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Publicly and privately-held companies are run very differently. They each have different laws and statutes to obey, different policies and procedures for operation, and different accountability measures. This difference shows in an examination of a government CAFR, that of the city of Housong, compared to the corporate CAFR of Southwest Airlines.
Both CAFRs summarize the organization's expenditures and revenues. Each category is, of course, divided into more specific sections; for example, Southwest's revenue is divided into passengers, freight, and other sources of income. Their expenditures include equipment, fuel, insurance, and employee salaries and benefits. Houston has a similar expression of its expenditures and revenue: it lists what the City is spending its money on (employee salaries and benefits, claims and settlements, and maintenance fees for equipment and property) as well as where the City is getting its income -- property taxes, hotel and other city taxes, and licenses and permits, for example. The two entities are similar in that both statements demonstrate...
Both have debt, borrowed from other entities, and as such the interest on these notes is part of their expenditures and budget. Each CAFR goes into detail about how much interest is being paid on long-term loans. These similarities do not tell the whole story, though. There are many differences between the two statements.
One obvious difference between the two statements is Houston's source of income through taxes. A large portion of Houston's CAFR is dedicated to showing how much and what type of taxes were levied and collected by the city. There are not only property taxes, but also hotel occupancy taxes. The city of Houston obviously receives a large part of its income from taxes on its residents; taxes are a required cost for residents and as such they are not going to fluctuate, making the income…
The former deducts the inventory figure from the current assets value. In the years under consideration, both the current ratio and the quick ratio of McDonald's decreased (see table 1). In that regard, the company's ability to settle its debts in the short run seems to have been impaired within the period under consideration. It is however important to note that with a current ratio and quick ratio of more
Financial Statement Analysis Westpac (WBC) Westpac banking corporation is one of the largest banking organizations in Australia, and the largest bank in New Zealand. Westpac provides arrays of banking and financial services in Austria, which include institutional banking, retail banking, and wealth management services. Established in 1817, Westpac is the first bank established in Australia. Since its formation, Westpac has increased in its strength, and at present Westpac has the market capitalisations
Financial Statements Identify the four basic financial statements. The four basic financial statements include: the balance sheet, income statement, owners' equity and cash flows. The balance sheet is when there is a focus on the current financial strengths or weaknesses inside a firm. This gives managers, employees, investors and regulators the ability to determine what issues are impacting the company. (Ingram, 2011) ("Four Financial Statements," 2010) The income statement is concentrating on the
Financial statements are produced in order to help stakeholders understand the financial condition of the entity in question. Different types of entities, however, have different reporting requirements. A self-employed individual has very different needs from a limited company, and these are different from not-for-profit organisations as well. This paper will examine some of these differences. The first class of business is the self-employed individual. There are no reporting standards for self-employed
Financial Statement Differentiation Analysis of the Use of Four Types of Financial Statements The four fundamental types of financial statements include the balance sheet, income statement, statement of retained earnings and statement of cash flows and each meets a very specific series of needs within a business. Investors are most interested in the risk profiles of companies they are interested in investing in more than any other information element. Creditors are most
Financial Statement Analysis The following is an equity research report on Starbucks. The company competes primarily in the quick service food industry, where it holds the #5 market share in the United States, and #1 in its segment of coffee (QSR Magazine, 2011). The company had revenues last fiscal year (ended 10/2/11) of $11.7 billion and net income of $1.245 billion. The current stock price is $43.91, which gives the company