Earnings from continuing operations the income from

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Unformatted text preview: term assets Operating activities - represent the carrying out of the business plan given its financing and investing activities. • Research and development • Procurement • Production • Marketing • Administration Financial Statements reflect business Activities Balance Sheet • Accounting equation - the basis of the accounting system: Assets = Liabilities + Equity • Liabilities - funding from creditors and represent obligations of a company. • Equity - the total of funding invested and accumulated earnings in excess of distributions to owners since inception of the company. • Working capital - the difference between current assets and current liabilities Income statement • Earnings - indicates the profitability of the company o The return to equity holders for the period under consideration • Gross profit - the difference between sales and cost of sales • Earnings from operations - refers to...
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