2-3 Accounting and Financial Statements

5 in order to reflect accurately an increase of 50 in

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Unformatted text preview: ncrease of 50% in sales; •Can be left at exactly the same value as in the 1995-6 statements •Should be manipulated in a manner that takes into account both industry conditions and Dell ’s operational and competitive advantages. In evaluating which items are affected by which factors, keep in mind Dell ’s competitive advantages, the greater trends of the industry and how these factors affect each item to determine the correct forecasting method. Finally, remember that all numbers have to be consistent with the accounting equation ! Take-Aways Take-Aways “Financial information is the heartbeat of Financial competitive business. Accounting keeps the heartbeat stable” heartbeat Reading financial statements and annual reports Reading is a required skill in 21st century U.S. is Accounting is not an exact science. Try to Accounting understand why. understand...
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This document was uploaded on 03/18/2014 for the course AEM 1200 at Cornell University (Engineering School).

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