Both of these are in turn split into current assets and other assets. In terms of current assets, all three companies include inventory, cash and cash equivalents and receivables, while the liabilities cover short- and long-term debt, as well as the shareholders' equity.
The cash flow statement includes the three different categories, cash flows from operating activities, cash flows from investing activities and cash flows from financing activities.
In order to be able to properly evaluate, we need to mention that the net income "measures business revenues vs. expenses." In this sense, the income statement provides the best expression and explanations on how the business is actually performing, what could or should be improved.
On the other hand, the net cash from operating activities simply records how much money is received from customers, other firms, etc. In this sense, the two notions are similar to the accrual vs. accounting dilemma, with a strong recommendation for the former, as a better indicator of the overall health of the company.
In terms of prediction, its is quite difficult to make evaluations without calculating fundamental financial ratios that determine whether the company has a healthy short-term solvability (current ratio) or the overall profitability of the company (return on investment). On the other hand, the three companies seem to be performing well, with strong spending on the research and development side, a trend which is also proven by some of the chairmen's declarations in the annual report.
Bibliography
2. What are Generally Accepted Accounting Principles?. On the Internet at http://www.allbusiness.com/articles/content/17954.asp
3. Trading Glossary. On the Internet at http://www.trading-glossary.com/h0056.asp
4. Klinefelter, Danny; McCorkle, Dean (2003). Financial Management: Cash vs. Accrual Accounting. Agricultural Communications, the Texas a&M University System. On the Internet at http://trmep.tamu.edu/cg/factsheets/rm5-16.html
http://ir.exxonmobil.com/phoenix.zhtml?c=115024&p=irol-irhome
6. http://www.ford.com/en/company/investorInformation/companyReports/annualReports/default.htm
http://www.microsoft.com/msft/ar.mspx
What are Generally Accepted Accounting Principles?. On the Internet at http://www.allbusiness.com/articles/content/17954.asp
Trading Glossary. On the Internet at http://www.trading-glossary.com/h0056.asp
Klinefelter, Danny; McCorkle, Dean (2003). Financial Management: Cash vs. Accrual Accounting. Agricultural Communications, the Texas a&M University System. On the Internet at http://trmep.tamu.edu/cg/factsheets/rm5-16.html
Financial Statements - an introduction. College of Business and Economics. Western Washington University. On the Internet at http://www.cbe.wwu.edu/SBDC/resources/articledetail.asp?RecordID=10
An increase in the number of businesses, changing financial laws and regulations, and increased scrutiny of company finances will drive growth. In addition to openings resulting from growth, the need to replace accountants and auditors who retire or transfer to other occupations will produce numerous job openings in this large occupation." Following a slew of recent accounting scandals (does Enron ring a bell?), federal legislation was passed to increase penalties,
In addition, there is no requirement, per se, for a master's degree; Within the total hour requirement, 36 semester hours of accounting and/or tax courses above the principles level and 39 semester hours of general business courses, including six semester hours in business law (Uniform CPA Exam). The Uniform CPA Examination consists of four sections: Auditing and Attestation (AUD), Business Environment and Concepts (BEC), Financial Accounting and Reporting (FAR) and
deceitful profession, certified public accountants would most certainly not be the first to come to mind. That is because CPAs are known and respected for their honesty. The profession goes out of its way to project that image, and there is a certain amount of truth to it. However, not all CPAs are squeaky clean and respected for their honesty. Some are quite dishonest and are putting a black
American Institute of Certified Public Accountants (AICPA) pioneered and mulled over a set of standards for auditing professionals. These eventually became recognized as the 10 generally accepted auditing standards. The 10 generally accepted auditing standards fall under three main categories: General standards -- Audits must be executed by a qualified and adept auditor. All matters relating to the project should be addressed with autonomy in mental attitude. Professional care is to be
Another challenge facing the industry today is the important legal issues that surround the Sarbanes-Oxley Act (Koehn & Del Vecchio, 2004). One of these is the fact that the process of due diligence practiced by many companies is now taking much longer (Koehn & Del Vecchio, 2004). There is a higher degree of caution than was previously utilized and because of this many companies are discovering information that would have
This role is in response to clients' demands for a single trustworthy individual or firm to meet all of their financial needs. However, accountants are restricted from providing these services to clients whose financial statements they also prepare." (U.S. Department of Labor, Bureau of Labor Statistics, 2009) 1. Public Accounting The work entitled: "The Reality of the CPA's Role" states that modern CPAs work "behind the scenes as trusted advisors in
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now