Download Chapter 19 Transparencies

4 2 ! . 3 0! 2 % . # 9 n 3ECTION&OCUS
"%&/2%
9/5
2%!$
-AIN)DEA
/WNERSEQUITYINA
CORPORATIONISCALLED
STOCKHOLDERSEQUITY
2EADTO,EARNx
¢THEACCOUNTSUSEDTO
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
RECORDOWNERSHIPOFA
CORPORATIONP
¢THEQUALITIESEXPECTED
INFINANCIALSTATEMENTS
P
¢THEFINANCIALSTATEMENTSOF
ACORPORATIONP
+EY4ERMS
#APITAL3TOCK
STOCKHOLDERSEQUITY
RETAINEDEARNINGS
COMPARABILITY
RELIABILITY
RELEVANCE
FULLDISCLOSURE
MATERIALITY
4 2 ! . 3 0! 2 % . # 9 n "USINESS4RANSACTION
" U S I N E S S 4R A N S A C T I O N
/N*ANUARYSTOCKHOLDERSINVESTEDINEXCHANGEFORSHARESOFSTOCKOFTHECORPORATION2ECEIPT
!.!,93)3
)DENTIFY
#LASSIFY
4HEACCOUNTSAFFECTEDARE#ASHIN"ANKAND#APITAL3TOCK
#ASHIN"ANKISANASSETACCOUNT#APITAL3TOCKISASTOCKHOLDERS
EQUITYACCOUNT
#ASHIN"ANKISINCREASEDBY#APITAL3TOCKISINCREASEDBY
¥
)NCREASESTOASSETACCOUNTSARERECORDEDASDEBITS$EBIT#ASHIN"ANK
FOR
)NCREASESTOSTOCKHOLDERSEQUITYACCOUNTSARERECORDEDASCREDITS
#REDIT#APITAL3TOCKFOR
4!##/5.43
¥
$%")4#2%$)425,%
#APITAL3TOCK
#ASHIN"ANK
$EBIT
#REDIT
$EBIT
#REDIT
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
¥
*/52.!,%.429
'%.%2!,*/52.!,
$!4%
*AN
$%3#2)04)/.
0/34
2%&
0!'%
$%")4
#2%$)4
#ASHIN"ANK
#APITAL3TOCK
2ECEIPT
4 2 ! . 3 0! 2 % . # 9 n 3ECTION&OCUS
"%&/2%
9/5
2%!$
-AIN)DEA
!MERCHANDISERSINCOME
STATEMENTHASA#OSTOF
-ERCHANDISE3OLDSECTION
ANDACORPORATIONSINCOME
STATEMENTSHOWSINCOMETAX
EXPENSE
2EADTO,EARNx
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
¢HOWTOPREPAREAN
INCOMESTATEMENT
FORAMERCHANDISING
BUSINESSORGANIZEDASA
CORPORATIONP
¢HOWTOAPPLYVERTICAL
ANALYSISTOAFINANCIAL
STATEMENTP
+EY4ERMS
NETSALES
NETPURCHASES
GROSSPROFITONSALES
OPERATINGEXPENSES
SELLINGEXPENSES
ADMINISTRATIVEEXPENSES
OPERATINGINCOME
VERTICALANALYSIS
2EVENUE
3ALES
,ESS3ALES$ISCOUNTS
3ALES2ETURNSAND!LLOWANCES
.ET3ALES
/N9OUR-ARK!THLETIC7EAR
)NCOME3TATEMENT
&ORTHE9EAR%NDED$ECEMBER
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
4 2 ! . 3 0! 2 % . # 9 n &IGURE 4HE(EADINGAND
2EVENUE3ECTIONOFTHE)NCOME3TATEMENT
2EVENUE
3ALES
,ESS3ALES$ISCOUNTS
3ALES2ETURNSAND!LLOWANCES
.ET3ALES
#OSTOF-ERCHANDISE3OLD
-ERCHANDISE)NVENTORY*ANUARY
0URCHASES
0LUS4RANSPORTATION)N
#OSTOF$ELIVERED-ERCHANDISE
,ESS0URCHASES$ISCOUNTS
0URCHASES2ETURNSAND!LLOWANCES
.ET0URCHASES
#OSTOF-ERCHANDISE!VAILABLE
-ERCHANDISE)NVENTORY$ECEMBER
#OSTOF-ERCHANDISE3OLD
'ROSS0ROFITON3ALES
