statement‚ balance sheet‚ cash flow statements and statement of retained earnings. Income Statement Beginning with the income statement‚ the information provided includes the amount of revenue that the company earns over a certain period of time. The period of time is usually a year or some a portion of a year. An income statement reveals the net worth or loss of a company reporting on the costs and expenses associated with the revenue earnings. Balance Sheet The balance sheet is a snapshot
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88 | 3.00 | Favorable | 11. Salary and benefit/NPSR | 84.08% | 82.82% | 55% | Unfavorable | 1. Current ratio = Total Current Assets in Balance Sheet / Total Current Liabilities in Balance Sheet 2011 | 2010 | $54‚306/$15‚425 | $39‚715/$15‚315 | 3.52 | 2.59 | 2. Days Cash on Hand = Cash and Cash Equivalents from Balance Sheet / [(Total Expenses – Depreciation – Provision for Bad Debts in Statement of Operations) / 365] 2011 | 2010 | $12‚102/[($168‚232 - $6‚405 -
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income statement‚ statement of owner’s equity‚ balance sheet‚ and the statement of cash flows. Company’s use income statements to report how much money they have made and how much they have spent over a specified period of time. The statement of owner’s equity is used to report any changes in equity from a company’s net income or net loss‚ as well as report changes in the owner’s investments and withdrawals over a specified period of time. The balance sheet is used to report a company’s financial position
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four publicly traded companies within the same industry as Riordan Manufacturing‚ Huffman Trucking‚ Kudler Fine Foods‚ and McBride Financial Services. For the purpose of this research paper an analysis of financial statements will include the balance sheet and income statements for each company. An analysis of financial statements must serve as gauge of overall health of a company. Financial statement analysis focuses on one or more elements of a company ’s financial condition or performance with
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Prepaid rent EXERCISE 2: Account Debit or Credit Financial Statement Accounts Payable Credit Balance Sheet Accounts Receivable Debit Balance Sheet Common Stock Credit Balance Sheet Depreciation Expense Debit Income Statement Interest Expense Debit Income Statement Interest Income Credit Income Statement Inventories Debit Balance Sheet Prepaid Expenses Debit Balance Sheet Property and Equipments Debit Balance Sheet Revenues Credit Income Statement EXERCISE 3: Pocras Company: Account Description Debit
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operating‚ invest- ing‚ and financing decisions across industries‚ financial ratios can be used to identify an industry (see Exhibit 1 for the definition of ratios used). Balance sheets and income statements for the most recent three years are provided for 10 compa- nies from 10 different industries. Common-sized balance sheets (all items scaled by total assets)‚ com- mon-sized income statements (all items scaled by net sales)‚ and selected financial ratios for the most recent three years are also
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companies will see their net worth decline and the value of their collateral they can pledge will drop. It causes a decline in the value of the institutions’ asset‚ whereby causing a decline in the net worth of the company. This deterioration in the balance sheets causes them to deleverage‚ worsening the decline of economic activity. How does the unanticipated decline in the price level cause a drop in lending? * Because many debt contracts are fixed interest rates and typically have fairly long
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19.The balance sheet reports: A. Net income at a point in time. B. Cash flows for a period of time. C. Assets and equities at a point in time. D. Assets and liabilities for a period of time. 20.Current assets include cash and all other assets expected to become cash or be consumed: A.Within one year. B.Within one operating cycle. C.Within one year or one operating cycle‚ whichever is shorter. D. Within one year or one operating cycle‚ whichever is longer. 21.Red Onion Restaurant
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The main purpose of off-balance sheet is to reduce the company’s debt that is below a certain level thus allowing its debt-to-equity ratio to drop significantly. When a company has a favorable ratio‚ it indicates that company may have a good credit risk. A company that has other debt such as bank loans‚ the company is required to a maintain a debt-to-equity-ratio commonly known as a debt covenants (Wright‚ n.d.) An example of an off-balance sheet financing are operating leases. When a company has
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| |Moderate | |50–60 | | | |balance sheet. | | | | | | | | | | | | | |3A | |Prepare income statement‚ owner’s equity statement‚ and balance sheet. | |Moderate | |50–60 | |
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