Financial Statement Analysis

Comprehensive Annual Financial Report (CAFR) is a report used by cities, and local governments to provide the public with their financial records each year, while adhering to government accounting standards board (GASB) guidelines. The report presents a comprehensive picture of the reporting entity’s financial condition, it provides how funds are spent and allocated throughout the year.

Wells Fargo shows a much higher profitability ratio than Samsung, with over 8X that of Samsung. This is to be expected as services are typically more profitable than hardware sales which operate on leaner margins. Wells Fargo also outperforms Samsung significantly on return on sales with over 25X better performance. This again is attributable to better margins on services than hardware. Wells Fargo has a much stronger return on equity than Samsung with a Dupont ratio over 5X higher than Samsung's. Samsung has a stronger financial leverage ratio than Wells Fargo with almost 20% lower ratio for Samsung. Samsung also has a much lower total asset turnover than Wells Fargo. This is attributable to the quick turnover of assets in the manufacturing industry compared to the slow turnover of assets in the financial services sector.

Two traditional approaches to fund programs are grants and donations. Grant funding is typically the largest revenue source for a human service organization. Vast arrays of different grants are available for funding purposes. The XYZ Corporation can utilize these funds from government private foundations. The second traditional fundraising method to fund programs is donations. Building a relationship with the community and having a confident CEO that will reach out for donations can impact the amount of donations your organization receives annually. The XYZ Corporation has a large clientele and therefore should be able to gain recognition within the community and gain donations.

The Statement of Financial Accounting Standards (SFAS) 117 is how nonprofits regulate their financial statements, providing a standardized methodology across the board in order to prevent confusion and fragmentation of the overall financial health of the organization. SFAS 117 calls for standardized accounting paperwork that provides a simple to read, categorized balance sheet that shows the public what is the current financial health of the organization (McLaughlin, 2016).

It is easy to forget that pouring money into a problem will not fix it unless revenue flows continue or are increased and expenses are controlled. Some of the easiest computations can be made with information retrieved from balance sheets and income statements provided by accountants. Ratios such as the current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management expense ratio, fund-raising and expense ratio, and revenue and expense ratio can provide a picture of where a company stands now compared to where it was in past years and what may need to be done in the future.

This paper describes a financial statement analysis project useful in both preparerbased and user-based introductory courses in financial accounting. The project

External users (shareholders, lenders, directors, customers, suppliers, regulators, lawyers, brokers, and the press) rely on financial statement analysis to make decisions in pursuing their own goals.

List four basic financial statement analysis procedures, describe how you would calculate each procedure and discuss why you would use each procedure. Based on your reading and outside research, please communicate your own understanding of the requirements. Citations and references are required.

is the industry leader followed by JP Morgan Chase & Co. with 15.9% market share while the Citigroup Inc. ranks fifth with 5.5% market share (Andrews, 2011).

Analysing the cash flow statement would be a great place to first look when initially analysing a company. It is difficult for a company to manipulate the cash flow statements resulting in a honourable place to find the actual numbers. The cash flow statement is indicative of how well the company can convert net income into cash; it also helps to determine if a company is strong or weak. Panera realizes a positive net cash flow and is a strong company from their statements. To receive a deeper analysis, the three sections of the cash flow statements, cash flows from operations, cash flow from investing and cash flow from financing should be dissected.

3. Which of the following measures of accounting income is typically reported in an income statement?

The process of developing financial statements for a business is to provide supporting documentation to what has been reported as annual or quarterly income. Within the financial statement analysis strengths and weaknesses are identified through the comparison of data from the balance sheet. There are many different ways to interpret the data that is utilized for the analysis; those include but are not limited to comparative statements, schedule of changes in working capital, common size percentages, and ratio analysis. The following paper will be reviewing the financial data from Verizon Communications (VZ). Through the

This paper describes a financial statement analysis project useful in both preparerbased and user-based introductory courses in financial accounting. The project

The balance sheet for my company, Intel, has provided the financial position for the past few years. The information provided by the balance sheet shows that Intel Corporation has many assets. These are things that the company owns and the assets are also considered the resources of the company. The resources have been acquired through transactions that have been made between certain dates. Intel’s assets include, cash and cash equivalents, which have been on the rise. However cash and cash equivalents are just one factor of the company’s assets. All together the total current assets have been declining, and rising. In September of 2014 the total current assets were at 27,509,000 and it declined until

unused portion of the money received from policy holders in the way of premiums is what the insurance companies use to mitigate their risk and invest their money. The profit could be described as the earned premium plus the investment income less incurred losses and less underwriting expenses. In conclusion the goal of the insurance company is to collect more premium and investment income than is paid out to policy holders.