Financial Reporting on the Internet (Ametek, Inc.) Essay

Open, View, and/or
Download this Document

Total Length: 1062 words ( 4 double-spaced pages)

Total Sources: 3

Page 1 of 4

Financial Reporting on the Internet (AMETEK, Inc.)

The company's management as AMETEK observes in its 2012 annual report is responsible for not only the preparation but also the integrity of the financial statements and other related information (AMETEK, Inc., 2012).

As the company further points out in its annual report, its financial statements conform to the provisions of GAAP (AMETEK, Inc., 2012). The relevance of following the standard set of accounting policies cannot be overstated. To begin with, these standards come in handy in the enhancement of uniformity. As Warren and Reeve (2006) observe, this uniformity helps various stakeholders including but not limited to investors to compare one company against another. Confusion would most likely result were individual companies to prepare financial statements in different formats. It is also important to note that GAAP help in the standardization as well as regulation of accounting methods, assumptions, and definitions. For this reason, these standards play a very meaningful role in the reduction of the risk of error and fraud in the preparation of financial statements.

Q.3

Table 1: Comparison of Figures

2012 ($)

2011 ($)

Change ($)

2011 ($)

2010 ($)

Change ($)

Revenue

3,334,213

2,989,914

344,299

2,989,914

2,470,952

518,962

Operating Income

745,872

635,941

109,931

635,941

482,158

153,783

Net Income

459,132

384,464

74,668

384,464

238,932

145,532

All dollar figures are in thousands.

Based on the figures above, AMETEK seems to be expanding. This is more so the case given the impressive growth it registered in net income, revenue, and operating income within the three years under consideration.

Stuck Writing Your "Financial Reporting on the Internet (Ametek, Inc.)" Essay?

View All Our Example Financial Reporting on the Internet (Ametek, Inc.) Essay

Have A Custom Example Essay Written

The positive net income figures for the years 2012, 2011, and 2010 also clearly indicate that AMETEK is a profitable company. Given that the revenue figure has been on an upward trend within the three years under consideration, one could conclude that the three-year trend of revenues has essentially been favorable.

Q.4

Table 2: Accounting Equation

2012 ($)

2011 ($)

Total Assets

5,190,056

4,319,490

Total Liabilities

2,654,905

2,266,685

Total Shareholder's Equity

2,535,151

2,052,805

All dollar figures are in thousands.

As per the accounting equation, Warren and Reeve (2006, p.12), observe that:

Assets = Liabilities + Owner's Equity

From the above table, the summation of the total shareholder's equity and total liabilities gives us the total assets figure. This is the case for both years. For that reason, one could conclude that the accounting equation holds true for AMETEK. It should also be noted that AMETEK's balance sheet has been presented in a classified format. This is particularly the case given that the company divides both its assets and liabilities into distinct categories, in an attempt to ensure that the information presented is easily read. Under assets, we have current assets and long-term assets. On the other hand, under liabilities, we have current liabilities and long-term liabilities.

Q.5

Property, plant and equipment comprise of all those assets of a business entity that have physical existence, i.e. machinery, buildings, and vehicles. They are critical when it comes to the enhancement of.....

Show More ⇣

     Open the full completed essay and source list


OR

     Order a one-of-a-kind custom essay on this topic


sample essay writing service

Cite This Resource:

Latest APA Format (6th edition)

Copy Reference
"Financial Reporting On The Internet Ametek Inc " (2013, July 30) Retrieved June 4, 2026, from
https://www.aceyourpaper.com/essays/financial-reporting-internet-ametek-inc-93680

Latest MLA Format (8th edition)

Copy Reference
"Financial Reporting On The Internet Ametek Inc " 30 July 2013. Web.4 June. 2026. <
https://www.aceyourpaper.com/essays/financial-reporting-internet-ametek-inc-93680>

Latest Chicago Format (16th edition)

Copy Reference
"Financial Reporting On The Internet Ametek Inc ", 30 July 2013, Accessed.4 June. 2026,
https://www.aceyourpaper.com/essays/financial-reporting-internet-ametek-inc-93680
   

Open, View, and/or
Download this Document
order custom essay example