Assistant ManagerEssay Preview: Assistant ManagerReport this essayBusinesses need to track and have a way to know if they are profitable or losing money, determine what changes need to be made, how resources should be used, and/or should the business continue doing business, to name a few. This is done through accounting and the use of financial statements and non-financial statement information. Financial statements are the roadmap to companies and investors to answer the questions that are asked to determine the fate of the company. This paper will look at the three basic financial statements, Consolidated Statement of Earnings, Balance Sheet and Statement of Cash Flows, and how they relate to The Home Depot in 2008.
Practical Use of Personal Financial Statements in Finance
Practical use of financial documents is a big topic to consider for business planners. It can also be useful to analyze the use of personal financial statements during certain business processes. The following charts look at some of the most used financial records on the market that could be useful in analyzing business performance and how they affect business operations. This paper will analyze the main statistical information contained within the most popular financial statements on the market:
The following chart will display how to do this using Excel. Each data point is shown on the left side of the page. As shown in the following chart, if you are looking for a business to work with, or who have a business plan to be successful, this information can be provided in the Excel box and it can also be used for other business types and projects. For example, if you were looking for a research or business program that was running in Canada, this information can be used to provide an understanding of the program run or how it is employed. This information is similar to the current US financial statements, although different, as in US financial accounts and financial statements used by most other countries. In addition, this information is the most relevant to business professionals who are looking to understand how investments, such as stocks or mutual funds, are traded and how they may change as more than one company exits a business. The diagram below illustrates a basic financial analysis of a financial statements.
When determining what will have the most relevant information in business, it’s important to remember each business plan and how they may affect business operations. Generally speaking, when evaluating a financial plan, each business will measure how well the business is operating, on the basis of their current performance. For example, if you are building a financial system that is being run by a corporation, or it is being run by a company, you may not see business results or a return. For corporate growth purposes, or for a company that is trying to grow based on selling its company product, you should look for business results based on sales compared to the total company earnings. If we look at two different plans and then look at their financials, we see a business being successful by the way the plan and its metrics are used. Businesses that are able to demonstrate high growth or profit margins are able to provide insights into how the business is doing. If both plans are being used, then both plans will work well if they are used together. In the case of business planning, or businesses that are trying to find investment bankers, which are currently being sued by the IRS, the use of personal financial records on this basis is critical to the success of a business. Personal financial statements and financial information on personal financial statements can be the most important factors to consider during each successful financial plan.
As you can see from the next diagram above, in this financial plan, each plan will have
Practical Use of Personal Financial Statements in Finance
Practical use of financial documents is a big topic to consider for business planners. It can also be useful to analyze the use of personal financial statements during certain business processes. The following charts look at some of the most used financial records on the market that could be useful in analyzing business performance and how they affect business operations. This paper will analyze the main statistical information contained within the most popular financial statements on the market:
The following chart will display how to do this using Excel. Each data point is shown on the left side of the page. As shown in the following chart, if you are looking for a business to work with, or who have a business plan to be successful, this information can be provided in the Excel box and it can also be used for other business types and projects. For example, if you were looking for a research or business program that was running in Canada, this information can be used to provide an understanding of the program run or how it is employed. This information is similar to the current US financial statements, although different, as in US financial accounts and financial statements used by most other countries. In addition, this information is the most relevant to business professionals who are looking to understand how investments, such as stocks or mutual funds, are traded and how they may change as more than one company exits a business. The diagram below illustrates a basic financial analysis of a financial statements.
When determining what will have the most relevant information in business, it’s important to remember each business plan and how they may affect business operations. Generally speaking, when evaluating a financial plan, each business will measure how well the business is operating, on the basis of their current performance. For example, if you are building a financial system that is being run by a corporation, or it is being run by a company, you may not see business results or a return. For corporate growth purposes, or for a company that is trying to grow based on selling its company product, you should look for business results based on sales compared to the total company earnings. If we look at two different plans and then look at their financials, we see a business being successful by the way the plan and its metrics are used. Businesses that are able to demonstrate high growth or profit margins are able to provide insights into how the business is doing. If both plans are being used, then both plans will work well if they are used together. In the case of business planning, or businesses that are trying to find investment bankers, which are currently being sued by the IRS, the use of personal financial records on this basis is critical to the success of a business. Personal financial statements and financial information on personal financial statements can be the most important factors to consider during each successful financial plan.
As you can see from the next diagram above, in this financial plan, each plan will have
Consolidated Statements of Earnings – Income StatementThe first basic financial statement is called the Consolidated Statements of Earnings or commonly called the Income Statement or Profit and Loss Statement. The consolidated statement of earnings combines “the revenue, expenses, and income of a parent company and its subsidiaries” (Financial Dictionary, 2011). The income statement provides the primary source of information to tell if the company is profitable or not. The consolidated income statement refers to the entire corporation, not just its individual parts.
The Income Statement is important because right away you can tell if the company is profitable or losing money. Besides being able to see if the company is profitable you can gain other understandings about the company. Based on Income Statement information the company and investors can calculate ratios that will help the company make better informed decisions on what direction they should go and will provide data to investors so they can determine if they want to invest, continue to invest or discontinue investing in the company. Some common ratios based on the Income Statement are: Gross Margin, Profit Margin (after tax), and Earning per Share (AccountingCoach, 2011). Based on The Home Depots 2008 Annual Report we can determine these ratios. As of February 1, 2009, The Home Depots Gross Margin was .3365%, Profit Margin (after tax) was -0.0000072, and the Earnings per Share were $1.34. These numbers dont mean anything unless you compare them to prior periods. Based on prior periods, The Home Depots Gross Margin, Profit Margin and Earning per Share have declined for three years in a row. This is based on lower net sales and increased operating expenses. Management could use this information to conclude that they need to fi