/N9OUR-ARK!THLETIC7EAR
)NCOME3TATEMENT
&ORTHE9EAR%NDED$ECEMBER
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
4 2 ! . 3 0! 2 % . # 9 n &IGURE )NCOME3TATEMENT
4HROUGH'ROSS0ROFITON3ALES
4 2 ! . 3 0! 2 % . # 9 n &IGURE /N9OUR-ARKS
#OMPLETED)NCOME3TATEMENT
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
/N9OUR-ARK!THLETIC7EAR
)NCOME3TATEMENT
&ORTHE9EAR%NDED$ECEMBER
2EVENUE
3ALES
,ESS3ALES$ISCOUNTS
3ALES2ETURNSAND!LLOWANCES
.ET3ALES
#OSTOF-ERCHANDISE3OLD
-ERCHANDISE)NVENTORY*ANUARY
0URCHASES
0LUS4RANSPORTATION)N
#OSTOF$ELIVERED-ERCHANDISE
,ESS0URCHASES$ISCOUNTS
0URCHASES2ETURNSAND!LLOWANCES
.ET0URCHASES
#OSTOF-ERCHANDISE!VAILABLE
-ERCHANDISE)NVENTORY$ECEMBER
#OSTOF-ERCHANDISE3OLD
'ROSS0ROFITON3ALES
/PERATING%XPENSES
!DVERTISING%XPENSE
"ANK#ARD&EES%XPENSE
)NSURANCE%XPENSE
-AINTENANCE%XPENSE
-ISCELLANEOUS%XPENSE
0AYROLL4AX%XPENSE
2ENT%XPENSE
3ALARIES%XPENSE
3UPPLIES%XPENSE
5TILITIES%XPENSE
4OTAL/PERATING%XPENSES
/PERATING)NCOME
,ESS&EDERAL#ORPORATE)NCOME4AX%XPENSE
.ET)NCOME
4 2 ! . 3 0! 2 % . # 9 n &IGURE #OMPARATIVE)NCOME
3TATEMENT3HOWING6ERTICAL!NALYSIS
/N9OUR-ARK!THLETIC7EAR
#OMPARATIVE)NCOME3TATEMENT
&ORTHE#URRENTAND0REVIOUS9EARS%NDED$ECEMBER
#URRENT9EAR
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
$OLLARS
2EVENUE
3ALES
,ESS3ALES$ISCOUNTS
3ALES2ETAND!LLOW
.ET3ALES
#OSTOF-ERCHANDISE3OLD
-ERCH)NVENTORY*AN
.ET0URCHASES
-ERCH!VAILABLEFOR3ALE
-ERCH)NVENTORY$EC
#OSTOF-ERCHANDISE3OLD
'ROSS0ROFITON3ALES
/PERATING%XPENSES
!DVERTISING%XPENSE
"ANK#ARD&EES%XPENSE
)NSURANCE%XPENSE
-AINTENANCE%XPENSE
-ISCELLANEOUS%XPENSE
0AYROLL4AX%XPENSE
2ENT%XPENSE
3ALARIES%XPENSE
3UPPLIES%XPENSE
5TILITIES%XPENSE
4OTAL/PERATING%XPENSES
/PERATING)NCOME
&ED#ORP)NC4AX%XP
.ET)NCOME
0REVIOUS9EAR
0ERCENT
$OLLARS
0ERCENT
4 2 ! . 3 0! 2 % . # 9 n 3ECTION&OCUS
"%&/2%
9/5
2%!$
-AIN)DEA
)NADDITIONTOTHEINCOME
STATEMENTACORPORATION
PREPARESTHESTATEMENT
OFRETAINEDEARNINGSTHE
BALANCESHEETANDTHE
STATEMENTOFCASHFLOWS
2EADTO,EARNx
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
¢HOWANDWHYASTATEMENT
OFRETAINEDEARNINGSIS
PREPAREDP
¢HOWTOPREPAREABALANCE
SHEETFORAMERCHANDISING
BUSINESSORGANIZEDASA
CORPORATIONP
¢HOWTOAPPLYHORIZONTAL
ANALYSISTOAFINANCIAL
STATEMENTP
¢ABOUTTHESTATEMENTOF
CASHFLOWSP
+EY4ERMS
STATEMENTOFRETAINED
EARNINGS
HORIZONTALANALYSIS
BASEPERIOD
CASHINFLOWS
CASHOUTFLOWS
OPERATINGACTIVITIES
INVESTINGACTIVITIES
FINANCINGACTIVITIES
