Business Finance Research Paper Example | Topics and Well Written Essays - 1500 words

Business Finance - Research Paper ExampleThe Financial Review is where line of work performance is quantified in dollars The Financial Review has two major parts Discussion and Analysis, and Audited Financial contentions. A third part might include knowledge supplemental to the Financial Statements. In the Discussion and Analysis, management explains changes in operating results from year to year. This explanation is presented mainly in a narrative format, with charts and graphs highlighting the comparisons. The operational results are numerically captured and presented in the Financial Statements. (http//www.terry.uga.edu/akefalas/courses/mirrors.htm 2005)The balance sheet represents the financial picture as it stood on one particular day, December 31, 19X9, as though the wheels of the company were momentarily at a standstill. Typical Manufacturings balance sheet not only includes the most recent year, but also the previous year. This lets you liken how the company fared in its most recent years.The balance sheet is divided into two sides on the left are shown assets on the right are shown liabilities and shareholders equity. twain sides are always in balance. ... Current liabilities Accounts payable$60,000$57,000 Notes payable51,00061,000 Accrued expenses30,00036,000 Income taxes payable17,00015,000 Other liabilities12,00012,000Total current liabilities $170,000 $181,000 Long-term liabilities Deferred income taxes$16,000$9,000 12.5% Debentures payable 2010130,000130,000 Other long debt06,000Total libilities$316,000$326,000Shareholders Equity Preferred staock $5.83 cumulative,$100 par value authorized, issued and outstanding60,000 shares$6,000$6,000Common stock $5.00 par value,authorized 20,000,000 shares,19x9 issued 15,000,000 shares,19x8 14,500,000 shares75,00072,500Additional paid-in capital20,00013,500Retained earnings249,000219,600 inappropriate currency translation adjustments1,000(1,000)Less Treasury stock at cost (19x9-1,000 19x8-1,000 shares)5, 0005,000Total shareholders equity $346,000 $305,600 Total liabilities and shareholders equity $662,000 $631,600 Typical Manufacturing Company Inc. Consolidated Income Statement December 31,19X9 and 19X8 (dollars in thousands) 19X919X8Net sales$765,000$725,000Cost of sales 535,000 517,000 Gross margin$230,000$208,000Operating expensesDepreciation and amortization28,00025,000 Selling, general and administrative expenses 96,804 109,500 Operating income$105,196$73,500Other income (expense) Dividends and chase income5,2509,500Interest expense (16,250) (16,250) Income before income taxes and extraordinary loss$94,196$66,750Income taxes 41,446 26,250 Income before extraordinary loss$52,750$40,500Extraordinary item Loss on early extinguishmentof debt (net of income tax gather of $750)