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How can you determine the annual sales of a company by looking at the financial statements?
Wiki User
∙ 14y ago
Generally sales are listed on the Income Statement. The Income Statement is the financial statement that the company uses to find it's Net Profit or Loss. This includes all sales, minus cost of goods sold, allowances for returns, expenses and other accounts that affect the bottom line.
Wiki User
∙ 14y ago
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Is castle arch real estate investment company financially sound?
I think answer to that question is obvious from looking at their financial statements, which are available on EDGAR(the sec website).
Who are the Users of financial reports?
Almost everyone at some point will use or come in contact with some form of financial "report" or financial statement.To take a look at the personal aspect of it, open a bank statement, a bill of some sort, look at your tax form, these are all forms of financial reports.Looking on the business end of it many people use financial reports to determine the standing of a company, whether a small mom and pop business or a large corporation, financial reports are very important to the life of a business. Looking at the financial reports of a business can help determine how good (or bad) a business is doing. Investors, whether banks, private, or even stockholders, can determine if a business is worth the risk of investing into.Small business owners, managers and even CEO's of large Corporations use financial statements to determine where their business stands and how to proceed in the years to come. Can they afford to hire new employee's or do they need to cut back? Can they expand their business, how much can they spend on supplies, etc. They also use financial statements to for Tax Purposes.
What is the difference between group financial statements and company financial statements?
group is multiple you see. EDIT: Often an organisation will release both a group statement and a company statement. Group refers to the company in question and all its subsidiary holdings. This is because users of financial statements might want to know how the companies "core" operations are going as opposed to looking at the group statement which could have profits boosted by a different operation etc. Edit2: There is only a difference between the two statements for firms that hold shares in subsidiaries. A subsidiary is a company that the parent company has control over, usually (but not necessarily) when the parents holds more than 50% of the shares. In the company statements a financial interest in a subsidiary is shown as a line item ('subsidiaries') on the balance sheet. Depending on the valuation method used, dividends received or a profit share can be included in the income statement. (depending whether the cost method or equity method is used) In the group financial statement (also called consolidated financial statement) the item subsidiaries is no longer included. Instead, the underlying assets and liabilities of the subsidiaries are shown. Similarly for the income statement, the subsidiaries expenses and revenues are included. The group statements are usually informative, while the company statements provide little information. For example, the balance sheet of a listed company which is a holding company will have subsidiaries as its main asset (hence a single item as its assets). The consolidated balance sheet will show the actual assets (PPE, inventories, cash, etc) of the various subsidiaries. (Same principle for income statement).
What is the purpose of financial information?
Financial information is very important to the board of directors and to investors. In fact, if a company is on the stock exchange the financial records must be made public and be provided to the board of directors. Financial information basically tells the public how well or how poorly they have been doing over the year. An accountant can take information provided on the financial statements and determine things like rate of return, how much of the sales are going to cost of goods sold, and inventory turn over. Someone can even tell if a company is able to pay their bills or not. Did you know that a company can have a net income and still not pay their bills? You can find that out by looking at the Statement of Cash Flows. This is because a company have had a lot of sales but was tied up in accounts receivable or in unexpected expenses. Also financial statement shows trends from year to year. A large increase in plant assets and in cost of goods sold could indicate company growth. This will be a time when people many consider investing in a company. Also, financial statements are presented when a company turns to a bank for loans. The bank wants to see how the company is doing and what the money will be used for.
Why is accountancy important in business firams?
Accountancy is extremely important to business firms for several reasons. It is important for businesses to keep track of its assets and liabilities to determine whether or not the company is being efficient. Accountancy puts all of this information on paper in a neat and orderly manner (in financial statements) that makes it easy to analyze. Accountancy is especially invaluable to any potential investors. (As a business, having investors can be crucial to the growth of the business.) Investors want to know if the business is worth their time and money. Accountancy allows investors to make judgments and decisions about a company simply by looking at the business firm's financial statements.
Who determines fault in auto accident?
Insurance companies determine fault by looking at police reports, taking statements from the parties involved and witnesses, and looking at the vehicles.
Why are the management interested in a financial statement?
well a financial stat is one where we get to know all or possibly most of activities and details ........so managers will take in interest in these statement(trading,p&l,appropriation ,cash flow n balance sheet) to take corrective measures or to forecast for the future.
Who would use an investment bank?
A company or government looking to raise capital through the financial markets; a company looking to hedge its risk; a company seeking advice on a merger/acquisition.
Why do you need to prepare financial statement?
Employees can also be potential investors and they may need the financial statements in order to decide whether or not it would be prudent to invest in the company. Also if they need to negotiate wages, they can use the financial statements to prove that the company can afford to increase their wages. It also helps employees to see the stability of the company (for example if the company is going to sink, they will be able to pre-empt the fact that they might not be around for much longer and be able to start looking for jobs elsewhere)
Why are common sized income statements used?
Common size statements are used to facilitate the comparison of operating results of different businesses. For example, if one company is 1/3 the size of another in terms of revenue, looking at the raw dollars doesn't help much. Common size statements put the numbers as percent of revenue, thereby making it easier to compare the financial results of the businesses.
What is difference between audited and unaudited balance sheet?
i was looking for the same answer.... so9 here it goes..A financial audit, or more accurately, an audit of financial statements, is the verification of the financial statements of an entity. The opinion is intended to provide reasonable assurance that the financial statements are presented fairly, in all material respects, and/or give a true and fair view in accordance with the financial reporting framework (the GAAS requirements)ANDAn unaudited financial statement is that which an auditor has prepared, but not according to the Generally Accepted Auditing Standards (GAAS). Auditors preparing unaudited statements are required to issue a disclaimer stating that they are not rendering opinions and that the statement does not abide by the GAAS.hope it helped clear the difference!!:)
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