Mgmt 200 Fall 2009 Chap 1 Financial Statements

Mgmt 200 Fall 2009 Chap 1 Financial Statements - MGMT 200...

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MGMT 200 INTRODUCTORY FINANCIAL ACCOUNTING Chapter 1: Accounting as Communication Users of accounting information The four basic financial statements The Balance Sheet and the accounting equation The Income Statement The Statement of Retained Earnings E1-3, E1-8
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Accounting Accounting is a system that collects and processes (analyzes, measures and records) financial information about an organization and reports that information to decision makers
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The Accounting System Collects and processes financial information Reports information to decision makers Managers (internal decision makers) Investors and Creditors (external decision makers)
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The Four Basic Financial Statements The Balance Sheet Economic resources and claims against them at a point in time The Income Statement Result of operations for a period of time The Statement of Retained Earnings Change in retained earnings for a period of time The Statement of Cash Flows Change in cash for a period of time
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The Balance Sheet Basic Accounting Equation Assets = Liabilities + Stockholders’ Equity Economic Resources Sources of Financing for Economic Resources
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Consolidated Balance Sheet (condensed) PepsiCo, Inc. and Subsidiaries (in millions except per share amounts) December 27, 2008 and December 29, 2007 2008 2007 ASSETS Cash and cash equivalents $ 2,064 $ 910 Short-term investments 213 1,571 Accounts and notes receivable, net 4,683 4,389 Inventories 2,522 2,290 Prepaid expenses and other current assets 1,324 991 Property, Plant and Equipment, net 11,663 11,228 Intangible Assets 6,984 7,213 Investments in Affiliates 3,883 4,354 Other Assets 2,658 1,682 Total Assets $35,994 $34,628
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Consolidated Balance Sheet (condensed) PepsiCo, Inc. and Subsidiaries (in millions except per share amounts) December 27, 2008 and December 29, 2007 2008 2007 LIABILITIES Short-term obligations $ 369 $ Accounts payable and other current liabilities 8,273 7,602 Income taxes payable 145 151 Long-Term Debt Obligations 7,858 4,203 Other Liabilities 7,017 4,792 Deferred Income Taxes 226 646 Total Liabilities 23,888 17,394 SHAREHOLDERS’ EQUITY Common stock 381 480 Retained earnings 30,638 28,184 Other shareholders’ equity (18,913) (11,430) Total Shareholders’ Equity 12,106 17,234 Total Liabilities and Shareholders’ Equity $35,994 $34,628
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Exercise 1-3 The Accounting Equation Ginger Enterprises began the year with total assets of $500,000 and total liabilities of $250,000. Using this information and the accounting equation, answer each of the following independent questions. 1. What was the amount of Ginger’s owners’ equity at the beginning of
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This note was uploaded on 09/27/2009 for the course MGMT 200 taught by Professor Greigg during the Spring '08 term at Purdue.

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Mgmt 200 Fall 2009 Chap 1 Financial Statements - MGMT 200...

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