Case 1-1 Ribbons and Bows Inc

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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

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