financial reporting problem 1
Financial Reporting Problem Part 1
Mark R. Mitchell
XACC/290
August 10, 2014
Jeanette Butler
Financial Reporting Problem Part 1 In the light of this week's assignment of analyzing an annual report for a publicly traded company I decided to use the company now work for which is the spinoff company from the merger of international papers Xpedx division and Unisource; the new company name is Veritiv. Veritiv’s total assets for this accounting period are $1,215 million dollars (Morningstar, 2014). The total assets of the prior annual reporting period were $1,039 million dollars (Morningstar, 2014). The reason this information is important is that assets stand for elements of value that each company owns; whether outright in their control or is due them. Moreover, it is more important when looking at total assets of the company is how they change over time; meaning if a company cash assets and marketable securities increase, while inventory is reduced it show that the company has become more efficient in their handling of assets methods (SpireFrame, 2014). At the end of the most-recent annual reporting period, Veritiv had cash and cash equivalents of $22 million dollars. Additionally, Veritiv's amount of an account payable at the end of the most-recent recording period was $227 million dollars. Whereas, they have an account payable amount of $275 million dollars for the previous reporting period (Morningstar, 2014). These figures are important as they show how well a company is handling their cash flow. Veritiv's net revenues for the past three annual reporting periods were for this accounting period $4,040 million dollars, for 2013 they were $4,089 million dollars, and for 2012, they were $4,123 million dollars (Morningstar, 2014). Looking at the change over the three periods there has been a steady decline in revenues from year to year, and the change in dollars from the previous period to this period is $49 million dollars
Mark R. Mitchell
XACC/290
August 10, 2014
Jeanette Butler
Financial Reporting Problem Part 1 In the light of this week's assignment of analyzing an annual report for a publicly traded company I decided to use the company now work for which is the spinoff company from the merger of international papers Xpedx division and Unisource; the new company name is Veritiv. Veritiv’s total assets for this accounting period are $1,215 million dollars (Morningstar, 2014). The total assets of the prior annual reporting period were $1,039 million dollars (Morningstar, 2014). The reason this information is important is that assets stand for elements of value that each company owns; whether outright in their control or is due them. Moreover, it is more important when looking at total assets of the company is how they change over time; meaning if a company cash assets and marketable securities increase, while inventory is reduced it show that the company has become more efficient in their handling of assets methods (SpireFrame, 2014). At the end of the most-recent annual reporting period, Veritiv had cash and cash equivalents of $22 million dollars. Additionally, Veritiv's amount of an account payable at the end of the most-recent recording period was $227 million dollars. Whereas, they have an account payable amount of $275 million dollars for the previous reporting period (Morningstar, 2014). These figures are important as they show how well a company is handling their cash flow. Veritiv's net revenues for the past three annual reporting periods were for this accounting period $4,040 million dollars, for 2013 they were $4,089 million dollars, and for 2012, they were $4,123 million dollars (Morningstar, 2014). Looking at the change over the three periods there has been a steady decline in revenues from year to year, and the change in dollars from the previous period to this period is $49 million dollars
References: Morningstar. (2014). Veritiv Corp, VRTV. Retrieved from http://financials.morningstar.com/balance-sheet/bs.html?t=VRTV®ion=usa&culture=en-US Spireframe. (2014). Total Assets. Retrieved from http://www.spireframe.com/define/financial-statement-term/total-assets