Current Ratio – this measures the extent to which current assets are available to meet current liabilities (current meaning due within the next 12 months). Current ratio indicates whether the…
* Balance sheets, income statements, cash flow, and trend analyses are some of the financial reports offered;…
Balance Sheets and Income Statements is an approach to review the overall financial status of the company. We will be reviewing four companies in different industries’ balance sheet and income statements. With a technique to combine the statements we will be able to evaluate the companies’ income, expense and stockholder’s equity in the company. In reviewing Swift Transportation Company, Eastman Chemical Company, United Natural Foods, Inc. and Wells Fargo and Company over the course of the last few years we will be able to understand the value and growth potential of these companies.…
Asset management ratios simply measure the effectiveness of how a company manages its assets. These ratios can provide insight into the success of the company’s credit policy and inventory management.…
A Financial Statement can be defined as, “Summary report that shows how a firm has used the funds entrusted to it by its stockholders (shareholders) and lenders, and what is its current financial position” (Business Dictionary, 2011). The Financial information is required for various users to make an informed Decision. “The purpose of financial information is to provide inputs for decision making” (Kimmel, Weygandt, Kieso, 2009, Para 1, p. 6). There are four different parts covered in a Financial Statement; those are Balance Sheet, Income Statement, Retained Earnings Statement, and Statement of Cash flow. The assignment will elaborate the purpose of each statement and differentiate its utility for different…
its financial statements. The annual report is a summary of the corporation’s operations over the previous…
Verizon Communications Inc. was created in 2000 when Bell Atlantic merged with GTE. Verizon has since gone on to become a global telecom giant. Verizon has built a brand upon trust and goodwill which has made them a household name (Verizon.com). The New York/Delaware based company continues to be the top US cellphone provide with roughly 106 million post paid subscribers (Trefis, Team, 2014). In 2004 Verizon became part of the Down Jones Industrial average. Since that time the company has had a national presence in in both wireless and wireline markets and over 100 million American subscribers using their network daily (Verizon.com).…
The four basic financial statements used in accounting are, the income statement, statement of retained earnings, balance sheet, and statement of cash flows. The income statement “reports the success or failure of the company’s operations for a period “(Kimmel, Weygandt, & Kieso, 2011, p. 11). The company’s revenues accompanied with its expenses are listed on the income statement. Statement of retained earnings “shows the amounts and causes of changes in retained earnings during the period. The period is the same as that covered by the income statement” (Kimmel, Weygandt, & Kieso, 2011, p. 13).…
Financial Statements are designed to define the health and well-being of a company. It is necessary that the information on the financial statements is accurate.…
The aspects of the current ratio would be the current assets, which is then divided through the liability. The current ratio recognizes the businesses probabilities to compensate for the short-term liabilities; the more liquidity shows an excellent indication in favor of potential organizations letting this business getting credit in the future. Nevertheless the current ratio must not greatly surpass the standards of additional opponents. This could be revealing of unprofessional conduct of current assets furthermore; a lesser amount of cash flow representing the shareholders.…
Liquidity ratios "measure short-term ability of the company to pay its maturing obligations and to meet unexpected needs for cash" (Kimmel Weygandt, & Kieso, 2007, p. 74). The higher the ratio value the larger the margin of safety that the company possesses to cover short-term debts. The liquidity ratios we used in analyzing both Hershey and Tootsie Roll are the current ratio, current cash debt coverage ratio, accounts receivable turnover ratio, average collection period (average age of receivables), inventory turnover, and days in inventory (average age of inventory).…
This course begins with a general overview of financial statements. Different financial statement users will have different needs for each of the financial statements. Each financial statement provides internal and external users with specific information, and each is like one piece of a jigsaw puzzle. People need all the pieces to get all the information to evaluate the true financial status of the organization.…
This ratio measures a company’s ability to pay off its debts. In addition, it also shows how many assets a business has comparing to its liabilities. The…
The annual report contains four basic financial statements: the income statement, balance sheet, statement of cash flows, and statement of stockholders’ equity.…
The liquidity or solvency ratios focus on a firm's ability to pay its short-term debt obligations. As such, they focus on the firm's current assets and current liabilities on the balance sheet.…