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Financial Statement

Transcript: Shows how much your business has gained or lost at the end of an accounting period Financial Statement Continued By preparing a financial statement you can see the growth or downfall fall of your business It will show you if you are doing well, or if your business headed for big trouble soon. 5 Functions of Income Statement: revenue, cost of merchandise sold, gross profit on sales, operating expenses, and net income Financial Statement Financial statements- reports that summarize changes that result from business transactions during an accounting period. Income statement- is a report of the net income or net loss for an accounting period. cost of merchandise sold- is the amount of money the business paid for the goods that it sold to customers. Net income- the amount of revenue that remains after expenses for the accounting period are subtracted from the gross profit on sales. Net Income/Gross Profit/Cost of Merchandise By: Carson and Clay Definitions The most important financial statements are and income statement and a balance sheet The final balance in the general ledger account is the information for the financial statement finally your must report the statement gross profit on sales-total operating expense= net income gross profit on sales- the profit made from selling merchandise before operating expenses are deducted. Tells how much money was gained from sales and where it went Income Statement claytor the Destroyer Cost of the goods that are sold to the customers THANK YOU Chapter 7 Section 2 pg. 204-208 amount earned from sales-cost of the merchandise sold =Gross profit Accounting

Financial Statement Presentation

Transcript: As of September 2013, cash equivalents were $4644 which is $1116 more than September 2012 What was the change in dollars in the companies net income from it's most recent reporting period to the previous reporting period? Net income in September 2013 ~ $617 million compared to $609 million from September 2012 Why? continued IT spending and or healthcare related expenses" Net sales for the 53-week fiscal year were up 111⁄2 percent, to $97 billion, from the prior 52-week fiscal year sales of $87 billion; and adjusting for the extra week, up 91⁄2 percent. Comparable sales in warehouses open more than one year increased seven percent. By: Anhthy Tran, Amanda Tofaeono, Savannah Hernandez, Lisa Delgado, Liliya Vinnichuk. Amount of accounts payable the company had at the end of it's most recent reporting period Accounts Payable: September 2012: 7,303 million September 2013: 7,872 million What might have caused the change? In 2012 there was less expenses then by September of 2013. Cost Expenses: 2012: 28,210 million 2013: 28,418 million Administrative Expense : 2012: 3,044 million 2013: 3,098 million Costco's stock trade as of now is at $125.70 a share. Even though Costco had a very slow year this year, their business is always growing as well as their stock. I would say buy on the company stock because most of their profit comes from their memberships which has increased by the millions in just the past 5 years! What were the companies net revenues from the last three reporting periods? Most recent- Sep 2 2013 ~ 30,283,000 billion Previous- Sep 1 2012 ~ 27,140,000 billion Reasons for increase Rasied membership prices boosted income by 8% Seven new warehouses opening 19% increase in memberships Accounts Payable: September 2012: 7,303 million September 2013: 7,872 million What might have caused the change? In 2012 there was less expenses then by September of 2013. Cost Expenses: 2012: 28,210 million 2013: 28,418 million Administrative Expense : 2012: 3,044 million 2013: 3,098 million Financial Statement Presentation Amount of accounts payable the company had at the previous reporting period Previous Reporting Period. Total assets at the end of the most recent and previous reporting period. Previous- Sep 1 2012 ~ 27,140,000 billion Amount of cash and cash equivalents that the company had at the end of the most recent reporting period What was the companies stock trading for on the day prior to your presentation?

