| Huffman Trucking | Memo To: Graham Grove, Vice President of Industrial Relations From: Paul Johnson Director of Accounting CC: Simone Ojeda Accounting Specialist Date: [ 4/9/2012 ] Re: Results from ratio calculations and horizontal and vertical analysis What do the liquidity, profitability, and solvency ratios reveal about the company’s financial position? Liquidity ratios are the ratios that measure the ability of Huffman Trucking to meet its short term debt obligations. These ratios measure the ability of this company to pay off its short-term liabilities when they fall due. Profitability ratios measures Huffman Trucking’s ability to generate earnings relative to sales, assets and equity. These ratios assess the ability of the company to generate earnings, profits and cash flows relative to some metric, often the amount of money invested.
Whitbread PLC is led by a chief executive officer, along with the Group Finance Director and the Company Secretary they form the Main Board Committee, which in addition to the non-executives of the Board, form the ultimate decision making authority within the management structure. Reference: http://www.whitbread.co.uk/ Profit and Loss account A profit and loss account shows how much profit or loss that a business has made over a reported period of time. It measures a company’s sales revenue and expenses over a period, providing a calculation of profits and losses during that time. The uses of a profit and loss account The main use of a profit and loss account
Those financial statements are income statement, retained earnings statement, balance sheet, and cash flow statement (Weygandt, 2008). The income statements show operations results of the revenues, expenses, net profit, or net loss for the accounting period. The information obtained from the retained earnings statement listing the revenue followed by the expenses is used to prepare it. The income statement reflects the organization’s success through its profits. The retained earnings statement reconciles the beginning and ending balances of the retained earnings.
Financial Statements Paper James Palmer July 16, 2012 University of Phoenix ACC/290 Lee Guillory, Faculty Financial Statements Paper One of the first steps in the creation of a financial management system is to create financial statements. Financial statements come in four basic forms: balance sheets, income statements, statement of retained earnings, and statement of cash flows. A balance sheet is used to report the financial position of an accounting entity at a particular point. A balance sheet shows the liabilities, assets, and the capital of the business. A balance sheet is usually prepared at the end of an accounting period.
True (f) The objective of financial reporting is the foundation from which the other aspects of the framework logically result. True E2-4 Instructions Identify the appropriate qualitative characteristic(s) to be used given the information provided below. (a) Qualitative characteristic being employed when companies in the same industry are using the same accounting principles. Comparability (b) Quality of information that confirms users’ earlier expectations. Confirmatory value (c) Imperative for providing comparisons of a company from period to period.
29. Which of the following organizations is considered to be a public company? d. A firm whose stock is registered with the SEC. 30. Financial statements must be prepared: a. in accordance with GAAP.
The main purpose of the cash flow statement is to allow external users to assess the solvency and profitability of the company, to ensure the safety of their investment decisions. This projection can be made for the entire period covered by the business plan but because the date from it is used for making the Balance sheet it is recommended to go gradually year by
Learning Team Reflection Week 2 ACC/290 Learning Team Reflection Week 2 There are four basic financial statements that businesses use in conducting business: income statement, retained earnings statement, balance sheet, and statement of cash flows. Income statement pertains to revenues and expenses of a company. Retained earnings statement is a summary of the adjusted retained earnings that occurred for a specific time. “A balance sheet reports the assets, liabilities, and stockholders’ equity of a business at a specific date” (University of Phoenix, 2011, Week One Reading). Cash flows statement is a summary pertaining to cash flow and outflows in detail of specific transactions within time periods.
Financial Statement Paper The financial statements are prepared to show the financial performance of business organizations in respect of their operations, asset bases and profitability capacities, among other attributes (Alvarez & Fridson, 2011). The four major financial statements prepared by different entities are: The balance sheet It is prepared to highlight the financial position of a particular firm at a specific point in time mostly at the end of its financial/trading period (Taparia, 2004). The income statement This statement shows the profits or loss realized by a business entity in the course of purporting its operations at the end of its financial year (Taparia, 2004). Cash flow statement A cash flow statement reflects
Management Summary Financial Health The financial health or strength of a company is measured by its ability to service its financial obligations senior to the common shareholders. These obligations include debt payments, preferred stock payments, the funding of any pension plans and rental and lease expenses. Below I have highlighted many of the weaknesses of the company. A common metric investors use to evaluate the ability of a company to service its debt is the interest coverage ratio or times interest earned. Star River can only