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Balance sheet Essay Topics & Paper Examples

Is IAS12 too difficult to apply and understand?

International Accounting Standards 12 continues to receive numerous criticisms on applicability and usefulness of numbers in accounting for corporate income taxes. The argument presented is that the standards set by IAS 12 are too hard to apply or even understand. In the plight of these criticisms, two accounting standards boards, UK’s (ASB) and Germany’s (GASB) opted to conduct a proactive project plan aimed at fundamentally reviewing the standards set by IAS 12 prove hard to solve through piecemeal amendment. Their main agenda was to look at critical issues of accounting for corporate income in an attempt to develop a discussion paper on the principles of IAS 12 and set out proposals. IAS 12 prohibits companies to give an account to…

Wild Water Get Soaked

Assets: Any thing that a company owns are known as assets, they are further clasfied in Current assets and Fixed assets. Current assets are those assets which can be easily liquidated and have a shorter life as compared to fixed assets, Account receivable, cash and cash equlivents ,inventory are some examples of current assets. • Cash and cash equlivents: A specific thing within the sense of balance sheet of which accounts the worth of a business’s possessions which can be funds or may be changed into funds instantly. Samples of funds along with funds equivalents are traditional bank company accounts, marketable securities along with Treasury bills. • Short term investment: Almost all corporations inside a sturdy money place use short-term…

The Importance of Accounts Receivable

Accounts Receivable is the general account name for money owed to a business by its customers. It is recorded as an asset on the balance sheet. Accounts Receivable and Sales are married at the hip per se. If a sale is made, but the business hasn’t received the money from its client, the earnings are recorded as Accounts Receivable. Sales and Fees Earned are interchangeable in accrual based accounting, but those account names depend on the collection method being used. A business must also establish payment terms. These terms are usually net 30, net 45, or net 60. These are indicators of the date on the invoice and the amount is due x amount of days from the date on…

If the Coat Fits Wear It

The Oceanic Corporation, a Chesapeake, VA based company, was established in 1994. Glenn Rodgers III founded the corporation, which was privately owned at the time, after his retirement from Norentech Corporation. The Oceanic Corporation was originally formed to provide ship repair services and quickly earned a Department of Defense (DOD) certified Alteration Boat Repair (ABR) designation. Among its specialties were structural welding, piping system installation and repairs, electrical, painting, rigging, machinery and dry-lock work, as well as custom sheet metal fabrication. Other divisions of The Oceanic included Habitability Installation, Industrial Contracting, and Alteration/Installation Teams (AIT). With its initial success and good return on investment the firm opened and operated facilities in California, New Jersey, Florida, Maryland, Pennsylvania and Washington. In…

Alpha Corporation

1) Sources of Cash – Accounts receivable (payment from customers) , Proceeds from Sale of assets(PP&E), proceeds from sale of discontinued operations, Issue of Stock and long term debt Use of Cash – Buying of inventories, Account payables (payments to suppliers) , Purchase of Assets(PP&E), Investment in capitalized software, principal payment of short term debt, Repurchase of Stock, Dividends paid 2) Cash flow from operations (125.2, 89.3, and 46.8) was greater than that from net income (- 377.9, -623.5 , and -320.6). The reason for difference is lot of non- cash expenditure such as depreciation, amortization, and restructuring was deducted from the revenues to come to Net Income. Also, the gain from investment was deducted from the Net income as…

The Regulation of Financial Reporting

1.1 Company profile JD Wetherspoon plc is pub chain based in the UK Which was founded in 1979 by Tim Martin, who established the first Wetherspoon pub.The company’s aim to provides customers with high quality food and drinks at reasonable price, enjoyed the good service by well-trained attendant in a friendly and fun environment. Furthermore, apart from running pub chain, the firm also owns and operates the Lloyds No. 1 chain and Wetherspoon Hotels. 1.2 History and development With the rapid development and expansion, company have invested plenty of money in new pubs across the country in past few years. As so far, the chain owns 833 pubs in the United Kingdom. However, in the twenty-first century, JD Wetherspoon was…

Financial Analysis and Forecast of Sweet Dreams Inc

Sweet Dream Incorporated (SDI) is a manufacturing company focused on mattress and box spring production for large retailers and hotel chains. With two facilities at their disposal, SDI manufactures over 20 different styles of bedding for their consumers. SDI’s founder and president, Douglas May, has contacted our consulting firm with regards to current financial problems between himself and SDI’s bank, First International Bank. Due to the spike in bank failures in the early 1990’s First National has become extremely sensitive to problem loans (loans which show ratio performances below the industry standard). Unfortunately, SDI has had poor liquidity and debt ratios for the past three years which has caught the banks attention. After a phone call from the bank Doug…

