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Chapter 01 (09-01)

Chapter 01 (09-01) - If expenses exceed revenues If...

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Unformatted text preview: If expenses exceed revenues, If expenses exceed revenues, we report net loss. we report net loss. Income Statement • How much revenues did Papa John’s generate in 2007? • Were there different sources of revenues? • What are they? • How much net income did Papa John’s earn in 2007? MAXIDRIVE CORP. Statement of Retained Earnings For the Year Ended December 31, 2006 (in thousands of dollars) Retained earnings, January 1, 2006 6,805 $ Net income for 2006 3,300 Dividends for 2006 (1,000) Retained earnings, December 31, 2006 9,105 $ 1. Name of entity 2. Title of statement 3. Specific period of time (Like the income statement, this statement covers a specified period of time.) 4. Unit of measure The The Statement of Retained Earnings Statement of Retained Earnings reports the way that net reports the way that net income and the distribution of dividends affect the financial income and the distribution of dividends affect the financial position of the company during a period. position of the company during a period. MAXIDRIVE CORP. Statement of Retained Earnings For the Year Ended December 31, 2006 (in thousands of dollars) Retained earnings, January 1, 2006 6,805 $ Net income for 2006 3,300 Dividends for 2006 (1,000) Retained earnings, December 31, 2006 9,105 $ Papa John’s Statement of Retained Earnings • Where is Papa John’s Statement of Retained Earnings located in the 2008 10K annual report? • By what amount did the Retained Earnings increase from 2007 to 2008? • What is this amount of increase, where did it come from? Statement of Cash Flows Because revenues reported do not always equal cash collected. . . . . . and expenses reported do not always equal cash paid . . . net income is usually not equal to the change in cash for the period. MAXIDRIVE CORP. Statement of Cash Flows For the Year Ended December 31, 2006 (in thousands of dollars) Cash flows from operating activities: Cash collected from customers 33,563 $ Cash paid to suppliers and employees (30,854) Cash paid for interest (450) Cash paid for taxes (1,190) Net cash flow from operating activities 1,069 $ Cash flow from investing activities: Cash paid to purchase equipment (1,625) $ Net cash flow from investing activities (1,625) Cash flow from financing activities: Cash received from bank loan 1,400 $ Cash paid for dividends (1,000) Net cash flow from financing activities 400 Net decrease in cash during the year (156) $ Cash at beginning of the year 5,051 Cash at end of the year 4,895 $ 1. Name of entity 2. Title of statement 3. Specific period of time (Like the income statement, this statement covers a specified period of time.) 4. Unit of measure MAXIDRIVE CORP....
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Chapter 01 (09-01) - If expenses exceed revenues If...

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