a new company - the cost of production, and determine the...

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Susan Lewis A new Company 3/18/2012 If I were hired at a new company to oversee the accounting department I would expect to see a couple different types of financial reports. Two of the most common financial reports that I would expect to see would be the income statement and the balance sheet. The income statement will vary depending on whether the new company is in merchandising or manufacturing. The income statement is part of a periodic inventory system to show goods purchased or goods manufactured and the cost of goods sold. This report can help me to make important business decisions. I can make decisions by using the report to determine if the company is keeping control over
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Unformatted text preview: the cost of production, and determine the cost of materials and labor. I would also be able to compare the cost of goods to the revenue expected from sales to determine if changes need to be made. The balance sheet would show me our inventory of raw materials, works still in process, and finished goods. The information on the balance sheet would show me the company’s current assets and inventory that is expected to be turned into cash from future sales. I would be able to use this information to determine whether or not there are enough raw material, finished goods, and work in process to meet expected demands....
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This note was uploaded on 03/27/2012 for the course BUSINESS acc220 taught by Professor ? during the Spring '12 term at University of Phoenix.

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