...Financial Statements Paper 2 Financial Statements Paper Part I Keeping accurate financial statements for a company should be the number one goal of the company's financial team. Falsifying financial information can lead to misrepresentation of the company's financial status can lead to bad financial decisions and possible disaster of the business. There are three important financial statements for a business that provide management and shareholders financial information that can be key to financial decisions made by each. Those important financial statements of a business are the income statement, the balance sheet, and the cash flows statement. The income statement tells about a company's financial results for the financial year reported. Some information contained within the financial statements of a company would be profit or loss, the amount of expenses and revenue, and the operational efficiency of the company. The importance of an income statement of a company is that it shows the operational efficiency or inefficiency. The income statement after being evaluated will help shareholders make a decision if they would want to buy shares in the company. By finding positive figures shareholders will be likely to not sell their holdings increasing the market price of the shares; however should there be a negative finding the shareholders may choose to sell their shares causing a decrease in the market price. The information...
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...RUNNING HEAD: FINANCIAL STATEMENTS PAPER PART I Financial Statement Part I Paper Sonya Spencer – King University of Phoenix September 20, 2010 Introduction to Financial Statements The intention of this paper is to explain the essential structure of a financial statement and its sole purpose. While identifying the viewers, purpose and nature of the financial statements, stockholders and investors can make logical decisions that are in the best interest of the company. Financial statements also allow managers to thoroughly understand how to make informed and ethical business decisions by using financial accounting information. Landry’s and its History Landry’s became a publicly traded company in 1993, and since then has became a mounting, stable company, whom currently owns numerous restaurant chains. During the years of 2001 until 2003, Landry’s assets increased tremendously while maintaining an affirmative cash flow. By maintaining an affirmative cash flow, along with extremely low expenses, proves many analysis’s theories of why Landry’s is known as a leader in the restaurant industry. What the Income Statement Tells You about the Company In reviewing the information listed, one came immediately determine from the income statement that Landry’s total net income from the year ending December 31, 2003 was 45,901...
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...Financial Statements Paper Part I Student ACC 497 8.17.2015 Professor Financial Statement Paper Part I: Home Depot For employees, creditors, and investors, financial statements are essential. They provide insight and information regarding a company’s overall performance. The Securities and Exchange Commission (SEC) requires that all publicly traded companies release their financial statements on a regular basis – quarterly and annually. The annual report consists of three main reports: the consolidated statement of earnings (the income statement), the balance sheet, and the statement of cash flows. The following is a discussion of Home Depot’s 2008 Annual Report. Home Depot is a large, retail chain that specializes in home improvement. The income statement, its importance, what decisions it aids The income statement helps to understand a company’s financial performance. In plain terms, the income statement shows how a company made a profit or suffered a loss during a set period of time. The income statement is generated with a very simple formula of subtracting all Expenses from Revenues, thus arriving at the Profit or Loss. The income statement simplifies everything by merging all of the major expense accounts under one, more generic label. This simplicity aids any users of the income statement to have easy comprehension, and have a higher level of overview of the operation’s performance. Investors are able to forecast probable stock prices rising and...
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...Financial Statements Paper - Part I Bridgette Toutant ACC/497 March 31, 2014 Ken Goranson Financial Statements Paper - Part I A financial statement offers users, such as management, board of directors, and potential investors, information related to the company’s activities and it gives them the ability to make decisions in relation to the company. A certain amount of urgency should exist when providing this useful information because the financial statements are considered to be a powerful and commonly used tool. The most commonly used of all the financial statements would be the income statement because it can be used to examine the profits and losses of a company. Many users do also find that the balance sheets and cash flow statements just as useful in the decision making process. The following will include the analysis of Home Depot’s annual report by examining the income statement, balance sheet, and cash flow statement and looking at how they can help with business decisions. The Consolidated Statements of Earnings, the income statement, tells the user about the sales and expenses of Home Deport during each fiscal year. Analyzing the income statement for Home Depot, it appears that the company had strong sales numbers of over $71 billion each year. Even though the company was able to keep sales over $71 billion, it is noticeable that the sales and gross profits declined from 2007 to 2009 (The Home Depot, 2009). It also seems that an increase in expenses...
