Financial Statements

While the history of private enterprise is thousands of years old, a relevant launchpad to understand the modern corporation, and its associated concepts of limited liability and disclosure etc. can be with the corporations of the 17th century.

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.

The restaurant industry is highly competitive, and that competition could lower their revenues, margins and market share. The business is subject to macroeconomic and other factors that may negatively impact the results of operations. Restaurant development plans under development agreements may not be implemented effectively. IHOP Corp. may have difficulty expanding in new markets outside the United States.

3. Market Entry: Will the timing of the restaurant development be optimal, creating value and growth

Being successful in the food service industry is tough. Most restaurant proprietors think about expansion when it comes to his or her business. Business owners think and consider that having a bigger restaurant will procreate them more profits. One the other hand, some business owners view expansion in an international market as a necessary tool to garner them the profits that he or she desire. Entering a foreign market is expensive, time-consuming and high-risk, so some restaurant moguls will enter into joint ventures with other restaurant companies. However, not all joint ventures are prosperous. In this case, a restaurant corporation entered into a joint venture with another company and problems occurred that were controllable.

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.

The Open-Road Motorcycle Company is the largest online retailer of salvage title motorcycles. We are focused on bringing the customer the best value on entry level motorcycles by providing lower prices than our competitors. Our motorcycles are sold all over the United States, and we currently have 30 stores all across the country.

countries around the world, committing $1.2 million per year for the next 12 years. Finally,

Sales also improved as Olive Garden, Darden Restaurants' flagship brand, posted a positive comp figure; this was taken as a turn-around sign in Darden's business by some investors.

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.

According to FASB webpage, revenue is a crucial number to users of financial statements in assessing a company’s performance and prospects. However, revenue recognition requirements in U.S. GAAP differ from those in IFRS, and both sets of requirements are considered to be in need of improvements. Accordingly, the FASB and the IASB initiated a joint project to clarify the principles for recognizing revenue and to develop a common revenue standard for U.S. GAAP and IFRS that would 1) remove inconsistencies and weaknesses in existing revenue recognition standards and practices; 2) provide a more robust framework for addressing revenue recognition issues; 3) improve comparability of revenue recognition practices across

Consolidated financial statements are financial statements that factor the holding company 's subsidiaries into its aggregated accounting figure. It is a representation of how the holding company is doing as a group. The consolidated accounts should provide a true and fair view of the financial and operating conditions of the group. Doing so typically requires a complex set of eliminating and consolidating entries to work back from individual financial statements to a group financial statement that is an accurate representation of operations.

In order to understand the effects of opening the catering business, I looked at variable and absorption costing to figure out which method would be better suited for internal and external reporting in the past and future. In addition, I delved deeper to understand the cost breakdown of the new products which helped identify a capital budget that will help us determine the validity of opening the catering business.

Based on the financial ratios given, this section will compare and contrast the financial strengths of Company X and Company Y in order to suggest Tringale Ltd to take decision regarding which of the above companies to chose for investment. This section provides comments on financial performance areas based on the data given, and presents report to the Board of Directors of Tringale Ltd by recommending which of the two investment opportunities is better.