#OPYRIGHT©BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
2ETAINED%ARNINGS*ANUARY
.ET)NCOME
2ETAINED%ARNINGS$ECEMBER
/N9OUR-ARK!THLETIC7EAR
3TATEMENTOF2ETAINED%ARNINGS
&ORTHE9EAR%NDED$ECEMBER
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
4 2 ! . 3 0! 2 % . # 9 n &IGURE 3TATEMENTOF2ETAINED%ARNINGS
4 2 ! . 3 0! 2 % . # 9 n &IGURE /N9OUR-ARKS"ALANCE3HEET
/N9OUR-ARK!THLETIC7EAR
"ALANCE3HEET
$ECEMBER
!SSETS
#ASHIN"ANK
!CCOUNTS2ECEIVABLE
-ERCHANDISE)NVENTORY
3UPPLIES
0REPAID)NSURANCE
$ELIVERY%QUIPMENT
/FFICE%QUIPMENT
3TORE%QUIPMENT
4OTAL!SSETS
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
,IABILITIES
!CCOUNTS0AYABLE
&EDERAL#ORPORATE)NCOME4AX0AYABLE
%MPLOYEES&EDERAL)NCOME4AX0AYABLE
%MPLOYEES3TATE)NCOME4AX0AYABLE
3OCIAL3ECURITY4AX0AYABLE
-EDICARE4AX0AYABLE
&EDERAL5NEMPLOYMENT4AX0AYABLE
3TATE5NEMPLOYMENT4AX0AYABLE
3ALES4AX0AYABLE
4OTAL,IABILITIES
3TOCKHOLDERS%QUITY
#APITAL3TOCK
2ETAINED%ARNINGS
4OTAL3TOCKHOLDERS%QUITY
4OTAL,IABILITIESAND3TOCKHOLDERS%QUITY
4 2 ! . 3 0 ! 2 % . # 9 n &IGURE #OMPARATIVE"ALANCE3HEET
3HOWING(ORIZONTAL!NALYSIS
/N9OUR-ARK!THLETIC7EAR
#OMPARATIVE"ALANCE3HEET
$ECEMBER#URRENT9EARAND0REVIOUS9EAR
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
#URRENT
9EAR
!SSETS
#ASHIN"ANK
!CCOUNTS2ECEIVABLE
-ERCHANDISE)NVENTORY
3UPPLIES
0REPAID)NSURANCE
$ELIVERY%QUIPMENT
/FFICE%QUIPMENT
3TORE%QUIPMENT
4OTAL!SSETS
,IABILITIES
!CCOUNTS0AYABLE
&ED#ORP)NC4AX0AYABLE
%MPLOYEES&ED)NC4AX0AY
%MPLOYEES3TATE)NC4AX0AY
3OCIAL3ECURITY4AX0AYABLE
-EDICARE4AX0AYABLE
&EDERAL5NEMPLOYMENT4AX0AY
3TATE5NEMPLOYMENT4AX0AY
3ALES4AX0AYABLE
4OTAL,IABILITIES
3TOCKHOLDERS%QUITY
#APITAL3TOCK
2ETAINED%ARNINGS
4OTAL3TOCKHOLDERS%QUITY
4OTAL,IABAND3TOCKHLDRS%QUITY
)NCREASE$ECREASE
#URRENTOVER0REVIOUS
0REVIOUS
9EAR
$OLLARS
0ERCENT
ˆ
4 2 ! . 3 0! 2 % . # 9 n &IGURE 3TATEMENTOF#ASH&LOWS
/N9OUR-ARK!THLETIC7EAR
3TATEMENTOF#ASH&LOWS
&ORTHE9EAR%NDED$ECEMBER
#ASH&LOWSFROM/PERATING!CTIVITIES
#ASH2ECEIPTSFROM
3ALESTO#USTOMERS
4OTAL#ASH2ECEIPTSFROM/PERATING!CTIVITIES
#ASH0AYMENTSFOR
0URCHASES
!CCRUED0AYABLES
/PERATING%XPENSES
&EDERAL#ORPORATE)NCOME4AX%XPENSE
4OTAL#ASH0AYMENTSFROM/PERATING!CTIVITIES
.ET#ASH&LOWSFROM/PERATING!CTIVITIES
#ASH&LOWSFROM)NVESTING!CTIVITIES
0URCHASEOF0LANT!SSETS
.ET#ASH&LOWSFROM)NVESTING!CTIVITIES
#OPYRIGHT¥BY4HE-C'RAW(ILL#OMPANIES)NC!LLRIGHTSRESERVED
#ASH&LOWSFROM&INANCING!CTIVITIES
.ET)NCREASEIN#ASH