#6 Text box would not allow typing. On the basis of the following data for Seller Co. for 2008 and the preceding year ended December 31‚ 2007‚ prepare a statement of cash flows. Use the indirect method of reporting cash flows from operating activities. Assume that equipment costing $125‚000 was purchased for cash and equipment costing $85‚000 with accumulated depreciation of $65‚000 was sold for $15‚000; that the stock was issued for cash; and that the only entries in the retained earnings account
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INTERPRETATION OF FINANCIAL STATEMENTS Methods of Financial Statement Analysis Horizontal Vertical Analysis Analysis Common-Size Trend Ratio Statements Percentages Analysis 17-2 17-3 Horizontal Analysis Using comparative financial statements to calculate dollar or percentage changes in a financial statement item from one period to the next 17-4 Vertical Analysis For a single financial statement‚ each item is expressed as a percentage of a significant
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FINANCIAL PERFORMANCE ANALYSIS Financial performance analysis is the process of identifying the financial strengths and weaknesses of the firm by properly establishing the relationship between the items of balance sheet and profit and loss account. It also helps in short-term and long term forecasting and growth can be identified with the help of financial performance analysis.The dictionary meaning of ‘analysis’ is to resolve or separate a thing in to its element or components parts for tracing
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The Company was incorporated as Public Limited Company on 8th January‚ 1993 at Bangalore and obtained Certificate of Commencement of Business on 21st January‚ 1993. The Company has set up a project to manufacture 32 lakh Sq.inches p.a of Hybrid Micro Circuits and 44 lakh sq.inches p.a. of Resistor Networks (passive HMCS) at Yelahanka‚ Bangalore. The
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| | Balance Sheet Data | | Total Current Assets | $70‚000 | Total Assets | 139‚000 | Total Current Liabilities | 26‚000 | L-T Debt (draw against credit line) | 23‚000 | Total Equity | 90‚000 | | | Other Financial Data | | Depreciation | $4‚000 | Dividend payments | $2‚250 | | | Based on the above figures‚ the company’s current ratio (defined as current assets divided by current liabilities‚ as per the Help screen for the Comparative Financial Performance
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decision‚ investment decision and dividend decision. A firm attempts to balance cash inflows and outflows while performing these functions. Financial statements are written reports which quantitatively describe the financial health of a company. This includes an income statement and a balance sheet‚ and often also includes a cash flow statement. Financial statements are usually compiled on a quarterly and annual basis. Balance sheet financial statements are used to provide insight into a company’s
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CHAPTER 1 1.1 INTRODUCTION TO THE STUDY In our present day economy‚ finance is defined as the provision of money at the time when it is required. Every enterprise‚ whether big‚ medium or small‚ need finance to carry on its operations and to achieve its target. In fact‚ finance is so indispensable today and it is right said that it is lifeblood of an enterprise. Without adequate finance no enterprise can possibly accomplish its objectives. Finance may be defined as the provision of money at
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Chapter-2 Profit and Loss Account of HUL Chapter-3 - Balance Sheet and Trend Analysis of HUL Chapter-4 Common –Size Balance Sheet of HUL Chapter -5 Comparative Statements Chapter-6 Cash Flow Statement Chapter -7 Ratio Analysis Chapter -8 CONCLUSION . Introduction Introduction to Hindustan Unilever Limited (HUL) Hindustan
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The income statement has some limitations since it reflects accounting principles. For example‚ a company’s depreciation expense is based on the cost of the assets it has acquired and is using in its business. The resulting depreciation expense may not be a good indicator of the economic value of the asset being used up. To illustrate this point let’s assume that a company’s buildings and equipment have been fully depreciated and therefore there will be no depreciation expense for those buildings
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liabilities and equity operations) Accounting Equation – Assets – Liabilities = Equity or Assets = Liabilities + Equity Statement Cash Flows – Credit/Debit Financial – More summarized‚ more historical (past‚ recorded) Uses GAAP Balance sheet (assets = liabilities + Equity) - Balances the company’s assets with it Current Liabilities – long term (mortgage payable) Short term (1 year) ex. A/P‚ N/P‚ Wages Payable‚ Rent Chapter 2 Money Measurement – Everything measured in terms of $ and cents (common denominator)
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