...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 of Earnings-- income statement-- tells the reader about the sales and expenses applied by The Home Deport during the most recent fiscal year. An immediate analysis of this income statement indicates the company has net sales figures between $70 billion and $80 billion per year. This is a significant difference over a three year time period. The one very noticeable issue is the substantial decrease in sales from 2008 to 2009. The Home Depot´s net sales in 2008 dropped roughly eight percent compared to the previous year. Operating expenses increased by approximately 105%, while operating income decreased by about 40%. The increase in operating income helped bring the numbers up, but after it is all said and done, the bottom line is the fact that net earnings were down approximately 49% in 2008 compared to the previous year. The Home Depot attributed the significant decline in sales to the decline in the residential (new) construction and home improvement markets. In addition...
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...Home Depot Financial Statements Home Depot a hardware box chain store throughout the United States has released their 2007, 2008, and 2009 annual reports. Within Home Depots, annual reports, are financial statements that will assist in analyzing the financial standings of Home Depot from 2007 to 2009. Taking a more in-depth look at the financials statements below, which includes consolidated statements of earning, balance sheet, and cash flow helps better to understand the internal and external use of each statement. As well as analyzing how a company makes decisions based on the financial information on the statements. Consolidated Statements of Earnings Home Depot's income statement is a mirror of their expenditures versus income that will tell if Home Depot is making a profit or in a financial bind. Within the consolidated statements, are net sales that are a tool to deceiver what the company’s cost of goods are and expenses that are a percentage of the net sales. After analyzing the three principal components cost of goods, expenses, and net sales a company can make financials decisions. These decision includes whether to increase or decrease costs or cost of goods based on the companies income for a said period or at the end of the fiscal year. For example, if Home Depot were to make some cuts due to down sales then analyzing cost of goods could help to make up for low sales. A company may pull merchandise from their warehouse or only order essential items to...
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...com/index.php/product/acc-300-entire-course-2/ ACC 300 Week 1 – Individual Assignment – Chapter Two – Brief Exercises. ACC 300 Week 1 Individual Assignment Chapter 2: Brief Exercises BE2-8, BE2- 9, and BE2-10 ACC 300 Week 2 – Learning Team Assignment. In this excel file ACC 300 Week 2 Learning Team Assignment you will find overview of the following sheets: 1. Demonstration Case 2-1 2. Given Data DC2-1 3. Simplify with Spreadsheets 2-1 4. Given Data SS2-1 5. Coached Problem 2-1 6. Given Data CP2-1 7. Problem A 2-1 8. Given Data PA 2-1 ACC 300 week 2 dqs. What are the different bases of accounting? When would you use the cash basis? Accrual basis? Tax basis? Which one is better? Why? What are the financial statements? What does each one tell you? Which financial statement is more important? Why? How are the financial statements related? Why do these relationships exist? What is the impact of a miscalculation in the income statement on other financial statements? ACC 300 Week 3 – Individual Assignment Part I. In the work ACC 300 Week 3 Individual Assignment Part I you will find overview of the following parts: 1. Cash Basis – Income Statement 2. Accrual Basis – Income Statement ACC 300 Week 3 – Individual Assignment Part II. In this file ACC 300 Week 3 Individual Assignment Part II you will find overview of the following tables: 1. Income Statement 2. Statement of changes in Stockholders’ Equity 3. Expense recognition principle ...
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...ACC 300 Week 1 – Individual Assignment – Chapter Two – Brief Exercises. ACC 300 Week 1 Individual Assignment Chapter 2: Brief Exercises BE2-8, BE2- 9, and BE2-10 ACC 300 Week 2 – Learning Team Assignment. In this excel file ACC 300 Week 2 Learning Team Assignment you will find overview of the following sheets: Demonstration Case 2-1 Given Data DC2-1 Simplify with Spreadsheets 2-1 Given Data SS2-1 Coached Problem 2-1 Given Data CP2-1 Problem A 2-1 Given Data PA 2-1 ACC 300 week 2 dqs. What are the different bases of accounting? When would you use the cash basis? Accrual basis? Tax basis? Which one is better? Why? What are the financial statements? What does each one tell you? Which financial statement is more important? Why? How are the financial statements related? Why do these relationships exist? What is the impact of a miscalculation in the income statement on other financial statements? ACC 300 Week 3 – Individual Assignment Part I. In the work ACC 300 Week 3 Individual Assignment Part I you will find overview of the following parts: Cash Basis – Income Statement Accrual Basis – Income Statement ACC 300 Week 3 – Individual Assignment Part II. In this file ACC 300 Week 3 Individual Assignment Part II you will find overview of the following tables: 1. Income Statement 2. Statement of changes in Stockholders’ Equity 3. Expense recognition principle 4. Balance Sheet as of December 31, 2002 5. Statement of Cash Flows ...
