reporting Trends…………………………………………………………………………...… 6 b) Cash Flow Statement Analysis…………………………………………………................................ 8, 9 1. Cash Reporting Methods……………………………………………………………………………… 8 2. Cash Reporting Trends………………………………………………………………………..…. 9, 10 3. Conclusion…………………………………………………………………………………………………..... 10 4. Bibliography…………………………………………………………….…………………………………….. 11 Introduction Coca-Cola Company was established in 1892 in North America, and has since expanded successfully into the international market, now doing business in over 200 countries around the world (Coca-cola.co.uk. 2013). Coca-Cola sells a wide variety of beverages from water to soft drinks, sports drinks, and teas. Coca Cola Company has acquired existing beverage brands over the years, including Minute Maid and Honest Tea, Inc. Coca-Cola follows the strict financial reporting guidelines established by the ISAB and FASB, and reports financial activities in an unbiased and transparent way. The following analysis looks at the financial statements of Coca-Cola Company during the years of 2010,...
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...esACTG3110 Chapter 5: Statement of Cash Flows Introduction Objectives of the SCF •Companies are required to include statement of cash flows (SCF) as part of their F/S. •Historical CF are often used as indicator of amount, timing, and uncertainty of future CF. •The objective of the SCF is to disclose the historical cash flows of the enterprise during the reporting period for both feedback and predictive purposes. Classification and Organization The SCF is classified on the basis of the type of cash flow: •Operating activities are the principal revenue-producing activities of the enterprise and the related expenditures. * Cash inflow from operations is measured as cash received from customers or clients. * Cash outflows are those disbursements for operating activities, such as cash paid for inventories, wages and salaries, income taxes, and rent and other overhead costs. * Operating activities relate to net earnings (rev. + exp.), not comprehensive income. * If the company has recognized specific amounts that are part of other comprehensive income, these transactions or events are not included in operating activities. * Therefore, net earnings is the reference point for operating activities on the SCF. •Investing activities are those activities that relate to long-term assets and investments. * The acquisition and disposal of property, plant, and equipment; intangible assets; other assets; and investments are all included in this section...
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...FOSSIL INC. FINANCIAL STATEMENT ANALYSIS PART 1 10/16/2011 Table of Contents6 Introduction 1 Chosen Policies and Quality of Numbers 1 Part 1: Overview of Balance Sheet 1 1.1 Major types of assets and unusual amounts of components 1 1.2 Major types of liabilities and unusual amounts of components 2 1.3 Major types of Equities and unusual amounts of components 2 Part 2: Overview of the Income Statement 3 2.1 Major sources of revenues, expenses, gains and losses 3 2.2 Unique Items for Income Statement for recreational goods 3 2.3 Unusual amounts changes in the Income Statement 3 Part 3: Overview of Statement of Cash Flow 4 3.1 Analysis for operating cash flows 4 3.2 Analysis for investing cash flows 4 3.3 Analysis for financing cash flows 4 3.4 Direct method of statement of cash flow 5 3.5 Noncash investing and financing activities 6 Part 4: Discussion of CPA’s audit report 6 4.1 Auditor 6 4.2 Type of Audit opinion 6 4.3 Meaning of the Audit Report 7 Part 5: Revenue Recognition and Matching Principles 7 5.1 Types of Revenue Transactions 7 5.2 Revenue Recognition 7 5.3 Concentration of Revenues of Receivables 8 Part 6: Ratio analysis 8 6.1 required Ratios 8 6.2 Ratio analysis 9 Summary 10 Introduction Fossil is a Delaware corporation formed in 1991 which succeeded to a Texas corporation formed in 1984. Fossil specializes in consumer fashion accessories and offers an extensive line...
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...Course Project: Pfizer Inc. Fall 2010, F203A: Financial Accounting for Management Group 8 Heejun Chung Serge Sidorov Tim Harvey Brett Neu Ed Wu 1. Table of Figures Exhibit 1 in the Appendix contains a table of figures that is comprised of data pertinent to Pfizer’s financial performance in 2007 – 2009. 2. Common Size Balance Sheet Analysis a. Common size balance sheets for Pfizer and Novartis in 2007 – 2009 are shown in Appendix (Exhibit 2). b. Analysis * Items on the balance sheet decreased slightly between 2007 and 2008, but increased by almost 50% between 2008 and 2009. This is attributable to the acquisition of Wyeth (the deal was announced on January 25 and completed on October 15, 2009). This major event is reflected in almost all entries of the balance sheet: between 2008 and 2009 “Total Current Assets” increased by 43%, “Property, Plant and Equipment” increased by 71%,”Goodwill” almost doubled (97%), and “Other Noncurrent Assets” went up by 158%. “Total Assets” increased almost twofold (92%). * Together with the assets the liabilities also increased: “Long Term Debt” went up by 442% (apparently Wyeth had a lot of debt prior to the merger), whereas “Deferred Tax Liabilities” increased by 503% (apparently Wyeth had older assets). Total liabilities to total assets ratio increased from 48% to 57%. Total equity increased by 57%. The absolute value of “Treasury Stock” decreased by 63%. This may be due to the fact...