Financial Statement Analysis

I. INTRODUCTION Financial analysis is the selection, evaluation and interpretation of financial data, along with other pertinent, to assist in investment and financial decision-making. Moreover, it is also the process of identifying financial strengths and weaknesses of the firm by properly establishing relationship between the items of the balance sheet and profit and loss accounts. When looking a specific company, the financial analyst will often focus on the income statement, balance sheet, and cash flows statement. One of the most common ways of analyzing financial data is to calculate ratios from the data to compare against those of other companies or against the company’s own historical performance. For example, return on assets is a common ratio used to determine how…

Historical Cost Accounting

Historical cost is a traditional method of recording assets and liabilities at their original or nominal value without making adjustments for inflation. It first came in evidence in Jun 1979 in a French project after numerous debates. The historical cost principle states that the asset should include all cost necessary to get the asset in place and ready for use. The principle of historical cost is based upon two fundamental principles: the principle of monetary standardization and principle of prudence. The principle of monetary standardization ignores the fluctuations in monetary values of asset and liability. The principle of prudence accounts only the losses but ignores potential profit. Assets are evaluated based on acquiring cost, stock is evaluated based on net…

Macy’s Inc Case

Analyze the publicly-traded firm Macy’s Inc.; you are to complete a financial analysis. Complete the following steps for this portion of the project: 1. Obtain financial information for your firm for at least a 5 (2008-2012) year time period. This information should include: income statements, balance sheets, cash-flow statements. 2. Provide a brief history of the firm: You will need to do background reading about the firm in order to gain insight into its performance and behavior. Focus this section on the “who, when, where and what” questions about your firm’s history. 3. Complete financial measures of the firm for a multi-year time period (e.g. 5 years). This should include all measures concerning the income statement, balance sheet, and cash-flow…

Parmalat Accounting Scandal

Summary After eluding financial analysts and investors for a long time, Parmalat went bankrupt later in December, 2003 and many of their board of directors have been arrested since then. Here is a brief summary of the events: In the late 1980’s, Parmalat’s financial situation was poor due to investment in side businesses. i.e. TV network, Parmatur, football teams (Palmeiras, Parma, etc). Cash siphoning through these companies was estimated to be total of € 10 Bn. In 1990, Parmalat went public which enabled them to tap into the capital markets. Early 1990’s, the company began to acquire dairy producers around the world in order to try to hide the growing debt. Parmalat entered into a series of bond issuances and…

Financial Analysis Coca-Cola and PepsiCo

We will be comparing two companies; both are strong and have great credibility. Ideally with a solid competitor we want to show differentials and make a solid contrast. In this case we want to compare at least two years of financial data. A great way to exemplify this is to compare Coke to Pepsi. To say which one is better to drink is debatable, but what we are looking at is which is better to invest in. We will analyze the information provided in the appendixes and make a conscience decision as to which company is stronger, therefore a smarter investment choice. After all, I wouldn’t want you to throw your money down the drain. The three main characteristics used…

Report to Shareholders

Business Model When Magee Company began in 2011, the company had the goal of producing top of the line sensors to customers who demand the newest technologies. The firm would do this by manufacturing its product lines at or above the expectations of customers, while still trying to maintain a competitive price within in the market. To gain market share, the company planned to heavily promote its products, while increasing the number of distributors and sales personnel to make products more available. Current State Despite its plan’s, Magee Inc. was unstable from the beginning. With the exception of year one, Magee Comapny was never able to generate net profits from operations. This stemmed from several issues in poor management decisions….

Advanced Audit and Assurance

These briefing notes evaluate the business risks facing Grohl Co, and identify and explain four risks of material misstatement to be considered in planning the audit of the financial statements for the year ended 30 November 2012. In addition, two ethical issues are discussed and relevant actions recommended. (i) Business risks Imported goods – exchange rate fluctuations Grohl Co relies on a key component of its production process being imported from overseas. This exposes the company to exchange rate volatility and consequentially cash flow fluctuations. The company chooses not to mitigate this risk by using forward exchange contracts, which may not be a wise strategy for a business so reliant on imports. Exchange gains and losses can also cause volatility…

My favorite place

My favorite place is Starbucks. So I will choose that to be the company I will write about for this assignment. Starbucks Corporation has been able to grow revenues from $11.7B to $13.3B. Most impressively, the company has been able to reduce the percentage of sales devoted to selling, general and administrative costs from 37.08% to 35.38%. This was a driver that led to a bottom line growth from $1.2B to $1.4B. The pertinent statistics for this piece are as follows. During 2012 Starbucks maintained a current ratio of 1.9x. In 2012, their quick ratio was 1.1x. Their debt ratio in 2012 is 10.7x, derived from total assets in 2012 of 4,199.6 with total debt being 3,104.7. I would make…

