Transaction Analysis and Statement of Cash Flows Preparation

In accounting there is much to be learned, about the financial aspects of a business. In the past five weeks I have learned the importance of financial reports and how they relate to the success of an establishment. These reports may include balance sheets and income statements, which help accountants and the public grasp the overall financial condition of a company. The information in these reports is really significant to, managers, owners, employees, and investors. Managers of a business can take and deduce financial

In this case study Pete refers to what the Delta Airlines accountant told him in response to his inquiry as to why his bonus did not include the $5,000,000 sale placed on December 30th, “something about matching revenues and expenses.” (Warren, Reeve, Duchac, 2016) Pete and Sonia are questioning when exactly sales transactions are recorded, what defines the period in which a sale is recognized. Delta Airlines is operating under the matching concept of accounting. This concept requires all revenues and their related expenses to be recorded during the same accounting period. The matching concept is used while working under the accrual basis of accounting. When using accrual accounting one must record all revenue as it is earned and expenses when

Fraser, L. M., & Ormiston, A. (201). Understanding financial statements (9th ed.). Upper Saddle River, NJ: Prentice Hall.

The main source of cash is A/R. In 1991 the company also gathered $23M issuing stock.

Wise-Holland Corporation, an S corporation, is split evenly between Marianne and Dory, two women with limited business knowledge. Wise Holland’s previous accountant of ten years was fired after Marianne received a notice of deficiency on her 2012 tax return due to $20,000 of disallowed flow through loss from Lucky Partnership, a small partnership deemed to have no profit motive; interest and a 20% penalty for substantial underpayment was also required, all of which Marianne paid immediately. She also signed a waiver extending her 2012 individual return statute of limitations three more years.

“We certify that the attached work is entirely our own, except where material quoted or paraphrased is acknowledged in the text. We also declare that it has not been submitted for assessment in another unit or course.”

| |Write a 700- to 1,050-word paper analyzing the disclosures contained within the notes to the | | |

3. What are each of the financial statements commonly called in for-profit health care organizations and in not for-profit care organizations?

Illustration 3 below creates an income statement for Amy Chang. Illustration 3: Amy Chang's Personal Income StatementAmy Chang's Personal Income Statement In Amy’s example, she has a profit or cash surplus of $75 per month. As we look at Tootsie Roll’s income statement in Illustration 5, the company is doing the same exercise that we

Learning Objective: 04-03 Present an income statement with earnings per share, statement of stockholders equity, balance sheet, and statement of cash flows.

Classifying how the income statement needs to be coded for Lads & Lassies is a two step processes. I will be using the data provided in the case along with information from FASB's Accounting Standards Codification. FASB's coding system is being used to help prepare the layout and ensure proper reporting of the items listed in the case analysis. Some minor changes need to be done to the income statement format to make it presentable which will be noted in the analysis. Please reference Appendix A throughout the analysis to see how the income statement is ultimately being

Income statements and balance sheets were reviewed to summarize the following key points that could

“Blake Romney became Chief Executive Officer of Peters Inc. two years ago. At the time, the company was reporting lagging profits, and Blake was brought in to "stir things up." The company has three divisions, electronics, fiber optics, and plumbing supplies. Blake has no interest in plumbing supplies, and one of the first things he did was to put pressure on his accountants to reallocate some of the company’s fixed costs away from the other two divisions to the plumbing division. This had the effect of causing the plumbing division to report losses during the last two years; in the past it had always reported low, but acceptable,

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      The Statement of Cash flows is a very useful financial statement that can benefit investors, managers and even auditors. The statement of cash flows has not been around as long as the other financial statements such as the balance sheet or income statement. It basically “illustrates the way accounting evolves to meet the requirements of users of financial statements.” (Marshall, 2003) The statement of cash flows is designed to provide important information about the cash that a company has received or has paid out during a certain time period. It provides a reason for the changes of cash received and paid by a company by taking into