finances will explain the financial position of OHF and offer recommendations to strengthen OHF’s financial position. Included in the evaluation will be an explanation of the principles of finance and how they relate to OHF, a comparison of net incomes and cash flows, a comparison of the market value of an asset and the book value, the addressing of OHF’s strengths and weaknesses and recommendations to further strengthen OHF. Principles of Finance and how They Relate to OHF The principles of finance
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asset= cash+ account receivable+ inventory (total) Current assets + fixed assets= total assets Current liabilities= accounts payable+ notes payable(total) Long-term debt Owners’ equity= common stock and paid in surplus + retained earnings(total) Total liabilities and owners’ equity Income statement Net sales-cost of good sold-depreciation=EBIT-interest paid=EBT(taxable income)-taxes=net income Net income= Dividends+ addition to retained earnings Earnings per share= net income/total shares
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and 2011. a) Calculation of appropriate ratios for the years 2010 and 2011 Financial ratios can broadly be categorized as liquidity, efficiency and profitability. Where appropriate, we shall attempt to analyse the underlying financial statements in terms of the above categoris of ratios. The first category that we shall explore is the liquidity.These ratios measure the ability of a company to meet its obligations when they fall due, from the available resources. They include:
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Financial Statement Review – Intel What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this information be important to investors? From the income statement of Intel, the net income is $ 11,005 million for the current fiscal year. The net income is down compared to the prior year which was $12,942 million. The net income determines the efficiency and profitability of a company. The net income is use to analysis where you can determine how efficient
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2—Financial Statement and Cash Flow Analysis MULTIPLE CHOICE 1. Which of the following items can be found on an income statement? a. Accounts receivable b. Long-term debt c. Sales d. Inventory ANS: C DIF: E REF: 2.1 Financial Statements 2. If you only knew a company’s total assets and total debt, which item could you easily calculate? a. Sales b. Depreciation c. Total equity d. Inventory ANS: C DIF: E REF: 2.1 Financial Statements 3. How do we calculate a company’s operating cash flow? a. EBIT
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Financial Statements Paper Part 1 ACC 497 July 14, 2014 Financial Statements Paper Part 1 In Financial Statements Paper Part 1 I will discuss The Home Depot’s annual report, to include the consolidated statement of earnings, the balance sheet, and the statement of cash flows. I will discuss some details of each sheet, the importance of the contents, business decisions associated with each sheet, and the benefits gained from the information contained in the sheets. The Consolidated Statement
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have focused on laser technology for the aesthetic and cosmetic industry (Fraser & Ormiston, 2007, p. 146). Every corporation is required to prepare four financial statements every year; the balance sheet, the income statement, the statement of stockholders’ equity, and the statement of cash flows. Each financial statement contains certain information regarding the financial position of the corporation. The balance sheet lists the assets, liabilities, and stockholders’ equity on a specific
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financial statements. The four basic financial statements a company can produce are the Income Statement, Retained Earnings, Balance Sheet and Statement of Cash Flows. All these statements are prepared for a specific period in time, usually on a monthly, quarterly or annual basis. Describe the purpose of each of the four financial statements. The Income Statement summarizes the fees earned, less any operating expenses to show if the company is profitable. The Income Statement uses the
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Cash Flow Greg George December 7, 2013 Cash flow statements are important for every business. Cash flow statements tell investors, banks, and the company’s management what is going on with the company’s cash. Investors want to know if a company can and if they have paid dividends and a cash flow statement can provide this kind of information. When banks look at giving a loan to a company they look at a lot of different statements and on of them is the cash flow statement. From a cash
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The four basic financial statements a company can produce are the Income Statement, Retained Earnings, Balance Sheet and Statement of Cash Flows. All these statements are prepared for a specific period in time, usually on a monthly, quarterly or annual basis. The Income Statement summarizes the fees earned, less any operating expenses to show if the company is profitable. The Income Statement uses the matching concept, which means the expenses are matched with the revenue generated in the same time
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