...Financial Statement Differentiation Paper Jasmine Unger ACC/561 April 8, 2013 Professor Timothy Jared Financial Statement Differentiation Paper Financial statements provide documentation of a company’s financial history for a set timeframe. One of the financial statement used by investors, creditors, and mangers is the balance sheet. The second statement used by accountant’s income statement, which is also important to shareholders. The third statement is the retained earnings statement, and the fourth financial statement is the statement of cash flows. Each financial statement has a different purpose and shows different aspects of the company’s finances. However, these financial statements are integrated and work together to provide shareholders financial information. This paper will defines the four financial statements while explaining the financial statement most suitable for either an investor, creditor, or management. The Four Financial Statements The first financial statement is the balance sheet. The balance sheet provides a portrait of the company’s assets and liabilities. The balance sheet is the statement of financial position at a given point (Quick MBA, 2010). The second financial statement, the income statement, reports the revenues, and expenses during the same timeframe as the balance sheet. Revenue is the monies the company is gaining after expenses. The third statement is called the retained earnings statement, which explains changed in retained earnings...
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...Financial Statement Analysis NAME ACC/561 Accounting DATE University of Phoenix PROFESSOR Introduction Samsung – International Manufacturing Company Samsung served as the manufacturing industry and international company analyzed. Samsung has been in business for over 70 years and manufactures products for diverse markets, including: digital media, high -tech electronics, home appliances, information technology and telecommunication. Samsung's motto is to "inspire the world and create the future" by leveraging three key strengths: new technology, innovative products and creative solutions. | Samsung | Wells Fargo | AT&T | Current Ratio | 1.4101 | 1.1500 | 1.6467 | Debt to Equity Ratio | 0.6768 | 9.8100 | 0.9675 | Profitability Ratio | 0.2881 | 2.3500 | 0.3069 | Return on Sales | 0.0736 | 2.0900 | 0.9563 | Dupont Ratio | 0.1200 | 0.6900 | 0.3496 | Financial Leverage | 1.1317 | 1.3500 | 1.0724 | Total Asset Turnover | 2.5035 | 0.0100 | 0.9003 | When you compare Samsung to AT&T, the retail sales company we profiled, Samsung has a lower current ratio by 20%. Samsung's debt to equity ratio is almost 30% lower than AT&T. Samsung's profitability ratio is very similar to AT&T, though 2% lower. Samsung's return on sales is comparable to AT&T, thought slightly lower. AT&T is much strong on return on equity, with almost 3X the Dupont ratio of Samsung. Samsung's financial leverage is slightly higher than AT&T. The key strength...
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...ACC 561 Accounting Week 1 to 6, Assignment, WilyPLUS, DQ, Final Purchase here http://homeworkonestop.com/ACC%20561/acc-561-accounting-week-1-to-6-assignment-wilyplus-dq-final Product Description ACC 561 Accounting WEEK 1 Individual Assignment, Financial Statement Review Paper Individual Assignment, Wileyplus BE1-7, BE1-8, BE1-9 Discussion Question 1 and 2 WEEK 2 Individual Assignment, Sarbanes-Oxley Act of 2002 Individual Assignment, Wileyplus E13-5, E13-6, E13-8, E13-9 Learning Team Summary Learning Team Reflection Discussion Question 1 and 2 WEEK 3 Individual Assignment, American Corporation Analysis Individual Assignment, Wileyplus BE15-5, E16-1, E17-9 Discussion Question 1 and 2 WEEK 4 Individual Assignment, WileyPLUS BYP17-2 Managerial Analysis Individual Assignment, Wileyplus BE18-1, BE18-7, BE18-11, E19-2 Learning Team Summary Learning Team Reflection Discussion Question 1 and 2 WEEK 5 Individual Assignment, Costing Methods paper Learning Team Assignment, CVP and Break-Even Analysis Paper Individual Assignment, Wileyplus E20-2, E20-5, BE21-4, E22-5 Learning Team Deliverable Discussion Question 1 and 2 WEEK 6 Individual Assignment, Wileyplus E23-1, E23-2 Learning Team Summary Learning Team Reflection ACC 561 Final Exam WileyPLUS (30 Q & A) ACC 561 Final Exam 2 (30 Q & A) ACC 561 Final Exam 3 (54 Q & A) ACC 561 Final Exam 4 (54 Q & A) ACC 561 Final Exam 5 (54 Q & A) ACC 561 Final Exam 6 (52 Q & A) ACC 561 Final Exam 7 (45...
