Mgmt 200 Fall 2011 Chapter 1

Mgmt 200 Fall 2011 Chapter 1 - Your Announcement Here Want...

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1 Your Announcement Here Want to announce your club activities – callouts, professional events, etc – then send your information to Professor Greig. Want to recognize one of your classmates – awards, birthdays, engagements, etc – then let me know the information, date, etc. Accounting Information And Decision Making Investors Companies Make Decisions About Activities Information The Language of Business Financial Accountants Measured by Communicated to Assets Liabilities Owners’ Equity Dividends Revenues Expense
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2 Investors Companies Make Decisions About Activities Information The Language of Business Financial Accountants Measured by Communicated to 1. Bal Sheet: ( A = L + O ) (A L = O) 2. Stmt of O: (CS + RE) (RE = NI D ) 3. Inc Stmt: (NI = R E ) 4. Stmt of CF: (Cash is an A) D I V E X P A S T L I A O E Q R E V DR = CR = DR = CR = Business Activities to Measure Financing activities Investing activities Business Activities Involves funding from Involves purchase and Operating activities funding from external sources purchase and sale of long- term resources Involves transactions in primary operations of business Company’s resources Claims to those resources Basic Accounting Equation Assets Liabilities Stockholders’ Equity = + Investors and Creditors would like to know about
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3 The following financial statements are from: Royal Caribbean Cruises Ltd (RCL) To view the actual financial statements go to: http://www.royalcaribbean.com and then click on the “Investor Relations” link at the bottom of the page. http://www.youtube.com/watch?v=rP4_BqkfCUE Balance sheet for Royal Caribbean Cruises Ltd. (in millions) 12/31/09 12/31/10 Cash 285 420 Accounts receivable 339 267 Equipment, net 15,268 16,769 Other assets 2,341 2,239 Total Assets: $18,233 $19,695 Accounts payable 265 249 Customer deposits 1,060 1,283 Notes payable 8,419 9,150 Other liabilities 989 1,070 Total Liabilities 10,733 11,752 Common stock 2,745 2,641 Retained earnings 4,755 5,302 Stockholders’ equity 7,500 7,943 Total liabilities and Stk. Equity $18,233 $19,695 Profitability Revenue > Expenses Net Income Dividends Company distributes Revenue < Expenses Net Loss
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4 Income Statement Financial statement that reports the company’s revenues and expenses over an interval of time Shows whether the company was able to generate enough revenue to cover the expenses of running an interval of time expenses of running the business If
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This note was uploaded on 02/20/2012 for the course MGMT 200 taught by Professor Greigg during the Fall '08 term at Purdue.

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Mgmt 200 Fall 2011 Chapter 1 - Your Announcement Here Want...

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