The first thing an analyst may look at is Kodak’s sales and operating costs. Kodak income statement shows an increase in sales since 2002 and its operating costs show about a 15 percent increase between 2002 and 2003. Looking at this point of Kodak’s income statement an analyst may consider Kodak to be somewhat profitable but because of Kodak’s increase in operating cost an analyst would dig deeper as to what was the cause of Kodak’s operating cost increase. The increase in operating cost between 2002 and 2003 seems rather large considering Kodak only increased its sales by almost 3 percent. Taking a further look, an analyst might have some concerns when looking over Kodak’s account payables and liabilities.
Comparative Ratio Analysis of Tootsie Roll Industries and Hershey Comapny A company’s general financial picture can be determined through a ratio analysis. Financial ratios have proved to be a useful tool for management, investors and creditors. Management uses financial ratios to develop ways to improve operating efficiency strategies for future growth and see how they stack up against the competition in their industry. Creditors and investors analyze ratios to determine a company’s financial strength and operating effectiveness in order to loan money or invest in them. Financial ratios have more impact when compared over several years to help identify trends.
SciTronics had $ 75,000 of owners’ equity and earned $ 14,000 after taxes in 2008. Its return on equity was 18.67% an improvement from the 8.2% earned in 2005. Activity Ratios: How well does the company employ its assets? 1. Total asset turnover for SciTronics in 2008 can be calculated by dividing $ 244,000 into $ 159,000.
Financial Statements ACC280 Name March 11, 2010 Instructor Financial Statements Accounting is used to track an organization’s funds as well as organize the financial data for users to analyze. Financial statements are the key to understanding an organizations financial well-being. It presents the organization’s historical and potential financial performance that will assist the organization in making informed decisions. The four basic financial statements are in an organization’s annual report. Each of the four statements provides important organizational financial data for any user internal or external to analyze.
Tolerance level 68.26%=118.14 - 150.86 (134.5 +/- 16.36) Tolerance level 95.44%=101.78 – 167.22 (134.5 +/- 32.72) Tolerance level 99.73%=85.42 – 183.58 (134.5 +/- 49.08) C. If a member of the sales force submits an entertainment expense (dinner cost for four) of $190, should this expense be considered unusually high (and possibly worthy of investigation by the company)? Explain your answer. I would have to say that it is considered high because it surpasses three standard deviation over the sample mean. This means that this number is highly skewed to the right. D. Compute and interpret the z-score for each of the six entertainment
Income Statement and Related Footnotes a. Is the general format of the income statement closer to single-step or multiple-step? The general format of the income statement is closer to multiple-step. b. Income Statement figures for the most recent fiscal year Cost of goods sold Amount | Percentage of total revenue | $47,860,000,000 | 68.50% ($47,860,000,000/$69,865,000,000) | Reference: Consolidated Statements of Operations, Form 10-K, Page 31.
Budgeting is the foundation of every financial plan of operation. A sound budget comes from understanding how much money you have, where it goes, and then planning how to best allocate those funds for a company. A financial budget is a financial plan that is structured to note projections on incomes and expenses on both a long and short term basis. Budgets incorporate budgeting strategies for a period of at least one year, although in some case organizations may prepare a budget to cover from anywhere to two to five years at a time. (Tatum, 2012) There are numerous reasons that a budget is important.
a. The beginning retained earnings balance on the statement of retained earnings becomes the amount of retained earnings reported on the balance sheet. b. Retained earnings is added to total assets and reported on the balance sheet. c. Net income increases retained earnings on the statement of retained earnings, which ultimately increases retained earnings on the balance sheet.
A total rise of 240.72%. The annual growth per annum is 18.18% for 1987 to 1988, 16.39% for 1988 to 1989, 14.89% for 1989 to 1990, 13.79% for 1990 to 1991, 12.85% for 1991 to 1992, 12.06% for 1992 to 1993, 11.41% for 1993 to 1994, 10.84% for 1994 to 1995, 10.38% for 1995 to 1996 and 9.92% for 1996 to 1997. | |EBIT |Depreciation |Capex | | |Annual Growth Rates: |1,045 |1,05 |1,02 | | |Year |EBIT |Depreciation |Capex |Cash Flow | |1987 |82,40 |42,10 |79,60 |16,06 | |1988 |86,11 |44,21 |81,19 |18,98 | |1989 |89,98 |46,42 |82,82 |22,09 | |1990 |94,03 |48,74 |84,47 |25,38 | |1991 |98,26 |51,17 |86,16 |28,88 | |1992 |102,69 |53,73 |87,88 |32,59
In 2003 Jeffrey Immelt received a total of 7403435 in annual compensation as well as 4176576 worth of exercised SAR’s, totaling 11580011 of cash. Out of that, 4.325 million (cash bonus) came as subjective compensation. Both, subjective award and a prespecified performance-based award schemes have their upsides and downsides. But in one particular aspect, a subjective award has an advantage. Imagine a manager, who knows that things are not going to be good this year for the company.