Financial Statement

Transcript: Presented by CARL and DAISY-ANN APPLE. Inc Financial Statement Financial Statement - formal record of the financial activities of a business - statement is represented in a structured manner that always needs to be followed. Purpose # 1 PURPOSE #1 provides information about results of operations in a business. Purpose # 2 PURPOSE #2 provides information about financial positions. - Is the company profitable? Purpose # 3 provides information about cash flows of an organization. Income Statement Income Statement. To calculate the income or loss of a company: Income or Net loss = Revenue - Expenses Businesses look at Income statement to determine if they will invest. Revenue Revenue When revenue exceeds expenses, there is profit Expenses Expenses when a companies expenses exceeds their revenue, there is a loss. Retained Earnings Retained Earnings - a statement that shows what a business does with their income - Calculations for retained Earnings: Beginning retained earnings + Net Income- Dividends = Ending Retained Earnings What retained Earnings can say about your business ? Effects of Retained Earnings Net Income Increases RE Net loss + Dividends decreases RE Positive Retained earning balance means accumulated earnings Cash Flow Cash Flow - reports a business cash receipts and payments. - categories of account used to calculate cash flow: Operating Activities Investing Activities Financing Activities - Net cash flow = Operating Activities + Investing Activities + Financing Activities - Values can be negative Balance Sheet Assets = Liabilities + Owner's Equity Balance Sheet - The most important statement. - measures the financial position of a business - Assets consist of current and fixed assets -Liabilities consist of current and fixed liabilities -Owner's Equity consists of stockholder's Interest in a business

Financial Statement

Transcript: Financial Statement Edited by: Lim Wei Shun ILSCM TS03 WHO? Reported Financial Statements: Quarterly & Annual earnings Help make better Economic Decisions. The statements include: 1. Income statement 2. Balance sheet 3. Cash flows. COMPARE Financial Performances with companies in the same industry To amend their current strategy in this industry. Process of understanding RISK and PROFITABILITY of a company WHY? BANKS & LICENSED CREDITORS SUPPLIERS POTENTIAL INVESTORS GENERAL PUBLIC May use Financial Statement to - Find out about a company’s IMPACT on the economy. INVESTORS Examine the results to: 1. Depict whether the company can CONTINUE TO ISSUE DIVIDENDS 2. OR continue GENERATING CASH FLOW. By analyzing uses financial statement to: 1. Decide on a SUPPLIER company 2. Financial capability to constantly supply goods to the company Helps them decides whether to allow a company to buy goods on credit. MANAGERS Important & Crucial Needs to ensure that: 1. Every company is paying the right amount of tax 2. NO EXTRA tax rebates are given. 3. Tracks economic progress by going through Financial Statement of businesses in the economy. Review financial statements of a company 1. Make investment decisions 2. Do risk analysis on investing in the company COMPETITORS COMPANIES PREVENT BAD DEBTS!!! Assess the financial statement for future financial benefits Make a DECISION to invest or not. MANGEMENT Prepare the company’s Financial Results Evaluate whether the company is doing well, through Profits earned Amount of costs CREDITORS Lend funds to a business Interested to know the ABILITY of the business to pay back the debt. Used by - DIFFERENT PARTIES FOR DIFFERENT PURPOSES make use of financial statements to: Make important decision for company HOW?? Evaluate the company’s financial position and performance. GOVERNMENT WHAT? USED BY STAKEHOLDERS such as: Uses financial statement to: decide whether or not to lend money to the particular company By: Finding out about the Company's Financial Health PREVENT BAD DEBT!! CONSUMER COMPANY SHAREHOLDERS

