Profit and loss accounts and balance sheet By law companies are expected to produce financial statements each year. These statements appear in Company Reports. There are two main financial statements: 1. The profit and loss account‚ and 2. The balance sheet. 1.The profit and loss (P&L) account. This account can be updated regularly and shows how much profit or loss a business is making. A profit can be made in several ways‚ for example: * from trading‚ in the case of a High Street shop
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Personal Budget‚ Balance Sheet‚ and Cash Flow Statement Memo To: Mr. Christopher De Maline From: Date: 02/17/2014 Re: Personal Budget‚ Balance Sheet‚ and Cash Flow Statement Dear Mr. De Maline‚ Saving money is extremely important however; some people do not have healthy savings thus leading them to financial instability. Therefore‚ being a good steward over your finances should be consistent and begin at an early age and progress as you age. This will provide an effective growth
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Cost‚ Volume‚ and Profit Formulas Heather Jauregui University of Phoenix of Axia College “The Cost-volume-profit (CVP) analysis is the study of the effects of changes in costs and volume on a company’s profits.” (Kimmel‚ P.‚ Weygandt‚ J.‚ & Kieso‚ D. 2003) The analysis is used to maximize efficiency in a business. In order to be effective the CVP analysis has to make several assumptions. These assumptions are that the costs can be fitted into either fixed or variable categories. The
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big role‚ but For-profit prisons take the cake. For-profit prisons‚ also referred to as private prisons‚ are third-party prisons that are contracted by a government agency. Private prisons originally began to exist in a variety of forms in the 1800’s‚ however they largely disappeared from the 1920’s to the 1980’s. For-profit prisons in their current form arrived after the mass incarceration following the War on Drugs. As of 2013 133‚000 inmates were incarcerated in for-profit facilities‚ which
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Gross profit is a company’s residual profit after selling a product or service; it involves deducting the cost associated with the production and sales. To calculate gross profit it involves examining the income statement. In the income statement you take the revenue and subtract the cost of goods sold. This is also called gross margin and gross profit. Gross profit is needed in a company because it shows how efficiently management uses labor and supplies in the production process (Investopedia
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Free Cash Flows Revised by C. Chang. Copyright 1996 by The McGraw-Hill Companies‚ Inc OUTLINE n n n n n n n What is FCF? FCFF? FCFE? How Do You Calculate FCFF? FCFF Calculation– the CFO Method FCFF Calculation– the EBIT Method Equivalence: FCFF(CFO) vs FCFF(EBIT) Free Cash Flow to Equity (FCFE) Free Cash Flow Example What is FCF? FCFF? FCFE? n Free Cash Flows to Firm (FCFF) n The cash produced by the business activities of a firm available for
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accrual-basis accounting and cash-basis accounting? The variation between accrual basis accounting and cash basis accounting‚ is how cash is documented. Cash basis is an accounting basis that is used when expenses and revenue are paid out or received. This is when the transaction will be recorded. In accrual-basis accounting‚ transactions are recorded when they actually happen. Payment does not need to be made for the transaction to be recognized in accrual-basis accounting unlike cash-basis. Both
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Non-profit vs. For-profit in Healthcare Organizations In the healthcare industry there is a universal goal of treating patients and taking care of people. How that is accomplished is also similar‚ but the organizations behind the healthcare service provider can vary greatly. In this paper we will analyze the characteristics of non-profit and for-profit healthcare organizations and the factors that impact their operations. Additionally‚ we will look at the various ways a non-profit organization
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owners of the firm. The shareholders elect the directors of the corporation‚ who in turn appoint the firm’s management. This separation of ownership from control in the corporate form of organization is what causes agency problems to exist. Management may act in its own or someone else’s best interests‚ rather than those of the shareholders. If such events occur‚ they may contradict the goal of maximizing the share price of the equity of the firm. 【Liquidity】 What does liquidity measure? Explain
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Maximizing Profits in Market Structures Competitive markets‚ monopolies‚ and oligopolies play a big role in the economy. We will be discussing the characteristics‚ price determination‚ output determination‚ barriers to entry‚ and the role in economy of each market structure. In a competitive market there are many firms that supply the same product‚ such as local gas stations. Mankiw (2007) stated‚ “You may recall that a market is competitive if each buyer and seller is small compared to the size
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