Hello, I have the following: Consolidated Balance Sheet Dec 31, 2017, 2016 2015 (in millions) 2017 2016 2015 Current Assets $734 $ 959 $ 813 Other Assets $2,421 $ 1,928 $ 1727 Total Assets $3,155 $2,887 $ 2,540 Current Liab. $585 $ 838 $ 731 Long Term Liab. $ 1,555 $ 1,015 $ 883 Stockhldrs Equity $ 1,015 $1,034 $ 926 Total Liab & S.E. $3,155 $2,887 $2,540 Selected Income Statement ending Dec 31, 2017 and 2016. in millions. 2017 2016 Income Statement Data: Sales $3,058 $2,921 Operating Income $ 304 $ 318 Interest Expense $ 92 $ 73 Net income $ 215 $ 210 Other Data: Avg # of comm. shares outstd. 42.1 47.5 Total Dividends paid $ 58.0 $53.1 Questions are: 1. Return on Equity 2017 and 2016 (do not round immediate calculations, round to 1 decimal place.) 2. Calculate Earnings per share 2017 and 2016 thanks
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.
Hello, I have the following:
Consolidated Balance Sheet Dec 31, 2017, 2016 2015 (in millions)
2017 2016 2015
Current Assets $734 $ 959 $ 813
Other Assets $2,421 $ 1,928 $ 1727
Total Assets $3,155 $2,887 $ 2,540
Current Liab. $585 $ 838 $ 731
Long Term Liab. $ 1,555 $ 1,015 $ 883
Stockhldrs Equity $ 1,015 $1,034 $ 926
Total Liab & S.E. $3,155 $2,887 $2,540
Selected Income Statement ending Dec 31, 2017 and 2016. in millions.
2017 2016
Income Statement Data:
Sales $3,058 $2,921
Operating Income $ 304 $ 318
Interest Expense $ 92 $ 73
Net income $ 215 $ 210
Other Data:
Avg # of comm. shares outstd. 42.1 47.5
Total Dividends paid $ 58.0 $53.1
Questions are:
1. Return on Equity 2017 and 2016 (do not round immediate calculations, round to 1 decimal place.)
2. Calculate Earnings per share 2017 and 2016
thanks
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