Financial Statements

NOTE: In addition to the in-chapter and end-of-chapter exercises which serve as short cases you will find the following short cases arranged by course title that can also be utilized as short cases that require the student to access the authoritative literature to address the issue presented in the case. Solutions to the cases below are available to instructors on the Weirich Accounting & Auditing Research 8e instructor website at www.wiley.com/college/weirich. Other excellent sources of longer and more detailed cases include the Deloitte Trueblood cases and cases provided by various other firms.

This Income Statement also known as the Earnings Statements or statement of operation, is one of the four Financial Statement used by accountants, business owner’s, and investors. The Income Statement provides a detailed look into how profitable a business has been over a designated period of time.

The Board of Directors declared a quarterly cash dividend of $0.20 per share on the company’s common stock. This increase in dividend was payable to shareholders of record on closed of business on May 11, 2016. In the first quarter of this year, the company brought back 1.0 million shares of its common stock at a cost of $50.0 million, with the expectation that it will return its free cash flow to shareholders in this year in the form of dividends and share of repurchases. The Cheesecake Factory knows the importance of success, therefore they schedule conference calls and webcast live on the company’s website throughout May 26, 2016. This ensure stakeholders that the company was not in the red, and continue to profit.

Two additional areas that concern management are accounting policies and FASB standards changing. Accounting policies dictate that “properties to be disposed of are reported at the lower of their carrying amount or fair value, reduced for estimated disposal costs, and are included in other current assets” (F. Phillips, 2006). The Landry’s acquisitions increased the properties to approximately 300, but as the disposal of the properties occurs the loss will be significant.

Direct costs for the Ruger Clinic of Toledo, Ohio totaled $100,000 in 2007 and represents the total cost pool. The Ruger's uses direct cost allocation of expenses in the cost pool to three revenue-producing patient services. Drivers under consideration for the allocation of costs are patient service revenue (a direct dollar for dollar allocation) and hours of housekeeping services used (a volume-based activity for allocation). Drivers amounted to the following activity in dollars and volume, respectively:

The 2012 income statements for Google and Apple are built according to the following assumptions. For each company, the revenue will increase at the average rate for the past two years. The dynamics for each company have changed significantly in the past two years, as each in that time span has grown from being a relatively small player in mobile to being the two world leaders. Apple in particular has only had the iPad for a couple of years, so prior growth rates are not applicable. For Google, the short time frame reflects what should be maturity in the online advertising market, resulting in growth rates that are slower than the company has enjoyed on average in the past 10 years.

Financial Information Pro-forma income statements Period Ending 31-Dec-2015 31-Dec-2016 31-Dec-2017 Total Revenue 11,39 8,52 9,16 Cost of Revenue 1,68 1,29 91 Gross Profit 9,71 7,23 8,25 Operating Expenses Research Development - - - Selling General and Administrative 8,598 7,122 6,167 Non Recurring - - - Others 264 392 155 Total Operating Expenses - - - Operating Earning or Loss 848 (284) 1,933

Financial Information Pro-forma income statements Period Ending 31-Dec-2015 31-Dec-2016 31-Dec-2017 Total Revenue 11,39 8,52 9,16 Cost of Revenue 1,68 1,29 91 Gross Profit 9,71 7,23 8,25 Operating Expenses Research Development - - - Selling General and Administrative 8,598 7,122 6,167 Non Recurring - - - Others 264 392 155 Total Operating Expenses - - - Operating Earning or Loss 848 (284) 1,933

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.

Earnings play a key role in providing critical information for investors. Most investment decisions are made with reliance on performance forecasts reported by analysts. Company public earnings announcements are important for financial statement users, as it directly affects their decision to invest. This puts a lot of pressure on directors to try and meet or beat these forecasts.

As it has always been a point of concern that people pay attention to the profitability of a company and this can be as a result of several reasons. For example, let’s picture a company that was not able to operate profitably, the bottom line of the income statement will indicate a Net Loss. Thus, a banker, lender or creditor may be reluctant to extend additional credit to the company. While on the other hand, if a company operates profitably, the bottom line of the income statement will indicate a net profit or income, which demonstrates its ability to use borrowed and invested funds in a successful manner. A company’s ability to operate profitably is important to current lenders and investors, competitors, government agencies, labour

This essay will begin to look at the main financial statements used by decision makers in businesses today. This essay will go into detail about the income statement and statement of financial position and whether these two statements provide decision makers with their financial information adequately. This essay will also include the various advantages and disadvantages of each financial statement as well as describing whom the decision makers are and why financial statements are important to them. A conclusion will be present at the end of this essay to demonstrate an overall view of whether financial statements are beneficial to decision makers.

Financial statements have several key components and specific criteria into them to relay the detailed information for auditors and management. A deeper look into financial statements and the many concepts surrounding them are needed to explain in more detail. It’s also important to recognize the Auditor’s opinion letter, balance sheet, operating statement, statement of changes in net assets, and statement of cash flows and footnotes of their involvement in the process. Relevant accounting articles are a useful supplement to financial statements and how they enhance concepts in the financial statement. The meaningful uses of financial statements for health care organizations are the epitome of current and future success of financial health.

Executive summary: This assignment deals with the evaluation and calculation of cost accounting. In this assignment, we will discuss about the different types of costs that is related with the company, different methods of cost evaluation, appropriate techniques of cost accounting, preparation of routine cost report, to Use performance indicators to identify potential improvements, improvements to reduce costs, enhance value and quality, the purpose and nature of the budgeting process in business, appropriate budgeting methods for organization, Preparation of budgets according to the chosen budgeting method, Preparation of cash budget, Calculation of variances, identify possible causes and recommend corrective action etc.

Financial statements are usually means of communicating information on a company’s operations. They contain information on the revenues, expenses, assets, liabilities and retained earnings of the business.