is used to report the fiscal health of the business in a particular time period (Kimmel‚ Weygandt‚ Kieso‚ 2011). The income statement offers the revenues as well as costs in the time period (Kimmel‚ Weygandt‚ Kieso‚ 2011). The income is the revenue funds‚ and expenditures are the outgoing funds. The retained earnings statements indicate how earlier revenue was distributed to proprietors in the shape of dividends (Kimmel‚ Weygandt‚ Kieso‚ 2011). The retained earnings statement report provides the company
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continues to change. Because of this I am going to breakdown the way your financial reporting team has been recognizing revenue for the fourth quarter of the current year and assess the implications it may have on your financial statements. I will also take you through the process of how the accounting standards are created to give you a better understanding of what my conclusion is. Revenue Recognition Implications As you know Caltron Computers‚ Inc. is a publicly held company with a total market capitalization
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HARVARD BUSINESSSCHOOL Software Associates Susan‚ I have just seen the quarterly P&L. It’s great that we exceeded our billed hours and revenue targets. But why‚ with higher revenues‚ is our bottom line less than half of what we had budgeted. Can we have a meeting tomorrow morning at 8 AM so you can explain this discrepancy to me? Richard Norton‚ CEO of Software Associates Norton‚ the founder and CEO of Software Associates called Susan Jenkins‚ CFO of Software Associates‚ after skimming
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the United States and worldwide‚ announced on February 20‚ 2013 a merger agreement with OfficeMax‚ Inc.‚ which will better equip them to compete in the rapidly-changing industry. In fiscal year 2012 alone‚ Office Depot generated $10.7 billion of revenues from its products and services‚ yet industry reviews of this company seem unfavorable. In this FSA Case Analysis‚ our team takes a careful look at Office Depot’s most recent financial statements; and‚ using the FSA spreadsheet‚ performs an internal
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SOLUTIONS Introductory Financial Accounting Midterm Exam Professor Yanfeng Xue Note: 1. You have 90 minutes to finish this exam. The total score for this exam is 100 points. Please use your time wisely. 2. Please show your work because I do give partial credit. 3. If you cannot remember the name of a particular account‚ do your best at guessing and at least indicate the type of the account (asset‚ retained earnings‚ etc.) 4. Good luck!
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However‚ as Table 1 indicates‚ Enron’s reported profits were microscopic relation to revenues. Net income did not grow at anything near the same rate as revenues‚ which grew a remarkable rate of more than 3 times of the income from 1998 to 2000. As a result‚ there was a steady decline in net profit margin‚ from 2.2% in 1998 to a paltry 1% in 2001. Similarly‚ Enron’s gross profit margin (gross profits as a percent of revenues) declined from 15.6% in 1998 to 13.3% in 1999‚ and took a dramatic drop to 6.2%
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appear here: .:. Requirements 1. Compute Raven Design’s predetermined indirect cost allocation rate for the current year. 2. Compute the total cost of each of the two jobs listed. 3. If Raven Design wants to earn profits equal to 20% of sales revenue‚ how much (what total fee) should the company charge each of these two clients? 4. Why does Raven Design assign costs to jobs? SOLUTION: Req. 1 Predetermined indirect cost allocation rate: Estimated indirect costs: Support staff salaries..
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shows the company’s revenues and expenses during a particular period. It indicates how the revenues (money received from the sale of products and services before expenses are taken out‚ also known as the "top line") are transformed into the net income (the result after all revenues and expenses have been accounted for‚ also known as "net profit" or the "bottom line"). It displays the revenues recognized for a specific period‚ and the cost and expenses charged against these revenues‚ including write-offs (e
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industry are identified with respect to market dynamics‚ subscriber growth‚ revenue growth‚ policy regulation and investments. It is believed that after a period of price war over the past 3 years‚ a consolidation phase will follow in the near future. Moreover‚ while data services will dominate urban growth‚ voice services growth will be stimulated by the rural region with a low tele-density of around 35%. Idea‚ with a revenue market share of 13.2% is the 3rd largest players in the segment. The company
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CHAPTER 12 ACCOUNTING FOR PARTNERSHIPS AND LIMITED LIABILITY COMPANIES DISCUSSION QUESTIONS 1. a. Proprietorship: Ease of formation and nontaxable entity. b. Partnership: Expanded owner expertise and capital‚ nontaxable entity‚ and moderate complexity of formation. c. Limited liability company: Limited liability to owners‚ expanded access to capital‚ nontaxable entity‚ and moderate complexity of formation. 2. The disadvantages of a partnership are that its life is limited
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