Notesale: Turn your study into money

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ALWAYS  THE  HEADING:  
Company  Name  
Statement  Name  
Proper  Dating  
(Degree  of  Rounding)  

BALANCE  SHEET  

INCOME  STATEMENT  –  all  about  the  w ork  done  
Net  Sales  Revenue  ($)    -­‐          
Cost  of  Goods  Sold  ($)    -­‐  
Gross  Profit  ($)    =        -­‐  
Operating  Expenses:  
Selling  Expenses  ($)    +  
General  and  Administrative  ($)    +  
Depreciation  and  Amortization  ($)    +  
Total  Operating  Expenses    ($)    =      -­‐  
Operating  Profit  ($)      =  
Non-­‐operating  Items:  
Interest  Expense  ($)  
Interest  Revenue  ($)  
Rent  Revenue  ($)  
*Earnings  Before  Income  Taxes  ($)    -­‐    
Income  Tax  Expense  ($)    -­‐  
Net  Earnings  ($)    =      +  
Other  Comprehensive  Income,  net  of  Tax  ($)      +  
Total  Comprehensive  Income  ($)      =  
Per  Share  of  Common:  
Earnings  Per  Share  ($)  
Cash  Dividends  per  Share  ($)  

pd  
ASSETS  
Current  Assets:  
 
Cash  ($)  
 
Short-­‐Term  Investments  ($)  
 
Accounts  Receivable  ($)  
 
Inventories  ($)  
Prepaid  Expenses  ($)  
Total  Current  Assets    ($)      +        
Long-­‐Term  Investments    ($)  +  
Property,  Plant  &  Equipment    ($)    +  
Intangible  Assets:  
Goodwill  ($)  
Patent  ($)  
Trademarks  ($)  
Other  Intangibles,  net  ($)  
Total  Intangibles  Assets    ($)      +  
Total  Assets    ($)    =  
LIABILITIES  
Liabilities  &  Stockholders’  Equity:  
Current  Liabilities:  
Notes  Payable/Short-­‐Term  Borrowings  ($)  
Current  Portion  of  Long-­‐Term  Debt  ($)  
Accounts  Payable  ($)    
Accrued  Liabilities/Expenses  ($)  
Total  Current  Liabilities    ($)  +  
Long-­‐Term  Liabilities:  
Long  Term  Debt  ($)  
Other  Liabilities  ($)  
Total  Long-­‐Term  Liabilities    ($)  +  
Total  Liabilites    ($)    =    +  
Stockholders’  Equity:  
Common  Stock  ($)  
Additional  Paid-­‐In  Capital  ($)  
Retained  Earnings  ($)  
Accumulated  Other  Comprehensive  Income  ($)  
Treasury  Stock  (negative)  ($)  
Total  Stockholders’  Equity    ($)      +  
Total  Liabilities  and  Shareholder’s  Equity  ($)  
=  
 

OTHER:  
Current  Liability:  Income  Taxes  
Payable,  Interest  Payable  
Current  Asset:  Interest  Receivable,  
Marketable  Securities  
Prop,  Plant,  Equip:  Accumulated  
Depreciation  

 

(*):  See  Formulas  

Statement  of  Cash  
Flows  
Operating  –  receiving  
money  from  customers,  
paying  for  expenses  
Investing  –  if  it  has  to  do  
w/  long  -­‐term  assets  
(investing,  buildings,  
equipment,  and  patents)  
Financing  –  borrowing  
money  (banks),  selling  
stock/dividends  
 
 
 
 
 
 
 
Cash  Basis  
Inflows  à  As  cash  
received    
Outflows  à  As  cash  paid  

Accrual  Basis  
Revenue  à  Services  
provided/revenue  earned  
Expenses  à  As  assets  and  
services  used,  cash  is  paid  
 
Statement  of  Financial  Position  
Balance  Sheet  
Liquidity-­‐meets  short  term  
debts  
Assets/Liability/Equity-­‐
economic  resource  
Creditor,  owner  claims  
Comprehensive  Income   Profitability  
Statement  
Basic  EPS  
Revenues/Expenses  
Net  Earnings/Comprehensive  
Income  
Statement  of  Equity  
Owners  -­‐  Equity  dividends  
Cash  Flows  
Actual  money  received  or  paid  

Revenues,  Expenses  and  Related  Items      (Practice  page  5)  
Inventory:  See  Formula  
Revenue  &  Amount  of  Revenue  Recorded:  Date  on  day  the  product  changed  ownership,  
amount  is  check  received  (not  necessarily  the  same  date)  
Expense  &  Amount  of  Expense  Recorded:  Date  on  d ay  the  product  changed  ownership,  
same  amount  as  inventory,    
 
 
 
 
 
(Practice  page  8)  
-­‐ Formula  =  Monthly  Fee  *  Amount  of  Months  the  Service  was  Provided  
-­‐ Accounts  Receivable  could  be  $-­‐0-­‐    
-­‐ Unearned  Fees  Revenue:  See  Formula  

KEY  TERMS  
Assets:  Operating  expenses
...
 Difference  between  
amount  earned  &  amount  spent  
Retained  Earnings:  Net  earnings  not  paid  out  as  
dividends  
Revenue:  Income
...
 Balance  
sheet  
Working  Capital:  Increase/Decrease  total  amount  of  
coverage  –  current  liabilities  provided  by  current  assets  
 

MARGIN  MEASUREMENTS  
Gross  M argin  =  Gross  Profit/Net  Sales  
Net  Margin  =  Net  Income  –  Net  Sales  
Operating  Margin  =  Operating  Profit/Net  Sales  
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
FORMULAS  
Accounts  Receivable  =  Invoice  –  Received  
Accum
...
 Inc  =  Beginning  Accum
...
 Comp

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