Chapter 3 for course website

96 slide 15 of 74 operating activities peripheral

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Unformatted text preview: y Operating Expenses Introduction To Financial Accounting HKUST Cost of sales (used inventory) Papa John's International, Inc. and Subsidiaries Consolidated Statement of Income For the Year Ended December 31, 2006 (dollars in thousands) Revenues Restaurant and commissary sales Franchise royalties and development fees Total revenues Costs and expenses Cost of sales Salaries and benefits expense General and administrative expenses Total costs and expenses Operating income Other revenues and gains (expense and losses) Investment income Interest expense Income before income taxes Income tax expense Net income Earnings per share $ 884,000 117,000 1,001,000 425,000 164,000 314,000 903,000 98,000 1,000 (3,000) 96,000 33,000 63,000 1.96 Slide 16 of 74 Salaries and benefits to employees Other costs (like advertising, insurance, and depreciation) Chapter Three $ $ Earnings Per Share Introduction To Financial Accounting HKUST Papa John's International, Inc. and Subsidiaries Consolidated Statement of Income For the Year Ended December 31, 2006 (dollars in thousands) Revenues Restaurant and commissary sales Franchise royalties and development fees Total revenues Costs and expenses Cost of sales Salaries and benefits expense General and administrative expenses Total costs and expenses Operating income Other revenues and gains (expense and losses) Investment income Interest expense Income before income taxes Income tax expense Net income Earnings per share Chapter Three $ 884,000 117,000 1,001,000 425,000 164,000 314,000 903,000 98,000 1,000 (3,000) 96,000 33,000 63,000 1.96 Slide 17 of 74 Net Income Weighted Average Number of Common Shares Outstanding Earnings Per Share $ $ Introduction To Financial Accounting HKUST Papa John's International, Inc. and Subsidiaries Consolidated Statement of Income For the Year Ended December 31, 2006 (dollars in thousands) Revenues Restaurant and commissary sales Franchise royalties and development fees Total revenues Costs and expenses Cost of sales Salaries and benefits expense General and administrative expenses Total costs and expenses Operating income Other revenues and gains (expense and losses) Investment income Interest expense Income before income taxes Income tax expense Net income Earnings per share $ 884,000 117,000 1,001,000 425,000 164,000 314,000 903,000 98,000 1,000 (3,000) 96,000 33,000 63,000 1.96 Corporations are taxable entities. Income tax expense computed as Income Before Taxes Tax Rate (Federal, State, Local and Foreign). Chapter Three $ $ Slide 18 of 74 Cash Basis Accounting Introduction To Financial Accounting HKUST Revenue is recorded when cash is received. Expenses are recorded when cash is paid. Cash accounting is NOT GAAP!! Chapter Three Slide 19 of 74 Accrual Accounting Introduction To Financial Accounting HKUST Assets, liabilities, revenues, and expenses should be recognized when the transaction that causes them occurs, not necessarily when cash is paid or received. Required by Generally Acceptable Accounting Principles Chapter Three Slide 20 of 74 Revenue Principle Introduction To Financial...
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