Basic Financial Statement for (Sac) Sparklin Automotive Company

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Phase 1 Task 2: Individual Project Applied Managerial Accounting ACCT614-1204A-01 Colorado Technical University Professor: Tracie Edmond Donna Smith 10/15/2012 ABSTRACT: In this assignment I am a “corporate business financial analyst” and I will be discussing the essential financial information, such as explaining the basic financial statements and the type of information that each statement contains, and how this information is used and why it is necessary for the Board of Directors and executive management team with essential financial information on the management of the enterprise. MEMO: 10/15/2012 COMPANY: The Sparklin Automotive Company (SAC) TO: The Board of Directors and Executive Management Team TOPIC: Basic Financial Statements and Accounting Information FROM: Donna Smith In this memo is a list of the basic financial statements, including the information that is needed for each statement, and what this information is used for. These statements will help you to understand these financial statements and the necessary information that is needed for each statement. There are many factors to consider in planning, controlling, and decision making processes. There are several reasons to review and compare the different sections of the company’s financial statements, which are explained within this documentation. Each part of the financial statement affects another which is discussed within this documentation. Basic financial statement and discuss the information found on each statement: Income Statement: This statement list the company’s Revenues: such as Consulting Revenue; the company’s Expenses: such as Salaries Expense and Net Income. The Net income is the difference between the revenues and expenses, and this income statement describes a company’s revenues and expenses along with the resulting net income or loss over a period of time due

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