Individual Final Project
You have been named the Chief Financial Officer (CFO) of a two year old company, CUNY Analytics. Financials have been prepared by a bookkeeper. As CFO, you responsible for the preparation of accurate financials, analysis and review of the financials before they are released and communication of the results of your company to banks, investors, creditors and the government, as necessary.
Please complete the following:
a. What are the four major financial statements and, in depth, discuss their purpose.
• Income Statement
Reports revenues and expenses for a specific period of time. A firm's revenues, gains, expenses and losses are listed on the income statement. Revenue is money earned from a company’s
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Shareholders’ equity is the total amount of equity in the firm. The shareholders’ equity section of the balance sheet is explained in further detail on the statement of shareholders’ equity.
• Cash Flow Statement
The cash flow statement shows the amount of cash within a company. Items that affect the cash balance are listed on the statement. The first section of the cash flow statement is operating activities, which shows the cash flowing in and out of the company in relation to its business operation. The operating activities section also includes net income and the change in dollars of certain accounts listed on the balance sheet. The next section, investing activities, shows cash the company received and spent on a company's capital investments. The financing activities section shows the inflows and outflows of cash related to the company’s issued financial securities, which is also listed on the balance sheet and statement of shareholders' equity.
• Statement of Shareholders’ Equity / Retained Earnings Statement
Retained Earnings Statement shows amounts and causes of changes in retained earnings during the period. Time period is the same as that covered by the income statement. Users can evaluate dividend payment practices. This statement shows the changes in the shareholders’ equity account. The first line item is the beginning balance for common stock. The amount of newly issued common stock is added to the
The Cash Flows section data includes operating activities; net earnings such as, investment and financing activities, cash and cash equivalents and supplemental disclosure of cash flows. Finally the last statement represented was the Consolidated Statements Shareholder’s Equity. It presented the last three preceding 3 years’ common stock balance, net earnings, comprehensive income, and sale of stock and repurchase of common stock.
As a creditor or lender it is of utmost importance that they have all the information necessary to make a sound decision as to whether or not they will lend money to a company. The retained earnings statement, balance sheet, and statement of cash flows will paint that picture for a creditor due to the fact that they will see where the company’s money is being earned and spent through the statement of cash flows, they will see how they are either paying out dividends to investors or reinvesting the money into the business through the retained earning statements, and how solvent the business is by looking at the balance sheet.
CFO of SPI – To ensure that the four revenue contracts are accurately reported and reflects the true economic financial position of the company to track performance. Moreover, the recognition should identify the impact on SFP and SCI to track the amount of financing available. The CFO is also concerned with the EBITDA (earnings before interest, taxes, depreciation and amortization) to finance growth.
The cash flow statement of a company showcases how much money coming in to the business and out of business. A positive cash flow indicates a health business where more money coming in to business than going out of the business. There are three major component of cash flow statement which are operations, investing and financing activities. The balance sheet represents the financial position of the company for a specific date and provide company asset, liabilities and owner equity. The Income statement demonstrates how a company use its assets to generate income over a period of time. It explains the how the company generate revenue and what are their
Feedback: The income statement reports the revenues, expenses, and net income (or net loss) of the company. P2
Ans: The income statement lists the revenues minus expenses or costs of goods sold and operating expenses and will reveal a net income or net loss (Revenues – Expenses = Net Profit or Net Loss). Income statements show how much money a company made and spent over a period of time. Income Statements cover a specified period of time usually annually or quarterly. An Income Statement represents only one limited view of the companies’ net profits or net loss after all revenues are listed while expenses (costs) and taxes are subtracted. The Income
This income statement tells how much money a company has brought in (its revenues) how much it has spent (its expenses) and the difference between the two (its profit). The income statement show’s a company’s revenues and expenses over a specific time frame. This statement
The cash flow statement consists of three parts: cash flows provided by operating activities of $13,831, cash flows provided by investing activities, and cash flows provided by financing activities effect of exchange rate changes on cash and cash equivalents of ($204)
The financial statements include profit-related elements such as operating cash flows from the statement of cash flows and retained earnings in the balance sheet the income statement shows the profit through the information it provides on net income during each year. There are different forms and different elements of income statement used depending on the company's business.
Chief Information Officer or generally known as CIO is an official title given to the individual in charge of all the Information Technology accessible inside of the association or the organization. This title was initially utilized inside the Information Technology Department. The principle reason for the CIO is to guide all the accessible data to every one of the divisions in the association consistently furthermore when the information is critically required. The CIO is likewise doled out with the errand of executing all the offered work to accomplish the organization's objectives. The Chief Information Officer likewise examines the whole accessible data framework to recognize new headings in growing the organization's
A chief compliance officer (CCO) is an executive official who oversees and manages internal compliance issues and external regulatory requirements. Here are four chief compliance officer job descriptions for four very different industries.
Its retained earnings is the actual cash that the firm has generated through operations less the cash that has been paid out to stockholders as dividends. Retained earnings are kept in cash or near cash accounts and, thus, these cash accounts, when added together, will always be equal to the firm 's total retained earnings.
Financial Statements are designed to explain the financial standing of a company through ways that offer information which will further its future success. These financial statements are crucial for making smart decisions financially, and bettering a company’s overall prosperity. Financial Statements are composed in a specific order, because numbers computed in previous statements are crucial to completing the statements that follow. It is important that these numbers are correct since they flow into one another. That being said, Financial Statements are made up of the Income Statement, Statement of Owner’s Equity, and the Balance Sheet (in that order).
Business owners often handle their own bookkeeping for many reasons that include fear of delegating sensitive financial information, wanting complete control and keeping staff costs lean. Those reasons, while certainly valid for startups and smaller operations, grow increasingly impractical as your business grows. Some owners delegate accounting duties to trusted family members or staff, but the most successful and savvy entrepreneurs learn quickly that accounting and finances are the lifeblood of business and deserve professional management from skilled financial specialists. The three primary financial manager positions in most businesses are bookkeeper or accountant, controller and Chief Financial Officer or CFO.
Users of financial statements seek information about the investing, financing and operating activities that an enterprise has undertaken during the reporting period. This information helps in assessing how well the enterprise is able to generate cash and cash equivalents and how it uses those cash flows. The cash flow statement provides this kind of information.