Financial Statement

Transcript: CEO Jørgen Vig Knudstorp A former McKinsey consultant Came to LEGO Group in 2001 Became CEO in 2004 A series of distinct leadership approaches was needed to move LEGO onto path that is financially firm, more growth-oriented and open to the ideas of enthusiastic users. CEO needed to halt a sales decline, reduce debt, and focus on cash flow. Required tight fiscal control and top-down management.. Also, needed to build credibility and ensure approachability. Customer Participation PEST Analysis Economic Fertility rates renewable energy, and emit zero waste, In 2011, approximately 36 billion bricks to match an minimum efficient scale.... Big barrier to entry for the construction toy market... Only well established companies with advanced technology and product development processes can hope.... Strategic partnerships with companies like Lucas Arts and Warner Bros.... LEGO sells through both Internet & its own specialized retail stores... several promotional strategies Issues BORROW STRONGER CONTENTS from popular movie series, -> From 1999년to 2001년 LEGO's revenue were record breaking ! Freesia The newly developed Toys were too much like a Masterpiece and moreover they were not compatible with other lego blocks toys. Thank You! 4P strategy Organic Growth Diversify cultures by expanding operation to California, NY, Milano.. Cultural Differences between LEGO workers and Customers However, price per piece has declined in recent years... Technological LEGO have in recent years dramatically increased their points of sales... REDEFINE MISSION STATEMENT 1) SYSTEMATIC INNOVATION - HR Restructuring - New Management Team - target consumer LOYALTY - R&D 2) IT'S OWN IDENTITY -Recycle traditional product lines -Develop New ICONIC product lines -Digitalization 3) SYSTEMIC PLAY & Quality Assurance Marketing Strategy Process International Business April 24, 2014 LEGO's Past Failure NEW PRODUCT LINE WHICH IS COMPATABILE WITH THE TRADITIONAL LEGO BLOCKS LEGO's Innovation Story Marketing SWOT LEGO justifies its relative expensive products with their superior quality and designs LEGO blocks > FIGURE Toys ‘only the best is good enough’ Solutions LEGO's Management LEGO's History Political LEGO Operations Reinforce ( innovation process + LEGO’s fundamental principles ) = INCREASE IN PROFITS! From their failure with figure toys, LEGO learned that it needed to appeal to both traditional and new customers... Social factors But these had short life spans because they were dependent on the popularity of the movies series. same issue Galidor failed because of weak contents. Financial Statement 1997-2004 Financial Statement 2005-2013 Investment in P.P.E Net income 745 1397 968 1,186 1,478 1,264 709 457 61 -194 274 -863 366 326 -953 -1,931 171 -282 516 -812 799 868 -1,516 - 1,122 1997 1998 1999 2000 2001 2002 2003 7,616 7,680 8,526 8,379 9,476 10,116 7,196 6,704 2004 Operating income Sales revenue 237 214 423 7,027 2005 Investment in P.P.E Net income 316 399 368 1,042 1,077 1,451 1,739 2,644 1,290 1,028 1,352 2,204 3,718 4,160 5,613 6,119 1,405 1,471 2,004 2,902 4,973 5,666 7,606 8,336 2006 2007 2008 2009 2010 2011 2012 7,798 8,027 9,526 11,661 16,014 18,731 23.095 25,382 2013 Operating income Sales revenue

Financial Statement

Transcript: Income Statement Income statements; measures the operating performance at a business. Income equals when revenue exceeds. A loss equals Expenses exceed revenue. Income statements calculates the Net Income or Net loss of a business. No loan if you are not profitable Equation: Revenues-Expenses= Net income More Income staements Income statements are generally used in banks, investors, and, vendors. Income statements allow one to track revenues and expenses which will determine the future of potential growth. More into income statements Balance sheet Balanced sheet is the measure of the financial position of a business. Assets (Current and fixed) Liabilities (current and fixed) Notes payable Owner's equity (stockholders interest in business) Earnings Aloe = Assests = Liability + Owner's Equaity The balance sheet is an important tool for owners but also for investors because it is used to gain insight into a company and its financial operations. Statement of retained Earnings Statement of retained earnings Purpose: Shows what a business has done with its net income Formula: (Beginning Retained Earnings + Net Income - Dividends = Ending Retained Earnings) Key Features: net income increases retained earnings net loss + dividends decrease R.E positive R.E balance means accumulated earnings over time Statement of Cash Flow Purpose: Cash Flow Statement reports a business' cash, recipts and payments Formula: Operating Activities + Investing Activities + Financing Activities = Net Cash Flow Key Financial Information: It is a three item statment Operating activities (net cash provided) Investing activities (net cash used) Cash Flow Statement Graphic Organizer Any balance sheet items that have a cash impact are linked to the cash flow. Financial Statments Net income flows into stockholder's equity via retained earnings. Statement of Retained Earnings use the balance sheet to show what the has been done with the income The statement of cash flow reports cash recipts and payments which are later used on balance sheets Financial Statements provide information to a company Apple INC. Apple INC. For example Balance sheets show Apples Assets(current and fixed), Liabilities(current and fixed), Owners Equity( stockholder interest in business). Another example is how an Income Statement shows Apples Net income or Net loss. Also the Statement of Retained earnings shows what the Apple has done with their Net income. Finally the Statement of Cash Flow shows the cash receipts and payments to Apple

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