Financial Statements And Corporate Statements

Financial statements provide financial decision makers with varied information presented in specific formats that is easily attainable tools to evaluate financial health. Three of the necessary financial statements are the statement of financial position or the balance sheet, operating statement also called income statement, and the statement of cash flows (Finkler, Jones, and Kovner, 2013).

According to Hermanson, R., Maher, M., & Edwards, J. by definition an income statement “is a financial statement that shows cases a companies’ profitability during a set period”. How that profitability is measure is by comparing the revenues earned with the expenses incurred to produce these revenues. If the production of these revenues exceed the expenses that they incurred than the company has gained a net income and if the expenses incur were to exceed the revenue than the company has suffered a net loss.

The purpose of an income statement is to allow companies, investors, accountants, and auditors to analyze the key and pertinent items that lead to profit or loss from a different perspective by calculating each number on the income statement as a percentage. This allows for an easier

The financial condition of a company as reported in the company’s financial statements for a period gives company management the information needed to make vital business decisions including the decision to expand in nature or how to determine industry trends in nature by using a trend analysis. In this paper, I will discuss Landry’s Restaurants management assessments of the financial condition and explain whether or not those assessments agree with my previous assessments supported by a trend analysis. I will also discuss management’s concerns and identify and recommend a course of action for weaknesses not discussed by management.

Because financial statements are accounting reports, one of their purposes is to communicate financial information about a business entity to investors and other interested parties. Financial statements provide information on the business' financial position or status as well as financial changes during a period of time. They communicate to investors information about financial decisions that have been made (Woelfel, n.d.).

Financial statements are key aspects of business operations. In fact, it is the financial statement that provides management with the information needed to make sound business decisions. Other stakeholders, like investors and creditors, use financial statements to make decisions about whether or not to invest in, loan money to, or do business with a company (Jesswein, 2013). The importance of a financial statement is dictated by the need for certain information, i.e., the overall health of a business, the creditworthiness of a business, and/or the ability of a business to make money (Jesswein, 2013). Financial statements are comprised of income statements, balance sheets, and cash flow statements (Melicher & Norton, 2014).

Income Statement by a company is the information on the financial statement of a business activity over a certain period of time usually a quarter or a year. It also explained how much revenue the business grew throughout a period of time and the cost it gained in relating to its revenue. Companies have to be able to bring money otherwise they would not be able to stay in business; therefore income statement show how well or how bad the company is doing.

Summary report that shows how a firm has used the funds entrusted to it by its stockholders (shareholders) and lenders, and what is its current financial position. The three basic financial statements are the (1) balance sheet, which shows firm 's assets, liabilities, and net worth on a stated date; (2) income statement (also called profit & loss account), which shows how the net income of the firm is arrived at over a stated period, and (3) cash flow statement, which shows the inflows and outflows of cash caused by the firm 's activities during a stated period. Also called business financials

As outlined by Melicher & Norton (2013), the balance sheet is “a statement of a company’s financial position as of a particular date” (p. 358). While income statements demonstrate a company’s performance over a length of time, the balance sheet provides a “snapshot” of a firm’s revenues and expenses on a specified date. The most important values presented on a balance sheet are the values for liabilities, assets, and equity. Different types of assets and liabilities noted within a company’s balance sheet can reveal information about the company’s financial structure and plans for future operations. A balance sheet is “balanced” because every dollar listed as an asset must be financed by a dollar of liabilities. Major assets appear on the balance sheet in order of liquidity. Examples of assets included on this financial statement include cash (or cash equivalents), accounts receivable, inventories, and other fixed and long-term assets. The claims of creditors and owners are all the debts that the business owes to other parties. On the balance sheet,

Firm owners as well as managers keep track of the company’s financial performance by maintaining at least four major financial statements. The major financial statements include Income statement, Balance sheet, stockholder’s equity statement, & cash flows statement. Each financial statement provides different type of activity of the company 's financial status in the particular period. Financial statements are usually prepared based on the company’s need it could be monthly, quarterly, semiannually and annually.

Financial statements are integral reports for companies. The reports included in financial statements document the financial progress of a company over a specific period of time. Included in the Financial Statements are the income statements, balance sheet, and statement of cash flows. These three reports combine to give information about the profitability of the company, debt repayment, assets, liabilities, and the overall financial health of the company. This information guides company leaders to make sound financial decisions for the company in order to lead the company in a direction that will make the most financial sense and result in positive earnings.

In this report will analyse budgets and make appropriates decisions and explainn the calculation of unit costs and make pricing decisions using relevant informations. And than this report will assess the viability of a project using investment appraisal techniques and discuss the main financial statements. Compare appropriate formats of financial statements for different types of business. Interpret financial statements using appropriate ratios and comparisons, both internal and external.

Income Statement: Income statement is mainly the report on Income. Its accounting definition is “Income= Revenue – Expenses”. Income statement shows how much it has cost the bank to acquire its deposits and other funds sources and to generate revenues from the uses the bank has made of those funds. It is also known as profit and loss statement or Statement of revenue and expense.

The income statement is one of the major financial statements used by accountants and business owners. The income statement is sometimes called profit and loss statement, statement of operations or statement of income. It is important because it shows the profitability of a company during the time interval specified on the heading. The income statement shows revenues, expenses, gains, and losses; it does not show cash receipts nor cash disbursements. People pay attention to the profitability of a company for many reasons, and the income statement helps in doing this in that it helps current lenders and investors, company management, competitors, government agencies, labor union, and others. The expense items located on the income statement appear under five major categories

Financial statements are used by government and its agencies to formulate policies to regulate the activities of business, to formulate taxation policies, to compile national income accounts.