Cornell, AEM 2210

Excerpt: ... AEM 221 Study Sheet Assets Accounts Recievable Cash Property Liabilities Accounts payable Notes payable Taxes payable Stockholder's Equity Retained earnings (old retained earnings+net income-dividends) o Net income is post taxes Contributed capital ($ from investors) Expenses Operating expenses Cost of products sold Income tax expense Interest expense Revenue Net sales IRCB ( Income statement , Statement of Retained Earnings, Statement of cash flows, Balace Sheet) Income Statement Total Revenues o Net Sales o Income Total Costs and Expenses o Costs/Expenses Net income (Income= R - E) o Pretax Income o Income Tax expense Statement of Retained Earnings Beginning retained earnings (0 if company just started) Net Income (from Income Statement ) Dividends Ending Retained earnings Statement of cash flows Cash flows Cash at beginning of year Cash at end of year Balance Sheet Assets (Accounts recievable, cash, property, inventory) Liabilities (payable, salary) Stockholders Equity (Retained earnings, contributed capit ...

Cornell, AEM 323

Excerpt: ... AEM 323 Section Problem Set 1 Covering Material from Chapter 14 Working with Annual Reports The following pages are the section material for Section 1. In a departure from normal procedure, this work needs to be completed on your own as homework and then reviewed during section. Ultimately, it will need to be handed in to get credit for the section. 1-Finding Financial Information Refer to the annual report, financial statements and SEC form 10-K of Pacific Sunwear of California (PacSun) and American Eagle Outfitters (AEOS) as provided in the lecture packet to answer the following: Required: Read the annual report for PacSun. Look at the income statement , balance sheet, and cash flow statement closely and attempt to infer what kinds of information they report. Then answer the following questions based on the report. 1. What types of products does it sell? Clothes and shoes. Apperal for young adults. Specifically slacks and shoes. Did the Chief Executive Officer (CEO) and Executive Chairman of t ...

Hofstra, ACT 123

Excerpt: ... The Income Statement and The Statement of Cash Flows Performance reporting Prepared by: Prof. Elizabeth K. Venuti Accounting 123/The Income Statement 1 The Income Statement Reports the profitability of an enterprise for a given period of time. Provides investors with information to help predict the amounts, timing, and uncertainty of future cash flows. Limited due to: Inability to reliably measure certain items Alternative accounting methods for similar transactions Use of estimates and judgment Accounting 123/The Income Statement 2 Net Income vs. Comprehensive Income Comprehensive income includes traditional net income and changes in equity from non-owner transactions. Comprehensive income is an expanded version of income that includes four types of gains and losses that traditionally have not been included in income statement s. Changes in value related to Investments Pensions Derivative instruments Foreign currency translation Accounting 1 ...

Wisconsin, ACCT 100

Excerpt: ... egular Items are Presented Irregular items are identified by type on the income statement . Two types of irregular items are reported - discontinued operations and extraordinary items. Irregular items are reported net of taxes. Income tax expense is computed for the income before irregular items. Then, income tax expense is computed for each individual irregular item. Discontinued operations refers to the disposal of a significant component of a business, such as the elimination of a major class of customers or an entire activity. 13-1 When the disposal of a significant component occurs, the income statement should report the gain (or loss) from discontinued operations, net of tax. To illustrate, assume that Rozek Inc. has revenues of $2.5 million and expenses of $1.7 million from continuing operations in 2007. The company therefore has income before income taxes of $800,000. During 2007 the company discontinued and sold its unprofitable chemical division. The loss on disposal of the chemical operati ...

Iowa State, ACCT 383

Excerpt: ... Intermediate Managerial Accounting (Acct 383) Spring 2009 Class Notes week of 4/14/09 Learning Objectives Q1: How are absorption costing income statement s constructed? Q2: What factors affect the choice of production volume measures for allocating fixed overhead? Q3: How are variable costing income statement s constructed? Q4: How are throughput costing income statement s constructed? Q5: What are the uses and limitations of absorption, variable, and throughput costing income statement s? Chapter 14 Q1 Absorption Costing Income Statement s Under absorption costing, fixed manufacturing overhead is an inventoriable cost GAAP requires the use of absorption costing Absorption costing income statement s are prepared using the traditional format Expenses are grouped by function Manufacturing costs deducted above the gross margin subtotal Nonmanufacturing costs deducted below the gross margin subtotal Chapter 14 Q2 Various Measures of Production Volume Supply-based measures of capacity Theoreti ...

Ill. Chicago, ACCT 111

Excerpt: ... Summary of Accounts Introduced in Solid Footing Type of Account? Asset Liability Equity Revenue Expense Dividends Appears on Which Financial Statement? Balance Sheet Income Statement Neither B/S or I/S Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Normal Balance Debit Debit Debit Debit Debit Debit Debit Debit Debit Debit Credit Is the Account Closed? No No No No No No No No No No No Assets: Cash Accounts Receivable Rent Receivable Interest Receivable Inventory Supplies Prepaid Rent Prepaid Insurance Prepaid Maintenance Equipment Accumulated Depreciation Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Asset Liabilities: Accounts Payable Wages Payable Interest Payable Note Payable Unearned Revenue Dividends Payable Liability Liability Liability Liability Liability Liability Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Balance Sheet Credit Credit Credit Credit Credi ...