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...EXECUTIVE SUMMARY The report aim’s to examine the annual reports of Australia’s two largest mining companies BHP Billiton and Rio Tinto and analyse their cash flow statements. The analysis requires evaluating the cash flow performance of these companies during the global financial crisis 2007- 2009.The global financial crises were originated in US because of the bloom/bubble in the housing prices. During global financial crisis many financial institutions failed to recoup their money from lenders and finally ended up declaring bankruptcy. The purpose of the cash flow statements is to provide information about the changes to an entity’s cash and cash equivalents over certain period of time. The cash flow from operating activities of the both companies shows both positive and negative signs as the companies were going through recession. Whereas both companies used external and equity source financing and thus made an efficient cost effective decisions from which BHP Billiton benefited the most. Finally it’s concluded that the both companies were successful in overcoming global financial crisis and alternative strategies affecting the profitability of the companies were presented. Introduction Last three years has faced the worst global financial crisis after the great depression of 1929-1933. The origin of global financial crisis was mainly in US starting from mid 2000’s and taking the whole world into account by the end of 2007. The main reason of the crisis...
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...[Type the company name] 24/6/2012 Business Administration Managing financial resources and decision: assignment not be spoken Introduction: If you can read a nutrition label box or a football score, you can learn to read basic financial statements in order to make the right investments. If you can follow a recipe or apply for a loan, you can learn basic accounting. Financial statements aren’t difficult and they aren’t rocket science. Before understanding the four types of financial statements, you must first understand the three types of business entities, there are three forms of business entities, and they are: sole trader, partnership, and corporation. Each form has its pros and cons in complexity, and how its taxed, also, some business forms have subclasses, like the s corporation, c corporation, and professional corporation, so all that means choosing the right business form is no easy task, considerations must be taken, you must learn how to select, plan, and organize your chosen business form so that its perfect for you. The sole trader: This is the simplest business form you can operate at; the sole proprietorship is not a legal entity. It basically refers to an average person who owns the whole business and is personally responsible for all its debts and receives all the profit. A sole trader can handle business under the name of the owner or it can operate under...
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...funding of the expansion of Crop Protection Services and Livestock services division. If we look at the income statement of the company and also the balance sheet and cash flows, we notice that UGG has a negative cash flow for 1998. This means that UGC is not even able to assure resources for its own working capital. Willing to obtain internal resources for long-term investments seems impossible in this case. Also, company got cash by selling accounts receivables and reducing inventory, but for 1998 is not working due to the fact that is using more cash by increasing the working capital. Excluding the changes in working capital from secularisation, the cash from operations varied from -$74.7 million to +$96.4 million, which is very variable. Also, the $150 millions also represents over eight times its 1998 cash from operations, even though the cash from operations has varied from -$74.7 million to +$104.4 million over six years. In order for the company to raise the C$150 million to carry out its strategic plans over the coming two years, it must look for a long term loan, possibly over 10 years and the longer the better because the new elevators are expected to last at least 50 years. Also, in case that the company fixes the problem with the secularisation and their working capital, it could borrow only part of the difference between the C$150 million and the cash flow for the...
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... The bar charts provided a basis for accounting analysis by depicting intracompany basis of comparison from one year to the next, and using a horizontal analysis approach. An “intracompany” basis of analysis compares an item or financial relationship within a company; a “horizontal analysis,” also called “trend analysis” is a way of evaluating a series of financial statement data over a period of time, with a purpose of determining changes in a company’s financial performance (Weygandt, Kimmel, & Kieso, 2009). Utilizing a means of comparative analysis is essential and significant in analyzing a company’s solvency, liquidity, and profitability. It assists a company’s internal and external stakeholders; its customers, employees; or the government to assess a company’s financial situation. Costco addresses its shareholders in the introduction of the annual report giving an overview of operating performance, pointing out its cash flow highlights. It includes a business overview charting nets sales, revenue from its ancillary business services, membership count, and the number of employees compared over a three year period from 2010 through 2012....
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