Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired...

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Financial Statements Financial Statements Income Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time of sale at time of sale at time of use at time of use fixed and variable fixed and variable Non Cash Items Non Cash Items

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Financial Statements The Balance Sheet Assets Assets Liabilities Liabilities Owner’s Equity Owner’s Equity Assets ≡ Liabilities + Owner’s Equity Assets ≡ Liabilities + Owner’s Equity This is an identity It always holds and is a check on the fundamental nature of who owns the business (assets)

Transcript of Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired...

Page 1: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Financial StatementsFinancial Statements

Income StatementsIncome Statements RevenuesRevenues Expenses (expired costs)Expenses (expired costs) Timing of recordingTiming of recording

at time of saleat time of saleat time of useat time of usefixed and variablefixed and variable

Non Cash ItemsNon Cash Items

Page 2: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Financial Statements Financial Statements

Prepare an Income StatementPrepare an Income Statement RevenuesRevenues

Sales Sales CostsCosts

OperatingOperatingNon Cash (Depreciation)Non Cash (Depreciation)Interest (Finance Charge)Interest (Finance Charge)TaxesTaxes

Net IncomeNet IncomeThe bottom line…but we want cash flow!The bottom line…but we want cash flow!

Page 3: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Financial StatementsFinancial Statements

The Balance SheetThe Balance Sheet AssetsAssets LiabilitiesLiabilities Owner’s EquityOwner’s Equity Assets Assets ≡≡ Liabilities + Owner’s Equity Liabilities + Owner’s Equity

This is an identityThis is an identityIt always holds and is a check on the It always holds and is a check on the fundamental nature of who owns the fundamental nature of who owns the business (assets)business (assets)

Page 4: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Financial StatementsFinancial StatementsPortions of the Balance SheetPortions of the Balance SheetNet Working CapitalNet Working Capital Current AssetsCurrent Assets Current LiabilitiesCurrent Liabilities LiquidityLiquidity NWC = Current Assets - Current LiabilitiesNWC = Current Assets - Current Liabilities

Debt versus EquityDebt versus Equity fixed claimsfixed claims residual claimsresidual claims

Page 5: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Financial StatementsFinancial Statements

Market Value versus Book ValueMarket Value versus Book Value

Page 6: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Financial StatementsFinancial Statements

Build from Current Assets and ClaimsBuild from Current Assets and Claims Current Assets (In order of conversion to cash)Current Assets (In order of conversion to cash) Long-term Assets Long-term Assets Current Liabilities (In order of anticipated Current Liabilities (In order of anticipated

payment of claim)payment of claim) Long-term LiabilitiesLong-term Liabilities Owner’s EquityOwner’s Equity Identity CheckIdentity Check

Assets = Liabilities + Owner’s EquityAssets = Liabilities + Owner’s Equity

Page 7: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Financial StatementsFinancial Statements

Cash FlowCash Flow the difference between accounting cash flow the difference between accounting cash flow

and financial cash flowand financial cash flow segments of cash flowsegments of cash flow

operationsoperationscapital spendingcapital spendingworking capitalworking capitalshareholders/bondholdersshareholders/bondholders

Importance of taxes and depreciationImportance of taxes and depreciation

Page 8: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Cash Flow From OperationsCash Flow From Operations

Textbook usesTextbook usesNet Profit + Net Profit +

DepreciationDepreciationThis is a special case This is a special case when you have no when you have no interest expenseinterest expenseThis later is wrong if This later is wrong if you want to do Cash you want to do Cash Flow StatementsFlow Statements

Correct ApproachCorrect ApproachEBIT + Depreciation – EBIT + Depreciation –

Taxes = Cash Flow Taxes = Cash Flow from Operationsfrom OperationsThen to get Cash Then to get Cash Flow Statement Flow Statement Correct you put Correct you put Interest Expense with Interest Expense with Cash Flow From Cash Flow From Financing ActivitiesFinancing Activities

Page 9: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Statement of Cash FlowsStatement of Cash FlowsCash Flow Statement in three partsCash Flow Statement in three parts

Cash Flow from Operating Activities:Cash Flow from Operating Activities:Cash Flow from Operations Cash Flow from Operations

(EBIT + Depreciation – Taxes)(EBIT + Depreciation – Taxes)Changes in Net Working CapitalChanges in Net Working Capital

Cash Flow from Investing Activities:Cash Flow from Investing Activities:Net Change in Gross Fixed Assets (Purchases and Sales)Net Change in Gross Fixed Assets (Purchases and Sales)

Cash Flow from Financing ActivitiesCash Flow from Financing Activities::Net Change in Debt (Sales and Retirements)Net Change in Debt (Sales and Retirements)Net Change in Common Stock (Sales and Purchases)Net Change in Common Stock (Sales and Purchases)Net Change in Preferred Stock (Sales and Purchases)Net Change in Preferred Stock (Sales and Purchases)Dividends PaidDividends PaidInterest ExpenseInterest Expense

