Analyzing Financial Reports Chapter 19

1. Investing

2. Financing

"Learn How Fine Wine can be a Very Successful Financial Investment." Debt Settlement Company. N.p., n.d. Web. 15 May 2014. <http://www.sbfdebtsettlementcompany.com/learn-how-fine-wine-can-be-a-very-successful-financial-investment.html>.

Making It Personal Chapter 19

Advantages of two retirement savings options:

-You will always have money coming in

- If social security stops then you will have money to use

- You can start saving for retirement at an early age so you can do more things when you retire

Disadvantages of two retirement savings options: 

- You have to keep track of twice as much money

- You rack up a lot of money and have the urge to use it all at once

"Financial Advice for 20-Somethings: Retirement Savings | Quizzle.com Blog."Quizzle Wire. N.p., n.d. Web. 15 May 2014. <http://www.quizzle.com/blog/2010/03/financial-advice-for-20-somethings-retirement-savings/>.

International Accounting Chapter 19

The BMW balance sheet has non-current assets rather than current assets, and the stockholders' equity comes before liabilities, so this affects how the balance sheet is. It is based on assets that are not current and since it's like that the balance sheet is no up to date and might not be correct.



"Stunning BMW CS Vintage Concept Tribute Shows Old 1960s Design Still Works Today - Carscoops." Stunning BMW CS Vintage Concept Tribute Shows Old 1960s Design Still Works Today - Carscoops. N.p., n.d. Web. 15 May 2014. <http://www.carscoops.com/2014/03/stunning-bmw-cs-vintage-concept-tribute.html>.

Communicating Accounting Chapter 19

The income statement is used to show the amount of income made for a certain month, the statement of retained earnings is used to show the amount of money held by the company after all the deductions are made, balance sheet is used to make sure all the account amounts are balanced the way they should be, and statement of cash flow is used to show the amount of money the business is making over all. If one of these statements is wrong or off, it affects all the rest of the statements, because they all go together. 



"Intro­duc­tion to Finan­cial State­ments - Income State­ment Analysis."The Kaplan Group. N.p., n.d. Web. 15 May 2014. <http://www.kaplancollectionagency.com/financial-statement-analysis/income-statement-analysis/>.

A Matter of Ethics Chapter 19

1. The ethical issue is that a co-worker made a significant error on the work sheet.

2. The alternative would be to try and fix the problem or confront the co-worker about it.

3. You, the business, and the co-worker.

4. It affects you because you know about the mistake and you are not able to do anything about it. It affects the business because if it is financial, the business looses the money, and the co-worker because he/she did it.

5. I personally would go to the boss and ask what they think they should do, and go from there.

"The MBTA's Massive Accounting Error."BostInno. N.p., n.d. Web. 15 May 2014. <http://bostinno.streetwise.co/all-series/the-mbtas-massive-accounting-error/>.

Case Study Chapter 19

1. The items that affect the net income are the cookies and the candies. They are made mostly with sugar and it is the sugar that is making the net income decrease.

2. This company should cut back on their cookie and candies and focus more on the food and the other gift items. Since the sugar is so expensive and makes the decrease in net income, this is the most sensible thing to do.

"Wiz Khalifa (Ft. Juicy J & Problem) – Pacc Talk." Rap Genius. N.p., n.d. Web. 15 May 2014. <http://rapgenius.com/Wiz-khalifa-pacc-talk-lyrics#note-1140174>.

Critical Thinking Chapter 19

1. The two parts of the stockholder's equity are equity contributed by stockholders and equity earned through business profits.
2. Gross profit on sales is found by subtracting the cost of merchandise sold from net sales. Operating income is the excess of gross profit over operating expenses.
3. The statement of retained earnings is a something that reports the changes in the Retained Earnings account during the period. The statement of cash flows reports how the activities of a business caused the cash balance to change during the accounting period.
4. The percentages on comparative income statements and balance sheets add vital information for analysis by allowing them to see the change from the beginning of he period to the end.
5. All four statements must be examined thoroughly to obtain an accurate understanding of a corporation's financial condition because each statement shows the financial standings of the company. If one of the statements if wrong or off, it messes up all the rest of the statements that's why they must be checked thoroughly.

"gross profit calculation." Docstoc.com. N.p., n.d. Web. 15 May 2014. <http://www.docstoc.com/docs/2778967/gross-profit-calculation>.