Accounting for Business Combination and Ethics Assessment

Early 2011, Yung Limited acquired 75% interest in Chum Limited. This is the first time of Yung Limited preparing the consolidated statement. A few issues regarding to the first consolidated financial statement have been raised up. This report is used to solve the raised issues and explain general principle of consolidation accounting. Before the acquisition, Yung and Chum was a competitor to each other. Their financial statement only reflects their own financial position. Thus, the balance and transaction would state in the financial statement. The reason is that they are viewed as two entities from different aspect. However, after the acquisition, Yung and Chum became a single combined entity as Yung held 75% interest in Chum. It means Yung can…

Fedex Internal Analysis

* History Founded by Frederick W. Smith, FedEx Express was established in 1973 and it has grown rapidly. Smith had the idea of creating a company that would deliver mail all over the United States over night. His idea was to fly mail from one location to another at night because the traffic is better and packages could be sorted, distributed and out of its original location faster. Delivering to over 220 countries and territories, FedEx today is a big global industry with a vast network worldwide. The company that started as a laid out in an economics class today is one of the biggest mail distribution corporations known by all customers as the company that “send shipment overnight” (FedEx,2013)….

General Mills Financial Analysis

From ready-to-eat cereal to convenient meals to wholesome snacks, General Mills is one of the biggest food products manufacturers and competes in growing food categories that are on-trend with consumer tastes around the world. The company markets many well-known brands, such as Haagen Daazs, Yoplait, Betty Crocker, Totinos, and Cheerios, among others. Main rivals include Kellogg, Kraft, Conagra Foods, and Sara Lee. General Mills sells its products in three segments: U.S. retail (63% of net sales), International (25% of net sales), and Bakeries and Foodservices (12% of net sales). In addition, General Mills sells cereals and ice cream through its Cereal Partners Worldwide and Haagen Daazs Japan joint ventures. General Mills continues building its presence in developed markets and increasing…

Good will definition

An account that can be found in the assets portion of a company’s balance sheet. Goodwill can often arise when one company is purchased by another company. In an acquisition, the amount paid for the company over book value usually accounts for the target firm’s intangible assets. Goodwill is seen as an intangible asset on the balance sheet because it is not a physical asset like buildings or equipment. Goodwill typically reflects the value of intangible assets such as a strong brand name, good customer relations, good employee relations and any patents or proprietary technology. Method: There are three methods of valuation of goodwill of the firm; 1. Average Profits Method 2. Super Profits Method 3. Capitalisation Method 1. Average…

The Annual Report Project

General Electric, short as GE, is a leading multi-industrial company involving in energy, appliance, finance and transportation businesses. It has more than 100 years of history, and generally be viewed as one of the most successful product and service providers across continents. GE has gross revenue of more than 147 billion dollars, and is currently ranking No.6 in Fortune 500 U.S. by revenue. A. Introduction General Electric Company (GE) is a multinational conglomerate corporation headquartered in Fairfield, Connecticut, United States. Its core business contains four segments, including Energy, Finance, Technology infrastructure, and Consumer and Industrial. GE was founded initially by Thomas Edison, and then merged with Thomson-Houston Electronic Company in 1892. It was one the original 12 companies that were…

Associates Capstone

Executive Summary In going through some of things regarding buying the business I think Mike should make sure that the coffee shop is up to code. He should talk to officials about required standards, for running a coffee shop, licenses; the different laws for having the shop in Sunnydale, Illinois, all of will be needed and will help to keep the restaurant running properly inside and out. It is also important that he reviews each file for all employees making sure all documents that are needed for hire are there, reading through and seeing the difference in their duties and the performance prior to him buying the shop and respond accordingly and whatever decisions he makes with each one or…

Cash Flow Statement vs. Fund Flow Statement

There are some basic differences between the two statements as mentioned below: Meaning: Cash flow statement is a statement which reflects sources and uses of cash whereas fund flow statement is a statement that reflects changes in the working capital or fund. Scope: The scope of cash flow is limited and it is based on the narrow concept of fund. i.e. cash alone whereas funds flow statement is a broader term and it is a wider concept of fund. Component: Under cash flow statement, cash is an important factor and it is the part of working capital whereas funds flow statement is the working capital which includes cash, stock, debtors, bills and receivables, temporary investments etc. Object: Cash flow statement…

