...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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...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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...questions that can be answered. Questions regarding what the income statement includes, what it says about Home Depot, why it is important, and what 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...
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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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...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 4. Balance Sheet as of December 31, 2002 5. Statement of Cash Flows ACC 300 Week 3 – Individual Assignment Part III. In the work ACC 300 Week 3 Individual Assignment Part III you will find overview of the following tables: 1. Cash Basis – Income Statement 2. Statement of...
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...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 ACC 300 Week 3 – Individual Assignment Part III. In the work ACC 300 Week 3 Individual Assignment Part III you will find overview of the following tables: Cash Basis – Income Statement Statement of...
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...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 statement (company website) • Corporate social responsibility...
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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 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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...Financial Statements Paper Part I Using Home Depot, Inc. 2008 Annual Report located in Appendix A of the text, Fundamentals of Financial Accounting, prepare a 1,050-1,750-word paper in which you answer the following questions: What does the income statement tell you about the company? Why is this statement important? What business decisions could be made using the income statement? What does the balance sheet tell you about the company? Why is the balance sheet important? What business decisions could be made using the balance sheet? What does the statement of cash flows tell you about the company? What business decisions could be made using the statement of cash flows? What information is provided in the statements that will assist you in making these business decisions? What information is not provided that could assist in managerial decision making? Financial Statements Paper Part II Using Home Depot, Inc. 2008 Annual Report located in Appendix A of the text, Fundamentals of Financial Accounting, prepare a 1,050-1,750-word paper in which you address the following items: Does management’s assessment of the financial condition agree with your assessment from the Financial Statements Paper Part I? Explain. Support your answer using trend analysis, vertical analysis, and ratio analysis. In the Annual Report, there are several concerns from management. Discuss these concerns, and identify other weaknesses not discussed by management. Then, recommend a course of action...
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...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 of money generated from sales of services and products. Income statements also provide you...
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...were involved in this case. Arthur Edward Andersen built his firm, Arthur Andersen & Company, into one of the largest and most respected accounting firms in the world through his reputation for honesty and integrity. His motto was “Think straight, talk straight” and he insisted that his clients adopt that same attitude when preparing and issuing their periodic financial statements. Arthur Andersen’s auditing philosophy was not rule-based; instead he invoked a substance-over-form approach to auditing and accounting issues. He avidly believed that the primary role of the auditor was to ensure that clients reported fully and honestly to the public, regardless of the consequences for those clients. Ironically, Arthur Andersen & Co.’s dramatic fall from eminence resulted from its association with a client known for aggressive and innovative uses of “accounting gimmicks” to window dress its financial statements. Enron Corporation was the second largest client of the firm and was involved in large, complex transactions with hundreds of special purpose entities (SPEs) that it used to obscure its true financial condition and operating results. Among other uses, these SPEs allowed Enron to download underperforming assets from its balance sheet and to conceal large operating losses. During 2001, a series of circumstances, including a sharp decline in the price of Enron’s stock, forced the company to assume control and ownership of many of its troubled SPEs. As a result, Enron...
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...Cycle Paper ACC/421 Accounting Cycle Paper In this paper I will outline the purpose of both accounting and financial reporting within an organization in general. I will also give a description of the people, processes, and systems that are a part of the accounting and financial reporting processes followed by a conclusion. Purpose of Accounting The purpose of accounting to gather and report on any financial information within the organization about things such as: the performance of the company, their financial position, and the cash flows of the company. With this information the company can then make business decisions about management of their business, investments to be made, or money they can lend. All of this information is known as the accounting records and accounting transactions and recorded as invoices for either suppliers or customers of the company. Once the financial information has been added to the accounting records it is all put together into financial statements to include the following: income statement, balance sheet, statement of cash flows, statement of retained earnings, and any disclosures. Purpose of Financial Reporting Documents, or the financial reports, are gathered in order to keep track of money going in or going out. Essentially, there is a record of how much money your business is making or losing. Anyone investing in the business has the right to know how their money is being used and can know this by looking at the financial reports...
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...Subjects for study Six subjects and Seven Papers of study in IPCC are – Group I Paper 1: Accounting (100 marks) Paper 2: Law, Ethics and Communication Part I: Law (60 marks) Business Laws (30 marks) Company Law (30 marks) Part II: Business Ethics (20 marks) Part III: Business Communication (20 marks) Paper 3: Cost Accounting and Financial Management Part I: Cost Accounting (50 marks) Part II: Financial Management (50 marks) Paper 4: Taxation Part I: Income-tax (50 marks) Part II: Service Tax (25 marks) and VAT (25 marks) Group II Paper 5: Advanced Accounting (100 marks) Paper 6: Auditing and Assurance (100 marks) Paper 7: Information Technology and Strategic Management Section A: Information Technology (50 marks) Section B: Strategic Management (50 marks) The level of knowledge expected of students in the above subjects is ‘working knowledge’. INTEGRATED PROFESSIONAL COMPETENCE COURSE (IPCC) Syllabus GROUP I OF IPCC/ ACCOUNTING TECHNICIAN COURSE (ATC) Paper 1: Accounting (One paper – three hours – 100 marks) Level of Knowledge: Working Knowledge Objectives: (a) (b) (c) (d) To lay a foundation for the preparation and presentation of financial statements; To gain working knowledge of the principles and procedures of accounting and their application to different practical situations; To gain the ability to solve simple problems and cases relating to sole proprietorship, partnership and companies; and To familiarize students with the fundamentals of computerized system of accounting...
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...ACC201 Module 1 - Case Financial Statements Assignment Overview Click Link Below To Buy: http://hwcampus.com/shop/acc201-module-1-case/ There are three main parts to this case that require you to prepare and submit a 3- to 5-page paper. Please make sure this paper is well organized and covers all of the items below. Part I Search the course background information, the Internet and/or the Cyber Library. Discuss the terms listed below. Your discussion should expand on the definition as given in the module background. Explain why these concepts are important to financial statements. •Generally Accepted Accounting Principles (US GAAP); •International Accounting Standards (IFRS); •Securities and Exchange Commission (SEC); •Annual report; and •10-K, 10-Q, and 8-K Part II Explain the basic formats of financial statements such as income statement, balance sheet, statement of cash flows, and statement for retained earnings. Part III 1.Everything in Accounting typically falls into one of three categories, as illustrated by the Accounting Equation. State the Accounting Equation: Assets = _______________ + _______________ 2.You will note that the Accounting Equation comprises 3 "categories," each of which can be broken down further into accounts. For each of the three main categories of the Accounting Equation, list 5 or more accounts with actual amounts that would typically be classified into each. For instance, Land & Equipment would typically be categorized...
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