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...decisions can be made from the financial statement. The same can be answered about both the balance sheet and the statement of cash flows as well. Each financial statement is important and useful in its own way and all of the three financial statements are beneficial for management within Home Depot. According to “Beginners’ Guide to Financial Statements” (2007), “an income statement is a report that shows how much revenue a company earned over a specific time period (usually for a year or some portion of a year)”. There are two different types of income statements, single and multiple and Home Depot uses the multiple-step income statement. With that being said, this income statement includes both operating expenses as well as non-operating expenses. By reviewing the income statement for Home Depot, it looks as though net sales, cost of sales, and gross profit have all decreased over the latest three years recorded. On another note the operating expenses and non-operating expenses have both increased over the latest three years. “The income statement shows revenues, expenses, gains, and losses; it does not show cash receipts (money you receive) nor cash disbursements (money you pay out)” (Income Statement (Profit and Loss Statement), 2012). The income statement is important to many individuals including bankers/lenders/creditors as well as management. Paying attention to Home Depot’s profitability will assure that there will be a financial profit and that creditors would...
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...Financial Statement Paper Part I Armanda Gamboa ACC/497 May 25, 2015 Silvana Moffitt Financial Statement Paper Part I Upon making business decisions there are three types of financial statements that should be looked at and reviewed prior to making any decision. The three statements are the consolidated statement of earnings (income statement), balance sheet, and the statement of cash flows. The income statement will prove the company’s profitability, the balance sheet will provide a look at the company’s financial stand, and the statement of cash flow will tell where the cash came from and where the cash is going. Home Depot Inc. is a large home improvement retailer that has over 2,200 stores worldwide and has been in business since 1978. Looking at the financial statements for the year 2008 means there are several previous years that can be compared these statements. This will allow anyone who is curious about the financial situation of Home Depot to compare statements to previous years to determine the growth and success of the business. While reviewing the consolidated financial statement for Home Depot Inc year 2008 it proved that due to the decline in the economy there was a decline in revenue for them as well compared to their 2007 statement. The difference in net earnings from 2007 to 2008 are proven to be extremely large at 50% decline. On the 2007 income statement net earnings were at $4.4 billion with diluted earnings per share of $2.37 which is now compared...
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...with the unethical situations, but with the strict rules and regulations in place they will get caught fast. Given PCAOB oversight of accounting firms and the AICPA code of conduct, discuss whether or not you believe that public accounting firms can successfully manipulate audit work papers and records of clients engaged in fraudulent activity. The PCAOB and AICPA has done a good job on the code of conduct but it doesn’t completely stop all fraudulent activity. I believe in my opinion you are still going to have fraudulent activity going on as long this world has business transaction taking place. I do agree that public accounting firm can successfully manipulate audit work papers and records if a client is doing fraudulent activity. The question always remain when will the fraudulent activity stop. The answer is never because as long we have businesses someone go to the dark side and do dishonest things. Since the SOX and creation of PCAOB and AICPA the activity has been a small amount and not as large as Enron and World Com. Also the number of auditors getting in trouble are in small amounts of activities. Even though they might think they were successful in manipulating the work papers, they will always get caught or do the right thing turn themselves in to the proper authorities....
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... Summer 2014 Financial Analysis and Management Dr. Kamal M. Haddad COURSE OBJECTIVES Fin 423 is designed to develop critical thinking at the individual level, and problem solving competencies at both the individual and group levels. Teamwork and group problem solving are stressed. The course provides a thorough overview of financial analysis, including relevant modern theory and practical applications. Topics include financial statement analysis, financial planning, principles of valuation, capital budgeting, capital structure, and issues in financial policy. The course gives students opportunities to apply financial theory to analyze real life situations in an uncertain environment with an incomplete data set. It is integrative in nature, with special attention to the integration of theory and managerial judgment in the process of making financial decisions. BSBA Goals BSBA students will graduate being Effective Communicators, Critical Thinkers, Able to Analyze Ethical Problems, Global in their perspective, and Knowledgeable about the essentials of business. This class contributes to those goals through its student learning outcomes. LEARNING OBJECTIVES Use Financial Statements to evaluate firm performance. Project Financial Statements (B/S, I/S, budgets, etc.). Use Financial Statements to obtain Cash Flows for the firm and equity holders. Calculate and project Free Cash Flow. Determine financial drivers of Free Cash Flow. Calculate...
