The Portable MBA Series
The Portable MBA, Third Edition, Robert Bruner, Mark Eaker, R. Edward Freeman, Robert Spekman and Elizabeth Olmsted Teisberg The Portable MBA Desk Reference, Second Edition, Nitin Nohria The Portable MBA in Economics, Philip K.Y. Young The Portable MBA in Entrepreneurship, Second Edition, William D. Bygrave The Portable MBA in Entrepreneurship Case Studies, William D.
ART ONE UNDERSTANDING THE NUMBERS
1. Using Financial Statements John Leslie Livingstone 2. Analyzing Business Earnings Eugene E. Comiskey and Charles W. Mulford 3. Cost-Volume-Profit Analysis William C. Lawler 4. Activity-Based Costing William C. Lawler 5. Information Technology and You Edward G. Cale Jr. 6. Forecasts and Budgets Robert Halsey 7. Measuring
8 Understanding the Numbers
Nutrivite Projected Balance Sheet as of December 31, 200X Assets Cash Inventory Current assets Fixed assets: Equipment Less depreciation Net equipment Total assets $36,000 3,600 $32,400 32,400 $153,000 $ 40,600 80,000 120,600 Current liabilities Equity: Capital: Jan 1 Add net income Less drawings Capital: Dec 31 Liabilities and equity 40,000 100,000 84,000 (71,000) 113,000 $153,000 Liabilities and Equity Accounts payable $ 40,000
As you can see, Cash is increased ...
18 Understanding the Numbers
• Cash Equivalents are near-cash securities such as U.S. Treasury bills maturing in three months or less. • Accounts Receivable are amounts owed by customers and should be reported on the balance sheet at “realizable value,” which means “the amount reasonably expected to be collected in cash.” Any accounts whose collectibility is in doubt must be reduced to realizable value by deducting an allowance for doubtful debts.
28 Understanding the Numbers
EXHIBIT 1.1 Ratio Short-Term Liquidity Current ratio Quick ratio (acid test) Receivables turnover Inventory turnover Payables turnover Long-Term Solvency Interest coverage Debt to capital Profitability on Sales Gross profit ratio Operating expense ratio SG&A expense ratio EBIT ratio Pretax income ratio Net income ratio Profitability on Investment Return on total assets: Before tax After tax
38 Understanding the Numbers
or simply employing a fairly recent average value for the gains in making earnings projections. After 1996, Delta Air Lines disclosed little in the way of nonrecurring gains on the sale of f light equipment. Its 2000 annual report, which covered the years from 1998 to 2000, did not disclose any gains or losses on the disposition of f light equipment.
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from those that have been or are being discontinued. Only the discontinuance of operations that constitute a separate and complete segment of the business have normally been reported in this special section. The current segmentreporting standard, SFAS 131, Disclosures about Segments of an Enterprise and Related Information, identifies the following as characteristics of a segment: 1.
58 Understanding the Numbers
operating cash f low. This deduction may indicate either that no cash was collected in connection with recording this income or that the income is not considered to be an operating cash-f low item. The absence of a cash inf low is the more likely explanation. But should the $75,000 be seen as nonrecurring? If this were a one-time licensing fee, then it should be treated as nonrecurring in evaluating the $171,472 of 1998 net income.
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part of net income. With the other method, the translation adjustment will be reported as part of other comprehensive income.38 Foreign-currency gains and losses can also result from the use of various currency contracts, such as forwards, futures, options, and swaps, entered into for both hedging and speculation. It is not uncommon to observe foreign exchange gains and losses year after year in a company’s income statement.
The provision for income taxes differs from the amount computed by applying the U.S. statutory income tax rate to income before income taxes and cumulative effect of accounting changes for the reasons set forth below: 1995 Statutory income tax Nondeductible acquired in-process research and development charge Incremental effect of foreign operations 1992 .
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New England Business Services Inc. (1996) Noble Drilling Inc. (1991) NS Group Inc. (1992) Office Depot Inc. (1999) Osmonics Inc. (1993) Pall Corporation (2000) Petroleum Helicopters Inc. (1999) Phillips Petroleum Company (1990) Pollo Tropical Inc. (1995) Praxair Inc. (1999) Raven Industries Inc. (2000) Saucony Inc. (1999) Schnitzer Steel Industries Inc. (1999) Shaw Industries Inc. (1999) The Sherwin-Williams Company (1999) Silicon Valley Group Inc.
Kế toán tài chính : Xem xét rằng kế toán tài chính với mục đích là hướng tới một số lớn
những đối tượng bên ngoài., không ai kiểm soát được việc lập báo cáo thực tế hoặc có cơ
hội để biết được chi tiết.
168 Understanding the Numbers
continuing education, publications, and IRS forms. The home page for the Financial Management Association, located at www.fma.org, is another interesting site for financial executives. This site provides information on all of the association’s services with links to other pages. Computer hardware and software companies use the Web as a device for distributing software to users. As software device drivers change, users can download the new software over the Net.
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to resolve difficult issues, but it results in a budgeting framework that is much more likely to be effective since all business units proceed in a coordinated manner toward the achievement of a common objective. Even individuals need to understand their goals and objectives as they prepare budgets for their own activities.