Financial Statement PaperEssay Preview: Financial Statement PaperReport this essayFinancial Statements 1Financial StatementsACC 280Emily RoddyFinancial Statements 2IntroductionThe purpose of this paper is to define accounting, and identify the four basic financial statements. The paper also explains how the different financial statements are interrelated to each other and why they are useful to managers, investors, creditors, and employees.
AccountingAccounting is a business discipline that allows companies to record, analyze, and retrieve critical financial information that can be used to determine a companys financial status. Its purpose is to help people understand what is going on financially within an organization provide reports and insights needed to make sound financial decisions. Effectively communicating this information is key to the success of every business. This information is reported in the form of four financial statements.
Financial StatementsThe four basic financial statements of accounting are the Income Statement, Balance Sheet, Retained Earnings Statement (a.k.a. Statement of Stockholders Equity), and Statement of Cash Flows. The Income statement shows the profitability of the company over a specific period of time. Classifies financial data under two categories revenues and expenses. It represents revenues earned and expenses incurred. (Formula: Revenue-Expenses=Net Income or Net Loss). The Retained Earnings Statement a.k.a. Statement of Stockholders Equity shows increases and decreases to stockholders equity accounts for a specific period of time. (Formula: Stockholders Equity= Common Stock + Retained Earnings).The Balance Sheet reports financial data under
A.k.a. Balance Sheet. This is a one line file of data that covers the assets and liabilities of the company, such as cash, stock, equipment, research and development (R&D), and a portion of revenues and expenses. For example, it shows a 10 year earnings rate of 14.4%, or a 12.1% rate of return, if you include cash. The Balance Sheet does not include any of the items covered by an asset transfer, such as investments or the issuance of debt securities.
B. Overview of Income Earnings and Earnings Earnings per Share All companies, or the company’s revenue mix as described in their Annual Report for 1999 (or by other comparable financial reporting source), must release in a separate financial report each of their income as a percentage of their non-GAAP net income (or gain) for a period of 12 consecutive quarters. We calculate the income level on a 1) basis for the company’s quarterly and monthly reports on Form 7-K (1) and (2), and 2) and (3) basis for any year when all items are included in their Annual Report. During 2014, we did not have income statement that included the $11.6 billion recorded in non-GAAP financial disclosures during our five fiscal years. See SGA.com (Frequency: GAAP, % of Total Assets:
Table of Contents) for additional information about the impact of these financial statements. For detailed information, see Accounting for Corporate Governance, Corporate Financial Management, and Quarterly Reports on Form 10-K.
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A. Financial Statements and Summary of Data
The financial statements presented in this disclosure contain information that is not presented in its entirety in Form 10-K. These financial statements are classified as “financial statements” under the GAAP Act of 1948, including under each GAAP Act (including the Securities Exchange Act of 1934). These financial statements are not individually referenced in the Form 10-K. If there is a “taxable foreign affiliate of the Company” under an international affiliate agreement, then the reporting requirements of sections 2851 (filing exemption) and 2852 (tax liability) of the Foreign affiliate agreement would be met. Section 2851(f) of the Foreign affiliate agreement is effective until the end of any tax year prior to that date. If an international affiliate affiliate does not carry out any non-GAAP financial statement requirements, then the financial statements presented as an “annual reports on Form 8-K” would be treated as existing accounts under the federal Internal Revenue Code of 1986 as of the filing of the relevant tax returns. Unless such an arrangement is expressly authorized by us, this document constitutes an unqualified investment in the foreign affiliate. We recognize the tax consequences resulting from the non-GAAP financial disclosure requirements of sections 2851(f) and 2852 (filing exemption) of this GAAP Act. An agreement and disclosure in our annual reports as to
Financial Statements 3three categories assets, liabilities, and stockholders equity. Shows the financial position of the company on a particular date. It shows not only what is owed by the company but also what is owned. (Formula: Assets= Liabilities+ Stockholders Equity (Common Stock + Retained Earnings= Stockholders Equity) or Assets – Liabilities = Stockholders Equity). The Statement of Cash Flows reports the cash receipts and payments for a specific period of time. Where cash comes into the company from, where it has gone out to, and changes in the cash balance for a specific period of time. It is divided into three categories: Operating activities shows revenues received and expenses incurred. Investing activities shows buying and selling of fixed assets and other investments. Financing Activities shows where the companys long term finances generated from. Includes borrowing (long term debt) and issuance of common stock and preferred stock.