Page 10: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Depreciation and Salvage CFDepreciation and Salvage CF

Depreciation using MACRSDepreciation using MACRS Life of AssetLife of Asset Depreciation Schedule (page 89)Depreciation Schedule (page 89) Assumption: No Salvage ValueAssumption: No Salvage Value

Disposal of Asset – Cash FlowDisposal of Asset – Cash Flow Full Depreciated AssetFull Depreciated Asset Partially Depreciated AssetPartially Depreciated Asset Short-cut…book value or basis for gain/lossShort-cut…book value or basis for gain/loss

Page 11: Financial Statements Income Statements Revenues Revenues Expenses (expired costs) Expenses (expired costs) Timing of recording Timing of recording at time.

Financial StatementsFinancial Statements

TaxesTaxes Corporate TaxesCorporate Taxes Personal TaxesPersonal Taxes User TaxesUser Taxes Sales TaxesSales Taxes Property TaxesProperty Taxes

Average Tax versus Marginal TaxAverage Tax versus Marginal Tax tax total divided by taxable incometax total divided by taxable income tax on the next dollar of earningstax on the next dollar of earnings


MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING€¦ · Total revenues 1,010,904 1,039,640 Operating costs and expenses Cost of revenues 760,248 780,948 Selling, general and

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Comprehensive Annual Financial Report 2012... · 2019-12-17 · Schedule of revenues and expenses - compared with final budget 66 – 68 Schedule of revenues and expenses - compared

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The Impact of Lottery Revenues on State Educational Expenses

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Revenues & 2004 – 2014 EXPENSES Division I...NCAA® Revenues / Expenses Division I Report • 2004 – 2014 5 Table of Contents 4.5 Net Generated Revenues by Gender 53 4.6 Net Generated

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First Presbyterian Church...2019/12/12  · Operating Revenues & Expenses for 2019 November YTD Revenues $39,235.24 $435,403.89 Expenses $48,136.01 $385,158.01 Difference -$ 8,900.77

First Presbyterian Church...2019/12/12  · Operating Revenues & Expenses for 2019 November YTD Revenues $39,235.24 $435,403.89 Expenses $48,136.01 $385,158.01 Difference -$ 8,900.77

Functional Classification of Expenses and Revenues Functional... · Functional Classification of Expenses and Revenues ... management and program support. ... Functional Classification

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Revenues and Expenses - NCAA.org€¦ · NCAA® Revenues / Expenses Division I Report 2004 – 2016 | 2 NATIONAL COLLEGIATE ATHLETIC ASSOCIATION P.O. Box 6222 Indianapolis, Indiana

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Financial Report of Revenues and Expenses 3rd …...Financial Report of Revenues and Expenses 3rd Quarter 2016 1300 Franklin Street · P.O. Box 5000 · Vancouver, Washington 98666-5000

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Top 10 Business Efficiency Tools to Increase Revenues and Reduce Expenses

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Chapter : Measurement and Reporting of Revenues and Expenses, Gains and Losses.

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FINANCIAL SUPERVISION AUTHORITY Annual report for 2005 · 4. 2005 report on revenues and expenses of the Financial Supervision Authority 20 4.1. Revenues and expenses 20 4.2. Explanatory

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Adopted Budget Cover - Steuben County€¦ · 2019 Budget Adopted Expenses Revenues Net Cost 2018 Budget - Adopted Expenses Revenues Net Cost Net Change % Change Comparative Budget

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Financial Report of Revenues and Expenses 4th Quarter 2011...Financial Report of Revenues and Expenses 4th Quarter 2011 1300 Franklin Street · P.O. Box 5000 · Vancouver, Washington

Financial Report of Revenues and Expenses 4th Quarter 2011...Financial Report of Revenues and Expenses 4th Quarter 2011 1300 Franklin Street · P.O. Box 5000 · Vancouver, Washington

FINANCIAL STATEMENT REPORT · Statement of Revenues, Expenses, and Changes in Net Position The Statement of Revenues, Expenses, and Changes in Net Position presents the College’s

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SPECIAL COUNCIL MEETING · 2019-06-06 · Total Expenses 2,502 Total Revenues 539 Net Expenses 1,963 Less Expenses Capitalised 592 Net Operating Expenses 1,371 Net Asset Purchases

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Financial Report of Revenues and Expenses 3rd Quarter 2017 · Financial Report of . Revenues and Expenses. 3rd Quarter 2017. 1300 Franklin Street · P.O. Box 5000 · Vancouver, Washington

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Wallace Renfro - Revenues and expenses

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nj m-jioapp1.lla.la.gov/PublicReports.nsf/7F1876C6AE0529638625775F0060… · Interest income Total revenues Expenses: General government Total expenses Change in net assets Net assets

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