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...proprietorships and partnerships. • corporations. Want more details? Download now ACC 561 Week 1 Quiz 3. A business organized as a separate legal entity is • government unit. • partnership. • corporation. • proprietor. 4. Which of the following is the best definition of an internal user of accounting information? • Creditors like banks that use accounting information to evaluate the risk of lending money. • Managers who use accounting information to plan, organize, and run a business. • Labor unions who use accounting information to examine the ability of the company to pay increased wages and benefits. • Investors who use accounting information to decide whether to buy or sell stock. Want help? Click to download ACC 561 Week 2 Quiz 5. Which of the following groups uses accounting information primarily to insure the entity is operating within prescribed rules? • Labor Unions • Management • Taxing authorities • Regulatory agencies 6. Which of the following groups uses accounting information to determine whether the company can pay its obligations? • Chief Financial Officer • Creditors • Investors in common stock • Marketing managers Want help? Click to download ACC 561 Week 4 Quiz 7. Which of the following financial statements is divided into major categories of operating, investing, and financing activities? • The retained earnings statement. • The statement of cash flows. • The income...
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...ACC 561 Accounting Week 1 to 6, Assignment, WilyPLUS, DQ, Final Purchase here http://homeworkonestop.com/ACC%20561/acc-561-accounting-week-1-to-6-assignment-wilyplus-dq-final Product Description ACC 561 Accounting WEEK 1 Individual Assignment, Financial Statement Review Paper Individual Assignment, Wileyplus BE1-7, BE1-8, BE1-9 Discussion Question 1 and 2 WEEK 2 Individual Assignment, Sarbanes-Oxley Act of 2002 Individual Assignment, Wileyplus E13-5, E13-6, E13-8, E13-9 Learning Team Summary Learning Team Reflection Discussion Question 1 and 2 WEEK 3 Individual Assignment, American Corporation Analysis Individual Assignment, Wileyplus BE15-5, E16-1, E17-9 Discussion Question 1 and 2 WEEK 4 Individual Assignment, WileyPLUS BYP17-2 Managerial Analysis Individual Assignment, Wileyplus BE18-1, BE18-7, BE18-11, E19-2 Learning Team Summary Learning Team Reflection Discussion Question 1 and 2 WEEK 5 Individual Assignment, Costing Methods paper Learning Team Assignment, CVP and Break-Even Analysis Paper Individual Assignment, Wileyplus E20-2, E20-5, BE21-4, E22-5 Learning Team Deliverable Discussion Question 1 and 2 WEEK 6 Individual Assignment, Wileyplus E23-1, E23-2 Learning Team Summary Learning Team Reflection ACC 561 Final Exam WileyPLUS (30 Q & A) ACC 561 Final Exam 2 (30 Q & A) ACC 561 Final Exam 3 (54 Q & A) ACC 561 Final Exam 4 (54 Q & A) ACC 561 Final Exam 5 (54 Q & A) ACC 561 Final Exam 6 (52 Q & A) ACC 561 Final Exam 7...
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...• Profit margin • Working capital • Earnings per shar Want help? Click to download ACC 561 Week 2 Quiz 3. Current assets divided by current liabilities is known as the • capital structure. • working capital • current ratio. • profit margin. 4. Danner Corporation reported net sales of $600,000, $680,000, and $800,000 in the years 2011, 2012, and 2013, respectively. If 2011 is the base year, what percentage do 2013 sales represent of the base? • 33% • 133% • 75% • 113% Want help? Click to download ACC 561 Week 4 Quiz 5 .An analyzing financial statements, horizontal analysis is a • theory. • requirement. • tool. • principle. 6. Comparative balance sheets • are usually prepared for at least one year. • are usually prepared for at least two years. • do not show both dollar amount and percentage changes. • do not show a comparison of total stockholders' equity. Complete Answers just a click away ACC 561 Week 1 Quiz 7. Assume the following cost of goods sold data for a company: 2013 $1,500,000 2012 1,200,000 2011 1,000,000 If 2011 is the base year, what is the percentage increase in cost of goods sold from 2011 to 2013? • 50% • 67% • 150% • 20% 8. Comparisons of data within a company are an example of the following comparative basis: • Intercompany. • Interregional. • Industry averages. • Intracompany. Want help? Click to download ACC 561 Week 2 Quiz 9. The following schedule is a display of what type of analysis? Amount...
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...will be profitable if it meets its objectives. 2. A common starting point in the budgeting process is • a clean slate, with no expectations. • expected future net income. • past performance. • to motivate the sales force. Want more details? Download now ACC 561 Week 5 Quiz 3. Which of the following statements about budget acceptance in an organization is true? • The most widely accepted budget by the organization is the one prepared by top management. • Budgets are hardly ever accepted by anyone except top management. • The most widely accepted budget by the organization is the one prepared by the department heads. • Budgets have a greater chance of acceptance if all levels of management have provided input into the budgeting process. 4. What is budgetary control? • The process of providing information on budget differences to lower level managers • Another name for a flexible budget • The degree to which the CFO controls the budget • The use of budgets in controlling operations Quiz Answers just a click away ACC 561 Week 1 Quiz 5. The comparison of differences between actual and planned results • is done by the external auditors. • appears on the company's external financial statements. • is usually done orally in departmental meetings. • appears on periodic budget reports. 6. A static budget • should not be prepared in a company. • is useful in evaluating a manager's performance by comparing actual variable costs and planned variable costs...
