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FINANCIAL STATEMENTS

AND REPORTS
Group 8
LOPEZ, Khatrina
CALINGIN, Charisse
LAGAT, Christian Pons
PACULBA, Cyril

Submitted to:
Mr. Wilson C. Bation
November 17, 2016

INTRODUCTION

Every transaction that a business gets involved with ultimately finds its way into the
accounting records and financial statements of the business.
In business there are essential two main types of financial reports (or "accounts"):

Financial accounting. which formally records, summarises and reports the


transactions of the business
Management accounting. which presents and analyses financial data to help
management take decisions and monitor performance

Financial accounting and accompanying financial restatements focus on reports that a


business is required to produce. The three main elements of financial accounts are:
INCOME STATEMENT. This measures the business' performance over a given period
of time, usually one year. It compares the income of the business against the cost of
goods or services and expenses incurred in earning that revenue.
BALANCE SHEET. This is a snapshot of the business' assets (what it owns or is owed)
and its liabilities (what it owes) on a particular day - usually the last day of the financial
year.
CASH FLOW STATEMENT. This shows how the business has generated and disposed
of cash and liquid funds during the period under review.
If you were to look at the financial accounts of a public company you would also find
other elements that provide detailed information for investors, analysts and other users
of the accounts. They include:

Directors report: includes a review of corporate governance & directors' pay


Auditor's Statement: a report from the auditors with their opinion on whether the
accounts show a true and fair view of the financial performance and position of
the company.
Operating and Financial Review: a detailed report on the key financial and
operational performance of the latest financial review (a good place to pick up on
corporate strategies and objectives, market analysis etc).
Notes to the Accounts: a significant amount of detailed information to support
the headline numbers in the Income Statement, Balance Sheet and Cash Flow
Statement.

Period

2012

2013
NetSolutions
Balance Sheet
Sales Revenue
$ 500,000
$ 800,000
December 31, 2013
Less: Cost of Goods Sold
300,000
464,000
Gross Margin
$ 200,000
$ 336,000
Operating Expense
80,000
164,000
Assets
Liabilities
Interest Expense
20,000
20,000
Income before taxes
$ 100,000
$ 152,000
Currenttaxes
Assets
Current Liabilities51,680
Income
34,000
NET INCOME
66,000
$ 100,320
Cash
$ $2,065
Accounts Payable
$900
Accounts Receivable
2,720
Wages Payable
250
Supplies
760
Unearned Rent
240
Prepaid Insurance
2,200
Total Liabilities
$ 1, 390
Total current assets
$ 7,745
Property, plant and Equipment

Stockholders Equity

Land
$20,000
Office Equipment $1800
Capital Stock
$25,000
Less accum. Dep
50 1,750
Retained Earnings
3,105
Total property, plant
Total Stockholders Equity
28,105
And equipment
21,750

Total Assets

$29,495

Total Liabilities and


stockholders equity

_
$29,495

BALANCE SHEET (BOOK)

Source:
C. Warren, J. Reeve, J. Duchac (2014). Financial and Managerial Accounting, 12e.
Cengage Learning
INCOME STATEMENT (BOOK)

Source:
M. Mowen, D. Hansen, D. Heitger (2014). Cornerstones of Managerial Accounting, Fifth
International Edition. Cengage Learning

CASH FLOW (BOOK)


BT PLCs Statement of Cash Flow

Year ended 31 March


Cash flow from operating activities
Profit before taxation
Profit on disposal of interest in associates
Share of profit of associates and joint ventures
Net finance expense
Operating profit
(Profit) loss on disposal of businesses
Depreciation and amortisation
Other non-cash movements
Cash generated from operations
Income taxes paid
Net cash inflow from operating activities
Cash flow from investing activities
Other net investing activities

2013

2012

2,501
(130)
(9)
624
2,986
(7)
2,843
(463)
5,359
(64)
5,295

2,445
(10)
484
2,919
19
2,972
(1,952)
3,958
(400)
3,558

259

(470)

Purchases of property, plant and


equipment and software
Purchases of telecommunications licences

(2,481)

(2,578)

(202)

Net cash outflow from investing activities

(2,165)
3,130

(3,518)
40

(683)
(701)
(1,663)
(15)
153
798
33
109
(302)
(2,271)
859

(590)
(693)
(26)
(2)
522
258
21
(510)
(470)

323
600

325
-

(4)

(2)

919

323

Cash flow from financing activities


Equity dividends paid
Interest paid
Repayment of borrowings
Repayment of finance lease liabilities
Net proceeds from commercial paper
Proceeds from bank loans and bonds
Cash flows from derivatives related to net debt
Proceeds on issue of own shares
Repurchase of ordinary share capital
Net cash used in financing activities
Net increase (decrease) in cash and cash
Equivalents
Opening cash and cash equivalents
Net increase (decrease) in cash and cash
equivalents
Effect of exchange rate changes
Closing cash and cash equivalents

Source:
R. Tiffin (2014). Executive Finance and Strategy: How to understand and use financial
information to set strategic goals. London, United Kingdom: Kogan Page Limited
STOCKHOLDERS EQUITY (BOOK)
Talex Inc.
Statement of Stockholders Equity
For the year ended 12/31/12
Preffered
stock

