Exam 1 Lecture Notes - Chapter1:AccountinginBusiness...

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at December 31, 2007 2006 Assets Cash and cash equivalents $129,198 $97,141 Accounts receivable 487,285 522,673 Inventory 600,185 648,820 Property, Plant and Equipment 1,539,715 1,651,300 Other assets 1,490,730 1,237,631 Total Assets $4,247,113 $4,157,565 Liabilities and Stockholders' Equity Accounts payable $223,019 $155,517 Other short-term debt 1,395,751 1,298,021 Long-term liabilities 2,035,421 2,020,604 Stockholders' Equity (or Capital) 592,922 683,423 Total Liabilities and Stockholders' Equity $4,247,113 $4,157,565 The Hershey Company Consolidated Balance Sheets in thousands of dollars Chapter 1: Accounting in Business (pgs. 17-20) 18:34 Financial Statements Annual Report (form 10-K) [Complete set of…] o Balance Sheet o Income Statement o Statement of Owner’s Equity o Statement of Cash Flows “Score cards” from The Hershey Company Asset  – Something the company owns. Cash  – Literally money in the bank. Cash equivalents  – Stamps, etc. Accounts receivable  – Amount of money owed by others
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Inventory  – Finish product waiting to be sold. Property  – Land Plant  – Manufacturing plant Equipment  – Desks, assembly lines, etc. Liabilities  – Anything the company owes. Accounts payable  – Amount of money owed to others (short term) Long-Term Liabilities  – Amount of money owed to others (long term) Stockholders’ Equity (or Capital)  – Represents the amounts of money that  investors put in. Assets = Liabilities + Equity. Practice Question:     If the liabilities of a business increased $75,000 during a period of time and  the owner’s equity in the business decreased $30,000 during the same  period, the assets of the business must have: o A. Decreased $105,000 o B. Decreased $45,000 o C. Increased $30,000 o D. Increased $45,000 o E. Increased $105,000 Users of Accounting Information     Internal Users:     o Managers o Officers/Directors o Staff External Users:     o Lenders (banker, creditor) – Lending money to the company o Shareholders (stockholder, investor) o External Auditors o Government o Customers
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for years ended December 31, 2007 2006 2005 Net Sales (or Net Revenue) $4,946,716 $4,944,230 $4,819,827 Costs and Expenses Cost of Sales (or Cost of Goods Sold) 3,315,147 3,076,718 2,956,682 Selling, marketing and admin. expenses 895,874 860,378 912,986 Other expenses 276,868 14,576 96,537 Interest expense 118,585 116,056 87,985 Tax expense 126,088 317,441 277,090 Net Income $214,154 $559,061 $488,547 The Hershey Company Consolidated Statements of Income in thousands of dollars Income Statements      (Statement of incomes, Profit and Loss Statement,  Statement of earnings, etc.) Net Sales (or Net Revenue)  – The value of what the company has sold
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Exam 1 Lecture Notes - Chapter1:AccountinginBusiness...

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