510chapter4fall2009afterclass9222009

510chapter4fall2009afterclass9222009 - Chapter 4 I ncome...

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Unformatted text preview: Chapter 4 I ncome Statement and Related I nformation Income Statement Usefulness Limitations Quality of Earnings Format of the Income Statement Reporting Irregular Items Special Reporting Issues Intraperiod tax allocation Earnings per share Retained earnings statement Comprehensive income Discontinued operations Extraordinary items Unusual gains and losses Changes in accounting principles Changes in estimates Corrections of errors What’s I mportant Elements Single-step Multiple-step Condensed income statements Evaluate past performance. Income Statement Help assess the risk or uncertainty of achieving future cash flows. Predicting future performance. Usefulness BALA CYNWYD, Penn., Feb. 2 /PRNewswire-FirstCall/ -- Central European Distribution Corporation (Nasdaq: CEDC) today announced that it is reconfirming full year 2008 net sales guidance of $1.65-$1.80 billion and full year comparable fully diluted earnings per share guidance of $2.85-$3.05. The Company also today announced that it is revising full year 2009 net sales guidance from $1.93 - $2.03 billion to $1.25 - $1.40 billion which is based upon an approximate 35% weakening of local currencies (zloty and ruble) since the company's last guidance given in November 2008. The comparable fully diluted earnings per share guidance is being revised downward from $3.75-$4.00 to $2.50 - $2.80, due to the above mentioned 35% weakening of local currency. The prior guidance given in November 2008 was based upon exchange rates of Polish Zloty to USD of 2.50 to 2.60 and Russian Ruble to USD of 26.00 to 26.50; the revised guidance is based upon exchange rates assumptions of 3.30 to 3.50 for the Polish Zloty to USD and 35.00 to 37.00 for the Russian Ruble to USD. The fully diluted number of shares used to calculate the above per share guidance is approximately 47.2 million. CEDC Confirms Full Year 2008 Guidance; Revises 2009 Guidance with Impact of Recent Changes in Exchange Rates Bor g War ner r evises 2008 guidance downwar d Borg Warner announced today that it is once again revising its 2008 earnings guidance downward. Previously, Borg Warner had expected non-GAAP earnings of $2.25 to $2.35 per share. However, due to current economic conditions, the company now expects non-GAAP earnings of $1.85 to $1.95 per share. The following special items will also impact the company’s balance sheets for 2008 : Previously announced nine-month year-to-date charges: goodwill adjustment of $(1.27) related to the BERU acquisition, BERU purchase accounting adjustment of ($0.04), tax adjustment of $(0.12), third-quarter restructuring charge of $(0.16), and a charge related to the outcome of retiree healthcare benefits litigation of $(0.03); – Fourth quarter 2008 restructuring charges which are currently being quantified; – And a fourth quarter 2008 charge of approximately $0.23 per share due to a – And a fourth quarter 2008 charge of approximately $0....
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This note was uploaded on 12/29/2009 for the course ACC 5100 taught by Professor Andrews during the Fall '09 term at Wayne State University.

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510chapter4fall2009afterclass9222009 - Chapter 4 I ncome...

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