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Starbucks 2014 Annual Report
Income Statement
Net Revenues
Cost of sales
Gross margin
Store operating expenses
other operating expenses
D & A Exp
G&A Exp
Litigation Charge
#DIV/0!
Total Operating Expenses
Income from Equity Investees
Operating Income
Interest income
Interest Expense
Earnings before taxes
Income tax expenses
Net Earnings
The vertical analysis shows some interesting things. First that the bottom line reveals basically nothing -- the net income in 2013 is entirely a reflection of the litigation charge for a lawsuit the company lost. So to understand the actual trend in the business one… Continue Reading...
& Decisions, n.d.; Slideshare, n.d.).
Recommendations
It is clear from the income statements and common sense that the owner will have to commit to raising volume before he can quit his job and do the book sales full-time. Indeed, there is a wide margin between the original scenario and the two projections. Both of the projections yield a profit, albeit not enough to live off of. The need to raise volume stems from the fact that the amount of overhead in question is rather high. Unless it is reasonable and practical to lower the amount of overhead without sacrificing quality and… Continue Reading...
still collect user location information after the feature has been disabled.
Analysis of Apple Income statements and Balance Sheets and Microsoft
Apple operates in highly competitive business environments, and the top competitors are Samsung, Microsoft, Hewlett-Packard, Dell, and Nokia. The study selects Microsoft as the top competitor of the Apple Inc. and to carry out the competitive analysis. Microsoft Corporation is an American multinational company specializing in manufacturing and marketing of the smart phones, computer, software and computing devices. Both Apple and Microsoft are listed in the major U.S. stock exchanges and raise funds by selling shares to the public. (Microsoft Corporation, 2015). Table… Continue Reading...
the cash flow statement in order to augment one's analysis of the income statement, owing to this quirk in the way that leases are recognized.
Accounting Policy #1 – Revenue Recognition
Tesla recognizes revenue under the following condition – where evidence of an arrangement exists, where delivery has occurred and there are no uncertainties with respect to customer acceptance, where the pricing or fees are fixed or determinable and where collection is reasonably assured. One point that is different from many automobile companies is that where delivery has occurred. This is because Tesla delivers to the end consumer, not a dealership, and… Continue Reading...
on balance sheets, the statement of changes, the statement of cash flow, and the income statement. Financial accounting is mainly used as a representation of the financial health of an organization to the stakeholders. The audience of financial accounting includes board of directors, financial institutions, and the stakeholders. The financial accounting presents a specific period in the history of the organization. The information helps the audience to review the performance of the company (Needles, Powers, & Crosson, 2013).
Managerial Accounting
In contrast, managerial accounting focuses on the provision of information inside the company to ensure that the management can operate effectively. Management accounting is… Continue Reading...
offline. Most of all, Netflix continues to grow and develop their streaming services not only locally but also globally (Netflix, 2018).
Recent Financial Performance
Consolidated Income Statement Analysis
The income statement is a financial statement that demonstrates the revenue generated, the expenses incurred and the resulting profit or losses of an entity for a particular time period. These financial statements are fashioned for managers within the entity to report the financial status of business operations in the course of the financial year. The income statement divulges how profitable an entity is and whether there is the expectation of financial growth and profitability in the future. It reveals to the external stakeholders whether investments in such… Continue Reading...
by Netflix, Inc. will increase gradually for the next three financial years. In 2018, the company generated a net income of $1.21 billion. It is projected that this amount will increase to $1.47 in 2019, further up to $2.141 in 2020 and further up to $3.20 billion in 2021.
The illustration in Appendix I below shows the projected consolidated income statement for Netflix, Inc. for the next three financial years.
Part B
Projections for best and worst case scenario
Over the past five years, the investors of Netflix Inc. have seen a 565 percent return. During the same period, the corporation was able to increase its annual sales threefold (Bylund, 2018). Best case scenario, it is expected that the performance of the company will be even better and surpass these expectations. In the past year, Netflix spent $8 billion on content. Therefore, in the best case scenario is expected… Continue Reading...
knowledge. Nor does a nonprofit have to produce an income statement, which must be provided by a for-profit entity, showing the for-profit’s “gains, losses, revenue and expenses” (“Differences Between,” 2014, par.2). Instead, a nonprofit is responsible for creating a statement of its financial position, which merely outlines its net assets; a nonprofit is also required to prepare a statement of activities, which states its total revenue and sources of revenue, minus its itemized expenses (“Differences Between,” 2014).
Q3. Explain if nonprofit organizations need to file tax returns in the USA?
Many nonprofit organizations are still not exempt from filing… Continue Reading...
lease records with respect to the IAS 17 Leases. The implication of this is that the company recognized and reported the lease rental payments in the Income Statements as an expense against the lease contract. In essence, at this time, there was no recognition of right of use asset as a condition. Therefore, as a potential BonneSante investor or creditor at the time, it would have been incapable to classify the liability against the lease rental payments from the balance sheet. Therefore, they were experiencing issues in ascertaining the debt-to-equity ratio of… Continue Reading...
events, something that is the case with BizCon (Accounting Tools, 2017).
The 180 financing, for example, appears as revenue on the income statement (accrual) but the cash has not yet been received. The insurance that was purchased in advance is a cash flow, but the insurance is not reported in accrual accounting as having been purchased. The cash goes down but the balance sheet shows prepaid insurance as an asset as well, so there is a slight distortion there in that the value of assets doesn\\'t change, when via cash basis it would have because of the decrease in cash.
The delayed wage payments are a current liability on the balance… Continue Reading...
How should the $25 Referral Credit be recorded in Runway's income statement?
In accordance to ASC 605-50-45 Revenue Recognition, a cash consideration handed to a consumer by a vendor or retailer is deemed a decrease in the selling prices of the products or services retailed. This would imply that these cash considerations would be deemed as an expense and a decline in the revenue to be generated by the vendor. Nonetheless, the cash consideration can be deemed as an expense if it solely meets two requirements. First, the cash consideration has to give rise to an identifiable benefit that is… Continue Reading...
1. How should the $25 Referral Credit be recorded in Runway's income statement?
In accordance to ASC 605-50-45 Revenue Recognition, a cash consideration handed to a consumer by a vendor or retailer is deemed a decrease in the selling prices of the products or services retailed. This would imply that these cash considerations would be deemed as an expense and a decline in the revenue to be generated by the vendor. Nonetheless, the cash consideration can be deemed as an expense if it solely meets two requirements. First, the cash consideration has to give rise to an identifiable benefit that is… Continue Reading...
in business decision-making and the management and control of operations. The financial statements reported by a company include the income statement, balance sheet, statement of retained earnings and statement of cash flows. Globally, there are two sets of accounting standards, the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS). In particular, the GAAP are more often than not employed in the United States whereas IFRS are more often than not employed in Europe and international expanses. IFRS are regarded as being more principles-based and U.S. GAAP as being more rules-based. The establishments responsible for setting the IFRS and GAAP are the International Accounting Standards Board (IASB)… Continue Reading...
