2-Working Capital Management Ratio Analysis

2-Working Capital Management Ratio Analysis - Working...

Info iconThis preview shows pages 1–9. Sign up to view the full content.

View Full Document Right Arrow Icon
Directors Education and Accreditation Program Developed by: Garnet W. Fenn, MBA, DBA (Candidate), CGA, CMA, CA, CPA, FCSI, CIM, FCIS, P.Adm, Acc. Dir., ICD.D, CMC Working Capital Management Working Capital Management Ratio Analysis Ratio Analysis
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Directors Education and Accreditation Program Financial statements and analysis Financial statements and analysis Balance sheet Income statement Statement of retained earnings Statement of cash flows Notes to financial statements Regulatory filing •True and accurate picture? Portray proper trends? •Clear? •Reliable? Basic financial statements Disclosures Questions 2
Background image of page 2
Directors Education and Accreditation Program 3 Financial Statements Financial Statements Required Disclosure Financial Statement that Satisfies Requirement Financial position at the end of the period Balance Sheet Earnings for the period Income Statement Cash flows during the period Statement of Cash Flows Investments by and distributions to owners during the period In addition to the financial statements, the annual report includes footnotes or explanations of the accounting policies and detailed information about many of the amounts and captions shown on the financial statements.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Directors Education and Accreditation Program 4 Financial Statements Financial Statements Financial statement development is based on some general rules: Assets = Liabilities + Owners’ Equity Debits = Credits * Assets = future economic value or benefit * Liabilities = future payment of economic resources Revenue = provision of services or selling of assets Expenses = resources expended to provide services or sell assets Equity = owners’ continuing investment in the entity Dr. Cr. * Present value of expected cash flows
Background image of page 4
Directors Education and Accreditation Program 5 The Balance Sheet The Balance Sheet
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Directors Education and Accreditation Program 6 The Income Statement The Income Statement
Background image of page 6
Directors Education and Accreditation Program 7 Changes in Owners Changes in Owners ’ Equity ’ Equity Paid-In Capital: Beginning balance 20,000 $ Note: Common stock, par value $1; 100,000 shares authorized, 25,000 shares issued and outstanding Capital contributed during the year 5,000 Ending balance 25,000 $ Retained Earnings: Beginning balance 193,250 $ Net income for the year 104,450 This financial statement shows the detail of owners’ equity and explains the changes that occurred in the components of owners’ equity during the year.
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Directors Education and Accreditation Program 8 Statement of Cash Flows Statement of Cash Flows Cash Flows from Operating Activities: Net income 104,450 $ Depreciation 250 Change in accounts receivable (5,000) Change in prepaid assets (4,000) Change in inventory 10,000 Change in accounts payable (5,000) Net cash from operating activities (CFO) 100,700 $ Cash Flows from Investing Activities:
Background image of page 8
Image of page 9
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/09/2012 for the course ECON 440 taught by Professor Fenn during the Spring '11 term at American Internation College.

Page1 / 25

2-Working Capital Management Ratio Analysis - Working...

This preview shows document pages 1 - 9. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online