Texas A&M, ACCT 315

Excerpt: ... Accounting 315 Lecture Notes Chapter 5 February 20, 2009 A. Chapter 5 The Income Statement 1. Format Possibilities (1) Single Step Income Statement s (2) See Illustration 5-1, page 176. (3) Multiple Step Income Statement s (4) See Illustration 5-2, page 179. (5) Condensed Income Statement s (6) See Illustrations 5-3 and 5-4, page 180. Comprehensive Income Represents all possible sources of income, i.e., net income plus Other Comprehensive Income. Examples of Other Comprehensive Income include unrealized gains and losses from available for sale securities and translation gains and losses from foreign currency translation of foreign subsidiaries. Discontinued Operations Situation in which a subsidiary, division, or segment has been sold or will be sold This information should be reported in the Income Statement separately below continuing operations. Information should be reported net of its income tax effects. Illustration (let's assume an income tax rate of 40% for any illustration on this handou ...

Cornell, AEM 2210

Excerpt: ... Chapter 1 Homework Problems P1-1 Preparing an Income Statement , Statement of Retained Earnings, and Balance Sheet Assume that you are the president of Propane Company. At the end of the first year (December 31, 2006) of operations, the following financial data for the company are available: Cash Receivables from customers (all considered collectible) Inventory of merchandise (based on physical count and priced at cost) Equipment owned, at cost less used portion Accounts payable owed to suppliers Salary payable for 2006 (on December 31, 2006, this was owed to an employee who was away because of an emergency; will return around January 10, 2007, at which time the payment will be made) Total sales revenue Expenses, including the cost of the merchandise sold (excluding income taxes) Income taxes expense at 30% pretax income; all paid during 2006 Contributed capital, 7,000 shares outstanding Dividends declared or paid during 2006. $ 27,500 13,200 99,000 49,500 52,107 2,200 154,000 98,010 ? 103,990 8,290 ...

University of Phoenix, ACC 349

Excerpt: ... Multi-step and Single-step Income Statement s Whitney Houston Shoe Co. Multi-step Income Statement Multi-step Income Statement For the Year Ended December 31, 2004 Sales Revenue Sales Net Sales and Rental Revenue Revenue Cost of Goods Sold Cost of Goods Sold Operating Expenses Selling Expense Sales Salaries & Wages Material & Supplies- Sales Depreciation Plant Assets Administrative Expenses Wages and Salaries(admin) Other Admin Expenses Depr. Of Plant Assets(admin) Other Revenues and Gains Rental revenue Dividend Revenue 496,000 484000 Multi-step Incom For the Year Ended Net Sales Cost of Goods Sold Gross Profit Selling expenses penses Adminstrative expenses Income from operations Other revenue and gains Other expenses and losses 980,000 980000 114,800 17,600 45500 177900 Income before taxes Income tax Net Income for the year 135900 51700 19500 207100 385,000 99000 Earnings per share 29,000 16,000 45000 54000 Other Expenses and Losses Interst on notes payable Income before income tax Income tax Ne ...

George Mason, ACCT 331

Excerpt: ... Lecture Notes for Chapter 4 (ACCT 331) Income Statement and Cash Flows The Income Statement Used to summarize the profit-generating activities that occurred during a particular period. (Income and earnings mean the same thing in accounting). Many perceive this to be the most useful in predicting future profitability. Earnings announcements are often followed by large stock price changes. Income statement should provide information useful for assessing: the effectiveness of managements stewardship activities. previous predictions of income and its components. the return on investment the cost of maintaining its operating capability. Net Income Versus Comprehensive Income Comprehensive Income = Net Income + Other Comprehensive Income Other comprehensive income includes certain gains and losses that the FASB feels should not be flowing through the income statement . Why? Items falling under other comprehensive income include: Unrealized holding gains and losses ...

UCF, CHAPTER 2

Excerpt: ... FIN 4453 Spring 2009 Financial Models Vladimir Gatchev CHAPTER 2: THE BASIC FINANCIAL STATEMENTS (THIS LECTURE WILL BE COVERED IN TWO CLASSES) In these two lectures we will analyze the main financial statements of the firm. The financial statements are the main source of information for key financial decisions. The ability to create and correctly analyze these financial statements is critical for the financial analyst. There are two general principles one needs to follow when creating spreadsheets: Principle 1: Principle 2: January 2009 1 I. THE INCOME STATEMENT A. Basics The income statement format reflects investment decisions in its top half (Sales down to EBIT) and financing decisions in the bottom half (EBIT down to NI). (See Exhibit 2-1) For illustrative purposes throughout this chapter, we use data taken from Elvis Products Internationals financial statements (in your text). You should remember three things when reviewing an income statement 1. Revenue will show when it accrues. Revenue s ...

East Los Angeles College, BEA 1004

Excerpt: ... since the exam question was changed. The following additional information is available: 1 2 1. The factory was rented at an annual cost of 6,400, payable six monthly in advance on 1st!October made on 1st October 2004. 1st April and of each year. The last payment was 7. The directors have paid a year-end dividend on the Ordinary shares of 10p per share. 2. Inventory as at 31st December 2004 was 75,960. 3. Depreciation is to be provided at a rate of 10% on cost on both machinery and equipment and on fixtures and fittings held at the year-end. 4. The provision for bad debts is to be adjusted to 2.5% of debtors. 5. Wages accrued but not yet paid at the accounting year-end were 12,400. Required: Prepare an income statement for Swinton Ltd for the year ended 31st December 2004 and a balance sheet at that date that clearly sets out the relevant information (25 marks). 6. Included in a telephone bill paid on 10th November 2004 was the advance rental on telephone equipment 1st!December for the quarter comm ...