INTRODUCTION TO FINANCIAL ACCOUNTING

INTRODUCTION TO FINANCIAL ACCOUNTING Essay example
College
Essay
Finance & Accounting
Pages 3 (753 words)
Download 0
Picket Company Trial Balance Debit Credit Account payable 14500 Account receivable 18000 Cash 41500 Common stock 10000 Depreciation expense 18250 Cost of goods sold 402610 Equipment 325000 Insurance 1500 Inventory 80500 Long term debt 105000 Marketing expense 5600 Misc…

Introduction

expense 4500 Paid-in capital 90000 Property taxes 6500 Rent 22000 Retained earnings 146400 Revenues 619900 Salaries 61940 Utilities 7400 Totals 985800 985800 Picket company Income Statement as of December 31, 2012 Revenues 619900 Cost of goods sold 402610 Gross margin 217290 Expenses Depreciation expense 18250 Insurance expense 1500 Marketing expense 5600 Misc. expense 4500 Property taxes 6500 Rent 22000 Salaries 61940 Utilities 7400 Total expenses 127690 Net Income 89600 Picket Company Balance Sheet as of December 31, 2012 Current Assets Cash 42000 Account Receivable 18000 Inventory 70500 Total current assets 130500 Property, Plant, Equipment 325000 Total Assets 455500 Current Debt Account Payable 14500 Long term debt 105000 Total debt 119500 Stockholders equity Common stock 10000 Paid-in Capital 90000 Retained earnings 236000 Total equity 336000 Total equity plus liabilities 455500 Pickett Company in 2012 had a profitable year due to the fact that its net income was $89,600. A company is profitable when it obtain a positive net income. The gross margin of the firm was 35.05%. This financial metric is considered a broad measure of profitability. ...
Download paper
Not exactly what you need?

Related papers

Introduction to Accounting and Finance: Hair silk- financial plan and pitch
The procedure for taking orders would be first come, first serve basis. As the orders increase, production would also be adjusted so it can come up with the volume. For the time being, credit transactions would not be entertained for the first two to three years of operations to avoid debtors. The concept of jus-in-time production by the Japanese would be adapted so there is no need for an…
Introduction of accounting: FINANCIAL ANALYSIS OF GFA LIMITED
Africa is among the low cost operation country and it is highly recommended region for those companies that want to make a successful mark in mining exploration and development industry. GFA Limited has sufficient resources and skilled manpower to perform important operational activities and it should go ahead with the option of becoming a public listed company so that it can make successful…
McDonald's Financial Accounting
McDonald’s was formed in 1940 as a barbeque restaurant but later developed into a huge chain of hamburger fast food restaurants. “McDonald's is the leading global foodservice retailer with more than 33,000 local restaurants serving more than 64 million people in 119 countries each day. More than 80% of McDonald's restaurants worldwide are owned and operated by independent local men and…
Financial Accounting Theory
The accounting frameworks are there for wide use of the financial statements of a company. A common framework of accounting would certainly be useful for the stakeholders of the company. But the criticism of the conceptual framework arises as these are not found so useful. The arguments are that the frameworks are not useful as there is lacking of practical evidences. The paper is an attempt to…
Introduction to Business Accounting
Financial ratio analysis is one of the most commonly used method for evaluating and comparing company's performance over a period of time however it has major limitations which undermine its use and value of results produced by it (Moyer and McGuigan 2012). Firstly, the financial data that is used for calculating different ratios is historic that implies that the financial ratio analysis provides…
financial accounting theories in a real life
It is used to communicate various aspects of the business. There are diverse kinds of theories that prevail in financial accounting. It has been observed that there prevails no accounting theory which is a universally accepted theory of financial accounting. Different researchers have dissimilar views regarding financial accounting theories (McGraw-Hill, 2006). There are different types of…
Introduction to Business Accounting
While the ‘as at’ financial position is presented in the Balance Sheet (Statement of Financial Position), a detailed presentation in terms of Revenue generated against the expenditures incurred in that accounting period is depicted by the Income Statement (Statement of Comprehensive Income) (Vickerstaff & Johal, 2012).The Statement of Financial Position: …