Académique Documents
Professionnel Documents
Culture Documents
Course Outline
Financial Statements: An Overview
The Balance Sheet
Income Statement
Statement of Stockholders Equity
Statement of Cashflows
Guide to Earnings and Financial Reporting Quality
Analysis of Financial Statements
Valuations
Case Studies
Assets represent the resources that the business owns or controls at a given
point in time. This includes items such as cash, inventory, machinery and
buildings.
The other side of the equation represents the total value of the financing the
company has used to acquire those assets. Liabilities represent debt, while
equity represents the total value of money that the owners have contributed
to the business - including retained earnings, which is the profit made in
previous years.
ASSETS LIABILITIES
Current Assets Current Liabilities
Cash $ 2,100 Notes Payable $ 5,000
Petty Cash 100 Accounts Payable 35,900
Temporary Investments 10,000 Wages Payable 8,500
Accounts Receivable - net 40,500 Interest Payable 2,900
Inventory 31,000 Taxes Payable 6,100
Supplies 3,800 Warranty Liability 1,100
Prepaid Insurance 1,500 Unearned Revenues 1,500
Total Current Assets 89,000 Total Current Liabilities 61,000
-
Investments 36,000 Long-term Liabilities
Notes Payable 20,000
Property, Plant & Equipment Bonds Payable 400,000
Total Long-term
Land 5,500 420,000
Liabilities
Land Improvements 6,500
Buildings 180,000
Equipment 201,000 Total Liabilities 481,000
Less: Accum Depreciation (56,000)
Prop, Plant & Equip - net 337,000
-
Intangible Assets STOCKHOLDERS' EQUITY
Goodwill 105,000 Common Stock 110,000
Trade Names 200,000 Retained Earnings 229,000
Total Intangible Assets 305,000 Less: Treasury Stock (50,000)
Total Stockholders'
289,000
Equity
Other Assets 3,000
-
Total Liabilities &
Total Assets $770,000 $770,000
Stockholders' Equity
Operating Expenses
General & Administrative 292 301
Sales & Marketing 1,389 1,414
Research & Development 214 214
Other Operating Expenses 5 7
Total Operating Expenses 1,900 1,936
Operating Income 400 454
Interest Paid 1 2
Income before Taxes 399 452
Taxes 127 144
Net Income from Operations $272 $308
The statement of cash flows represents a record of a business' cash inflows and
outflows over a period of time. It is the most sensitive of the statements and focuses
on the following cash-related activities:
The cash flow statement is important because it's very difficult for a business to
manipulate its cash situation. Earnings can be manipulated, but it's tough to “fake”
cash in the bank. For this reason some investors use the cash flow statement as a more
conservative measure of a company's performance.
Return on assets
Return on common equity
Earnings per common share
Banking Companies InternationalFinancial Reporting Framework (IFRS) as applicable Securities and Exchange
in Pakistan Commission of Pakistan
Companies Ordinance 1984. and State Bank of
Stock Exchange Listing Regulations (Particularly Code of Corporate
Pakistan.
Governance)
Banking Ordinance 1962
Prudential Regulations (Corporate, SMEs’ and Consumers)