1. FS as a tool in decision making on the point of view of: a. Shareholders
Financial statements provide a view on the company’s financial changes within a specific reporting period and confirm its overall state. They give information such that they provide shareholders with a picture of how well the company is doing. These enable them to evaluate a stock’s worth and aid them in making stock-related decisions such as buying/selling/retaining which provide them further on the status of their return on investment. Additionally, they reflect how the shareholders’ money are invested, its outcome and effect to the company. b. Management of the company
Financial Statements are useful to a company’s management in a number of
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Companies nowadays have carried out various activities that assist other sectors like the charities and environment. 2. Identify the elements and categories of assets, liabilities and capital using the sample FS (please see attachment for sample FS)
For Ayala Corporation and Subsidiaries Consolidated Statements of Financial Position (on report page 69, pdf page 72), the asset category is subdivided into current and noncurrent. Current assets of Ayala Corp. include cash and cash equivalents, short-term investments, net accounts and notes receivable, inventories, and other current assets. Noncurrent assets include noncurrent accounts and notes receivable, land and improvements, net investments in associates and jointly controlled entities, investments in bonds and securities, net investment properties, property, plant and equipment, service concession assets, intangible assets, pension assets, deferred tax assets and other noncurrent assets.
Liabilities are categorized into current and noncurrent. Current liabilities include accounts payable and accrued expenses, short term debt, income tax payable, current portions of long-term debt and service concession obligation, and other current liabilities. Noncurrent liabilities include long term liabilities net of current portion, service concession obligation net of current
1996 Current Assets: Cash & Equivalents Marketable Securities AFS Accounts Receivable Inventory Other Current Assets Total Current Assets Property & Equipment, net Goodwill, net Other Total Assets Current Liabilities: Short-Term Borrowings Accounts Payable Accrued Expenses Income Taxes Payable Current Maturities of LT Debt Total Current
Classify each of the items as an asset, liability; revenue; or expense from the company's viewpoint. Also indicate the normal account balance of each item.
* Statement of net assets (Balance sheet) presentation required classification of current and non-current of assets and liabilities. Equity section presents: Net Assets Invested in Capital Assets, Care Organizations Net of Related Debt, Restricted Net Assets, and Unrestricted Net Assets.
Your company has goods primarily held for resale. You have been asked whether or not they are considered nonmonetary assets.
Understanding the finances of a company is important but knowing the significance of the financial statements is crucial to the operations as well. Reviewing the statement of financial position, operating statement and statement of cash flows serve as a guidance to management and executives on the day-to-day activities of an organization (Finkler et al., 2013). For example, the statement of financial position (balance sheet) shows the assets and
The four different types of assets are Current Assets, Long-Term Assets, PPE (Property, Plant & Equipment), and Intangible Assets. Team B’s task was to define current assets. A current asset is an asset which can either be converted to cash or used to pay current liabilities within one year. Typical current assets include
Assets and liabilities are bifurcated in current and non-current. Current asset is defined as any asset which can be converted into cash readily and will be used within one accounting period normally 1 year e.g. Receivables, Inventory, Prepaid Expenses.
Asset Account – Can be organized into current and non-current category. Types of current accounts would be goods owned by a company with the result of selling items or a written note(s) receivable, in which a promise is made to repay services rendered. A non-current item is any item used for the efficient running of a company such as equipment like computers. This referred to as a fixed asset. (MyAccountingCourse.com, n.d.)
Our class was assigned a company for financial scrutiny and to obtain financial statements (Balance Sheet, Income Statement, and Cash Flow Statement), from the company’s most recent Annual Report. We are to prepare a written analysis of the organization with the following requirements:
Financial statements of the company are significant for the investors who would like to venture into the business operation. It gives them the insight whether the business is making profits or it is doomed to fail;
Cash + cash equivalents + short term investments (marketable securities) + current receivables/ current liabilities
1. Discuss methods (Accounting Policies) your chosen company uses to account for its various items of assets, liabilities, and shareholder equity:
Most accounting balance sheets classify a company's assets and liabilities into distinctive groupings such as Current Assets; Property, Plant, and Equipment; Current Liabilities; etc. These classifications make the balance sheet more useful. The following balance sheet example is a classified balance sheet.
The assets listed under current assets are as follows (in order): cash and cash equivalents, restricted cash, accounts receivable (billed), accounts receivable (unbilled), prepaid income taxes, deferred income taxes and prepaid expenses. There are no inventories listed, but otherwise these are listed in the proper order.
Liabilities & Equity Accounts Payable & other Long Term Debt Equity Total Liability & Equity