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...Financial Statement Differentiation Paper Jason Rodriguez ACC/561 May 27, 2012 Michael DeMarco CPA Four different types of financial statements are balance sheet, income statement, cash flow, and statements of owners’ equity. These are very important to investor’s creditors and management. It is also important to be accurate with the numbers in these financial statements so you do not get behind and so the company doesn’t get audited. Weygandt, Kimmel, and Keiso state, “Assets, liabilities, expenses, and revenues are of interest to users of accounting Information. This information is arranged in the format of four different financial statement’s, which form the backbone of financial accounting”(2009, p.12 ). It is important to be proficient and knowledgeable of all these statements as a manager. A balance sheet gives a picture of the company’s assets and liabilities. It also gives illustrates the difference between both. Creditors would have significant interest in the balance sheet because it determines if the creditors will be paid back for their investment. Investors will also be interested in the balance sheet. They use it to determine how the stock is doing and what the payouts are so the investors can invest. Finally managers need the balance sheets to see the cost and to see if they have enough money for the company to run. The income statement measures the revenue, expenses, and income over a period of time. It can be quarterly or for the year...
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...A++PAPER;http://www.homeworkproviders.com/shop/acc-561-week-2/ ACC 561 WEEK 2 You are interested in establishing a small business, and you must decide which form of business organization would best suit your unique product or service. Consider legal, tax, accounting, and other implications when selecting from the four business types. Write a paper of no more than 1,250 words discussing your small-business idea. Include the following: The advantages and disadvantages of the different forms of business organization, which include the following: Sole proprietorship Partnership C corporation S corporation The different types of financial statements required by law with each form of business organization, including different names for the equity sections. This does not mean an overview of what is on each statement. What entities are required by law to have statements and what is the difference in the equity? The following consequences associated with each form of business organization: Tax implications Legal implications Accounting implications, such as SOX, GAAP and FASB An explanation of the unique product or service your small business provides Your choice of business organization form for your new business Your rationale for choosing this form of business organization For tax implications for each entity, your book only says that some entities have advantages. Do some research to determine what the tax advantages and...
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...ACC 561 WEEK 3 AMERICAN CORPORATION ANALYSIS A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=week-3-american-corporation-analysis Visit Our website: http://hwsoloutions.com/ Product Description ACC 561 Week 3 American Corporation Analysis, American Corporation Analysis The reasoning behind financial analysis is to give a better perspective about the financial structure and profitability position of the corporation. Such corporations as Wal-Mart Incorporated benefit considerably from a financial analysis because it assists in determining the durability in handling sales, assets, and debts. Wal-Mart was established in 1962 by Sam Walton in Rogers, Arkansas; by 1967 24 stores were open with a $12.7 million sales revenue. In 1970, the corporation became a publicly traded company with stocks at $16.50 per share. Ten years later Sam Walton reached $1 billion in sales annually, beating out other major competitors. In 1990, Wal-Mart was the number one retailer nationally, and continued its success by going international. Today, Wal-Mart employs 2.2 million associates in North America and internationally, serving over 200 million customers weekly at more than 11,000 stores. Horizontal Analysis After completing the horizontal analysis of Wal-Mart’s consolidated balance sheets for the years of 2011 and 2012, several elements stand out with significant variances. For example, Wal-Mart’s cash and equivalents decreased by 11% while total assets increased by...
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...Small Business Idea Paula Boyce University of Phoenix Accounting ACC - 561 Professor Trenda Hackett December 07, 2011 Small Business Idea The government has released fund for creating small businesses. One’s interest is to establish a small business and must determine which of the four forms of business organization will best suit the business chosen. Legal, tax, accounting, and other implications when selecting from the four business types are matters of considerations (University, 2008 - 2011). The four forms of business include Sole proprietorship, Partnership, C Corporation, and S Corporation. Discussion will explain advantages and disadvantages of the four forms of business, financial statement associated with each form of business organization, and the consequences of tax implications, legal implications, and accounting implications such as SOX and FASB. An explanation what one’s business provides, the choice of one’s business organization form, and one’s rationale for choosing the form of business organization chosen (University, 2002). Sole proprietorship advantages and disadvantages Sole proprietorship is the most common and simplest form of business. An individual owns and manages the business and is responsible for business transactions and responsible for debts and liabilities incurred (AllBusiness.com, 2007, p. 1). Advantages of sole proprietorship is the proprietor is in full control of the business, no corporate taxes, legal cost is...