Common
stock

Bal.
$100,000
1/1/12
Net
income
Dividends
on
preferred
stock
Dividends
on
common
stock
Insurance
of
additional
common
stock
Bal.
$100,000
12/31/12

$850,000

Additiona
l paid-in
cap.
$177,000

50,000

25,000

$900,000

$202,000

Retained
earnings

Treasury
stock

Total

$245,000

$(17,000)

180,000

$1,355,00
0
$180,000

(10,000)

(10,000)

(65,000)

(65,000)

$350,000

(10,000)

75,000

$(27,000)

1,252,000

Source:
C. Warren, J. Reeve, J. Duchac (2012). Principles of Financial and Managerial
Accounting, Using Excel for Sucess. Cengage Learning

BALANCE SHEET AND STATEMENT OF STOCKHOLDERS EQUITY (INTERNET)


Coca-Cola Company
Balance Sheet and Statement of Stockholders Equity
For the year 2012 2013
Period Ending
12/31/13
12/31/12
Current Assets
Cash and cash
$10,414,000
$10,414,000
equivalents
Short-term investments
$9,854,000
$8,109,000
Net receivables
$4,873,000
$4,759,000
Inventory
$3,277,000
$3,264,000
Other current assets
$2,886,000
$5,754,000
Total current assets
$31,304,000
$30,328,000
Long-Term Assets
Long-term investments
$11,512,000
$10,448,000
Fixed assets
$14,967,000
$14,476,000
Goodwill
$12,312,000
$12,255,000
Intangible assets
$15,299,000
$15,082,000
Other Assets
$4,661,000
$3,585,000
Deferred asset charges
0
0
Total Assets
$90,055,000
$86,174,000
Current Liabilities
Accounts payable
$9,886,000
$9,151,000
Short-term debt /
$17,925,000
$17,874,000
Current portion of longterm debt
Other current liabilities
0
$796,000

Total current liabilities


Long-term debt
Other liabilities
Deferred liability charges
Misc. stocks
Minority interest
Total liabilities
Stock Holders Equity
Common stocks
Capital surplus
Retained earnings
Treasury stock
Other equity
Total equity
Total liabilities and equity

$27,811,000

$27,821,000

$19,154,000
$3,498,000
$6,152,000
0
$267,000

$14,736,000
$5,468,000
$4,981,000
0
$378,000
$56,882,000

$1,760,000
$12,276,000
$61,660,000
($39,091,000)
($3,432,000)

$53,384,000

$1,760,000
$11,379,000
$58,045,000
($35,009,000)
($3,385,000)
$33,173,000
$32,790,000
$86,174,000
$90,055,00

INCOME STATEMENT (INTERNET)


Coca-Cola Company
Income Statement
For the year 2012 2013
Period Ending
Total revenue
Cost of revenue
Gross profit
Operating Expenses
Sales, general and
admin
Non-recurring items
Other operating items
Research &
development
Operating income
Add'l income/expense
items
Earnings before Interest
and Tax
Interest expense
Earnings before tax
Income tax
Minority interest
Equity
earnings/Loss

12/31/13
$46,854, 000
$18,421,000
$28,433,000

12/31/12
$48,017,000
$19,053,000
$28,964,000

$18,205,000

$18,185,000

0
0
0

0
0
0
$10,228,000

$10,779,000

$1,110,000

$608,000

$11,940,000

$12,206,000

$463,000
$11,477,000
$2,851,000
($42,000)
$602,000

$397,000
$11,809,000
$2,723,000
($67,000)
$819,000

unconsolidated
subsidiary
Net
income-cont. $9,186,000
operations
Net income

$9,838,000
$8,584,000
$8,584,000

Net Income Applicable


to Common
Shareholders

$9,019,000
$9,019,000

STATEMENT OF CASH FLOW (INTERNET)


Coca-Cola Company
Statement of Cash Flow
For the year 2012 2013
Period Ending
Net income
Cash Flows-Operating
Activities
Depreciation
Net income adjustments
Changes in Operating
Activities
Accounts receivable
Changes in inventories
Other operating activities
Liabilities
Net cash flow-operating
Cash Flows-Investing
Activities
Capital expenditures
Investments
Other investing activities

12/31/13
$8,584,000

12/31/12
$9,019,000

$1,977,000
$871,000
0

$1,982,000
$657,000
0

0
($932,000)
0

0
($1,080,000)
0
$10,542,000

($2,550,000)
($1,991,000)
$327,000

$10,645,000
($2,780,000)
($7,033,000)
($1,591,000)

Net cash flows-investing


Cash Flows-Financing
Activities
Sale and purchase of
stock
Net borrowings
Other financing activities
Net cash flows-financing
Effect of exchange rate
Net cash flow

($4,214,000)

($11,404,000)

($3,504,000)

($3,070,000)

$4,711,000
$17,000

$4,218,000
$100,000
($3,745,000)

($611,000)

($3,347,000)
($255,000)

$1,972,000

Sources:
http://www.nasdaq.com/symbol/ko/financials?query=balance-sheet
http://www.nasdaq.com/symbol/ko/financials?query=income-statement
http://www.nasdaq.com/symbol/ko/financials?query=cash-flow

($4,361,000)

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