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...Convert WRDS OUTPUT Building a Financial Statement Analysis and Valuation Spreadsheet Income Statement-66 This case starts with raw financial statements and then a) develops standardized financial statements, b) constructs a statement of cash flows, c) builds all the key ratios, d) links forecast inputs to future financial statements, and e) builds discounted cash flow and residual income valuation models based on the forecasts. The result is a simplified version of eVal4, the spreadsheet model that is provided with “Equity Valuation and Analysis” by Russell Lundholm and Richard Sloan, but one that you should completely understand (because you built it yourself!). To save you some time, many of the cells are completed; you only need to finish the blue-shaded ones. There are five parts to this case, corresponding to the five tasks listed above. The case requires two files: Building eVal4.xls and General Mills 10-K.pdf. Part A: Standardized Financial Statements The financial statements filed with the SEC are not standardized, meaning that the company is free to report and label line items however they please (within obvious limits). For this reason, there is an intermediary business that takes the filed financial statements and sorts the line items into a predetermined set of accounts. We will explore this important part of the reporting process in this part of the case. 1) Find the “as reported” financial statements in General Mills’s 10-K filing (in the...
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...Interna'onal Financial Repor'ng Standards IFRS 1 • • • • • • • • • • • • • • • • • • • • • • • • • First-‐'me adop'on of Interna'onal Financial Repor'ng Standards IFRS 1 applies -‐-‐> only when an en'ty adopts IFRSs -‐-‐> first 'me First IFRS financial statements -‐-‐> first annual financial statements -‐-‐> (in which) -‐-‐> an en'ty adopts IFRSs IF the first IFRS financial statements cover two annual periods ending December 31, 2009 (compara've informa'on is required by IAS 1) -‐-‐> first IFRS repor'ng period = January 1, 2009 -‐ December 31, 2009 -‐-‐> earliest period in IFRS financial statements = January 1, 2008 -‐ December...
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...ACCT 212 Course Project (DEVRY) For more course tutorials visit www.tutorialrank.com Tutorial Purchased: 3 Times, Rating: A (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners' equity. (10 points) (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points) and (2) identify the three major parts of this statement. (10 points) (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) (TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are...
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...together as a group in a single transaction | | Non-current assets (or disposal groups) are classified as held for sale if carrying amount is expected to be recovered principally through a sale transaction and not through continuing use. | | Non-current assets (or disposal groups) classified as held for sale reported separately (from other assets) in the statement of financial position. | | Non-current assets (or disposal groups) held for sale are measured at the lower of carrying amount and fair value less costs to sell | | A discontinued operation is a component of an entity that has been disposed of or is classified as held for sale and satisfies one of the following conditions: (i)represents a separate major line of business or geographical area of operations (ii) is part of a single plan to dispose of a separate major line of business or geographical area of operations (iii)is a subsidiary acquired exclusively for the purpose of resale. | | disclosure requirement in the statement of comprehensive income is the sum of (1) and (2) is reported as a single amount in the...
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...Issue 1 Article 8 1-2-2014 Review of Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers by Karen Berman and Joe Knight, with John Case. H. L. Vacher University of South Florida, vacher@usf.edu Recommended Citation Vacher, H. L. (2014) "Review of Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers by Karen Berman and Joe Knight, with John Case.," Numeracy: Vol. 7: Iss. 1, Article 8. DOI: http://dx.doi.org/10.5038/1936-4660.7.1.8 Available at: http://scholarcommons.usf.edu/numeracy/vol7/iss1/art8 Authors retain copyright of their material under a Creative Commons Non-Commercial Attribution 4.0 License. Review of Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers by Karen Berman and Joe Knight, with John Case. Abstract Berman, Karen and Knight, Joe, with John Case. Financial Intelligence for Entrepreneurs: What You Really Need to Know about the Numbers, (Boston MA: Harvard Business Press, 2008). 285 pp. ISBN 978-1-4221-1915-0. From “The art of finance (and why it matters)” (Part One) through “Creating a financially intelligent company” (Part Eight), Financial Intelligence for Entrepreneurs is an engaging explanation and appreciation of financial statements and financial ratios. Short, easily digested chapters; just-in-time boxes to introduce terminology; easy, direct, in-text calculations from bare-bones, hypothetical financial statements to illustrate...
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...------------------------------------------------- Investers Present and potential owners (investors) are prime users of financial statements. They continually assess and compare the prospects of alternative investments. The assessment of each investment is often based on two variables: expected return and risk. Expected return refers to the increase in the investor’s wealth that is expected over the investment’s time horizon. This wealth increase is comprised of two parts: (1) increases in the market value of the investment and (2) dividends (periodic cash distributions from the firm to its owners). Both of these sources of wealth depend on the firm’s ability to generate cash. Accordingly, financial statements can improve decision making by providing information that helps current and potential investors estimate a firm’s future cash flows. Risk refers to the uncertainty surrounding estimates of expected return. The term expected implies that the return is not guaranteed. For most investments, numerous alternative future returns are possible. For example, an investor may project that a firm’s most likely return for the upcoming year is $100,000. However, the investor recognizes that this is not the only possibility. There is some chance that the firm might generate returns of $90,000 or $110,000. Still other possibilities might be $80,000 and $120,000. The greater the difference among these estimates, the greater the risk. Financial statements help investors assess risk by providing information about the historical pattern...