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...Accounting 150 Fundamentals of Accounting Corporation Study Project (75 points possible) DATES: February 20 – Section I draft due March 27 – Section II draft due April 15 – Section III draft due May 4 – Complete paper is due Objective of the Project Study a company whose stock is traded on the New York Stock Exchange (NYSE) or National Association of Securities Dealers (NASDAQ). Use the company’s public documents and financial statements to learn business information, financial information and investor analysis of the company (e.g., stock prices and ratios.). This will include an analysis of the company’s balance sheet, income statement and statement of cash flows. Due dates are listed above. Your paper will consist of a cover page (name of company, your name, date, and course/section), table of contents and the following sections: Section I. Profile of the Company’s Operations (Minimum 3 pages-word processed in paragraph form. Some information can be presented in table or bullet point format) Research the company’s most recent 10-K and the company’s website to learn the following for Section I of your paper: • State of incorporation. (front page of 10-K) • Type of stock issued, number of shares authorized and issued. • Information about the corporation’s product lines and major competitors (10-K Part I, Item 1) • Business risks. (10-K Part I, Item 1a.) • Number of employees. • Information about the company’s competition. • Summary of the company’s SWOT analysis • Corporate mission...
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...Determinants of Financial Literacy among Youth: Case of Amritsar City Dr. Arwinder Singh Assistant Professor/Department of Commerce Guru Nanak Dev University Regional Campus, Gurdaspur, Punajb, India #08968092299 arwinder.gndu@yahoo.com Nitika Bhandari (Corresponding Author) Assistant Professor/Department of Commerce Khalsa College for Women, Amritsar, Punjab, India #08146993589 Nitika3088@gmail.com Determinants of Financial Literacy among Youth: Case of Amritsar City Abstract Financial markets around the world have become increasingly accessible to everyone but financial products are becoming more complex and difficult to grasp for an average individual. Therefore it is of paramount importance to equip the Youth with Financial Literacy so that they can manage their own finances and securing their financial future. The present study is carried out with the objective to find out the determinants of financial literacy of the youth. The major determinants that influence the financial literacy are required to be sought in order to deal with the complexities of current financial markets and products. Data has been collected through primary sources by framing questionnaire answered by 100 respondents in Amritsar. Factor Analysis has been used to analyse the data. The analysis revealed five underlying dimensions namely Interest in Financial Issues, Financial Behaviour, Saving habits, Financial Attitude and Financial Awareness. The results...
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...healthcare organizations face an intimidating financial situation in today’s healthcare atmosphere. “Decreasing revenues, increasing costs, and high consumer expectations present a complex challenge for healthcare administrators and medical directors who must not only manage in today’s climate, but also position their organizations for tomorrow’s storms” (Gale Group, 2004, p. 2). This paper will summarize the four elements of financial management; summarize generally accepted accounting principles and general financial ethical standards; and provide examples from articles that reflect ethical standards of conduct and financial reporting practices. Four Financial Management Elements Planning, controlling, organizing and directing, and decision making are the four elements of financial management. The purpose of planning is for the financial manager to identify the objectives and identify the steps required to achieve those objectives. The purpose of controlling is for the financial manager to review and compare current reports against previous data to ensure the plans, set by the organization, are being followed properly and efficiently. The purpose of organizing and directing is for the financial manager to ensure effective resource use and provide daily supervision. Lastly, the purpose of decision making is for the financial manager to make informed choices through primary tasks of analysis and evaluation. These four elements of financial management are the key to leading a...