Accounting In China

1. Introduction • China’s rapid economic growth in the past two decades has amazed the rest of the world. • With China’s accession to the WTO, business activities with and within China will further expand. • China fully understands that a sound financial reporting system plays a key role in the process of economic development. • The Chinese Ministry of Finance (MoF), who has the responsibility for regulating accounting matters in China, has set itself the objectives of fostering investors’ confidence in financial information, increase transparency of financial reporting, and harmonize with International Financial Reporting Standards (IFRS), so as to reduce the costs of raising capital by enterprises and alleviate the risk of financial crisis. 2. History Of Development •…

Boeing Company

1.2) Boeing Company is the largest manufacturer of commercial aircraft in the United States and is a major employer in Seattle, Washington. Explain why each of the following individuals or organizations would be interested in financial information about the company. a. California Public Employees Retirement System. One of the world’s largest pension funds. They would be interested in Boeing’s financials to see how much the company contributes to their employee’s 401K plans. b. Chinese Airlines, a rapidly growing airline serving the Pacific Rim. Seeing the amount of sales that Boeing has, shows the reliability in their product through increased sales numbers. c. Henry James, a real estate investor considering building apartments in the Seattle area. Increased sales would mean the…

Barrows Consumer Products

1) What are some of the factors causing the problems in measuring performance in the Southeast Asia sector? Comparing the performance of divisions operating in different countries is difficult due to legal, political, social, economic and currency differences. Additionally companies in different countries may adopt different accounting standards, which makes the financial statement not comparable. Calculation on ROI, RI and EVA for subunits that operate in different countries needs to be adjusted for differences in inflation and changes in the exchange rates. Barrows currently uses two primary performance measures, Profit and ROI, for its established divisions in the U.S., Canada, Europe and Japan. It is misleading to rely only on these two figures to compare its new regional market in…

Common Size Financial Statement Analysis

When all the items of a financial statement are expressed on a common basis, it is known as a common-size financial statement. Common-sizing of balance sheet is done generally by expressing its all items as a percentage of its total assets or total equities. Similarly, income statement is common-sized when its all items are expressed as percentage of total sales. PROCEDURE OF COMMON SIZING In preparing common-size income statement, the following procedure is to be followed : •Total sales revenue or total revenue is taken as hundred. •Each item of cost or expenses is represented as a percentage of total revenue. •Profit or loss also shown as a percentage of revenue. Similarly, balance sheet is common-sized as follows : •Total…

Understanding Corporate Annual Reports

To show whether the financial statements are complete, reasonable, and prepared in a manner consistent with generally accepted accounting principles (GAAP) at a set time. What is the name of rules and regulations used to prepare financial statements? Generally accepted accounting principles (GAAP) Name two other primary financial information sources. SEC Form 10-K & unaudited SEC Form 10-Q What type of information is provided in the statement of earnings? A financial statement that reports the results of a company’s business operations for a set period. What type of information is provided in the statement of financial position? A company’s assets, liabilities and stockholders’ equity at a set date What type of information is provided in the statement of cash flows?…

Krispy Kreme Doughnuts, Inc.

Krispy Kreme Doughnuts, as discussed in Darden Business Publishing Case UVA-F-1479, appears to be at a crossroads. After years of astronomical growth, the company find its share price plummeting in the midst of discoveries about faulty accounting practices. The following paper examines several issues behind the sudden decline First, the historical income statements and balance sheets are examined to determine the financial health and current condition of the company. This is followed by an analysis of key financial ratios across time and versus industry standards. Next, the paper addresses if Krispy Kreme is financially healthy at year-end 2003 and, if so, what accounts for the firm’s recent share price decline. The paper concludes with a discussion of the intrinsic investment…

Tropicana Tuition Centre

Business Overview Tropicana Tuition Centre is a new institution aiming to provide quality education for primary and secondary school students. It will be officially opened in November 2012. The objective of this centre is to complement with what students have learnt in schools and not to replace the role of school itself. In Tropicana Tuition Centre we believed in providing quality education with affordable fees, which will set us apart from our competitors. We provide all subjects related to Penilaian Menengah Rendah (PMR) and Sijil Penilaian Malaysia (SPM) examination. In five years we hope to be a leading tuition centre in the area of Kajang and Bangi. This Marketing Plan has been designed to provide the business with clear direction…

Financial Analysis Project

Today’s personal products market has become more competitive than ever. With economic and political uncertainty in many parts of the world, The Estée Lauder Companies Inc. has invoked a number of unique and diverse strategies in order to gain customer loyalty while attracting new customers for staying as a leader in personal products industry. This paper focuses on analyzing The Estée Lauder Companies Inc., including company overview and main strategies. The main purpose of this paper is using a series financial accounting ratios as tools to analyze the operation of this company from 2008 to 2012, the nearest five years. After researching of the strategies and data, I make a conclusion that this company is in a healthy financial situation…