Revenue Essay

Debits and credits do not mean debits decrease an account or credits increase an account. Debit and credit can increase or decrease an account. (Editorial Board, 2011). Assets, liabilities, equity, revenue, and expenses has their own balance. A company will produce a trial balance which will give the balance of all these in a certain amount of time such as monthly, quarterly, or annually. The trial balance ensures that account balance is accurate

1. Products Inc. manufactures furniture and is organized into three large divisions: bedroom, living room, and dining room furniture. The following information presents operating revenues, operating incomes and invested assets of the company over the last three years. (all figures in 000s) Operating Revenues | 2002 | 2003 | 2004 | Dining Room | 8,000 | 15,000 | 16,000 | Living room | 4,500 | 3,600 | 2,400 | Bedroom | 8,800 | 7,600 | 6,600 | | | | | Operating Income | | |

from the organizations revenue. The result is the contribution margin. Then the fixed costs are deducted to equal a number. The break even point would be when the costs are the same as the break even amount. Here is an example of a break even calculation outcome: Green Bay Hospital had a revenue of $5,000,000.00 Their variable costs for the gift shop were $500,000.00 Their fixed costs for the gift shop were $4,500,000.00 Formula calculation: $5,000,000.00 =Revenue - $500,000.00

marks The assets and liabilities of Toronto Service Inc. as of December 31, 2008, and revenue and expenses for the year ended December 31, 2008 are listed below: Accounts Payable|$21,000||Property tax expense|$5,000| ||||| Accounts Receivable|25,000||Rent expense|3,000| ||||| Advertising expense|10,000||Salary expense|85,000| ||||| Building|140,000||Salary payable|12,000| ||||| Cash|10,000||Service Revenue|200,000| ||||| Furniture|20,000||Share Capital|75,000| ||||| Interest expense|4

G&A and Depreciation costs have averaged 9% of sales for the last three years. The CIBC analystsshow this 9% declining marginally in 2004 to 8.74%. In addition, minority interest (presumably infranchisees) has been around 0.3% of the franchise revenues for the last two years.1   3.Forecast Interest Expense This requires assumptions to be made about the firm’s capital structure. The beginning capital structureis given, and shows that the company has negative net debt of $20 million. This arises

Salaries paid for services rendered (90,000) (100,000) Utilities (30,000) (40,000) Purchase of insurance policy (60,000) -0- Net operating cash flow $(20,000) $50,000 Income Statement Year 1 Year 2 Revenues $170,000 $220,000 Expenses: Salaries (90,000) (100,000) Insurance Policy (20,000) (20,000) Utilities (35,000) (35,000) Total Expenses (145,000) (155,000) Net Income $25,000 $65,000

from $1.20 to $4.77 in year 12, see appendix 1 and appendix 4 for summary of the company performances. We managed to increase our net revenues in year 12 from $215 to 318, see appendix 2 for the net revenues. As shown below: Revenue 318, Roe 25.40%, Esp. $4.77, Stock price 78, Credit rating A, Image rating 83 In year 12 our company was matching up, our revenues increased, our credit rating increased, we were now above our investors’ expectations which was a good start for the company. See appendix

superior customer service experience that keeps customers coming back time and time again. Just to give you an example, in 2012; the most recent year that data is available, Panera Bread brought in an astounding $2.13 billion in revenue, about $1 billion more than its revenue in 2008. Panera Bread’s mission statement is “a loaf of bread in every arm”. I find this to be very shallow, lacking direction for employees and meaning. For a company, as successful as Panera, I expected a more developed mission

7. 8. Cost-flow assumption for inventory Base LIFO layer liquidations Loss recognitions on write-downs of inventories 5-19 Cost of Goods Sold Cost-flow assumption for inventory LIFO results in the matching of current costs with current revenues and produces higher quality earnings than either FIFO or average cost. Inventory accounting system used is described in the note that details accounting policies or the note that discusses inventory. 5-20 Cost of Goods Sold Base LIFO layer liquidation

$155M is the net revenue (profilt) per year which was found by dividing total revenue value of $1.2375B by 8 (i.e. $1.2375B/8) Again, $400M is ignored since it represents opportunity (sunk) cost. Given that the total profit over 8 years is $1.2375B (or $155M per year for 8 years), we will now compute