Mgmt 200 Spring 2011 Chapter 1

Mgmt 200 Spring 2011 Chapter 1 - Your Announcement Here...

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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 12/31/08 Cash 285 403 Accounts receivable 339 271 Equipment, net 15,268 13,879 Other assets 2,341 1,910 Total Assets: $18,233 $16,463 Accounts payable 265 403 Customer deposits 1,060 969 Notes payable 8,419 7,011 Other liabilities 989 1,435 Total Liabilities 10,733 9,660 Common stock 2,745 2,210 Retained earnings 4,755 4,593 Stockholders’ equity 7,500 6,803 Total liabilities and Stk. Equity $18,233 $16,463 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
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Mgmt 200 Spring 2011 Chapter 1 - Your Announcement Here...

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