ACC111 - Accounting Principles I Allissia Henz 8/18/2013 TARGET CORPORATION FINANCIAL ANALYSIS AND INTERPRETATION Financial analysis refers to a process individuals use to appraise the financial condition of a given firm or organization. Usually this can be done by the firm itself internal financial analysis to help it allocate resources wisely or externally by other individuals such as future shareholders, creditors, unions, competitors among others to gain a general overview of a firm’s financial condition. Among the financial ratios that are useful include liquidity, working capital current ratio among others. In this task I will calculate the working capital, turnover ratio and current ratios for Target Corporation for the years 2004 through 2006. From 2004-2006: Working Capital=Current Assets – Current Liabilities For 2006: Working capital = $14,405.
These are tangible assets and examples of these assets are premises, fixtures and fitting, equipment and vehicles. For business alpha the fixed assets are 344,000. The next section for the balance sheet is current assets these are the items of value that is owned by a business which its values are likely to be help on a regular basis. Examples of current assets are stock, debtors and cash. For business alpha the total current asset calculation is to add all the assets In order to receive the full current assets.
Cash flows statement is a summary pertaining to cash flow and outflows in detail of specific transactions within time periods. Classifying Transactions An individual account requires that either a debit or credit is recorded for each accounting transaction. Each
Financial Accounting: Tools for Business Decision Making. Prepare the ratios outlined in the Excel template provided in the Course Materials forum. Depending upon the source, some ratios can be calculated various ways—be sure to calculate these ratios as defined in our text: Financial Accounting: Tools for Business Decision Making. Provide a 750-1,250 memo to your CEO. Address the following items: Provide your calculated ratios.
In Problem 1-3A, you are asked to create financial statements. The financial statements should be created in a certain order. First is the Income Statement, second is the Statement of Owner’s Equity, third is the Balance Sheet and last is the Statement of Cash Flows. The order is very important because the statements are all interconnected and rely on the proceeding statement to be completed. The Income Statement presents the
The Federal Reserve Bank and Recession Stephanie Armstrong ECO 203 George Murphy June 12, 2012 The Federal Reserve Bank The Federal Reserve Bank is the main source for all banks in the United States. The Federal Reserve Bank implements monetary policies that are necessary for the economy. In order to understand how the Federal Reserve Bank operates, you must understand the order in which it operates. Within the Federal Reserve Bank, there is a group, who is responsible for setting the monetary policy, and that group is the Federal Open Market committee. This committee plays a major role in the Federal Reserve Bank because the decisions they make are important to the functioning of the economy and monetary supply.
How are the two statements related? Are Krispy Kreme’s financial statements exact? Does management have any discretion over how those accounts are estimated? Financial statements give information on the financial activities of an enterprise. Income statement, or profit-and-loss statement, measures flows of costs, revenue, and profits over a defined period of time.
Federal Reserve banks took over the power to issue bank notes, and were granted the poser to buy and sell government securities, loan money to member banks, and to clear checks between banks. The Fed also also requires that member banks hold cash in reserve at a specified rate, currently 10% of their deposits (pg 205). The Fed’s customers are member banks, much in the same manner that depository institutions service the general public. The Fed also exercises powers to influence the
The Federal Reserve Eco/212 The Federal Reserve The Federal Reserve, also known as the Fed, is the Central Bank of the United States (Investopida ULC, 2011). Central banks located are worldwide (Investopida ULC, 2011). Central banks manage money and have many other duties (The Federal Reserve, 2011). Different types of monetary policies are used according to the economic outlook (The Federal Reserve, 2011). Monetary policies have different effects on an economy’s production and employment.
THE CO-OPERATIVE BANK: CASE ANALYSIS Q1: What new issues, if any, arise when applying analysis to service business? Activity Based Costing (ABC) is a costing method that defines a firm’s activities and then assigns costs or overheads based on those activities. For example in the case, the activities of Co-operative Bank as illustrated in Exhibit 5 are providing ATM services, issuing cheque books, handling customer inquiries etc. Therefore costs incurred by each cost centre or resource pool are allocated on the basis if those activities. By applying activity based costing the bank was able to estimate the cost of an additional service such as financial advice services.