Cash flow statement

Statement of Cash Flows When comparing statement of cash flows between the two electronic companies, they both compliment each other. This meaning where one company lacks the other makes up for. On the brief overview of the companies, Apple looks to be the stronger company. Their net income over the last three years almost doubles Microsoft net income in the same period of time. Both companies keep a steady depreciation rate over the three year time frame. Neither company takes a drastic dip or

AN D STATEMENT OF CASH FLOWS LEARNING OBJECTIVES After studying this chapter, you should be able to: •1 •2 •3 •4 •5 •6 •7 •8 •9 Explain the uses and limitations of a balance sheet. Identify the major classifications of the balance sheet. Prepare a classified balance sheet using the report and account formats. Determine which balance sheet information requires supplemental disclosure. Describe the major disclosure techniques for the balance sheet. Indicate the purpose of the statement of cash

Chapters 3 and 13 Financial Statement and Cash Flow Analysis Balance Sheet Assets Cash Inventory Accounts Receivable Property Plant Equipment Liabilities and Shareholder’s Equity Accounts Payable Notes Payable Accrued Wages Bank Loans Bonds Common Stock Retained Earnings Total Liabilities and Shareholder’s Equity Total Assets Income Statement Used to figure out how much money we are earning for: (a) (b) (c) (d) vendors, employees, etc - Cost of Goods Sold, Operating Expenses lenders, bondholders

Income Statements – Income Statement, Balance Sheet, and Statement of Cash Flows Financial statements are very important for decision makers in the business world. They inform the firm’s owners, lenders and managers of the performance of the company and their employees. Standardized financial statements make for financial transparency between all businesses and sectors of business. Financial statements are important to companies not only to measure performance but to obtain capital through debt

Exploring the Financial Statements The balance sheet, income statement, and statement of cash flows for each company is presented in the Appendix. Dollar Tree’s financial statements are presented in Attachments 2-4 (pages XXX-XXX). Dollar General’s financial statements are presented in Attachments 5-7 (pages XXX-XXX). All calculations described in this current section can be found in Attachment 8 (page XXX). Both Dollar Tree and Dollar General use U.S. Generally Accepted Accounting Principles

Income statement An Income statement or profit and loss statement, indicated amount of profits generated by a firm over a given period, often 1 year in its most basic form, the income statement may be represented as follows : Sales Revenue – Expenses =Net income The income statement begins with sales or revenue, from which we subtract the cost of goods sold to yield gross profits . Next, operating expenses are deducted to determine operating income. Operating expenses includes marketing and

Income Statement of Pfizer Company for the fiscal year 31 March 2014 In Millions Sales 100000 Cost of goods sold 45000 Gross Profits 55000 Operating Expenses Selling, General and Administration Exp 10000 Research and development Expenses 15000 Total Operating Expenses 25000 Operating Income 30000 Interest Expenses 12000 Earnings before tax 18000 Income tax provision 5000 Net Income 13000 Statement of Cash Flow of Pfizer Company for the year ended on 31 March 2014 In

Financial Statements of a Business Entity Financial statements are important tools that are used by owners, managers, and investors of a company in order to analyze profitability as well as where money is being spent and where it is coming from. In order to explain further about how the financial statements are utilized, I have provided a brief breakdown of the income statement, the balance sheet, and the statement of cash flows. Income Statement The main purpose of the income statement is to provide

Cash Flows Aleshia Wisch ACC206: Principles of Accounting II Prof. Eric Sumners August 11, 2014 ACC 206 Week Assignment 1. Critical Thinking Question: Answer the following questions: Why are noncash transactions, such as the exchange of common stock for a building for example, included on a statement of cash flows? How are these noncash transactions disclosed? It is important for a company to show what assets they have on hand that can convert to cash. Non cash transactions are disclosed

IFRS vs GAAP Statement of cash flows ‘Cash and cash equivalents’ include certain short-term investments and, in some cases, bank overdrafts. Like IFRS, ‘cash and cash equivalents’ include certain shortterm investments, although not necessarily the same short-term investments as under IFRS. Unlike IFRS, bank overdrafts are considered a form of short-term financing, with changes therein classified as financing activities. The statement of cash flows presents cash flows during the period, classified