Assets Current Assets Cash On The Dot Trading Statement of Financial Position As of December 31 Short-term Investments Accounts Receivable, Net Merchandise Inventory Total Current Assets Property, Plant, and Equipment (net) Total Assets Liabilities and Owner's Equity Current Liabilities Non-Current Liabilities Total Liabilities Owner's Equity Total Liabilities and Owner's Equity 2017 Net Sales Cost of Goods Sold Gross Profit Selling and Administrative Expenses Operating Income Interest Expense Income Before Income Taxes Income Tax Expense Net Income P 158,000 130,000 240,000 500,000 P1,028,000 2,340,000 3,368,000 P530,000 800,000 P1,330,000 2,038,000 3,368,000 On the Dot Trading Income Statement For the Years Ended December 31 (in millions) 2017 P4,972 3,046 P1,926 1,556 P 370 88 P282 Percent 94 P188 Percent P 2016 P1,006,000 ob od 2,350,000 gad 3,356,000 84,000 192,000 g 200,000 530,000 P 584,000 840,000 P1,424,000 1,932,000 P3,356,000 2016 ibnotzisbatP4,150 P Percent 2,444 1,706 1,500 P 206 92 P 114 42 72 Percent
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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