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...ACCT 212 Course Project (Devry) FOR MORE CLASSES VISIT www.acct212papers.com (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners' equity. (10 points) (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points) and (2) identify the three major parts of this statement. (10 points) (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) (TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $1...
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...ACCT 212 Course Project ¬For more classes visits www.snaptutorial.com (TCO 1) The Accounting Equation is used to develop the organizations financial reports. (1) Describe what owners' equity values would be if Assets are $100,000 and Liabilities are $27,000 by showing the Accounting Equation (10 points) and (2) provide an explanation of what accounts could be found in owners' equity. (10 points) (TCO 1) The financial statements present a company to the public in financial terms. (1) Which financial statement identifies where cash was generated and where it was spent during the year (10 points) and (2) identify the three major parts of this statement. (10 points) (TCO 1) The accounting profession follows a set of guidelines for measurement and disclosure of financial information called the Generally Accepted Accounting Principles (GAAP). (1) Explain what the International Financial Reporting Standards (IFRS) are (10 points) and (2) provide an example of its application. (10 points) (TCO 2) Transaction analysis results in the development of a journal entry. Supplies are purchased on account agreeing to pay $500 within 30 days. (1) Name the accounts impacted and how using the format account name/debit or credit/dollar amount (10 points) and (2) explain how the Accounting Equation is impacted. (10 points) (TCO 3) Adjusting Entries are required at the end of the period to ensure that accrual accounting principles are applied. At the beginning of the month $1,350 of...
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... List of Contents Abstract Introduction Part: 1 Social Relevance of Accounting Information 1.1. Accounting Standards 1.2. Need for Accounting Standards Part 2: Types of Accounting Standards Rules Based Accounting Principle Based Accounting System Part: 3 Comparisons of Principle and Rules Based Accounting Standards Conceptual Framework Flexibility of Rules and Principles International Accounting Platform Comparability of Financial Statements Realistic Representation of Accounting Information Part:4 Findings of the Research Study Part :5 Conclusion Reference Appendix Appendix 1: Narration on Figure 1 - Qualities of Accounting Information Abstract The proposed research paper attempts to illustrate the importance of a global accounting system and the impact of standards on the global market, as well as, providing the means for comparable financial reporting for decision making by both investors and corporations. This research provides understanding about the major differences of a Rules-based and Principal Based Accounting Systems, including the benefits and drawbacks of such a shift. Proponents of principles-based accounting blame the Rules-Based Accounting System for the major accounting scandals. They believe that the Rules-Based system encourages the use of financial structuring to achieve desired accounting results, which will undermine the quality of financial reporting. Supporters of rules-based accounting argue...
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...FINAL ACCOUNTS FOR COMPANIES 4.1 IAS 1 Presentation of financial statements IAS 1 identifies three fundamental assumptions that must be taken into account when preparing accounts: Going concern Accruals Consistency 'IAS 1 Presentation of financial statements was published in 1997 and revised in 2004. IAS 1 gives details about the general requirements and what it says about accounting policies and fundamental assumptions and on the format and content of financial statements 4.1.1 Objectives and scope The main objective of IAS 1 is: to prescribe the basis for presentation of general purpose financial statements, to ensure comparability both with the entity's financial statements of previous periods and with the financial statements of other entities.' IAS 1 applies to all general purpose financial statements prepared and presented in accordance with International Financial Reporting Standards (IFRSs). 4.1.2 Purpose of Financial Statements The objective of financial statements is to provide information about the financial position, performance and cash flows of an entity that is useful to a wide range of users in making economic decisions. They also show the result of management's stewardship of the resources entrusted to it. In order to fulfill this objective, financial statements must provide information about the following aspects an entity's results. • Assets • Liabilities ...
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...Financial Accounting ACCT212 – Week 1 Live Lecture Goals of this Week’s Lecture • Present you with the information you need to begin succeeding in Financial Accounting • Provide a forum for question and answer regarding this week’s material • Begin satisfying our weekly TCO and key concepts ACCT212 Week 1 Lecture 2 How to be Successful? • All the information you need to be successful in this course comes from four primary sources: 1. 2. 3. 4. Your textbook eCollege This lecture, and Your instructor ACCT212 Week 1 Lecture 3 Financial Accounting – Week 1 • • • • • • • • • • Terminal Course Objective for the Week Key Concepts of the Week Business Decisions Accounting is the Language of Business Accounting Principles and Concepts The Accounting Equation The Financial Statements Relationships Among Financial Statements Account Types Getting Started on Project 1A ACCT212 Week 1 Lecture 4 TCO of the Week • TCO 1: “Given financial statements, explain the financial statements’ purpose and components relative to accounting history, assumptions, concepts, principles, and standards.” ACCT212 Week 1 Lecture 5 Key Concepts of the Week • Use accounting vocabulary • Learn accounting concepts and principles • Apply the accounting equation to business organizations • Evaluate business operations • Use financial statements ACCT212 Week 1 Lecture 6 Business Decisions • Suppose you are an investor with $10,000 to invest in any company you choose...
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