Using EDGAR (Electronic Data Gathering, Analysis, and Retrieval system), find the annual report (10-K) for Six Flags Entertainment Corporation for the year ended December 31, 2019. Locate the "Consolidated Statement of Operations" (income statement) and "Consolidated Balance Sheets." You may also find the annual report at the company's website. Required: 1. What amount does the company report for total liabilities in the current year? 2. What amount does the company report for current liabilities and long-term liabilities? 3. Determine the amount the company reports for short-term lease liabilities and long-term lease liabilities. 4. Find Note 8. Long-Term Indebtedness. What amount does the company report for 2024 notes and 2027 notes? 5. What is the approximate interest rate the company is paying on its debt? (Hint: Divide interest expense in the income statement by the amount of long-term debt plus the current portion of long-term debt.) (Enter your answer as a percentage rounded to 1 decimal place (i.e., 0.123 should be entered as 12.3).) 1. Total liabilities 2. Current liabilities 2. Long-term liabilities 3. Short-term lease liabilities 3. Long-term lease liabilities 4. 2024 notes 4. 2027 notes 5. Approximate interest rate $ 3,069,400
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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