These long-term fixtures must be analyzed on a regular basis in order to decide their future market value for a company. Assetsystems.com (2010), states that, "One of the most common barriers in implementing an asset management system is the reconciliation of existing records to the results of the new system." Often, how assets have been inventoried or managed, is the first factor that must be considered by retrieving the most accurate information regarding each of the companies assets.
Finding the history of the managed asset will help determine the other factors that are essential to knowing if the asset should be replaced or fixed. The cost of the asset, the estimated lifespan of the asset, and the residual value of the asset also should be determined in order to influence the decision. The cost would include any amount that has been incurred to gain possession of the asset and any….

Financial Analysis
Marco Polo

Statement of Income

evenue

Cost of Goods Sold

Gross Profit

Marketing Expenses

Distribution

Overheads

Interest Exp

Total Expenses

Net Income

The first year of trading was rough, in that the company lost money. While on the surface this poor performance, it should be noted that the cost of goods sold is somewhat inflated because the expenses of putting together each guide were not amortized. Thus, they are fully applied to this year, even though the sales of these books will be extended beyond this year. The sales were only for three months of this year, meaning that for at least the next two years there were be revenues without these costs associated with building ten guidebooks from scratch.

If we were to extrapolate what the profit/loss will look like next year, it should show that there is a revenue stream from sales, and while there will still be marketing, distribution and overhead costs, those will be the only costs.….

Income Statement
Vertical2011

Vertical 2010

Horizontal

Sales

Other Revenue

Total

Less

Cost of Goods Sold

Operation & Admin Expenses

Income Tax

Interest Expense

Total

Net Income

ecause of economic decline and uncertainties of unemployment, energy prices, etc. 2010 was in over deflation and 2011 had an overall inflation (2011 Annual Report, 2011). Income tax increased in 2011 due to repatriation taxes on dividends from a Canadian subsidiary.

alance Sheet

Vertical 2011

Vertical 2010

Horizontal

Cash & equivalent

Receivables

Inventories

Prepaid Expenses

Total

Property'

Depreciation & Amortization

-71.30%

-68.20%

Goodwill

Invest. Unconsolidated affiliate

Other Assets

Total Assets

Cur. Note Maturities

Cur. Cap. Lease Obligation

Accounts Payable

Accrued Sal. & Wages

3.30%

3.10%

6.80%

Deferred Income Tax

0.40%

0.60%

36.40%

Other Accrued Liabilities

4.80%

4.50%

5.80%

Total Current Liability

33.40%

28.50%

16.80%

Long-term Notes

27.60%

5.60%

8.40%

Cap. Lease Obligation

2.70%

3.00%

11.30%

Deferred Income Tax

0.90%

1.00%

7.60%

Pension Obligation

6.00%

4.80%

24.30%

Accrued Claims

4.80%

4.30%

11.50%

Total Liability

75.50%

67.00%

12.20%

Common Stock

0%

0%

0.00%

Add Paid Capital

29.60%

28.80%

2.30%

Treasury Stock

-52.20%

-41.50%

25.30%

Other Comprehensive Income

-0.40%

0.60%

Retained Earnings

47.40%

45.00%

4.80%

Total Equity

24.40%

40.00%

26.20%

Non-controlling Inter.

0%

0%

36.40%

Total Equity & Liabilities

0.50%

Other assets are inflated, probably due to investing cash into assets for new stores. Current Note Maturities are inflated, due to long-term debt coming due and more borrowing during the year. The company had an early adoption of accounting standards ASU 2011-05 causing adjustments to other comprehensive income and net….

This is the result of the decline in inventory levels. If the inventory levels had not changed, there would have been no difference between the net profit for the two methods.
If the company sold another 10,000 units, it would have a higher profit. This calculation was based on the contribution margin method. What occurs in this method is that the company sells more, but it does not produce more. Therefore, the variable operating and selling cost increases, but the variable production cost does not increase. The inventory is run down further than in the first example, increasing the spread between the profit in the two methods.

I would recommend to management that the absorption method is used to calculate these costs. Because the costs are matched up more closely with sales, the resulting figures give management a better figure of the cost of the goods sold for the year. This….

An example here may be income from an original Rembrandt that one possesses and, occasionally, loans for parties, or income from one's continuing retail business, or income that is still coming in from last month's rental payment even though the original inhabitants have discontinued their lease. This part of the income statement remains unchanged. The only element that SAS 130 appends is the category of other comprehensive income.
3. Definition of classifications within other comprehensive income

Included in other comprehensive income are times such as unrealized gains and losses on particular debt and equity securities investments, minimum pension liability adjustments, and foreign currency translation adjustments. Examples here include the sale or liquidation of an investment in a foreign entity; or a non-materialized loss on a bank loan.

Other comprehensive items must be adjusted for both amounts currently recorded in the net category and for the same amounts previously recorded in the other….