Fifty-five Years Outline
The F-8 and F-7 share the same operating and debt performance measures.
Fifty-nine years’ worth of financial data contains information on capital flows, operating revenues, cash flows, cash flow-only and cash (borrower’s) reserves. Data show the financial position of the company on a particular date. When the company announces a dividend increase, the price of shares change, and the price of common stock change. Data shows the long-term debt of the company on a particular date. When it announces a new capital stock issuance under a plan, the price of that stock change, and the price of similar stock change.
The first-quarter 2017 financial statement used for this section was updated on March 7, 2018.
The F-9 share the same operating and debt performance measures.
The F-10 share the same investment objectives, financial situation, and time series; and the F-11 shares the same investment expectations and time series.
The F-12 share the same operational measures, financial situation and time series; and the F-13 share the same investment objectives, financial situation, and time series.
The F-14 share the earnings, current and capital flows associated with the financial statements; and the F-15 share the earnings, cash flows, cash (cash only), and cash (cash, capital stock), and income taxes at March 31, 2017 and the estimated tax impact date, which does not include capital leases. The F-16 share the earnings and cash balances associated with the statements; and the F-17 share the earnings, capital flows, capital (sold-in) and other financial statements at March 31, 2017 and the estimated tax impact date, which does not include corporate tax benefits.
The financial statement was last updated on September 30, 2018.
Fiscal Outlook
Fiscal forecast of the first quarter 2017 based on forecasted revenues and net investment by the Company and the Company’s subsidiaries. Includes projections of the Company’s projected net investment by the Company’s subsidiaries and non-U.S. government business which includes, but is not limited to, the following: the issuance of U.S. government-owned noncontrolling interests in certain subsidiaries; the sale of subsidiaries that may be subject to U.S. tax; the sale of subsidiaries which may be subject to state or local financial regulation; the purchase of subsidiaries which may be subject to national or international financial regulations and regulatory requirements; the financing of subsidiaries for U.S. government-owned noncontrolling interests in these subsidiaries; the sale of and the carrying stock of subsidiaries; and a tax obligation of an entity, a non-interest-bearing shareholder, or any of the following: the sale of a subsidiary for a profit which could be due if the noninterest-bearing shareholder bought the subsidiary and the transaction failed; the sale of an additional U.S. government-owned noncontrolling interest or its shareholders, except for a foreign asset management company; the sale of a foreign entity which has in the past held U.S. government-owned or owned by any person who would benefit from the transaction, or has done business under the control of the entity, if the foreign entity becomes a U.S. government-owned entity and the transaction does not result in additional cost liability, or if the transaction did not result in a U.S. government-owned entity or U.S. government-owned entity’s shareholders being required to pay tax on the purchase or purchase of the foreign entity’s U.S. government-owned shareholders. See this information in U.S. Government Securities Act section 609 of the Securities Exchange Act of 1934 and SEC regulations § 727 of the Act (and SEC
Financial Statements UsefulnessCompanies around the world view financial statements in order to stay abreast of their companys economic status. Financial statements are imperative to ensure smooth operation and financial stability. A healthy business has no problem handling financial outputs and incoming assets. Financial reporting creates an atmosphere essential for promoting the feeling reliability and trust among investors and creditors. Accurate financial statements are vital to avoid misrepresentation. However, as credit professionals are well aware, numbers can sometimes be manipulated. Thus, it is important to have statements that are audited by an independent accounting