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...Research Paper Matthew Emery memery@capella.edu BUS3004 Developing a Business Perspective Lynn MacBeth 08/12/2012 Too Big to Stay Introduction A financial institution so interwoven in the fabric of the national economy that its failure could cause a massive ripple effect is deemed “too big to fail”. Unfortunately for the taxpayers, their hard earned dollars are the only thing between salvation and failure for these companies. Poor management or industry instability can ruin any business, but the larger an institution gets, the larger the collateral damaged induced by their failure will be. It is the duty of a responsible government to never leave their citizens vulnerable to such a catastrophe. The goal of this paper is to prove that too big to fail policy is what turned a period of stagnant growth into the worst financial crisis since the Great Depression. It is a well known fact that the housing market and therefore the United States economy started slipping in late 2007. As the economy was faltering, it still managed to not slip into recession status until September 2008. It is lees than coincidental that America's fifth largest financial institution, Lehman Brothers, filed for bankruptcy on September 15, 2008, the very same time the economy plummeted. The instability of the market led to runs on banking institutions, which in turn led to more bank failures, which led to massive bailouts. These bailouts, while helpful at the time, lead to unprecedented...
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...Term Paper On Credit Risk Grading Of Non Bank Financial Institution. A Study on IDLC Finance Limited. Submitted To: .......................... Supervisor of Term Paper Committee Faculty of Business Studies Premier University Submitted By: ...................... Student ID: ................ Program: BBA, Major in Finance Department of Business Studies Date of Submission: August 28, 2012 FACULTY OF BUSINESS STUDIES PREMIER UNIVERSITY, CHITTAGONG September 16, 2012 Dr. Mr. Ifthekhar Uddin Chowdhury Dean for the Faculties, Faculty of Business Studies, Premier University. [ Subject: Presentation of The Term Paper On study of “Credit Risk Grading Of Non-Bank Financial Institution”. Dear Sir, With an immense pleasure, I would like to submit my Term Paper titled, “Credit Risk Grading of Non- bank financial Institutions.” to fulfill the requirement of BBA Program. I am very delight to tell you that working on this internship report has given me a wide range of exposure. To prepare this report, I have faced extensive face to face interviews with professionals as well as customers. It has taught me the value of patience, and has given me a higher insight on the level of communication in the practical world. In every segment of the report, I have tried to make an honest endeavor to present it as good combination of my knowledge, intelligence and the information gathering. It is highly pleasure for me to get...
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...Wendell Gordon ACC/290 July 26, 2012 Shonda Meadows For years people have debated on which one of the financial statements was the most important. The purpose of this paper is to identify the four basic financial statements and the purpose they serve. Throughout this paper I will breakdown how the different financial statements could be useful for managers and their employees. I will also discuss how the different financial statements could be beneficial for creditors and investors. To conclude the paper I will summarize it all up with a conclusion. The four basic financial statements are balance sheets, income statements, cash flow statements, and statements of shareholders’ equity. Balance sheets break down what all a company owes and owns at a particular period of time .Balance sheets also contain valuable information such as a company’s liabilities, shareholders equity, and assets. Balance sheets contain information at the end of a reporting period. Balance sheets do not contain the all the ins and outs to accounts during a reporting period. A balance sheet is also referred to as a statement of financial position. Income statements provide you with how much money a company made and spent over a period of time. Income statements also provide you with the cost and the expenses associated with earning money. The bottom line on an income statement provides you with the amount of money a company loss or made. The top line on an income statement provides you with the amount...
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...Paper P4 is the advanced financial MANAGEMENT paper at the Professional level. It follows on from Paper F9 at the Fundamentals level. As throughout the ACCA syllabus, the Fundamentals paper covers the main technical areas that all accountants are required to master, whereas the Professional paper builds on that knowledge and explores advanced skills and techniques. In particular Paper P4 expects candidates to have more depth of knowledge, better analytical skills, and to be able to exercise greater professional judgement than at Paper F9. Hence, instead of being asked to value a bond, a potential Paper F9 question, candidates will need to be able to recognise the need to calculate a bond value given the scenario. For instance candidates may be required to evaluate the potential gain to the shareholders of a target company, of various offers from a predator company. If one of these offers includes bonds then the value of the bonds will need to be calculated, unless of course it is given in the question. Another key distinction between Paper F9 and Paper P4 is that in general the scenarios that candidates will be faced with will refer to larger, more complex and more international organisations. A calculative example of this is the need to be able to appraise projects carried out overseas whereas a discursive example is the need to be able to discuss the role of key international organisations such as the International Monetary Fund. ------------------------------------------------- ...
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