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...Financial Statement Differentiation Paper Financial Statement Differentiation Paper ACC/561 The Four Financial Statements consist of income statement, balance sheet, statement of cash flow, and statement of owner’s equity. The progress with the income statement, states gross revenues, minus the goods sold would give the gross profit of the company. Balance sheet consists of long term assets and long term liabilities that are current issues. The cash flow would be recognized by the money the company has coming in, to where the money goes out, and the statement of owner equity gives details of the account over a period of time. Income Statement have a different description that contains expenses of Revenue during a time period, minus cost of goods sold, which would then give the gross profit. Once the net income would be figured out, the net income would be transferred over to the balance sheet. Balance sheet would consist of any assets and liabilities that are current and long term. The balance sheet has to make sure both ends balance out the same. Statement of cash flow gives the direction of company of where money is taken in from and to give ideas where the money is going to. This would consist of cash and payments. The statement of Owner Equity gives details that have taken place over course of one year of the owners’ equity account. The financial statement that would be of interest to investors would consist of income statement, balance sheet...
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...Tootsie Roll Industries Inc. Loan Package ACC/561 - Accounting August 15, 2011 Tootsie Roll Industries Inc. Loan Package Since the company’s establishment in 1896, Tootsie Roll Industries Inc. has expanded to become one of the biggest candy companies in the United States. Tootsie Roll Industries Inc. is one of America’s most recognized candy companies through manufacturing and selling some of the most popular candies in the world. The company has an extensive amount of products sold in many venues including grocery stores, vending machines, and drugstores. Tootsie Roll Industries Inc. applies innovation consistently by developing new forms of presentation and creating more options for the consumer. In the first quarter of 2011 the company increased sales effectively through improved marketing processes but the increased costs of ingredients, freight, energy, and other factors lowered the net earnings to $8,000,000 compared to $9,204,000 in 2010. Tootsie Roll Industries Inc. is currently seeking beneficial opportunities to improve the net earnings and shareholder value of the organization. The company is completing a loan package by determining its current financial situation through ratio analysis of its financial statements. The goal is to secure a loan for the company to fund $2.5 million to improve the business. The company will explain how the proceeds from the loan will be used to enhance business operations and how the loan approval will affect the company...
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...| | | | Small Business Idea Paper Nakisha Burton ACC/561 Accounting June 9, 2013 | | One of the most important business choices one can make is the decision to become an entrepreneur and invest the necessary time, money, and energy into starting a business. I always dream of owning and running my very own childcare center. The childcare business offers entrepreneurs the opportunity to pursue a passion for child care and child development while enjoying the independence and responsibility of being his or hers own boss. However, starting a childcare business is not as easy as one may think. There is a great deal of information one must be fully aware of. The decision of which type of forms, such as Sole Proprietorship, Partnership, C Corporation, S Corporation, and Limited Liability Company (LLC), can challenging. The legal, tax, accounting implications, the advantages, and disadvantages, the financial statements associated with a childcare center, and plan to present to market, are the reasons to consider for a well designed center that can be develop into a successful plan. Sole proprietorship advantages and disadvantages Unless I choose a specific form of business, my new business will become by default a sole proprietorship or partnership (Daily, 2011). The advantage of a sole proprietorship is ease in establishment and ongoing maintenance as the owner manages operations without the need to consult others. In addition, the solitary owner...
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...Financial Statement Differentiation Joshua Tabaka University of Phoenix ACC/561 WH12MBA06 March 20, 2013 Instructor: Norris Dorsey Workshop 1 Financial Statement Differentiation There are four major types of financial statements and they include the balance sheet, income statement, statement of equity and statement of cash flows. The balance sheet shows the assets, liabilities and equity balances as of a given point in time. It will typically show the short-term and long-term liquidity and obligations of the company, as well as the leverage of the company and capital structure (Investopedia, 2013) . The income statement shows the components of profit and loss for a certain accounting period. It will typically also show subtotals for gross profit, operating income, and net income after taxes. Normally this is shown over a quarter or fiscal year (Investopedia, 2013). The statement of owners’ equity shows the activity with the company’s owners for a specified period of time. It will also show changes in assets and liabilities that do not impact income, such as unrealized gains and losses on securities (accounting-basics-for-students.com, 2013) The statement of cash flows shows the cash inflows and outflows of the company for a specified period of time. All companies are required to provide this report to the SEC quarterly (Investopedia, 2013). The first of two ways to prepare a statement of cash flows if the direct method, which shows the actual inflows...
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