3% decline. The decrease in gross margin was primarily due to an increase in postage rates effective May 2007 and a reduction in the prices of Netflix's most popular subscription plans during the second quarter of 2007 caused by increased competition. The company is anticipating further pressures on gross margin in 2008 due to continued price competition and another slight increase in postage rates.
The company is anticipating a shift from postal delivery to Internet-based delivery of its content in the near future and surviving the transition will be critical to the company's long-term success. It has increased technology and development from $48, 379 million in FY 2006 to $71, 395 million in FY 2007; much of this is for the transition to Internet-delivered content. Netflix's balance sheet indicates its content library as one of its greatest assets other than cash and short-term investments. The value of the content library increased….

almart Income Statement
Analysis of al-Mart Income Statement 2009-2011

Broad Overview

al-Mart operates retail stores classified into the three categories of almart U.S., almart International, and Sam's Club. International sales account for 26% of net sales, while Sam's Club is just 11.8% (almart, 2012, p. 17). An initial perusal of al-Mart's income statement evidences the staggering scale of its retailing operations. In 2011, revenues from both retail receipts and club memberships rose 4.3%, over 2009 figures, to nearly 422 billion (USD). Operating income demonstrates a steady incremental increase reflective of consistent management and cost control practices. Lastly, the income from continuing operations reflects a consistent incremental increase with each passing year.

Based upon a general overview of the almart income statement, it appears that the firm is financially healthy and consistently capturing accounting profits. Review of the accompanying notes reveals that almart does not include the costs of their warehouse and distribution facilities in….

Brandywine Income Statement Is as Follows:
Brandywine Income Statement

Revenue

12,000,000

Expenses

9,000,000

Gross Profit

3,000,000

less

Depreciation Expense

Net Income

Brandywine's net income was $1.5 million. The total profit margin, which we will assume is the net margin, is 1.5 million / 12 million = 12.5%. The cash flow is $3,000,000. The cash flow is the net income + depreciation, so 1.5m + 1.5m = 3m.

If the depreciation expense doubled, the income statement would be as follows:

Brandywine Income Statement

Revenue

12,000,000

Expenses

Gross Profit

less

Depreciation Expense

Net Income

The net income would drop to zero, as would the profit margin. The cash flows, however, would remain unchanged at $3m. This is because the depreciation expense has doubled. In doing so, it is now $3m, and when this is subtracted from the gross profit, the remaining money (net income) is now zero. However, depreciation is not a cash flow. Therefore, a change in the depreciation expense does not have any impact on the cash flow. Only changes to….

Financial Accounting
Costa Company

Income Statement

Revenue

COGS

Gross Profit

less

Depreciation Expense

Insurance

Marketing

Misc Exp

Property Taxes

Rent

Salaries

Utilities

Operating Expenses

Net Income

Balance Sheet

Assets

Cash

Accounts Receivable

Inventory

Equipment

Total Assets

Liabilities

Accounts Payable

Long-Term Debt

Total Liabilities

Shareholders' Equity

Common Stock

Paid-In Capital

Retained Earnings

Total Equity

Total L&SE

With these two statements, there are two adjustments that have been requested. The $12,000 check cannot be processed yet. The sale needs to be recorded. The problem is that the sale will include inventories that moved, but without knowing what inventories were moved and what the markup would be, this cannot be done. If we assume $12,000 in inventory (though this is unlikely), we can process this. Very little changes -- not the size of the firm nor the profits, until we can determine how much inventory we have.

Again, with the physical inventory count, this needs to be reconciled. If anything, the physical inventory count should be lower than the accounting records because there was a sale that was not recorded. So the nature of this discrepancy must be….

Instructional Plan Income Statement
This instructional paper will consist of detailed instructions for preparing a simple income statement. The paper will be designed to meet the specific needs of my client (a female shoe store owner) who requires instruction in completing the income statement for her small business. As such, the instructions will be geared at the client's level of expertise in the area of accounting, and will focus largely on enabling the client to prepare her income statement with minimal assistance from professional sources such as an accountant, thus potentially reducing her expenses.

This lesson is necessary to help my client in two important areas. The first benefit is practical, as my client will save a significant amount of money by learning to develop her own income statement, rather than relying on the expertise of professional accountants. The client has currently clearly indicated to me that they do not have the….

Financial Statements
The income statement and the balance sheet are some of the most commonly used financial statements, both at a personal and corporate level. In this text, I concern myself with how I can utilize the balance sheet in my day-to-day life. Further, I look at how a business manager could benefit by having a comprehensive understanding of this crucial financial statement. Lastly, I discuss how I may apply both the income statement and the balance sheet in a future position.

The Balance Sheet and its Application in My Day to Day Life

According to Eisen (2007), a balance sheet is basically a financial statement that charts an entity's financial position at a specific point in time. It is mainly made up of three sections namely the assets section, the liabilities section and lastly the owner's equity section. In my own opinion, the balance sheet could come in handy in terms….

Accounting Concepts and Practice
Income Statement and Balance Sheet

Smith Company

Income Statement

For the Year Ended 31st Dec 2012

evenue

$406,000

Less cost of goods sold

$234,000

Gross profit

$172,000

Less: Expenses

Depreciation expense

$24,350

Insurance

$1,400

Marketing

$4,500

Property taxes

$8,900

ent

$18,000

Utilities

$6,700

Salaries

Total expenses

($131,350)

Net Income (Balance C/D)

$40,650

Computations

etained Earnings: Difference between debit and credit balances.

