investment or project and decide which of them qualify as good uses of the money stockholders have invested in the firm * Make financing decisions * Decision of how to pay for the investments * Make short-term cash needs * Ensure that the firm has enough cash on hand to meet its obligations from day to day Goal of
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Instructor 1. What type of information does each financial statement provide? I. Balance sheet, its purpose is to report the financial position of an accounting entity at a particular point in time II. The income statement reports the accountant’s primary measure of performance of a business, revenue fewer expenses during the accounting period. They include a statement of earnings, income, and operations. III. Statements of Retained Earnings covers a specified period of time that is
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EPA * Cost & Revenue Determination * Job costing * Process costing * ABC * Sales * Assets & Liabilities * Plant and equipment * Loans & equity * Receivables, payables & cash * Cash Flows * From operations * From financing * From investing * Decision Support * CVP analysis * Performance evaluation * Incremental analysis * Budgeting * Capital allocation * Earnings
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Depot, Inc. fiscal year for 2011 ended on January 31, 2012, and their 2011 10-K report was produced to the Securities and Exchange Commission thereafter. After review of the key financial statements, it was found that the balance sheet, income statement, cash flow statement, and stockholders’ equity statement remained consistent over the documented years. All figures reported below are in millions except for per share values, ratios, and percentages. The balance sheet reported on Home Depot’s
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Student ID ____________ Use these financial statements to answer questions 1 through 6. Balance Sheet Cash Accounts receivable Inventory Net fixed assets Total assets 2007 2008 $ 1,700 $ 1,600 14,300 17,400 22,500 23,700 82,900 81,600 $121,400 $124,300 Accounts payable Long-term debt Common stock Retained earnings Total liabilities and equity 2007 $13,800 47,500 17,000 43,100 $121,400 2008 $ 12,900 48,600 22,000 40,800 $124,300 Income Statement Net Sales $163,700 Costs 108,200 Depreciation 14
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Financial Statement Differentiation Financial Statement Differentiation In our text Accounting: Tools for business decision making authors Kimmel, Weygandt, and Kieso (2009) stated that “Success in business requires making countless decisions, and decisions require financial information.” This reflects the perfect definition for financial statements and what their sole purpose is. Financial Statements summarize the financial condition or health of a company. For this paper, one will look at each
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capitalization with a $39.31 billion cap (McDonald’s Corporation, 2005). Summary organizations' financial statements: In concluding the financial well being and expansion of the McDonald’s Corporation, a study of their financial records in the four year course was organized. These financial reports involved a study of their balance sheets, income statements and cash flow statements from the start of 2008 until 2011. The balance sheet for the four year course involves a summary of
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industry. On the other hand, if companies want your investments they must provide accurate, substantial evidence to show that you will make the right investment if you invest in them. Therefore, publicly traded companies publish their financial statements in their annual reports which investors can analyze use to make an investment decision. The Walt Disney Company is an entertainment company that is well known worldwide. The company was founded in Burbank, California in 1923 and became a public
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financing section! Why? Because the change in R/E is net income minus dividends. Net Income is shown under op. activities. Dividends, if cash, is shown in the financing section. | GENERAL rules for the Statement of Cash Flows (Indirect Method) Cash provided by op. activities: Net Income (from Income Statement) + Depreciation, amortization, and/or depletion (From Income Statement) + Decrease in CURRENT Asset accounts other than cash (calculate the difference between this period and last
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financial statements, it is vital that they are clear, based on specific data, and can be used for the decision making process to be effective. In this case, there are four financial statements that will be reviewed; the balance sheet, the statement of cash flows, the income statement, and the retained earnings. These four all prove to be important in different aspects of business as it relates to “the numbers” game. The questions that are to be addressed in this paper is which of these statements will
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