KIC000074 - Net Sales-COGS Gross Profit ( rro. .r~\V"\...

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CHAPTERS Corporate Financial Reporting and Analysis Needs of Financial Statement Users 's-Managers: >- Board of Directors: »Creditors: s-Investors: Financial Reporting Environment )- Accounting fraud requires 3 things: incentive, opportunity, and character '* >- Recent accounting fraud led to release of Sarbanes-Oxley (SOX) Act of2002 wbich introduces stiffer penalties for fraud and increases internal control requirements 3 Cup" ·-.board of dlYf(\On- Q()v.eYn~ , C'r QcWrn'f) 1 GntraCht$
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Financial Statements }i> Comparative financial statements include separate columns for each period's results side by side };-To this point, we have only discussed the statement of retained earnings. Actual financial statements have a statement of stockholders' equity in which the statement ofretained earnings is a column. The other equity accounts make up the additional columns of this statement. 4 1\;: Multistep Income Statement *: NT::.f;-E
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Unformatted text preview: Net Sales-COGS Gross Profit ( rro. .r~\V"\ ")- Operating Expenses: ., sa, f:\. Selling Expenses General & Admin. Expenses Income from Operations 1+-/_ Other Reve11ues and Ex eoses Income before Taxes .IJ'T ..1 Income lax expense ("t'"\ . .. i5"rr Net Income t \-t. '>y 'P1J. . """ EPS ~ t:o cec®-e, Important Subtotals ;,. .Sales - Cost of goods sold = Gross Profit * This is the amount that a company is selling its inventory for over what it costs it to make or buy the inventory. » Income from continuing operations: This is the income from ongoing business and excludes discontinued operations, extraordinary items, and accounting changes. Company only shows this ifthey have onc of those special items, otherw-ise this is net Income. 6 CbAp.l C1olp_1 Fa m I·~~ = :1flwme. ....
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This note was uploaded on 09/01/2011 for the course ACCT 284 taught by Professor Clem during the Fall '08 term at Iowa State.

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KIC000074 - Net Sales-COGS Gross Profit ( rro. .r~\V"\...

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