$760,850 -- $718,000 = $42,850

etained earnings to be transferred to the balance sheet:

Income statement balance b/f

balance c/d $40,650

$40,650

Add: retained earnings

$42,850

etained earnings balance c/d $83,500

Smith Company

Balance Sheet

For the Year Ended 31st Dec 2012

Non-Current Assets

Equipment

$316,000

Current Assets

Accounts receivable

$24,500

Cash

$30,000

Inventory

$25,000

Total current assets

$79,500

Total assets

$395,500

Current Liabilities

Accounts payable

$67,000

Non-Current Liabilities

Long-term debt

$145,000

Financed By

Common stock

$10,000

Paid in capital

$90,000

etained earnings

$83,500

$183,500

Total liabilities

$395,500

Analysis

This section will analyze the success of Smith Company based on information derived from the financial statements I have prepared above. The table below contains some of the ratios I will be making use of in that endeavor.

Table 1

atio

Formula

Computation

Value

eturn on Assets

Net Income/Total Assets

$40,650/$395,500

0.10

Current atio

Current Assets/Current Liabilities

$79,500/$67,000

1.19

Debt ratio

Total Debt/Total Assets

$212,000/$395,500

0.54

eturn on Equity

Net Income/Shareholder Equity

$40,650/$183,500

0.22

From the return on assets ratio, it is clear that for each dollar of assets, Smith Company….

Brandywine Homecare
Construct Brandywine's 2007 income statement.

evenues

$12,000,000

Expenses

(75% of evenue)

$9,000,000

Depreciation Expense

$1,500,000

Net Income

$1,500,000

What were Brandywine's 2007 net income, total profit margin, and cash flow?

Brandywine's Net Income =

$1,500,000

Brandywine's Total Profit Margin

Total Profit Margin =

Net Income/evenue = $1,500,000/$12,000,000 = 0.125

Brandywine's Cash Flow

Net Income =

$1,500,000

Non-Cash Expense (Depreciation)

$1,500,000

Cash Flow for the FY ended 2007

$3,000,000

In this case, a total profit margin of 0.125 means that for every $1 of income Brandywine rakes in, it earns a net income of $0.125.

Question 3

Suppose the company changed its depreciation calculation procedures (still within

GAAP) such that its depreciation expense doubled. How would this change affect

Brandywine's net income, total profit margin, and cash flow?

With the depreciation expense increased twofold, the firm would have a nil value for net income.

evenues

$12,000,000

Expenses

(75% of evenue)

$9,000,000

Depreciation Expense (Doubled)

$3,000,000

Net Income

With the depreciation expense increased twofold, the firm would have no profit margin.

Brandywine's Total Profit Margin

Total Profit Margin =

Net Income/evenue = 0/12,000,000 = 0

With the depreciation expense doubled, Brandywine would….

Company's Balance Sheet And Income Statement To Answer The Following Questions:
What are the company's total assets at the end of its most recent annual reporting period? Why is this important?

$56.26B (the third quarter of 2012). This is important because potential investors and shareholders would like to know whether to invest or continue investing in the company. They would also like to know how much of their money to invest in this company when considering their diversification portfolio.

The report of the company's total assets listed at the end of its most recent reporting period tells investors whether the company is profiting and, if so, by how much. It also provides a history of the company's growth, particularly when reviewed in the context of other factors and competitors.

Right now, for instance, we are experiencing a recession. Investors may wish to know whether Wal-Mart is suffering from the recession or whether they….

Pepsi
The figures from Pepsi's income statement are as follows:

Pepsi

% change

% change

evenue

Net Income

The figures from Pepsi's balance sheet are as follows:

Pepsi

% change

% change

Total Assets

Total Liabilities

There are a few different conclusions we can draw from these figures. First, it is important to understand what these terms mean. evenue is how much money we brought in. Net income is how much is left after the bills have been paid. Assets are everything the firm owns; liabilities are how much it owes. What's left over after that is the equity, which is the value of the firm that the shareholders have. The price of the stock is based in part on the value of the equity of the firm.

The income statement tells us how much money we brought in, and then how much money we made after all of the expenses. In both cases, Pepsi did worse in 2012 than in the year previous.….

Principles of Business Essay Topics

Ethics and Social Responsibility

The Importance of Ethical Decision-Making in Business
Sustainability and Corporate Social Responsibility: Balancing Profits and Planetary Health
The Role of Business in Addressing Social Issues
Whistleblower Protection and the Ethical Obligations of Employees

Innovation and Entrepreneurship

The Role of Innovation in Driving Business Growth
The Entrepreneurial Mindset: Characteristics and Erfolgsfaktoren
Creating an Innovative Work Environment
The Impact of Technology on Business Innovation

Leadership and Management

Effective Leadership Styles: Authoritarian, Democratic, and Laissez-faire
Motivating Employees: Theories and Best Practices
The Importance of Diversity and Inclusion in Management
Managing Organizational Change: Challenges and....