Why Is A Corporation?

I find it ridiculous that I have to say this: corporations are not people. And yet, the supreme court seems to disagree. In 2010, the supreme court ruled in Citizens United v. Federal Election Commission that grants corporations the rights of citizens. Since then, many people have rightfully asked for the abolition of Corporate Personhood. Corporations are not sentient beings and have no moral code or understanding of the law; therefore, they are not responsible for any legal discretions: people running the corporations are. People can consciously make decisions that are harmful to others but may never have to reconcile for it because they were doing it under the company. Here’s the thing: corporations can't go to jail. The only way to make corporations pay is to literally make them pay fines. Even lawsuits worth millions of dollars can be nothing to large companies with vast amounts of wealth. Corporations will just pay the fines and continue functioning as before.

The statement of cash flows reports the cash receipts, cash payments, and net change in cash resulting from the operating, investing, and financing activities of a company during a period in a format that reconciles the beginning and ending cash balances

The cash flow statement shows the amount of cash within a company. Items that affect the cash balance are listed on the statement. The first section of the cash flow statement is operating activities, which shows the cash flowing in and out of the company in relation to its business operation. The operating activities section also includes net income and the change in dollars of certain accounts listed on the balance sheet. The next section, investing activities, shows cash the company received and spent on a company's capital investments. The financing activities section shows the inflows and outflows of cash related to the company’s issued financial securities, which is also listed on the balance sheet and statement of shareholders' equity.

Based on the case scenario, Doris, Betty, and Charlie formed a company called Bechdo Pty Ltd. The three members are the directors and Betty who is major shareholder holds 40% followed by Charlie and Doris who hold 20% each while the 20% is held by the rest. Based on the company constitution, a managing director has capacity to enter into a contract o behalf of the company up to a maximum of $100,000. Moreover, he/she can enter into contracts to the value of $900,000 upon getting consent for the board of directors. In this case, Bechdo Pty Ltd operates without a managing director since none was elected. The major issue is that Betty being the majority shareholder went ahead and entered into contract with BB Ltd, Jillo Pty Ltd, and

The cash flow statement of a company showcases how much money coming in to the business and out of business. A positive cash flow indicates a health business where more money coming in to business than going out of the business. There are three major component of cash flow statement which are operations, investing and financing activities. The balance sheet represents the financial position of the company for a specific date and provide company asset, liabilities and owner equity. The Income statement demonstrates how a company use its assets to generate income over a period of time. It explains the how the company generate revenue and what are their

(which is revenue minus cost of good/services) after taking out operating expenses - such as cost of goods sold and depreciation ,basically performed on the accrual basis. The revenue are recognized in the period actually earned and cash need not to be received on that period for recognizing the revenue. Therefore net cash flow and operating profit is different

2013). In most cases, accrual basis net income provides a better measure of performance than net operating income cash flow. As stated by newspaper article, very small companies start out by using the cash basis (Anonymous 2011). The article also states it is easier for them to track cash flow which is the lifeblood of a company. Cantu states, “The first downside is that cash accounting can make operations appear financially healthier than they are.” Her example states, a contractor gets a $20,000 remodeling job and orders $8, 000 worth of supplies on credit. He starts the job on March 1 and receives a $5,000 deposit before beginning his work. With cash accounting, it appears that he has made $5,000 revenue in March. Despite appearances of being in the black, he is actually in the red $3,000 because he still has to pay for his supplies. Another problem, with cash accounting Cantu states, it is easy to confuse cash flow with profit, "If producers are able to pay their bills, many assume that they are making a profit, when actually they 're just experiencing cash flow," Bevers says. "True profit occurs when a producer has paid all of the expenses including depreciation and has built wealth." The text book also supports the fact that net operating cash flow may not

Cash flow can be used as an indication of a company 's financial strength by the comparability of the inflows and the outflows cash flows are essential to solvency. The statement presents a record of something that has happened in the past, such as the sale of a particular product, or forecasted into the future, representing what DJS expects to take in and to spend. Cash flow is crucial to an entity 's survival.

The Idea of the corporation was born and chartered in the 16th century in Europe. The first endorsers of the long lasting project were. England and Holland.

The net income is actually considerably different from the operating cash flow for multiple reasons. The first reason is non-cash expenses; these type of expenses are items such as depreciation or devaluing of something that was previously of higher value. Amortization of intangible assets, which is the steady reduction in recorded value of an intangible asset over time. These types of expenses truly do not require cash; outlays reduce net earnings but do not affect net cash outflow. Another imperative reason is that many timing differences occurring between the identification of revenue and expense and the incident of the underlying cash flow. In conclusion, the none operating losses and gains are used in the determination of net income, however, the associated cash flows are then classified as financing and investing activities, and they do not include operating activities.

The Operating Income is the Revenue minus the Cost of Goods Sold (COGS), Labor and other day to day expense. It measures profitability and tells investors how much revenue will become profitable for a company. (Operating

2. The single most important assessment in Cash Flows in the “cash flow from financial operations” because it provides an overlook on management’s operating decisions. In this case, we can see that Reebok had reported positive cash flows from operations, for example in 1990 reported $39.2M while LA Gear reported a negative (40M) the same year. Looking closely, we can see that LA Gear was retaining huge quantities of inventory while at the same time, not collecting enough money from customers (A/R). Hence we can conclude that for Reebok, operations was a source of cash but on the other hand, LA Gear was quite the opposite: operations was a use (or drain) of cash. Turning our attention to “cash flows from financing activities” we can see that more differences. Reebok is borrowing little money, instead it is paying loans. LA Gear is borrowing huge quantities of money, for example in 1990 it borrowed $56M. As a result of this, we can see where the money to finance

The Corporation was made in 2003, it is a Canadian documentary film written by University of British Columbia by a law professor Joel Bakan, and directed by Mark Achbar and Jennifer Abbott. The documentary examines the modern-day corporation. Bakan also wrote the book, The Corporation: The Pathological Pursuit of Profit and Power, during the filming of the documentary

Within respects to cash flow after operations generally refers to the cash the company has in accounts receivable which thereafter, goes in the overall operations of a company. In regards to Procter and Gamble, the cash flow for ending June, 2016 is 15,435,000 and with the year prior 14,608,000. Procter and Gamble EBITDA, refers to earnings before interest, tax, depreciation and amortization in which Procter and Gamble recorded 17,026 billion with a ratio of 14.00% Finally, Contribution Margin, refers to determine the rate of return of otherwise known as profit. Thereafter, if a certain area of an operation is lacking or losing money the powers that be can then go and concentrate on that particular area and assist with strengthening this area and turn things around to earn a profit.(Figure 2).

| Below is an excerpt from the cash flow statement of a firm for fiscal year 2003: Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Amortization of software Tax benefits of employee stock plans Special charges (Gains)/losses on investments Change in operating assets and liabilities: Receivables Inventories Pension assets Other assets Accounts payable Pension liabilities Other liabilities Net cash provided by operating activities Cash flows from investing activities: Payments for plant and other property Proceeds from disposition of plant and other property Investment in software