The retained earning statement reports changes in the interest of the company and retained interest in profits or surplus. This statement typically contains profits and losses, dividends, and issuance of stock. This report is given to the board of directors for a company, issued during a press release, or during a quarterly report earnings statement. The balance sheet tracks the assets, liabilities, and stockholders equity. The assets on the sheet are company holdings.
In the case of Marriot International, Ernst & Young LLP audited and reports their opinion on Marriot International’s 10-K report. “In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of Marriot International, Inc. at December 30, 2011 and December 31, 2010, and the consolidated results of its operations and its cash flows for each of the three fiscal years in the period ended December 30, 2011, in conformity with U.S. generally accepted accounting practices.” References Marriot International, Inc. (2012). Report of independent registered public accounting firms. Retrieved from http://investor.shareholder.com/MAR/marriottAR11/financials/ipafreports_1.html 6) Of what use, if any, are the notes to the financial statements? The notes to the financial statements provide basic details about the statements, on the Marriot International, Inc’s 10-K provided detailed & extensive notes.
The Four Financial Statements Merced Villalobos ACC/290 January 11, 2012 Eleazar Pando The Four Financial Statements There are four basic financial statements. The first statement is an income statement that shows the companies’ revenues and expenses. The second statement is a retained earnings statement that shows the amount and causes of changes of retained earnings in a given period of time. The third statement is a balance sheet that shows what the business owns and what it owes. The fourth is a cash flow statement that shows where the business got earnings in a period of time and where that money was used.
3. RETURN ON CAPITAL EMPLOYED (ROCE) NET PROFIT/CAPITAL EMPLOYED X 100 = % (NB use net profit figure before tax has been taken out) (For capital employed see Financed By total on Balance Sheet) Leave the formula in. Now add in the figures from the Income Statement or Balance sheet and calculate the ratio. Then describe what this ratio shows and explain what it means. LIQUIDITY 4.
Financial Statements Paper Ambar Rivera ACC 290 Stephen Wilson January 24, 2012 The four basic financials statements are balance sheet, income statement, retained earnings statement, and statement of cash flows. The balance sheet shows a picture at a point in time of your business’ assets (owns), and your business‘ liabilities (owes). An income statements reports the business revenues and expenses during a period of time. Presenting a retained earnings statement, indicates how much of the previous income was distributed, and how much was retained in the business to allow future growth. The statement of cash flows contains the information to show where the business obtained cash during a period of time and how that cash was used.
The Weighted Average Cost of Capital is the average of the costs of a company's sources of financing-debt and equity, each of which is weighted by its respective use in the given situation. By taking a weighted average, it shows how much interest the company has to pay for every marginal dollar it finances. A firm's WACC is the overall required return on the firm as a whole and, it is often used internally by company directors to determine the economic feasibility of expansionary opportunities and mergers. Also, WACC is the appropriate discount rate to use in stock valuation. No, I don’t agree with Cohen’s WACC calculation.
Financial Ratio Analysis of Dr. Pepper Snapple Group Liquidity ratios for a company help whomever is analyzing the data determine the company’s liquidity. When a company has good liquidity they are able to pay off their short term debt without having to take out any additional financing. We will look at Dr. Pepper Snapple Group’s current ratio for 2009 and 2010. The current ratio is calculated by taking the company’s current assets and dividing it by the current liabilities. It shows how many times the current assets can cover the current liabilities.
The net profit for a company in 2009 – This would be quantitative as well since we are seeing the actual profit number for the company. c. The stock exchange on which a company’s stock is traded. – This would be a qualitative element since all we are doing here is categorizing the companies stocks. d. The national debt of the US in 2009. - This would be quantitative as well since we are seeing the national debt for the country.
Kevin Leonel Sonilal XACC/290: Principles of Accounting I Professor Steven German December 6th, 2013 Financial Statements The four basic financial statements are the balance sheet, the income statement, the retained earnings statement, and the statement of cash flows. The incomes statement demonstrates how well the business has performed for a certain period of time. The items reported in the income statement are its revenues and expenses. From an internal user’s standpoint, the financial statement is a management tool. It can be used to evaluate the business’ strengths and weakness, and helps in deciding what route the business should take to make improvements or further its success.