© the mcgraw-hill companies, inc., 1999 irwin/mcgraw-hill chapter 09 financial statements for...
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© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Chapter 09
Financial Statements for merchandizing businesses
商业企业财务报告
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
The Accounting CycleThe Accounting Cycle
Journalize transactions.
Post entries to the ledger accounts.
Prepare trial balance.
Make end-of-year
adjustments.
Prepare adjusted trial balance.
Prepare financial
statements.
Prepare after closing trial balance.
Journalize and post closing
entries.
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Classified StatementsClassified Statements
Classified Balance SheetClassified Balance Sheet
Classified Income StatementClassified Income Statement
Resultsin standardized,
meaningfulsubtotals.
Items w ith certaincharacteristics aregrouped together.
ClassifiedFinancial
S tatem ents
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Classified Income StatementClassified Income Statement
An income statement can be prepared in either a multiple-step or single-step format.
An income statement can be prepared in either a multiple-step or single-step format.
The single-step format ( 单 步 式 ) is simpler.
The multiple-step format provides more detailed information in which different items of revenue and expense are classifi
ed into significant groups.
The single-step format ( 单 步 式 ) is simpler.
The multiple-step format provides more detailed information in which different items of revenue and expense are classifi
ed into significant groups.
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Proper Heading {Income Statement (Single-Step) ExampleIncome Statement (Single-Step) Example
Expenses & Losses {
Revenues & Gains {
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Classified (multiple-step) 多步式 Income Statement
Classified (multiple-step) 多步式 Income Statement
Exh.4.4
Cost of GOOD Sold Section:
Beginning Merchandize Inventory+Net Purchase -Ending Merchandize Inventory
=Cost of Good Sold
Cost of GOOD Sold Section:
Beginning Merchandize Inventory+Net Purchase -Ending Merchandize Inventory
=Cost of Good Sold
Operating Expenses Section:
Selling Expense + General and Administrative
Expense + Depreciation Expense+Wages Expense
……. =Total Expenses
Operating Expenses Section:
Selling Expense + General and Administrative
Expense + Depreciation Expense+Wages Expense
……. =Total Expenses
Net Sales Section: Sales - sales Returns and Allowances-Sales Discount
= Net Sale
Net Sales Section: Sales - sales Returns and Allowances-Sales Discount
= Net Sale
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Revenue form Sales
Cost of Good Sold
Operating Expenses
Income Statement (Multiple-Step) ExampleIncome Statement (Multiple-Step) Example
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Gross Profit Rate毛利率
Gross Profit Rate毛利率
Used by investors to evaluate the Profitability with each dollar sale.
Used by investors to evaluate the Profitability with each dollar sale.
Gross profitrate
Gross Profit for the year
Net sales for the year
= *100%
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Inventory Turnover Rate 存货周转率
Inventory Turnover Rate 存货周转率
Measures how quickly a company sells its merchandise inventory.
Measures how quickly a company sells its merchandise inventory.
A ratio that is low compared to competitors suggests inefficient use of assets.
A ratio that is low compared to competitors suggests inefficient use of assets.
Avg. Inventory = (Beg. Inv. + End. Inv.) ÷ 2Avg. Inventory = (Beg. Inv. + End. Inv.) ÷ 2
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Return On Investment (ROI)投资回报率
Return On Investment (ROI)投资回报率
Used by investors to evaluate the efficiency with which financial
resources are employed.
Used by investors to evaluate the efficiency with which financial
resources are employed.
(Beginning Capital +Ending Capital)/2
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
CLOVER CORPORATION Balance SheetsDecember 31,
AssetsCurrent assets: Cash and equivalents 12,000$ Accounts receivable, net 60,000 Merchandize Inventory 80,000 Prepaid Insurance 3,000
Total current assets 155,000$
Plant and equipment: Buildings and equipment, net 40,000 Land 120,000
Total plant and equipment 160,000$
Total assets 315,000$
* Percent rounded to first decimal point.
13-11
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
CLOVER CORPORATION Balance SheetsDecember 31,
Liabilities and Shareholders' EquityCurrent liabilities: Accounts payable 67,000$ unearned revenue 3,000
Total current liabilities 70,000$
Long-term liabilities: Mortgages payable 75,000
Total liabilities 145,000$
Owner's equity: Owner's capital 170,000$
Total liabilities and shareholders' equity 315,000$
* Percent rounded to first decimal point.
13-12
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Working Capital营运资本
Working Capital营运资本
Working capital Working capital is the excess of current assets over current liabilities.
Working capital Working capital is the excess of current assets over current liabilities.
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Current Ratio 流动比率Current Ratio 流动比率
CurrentRatio
Current Assets Current Liabilities
=
CurrentRatio
$65,000 $42,000
= = 1.55 : 1
This ratio measures the short-term debt-paying ability of the
company.
This ratio measures the short-term debt-paying ability of the
company.
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
The Accounting CycleThe Accounting Cycle
Journalize transactions.
Post entries to the ledger accounts.
Prepare trial balance.
Make end-of-year
adjustments.
Prepare adjusted trial balance.
Prepare financial
statements.
Prepare after closing trial balance.
Journalize and post closing
entries.
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Special Closing entry for Merchandizing BusinessSpecial Closing entry for Merchandizing Business
Revenue
Sales Returns and Allowances
Sales Discount
Sales
Balclosing
Bal
Bal
Bal
closing
closing
closing
Income Summary
Dr Cr
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Special Closing entry for Merchandizing BusinessSpecial Closing entry for Merchandizing Business
Expenses
Purchases Returns and Allowances
Purchases Discount
Purchases
Bal closing
Bal
Bal
Bal
closing
closing
closing
Income Summary
Dr Cr
© The McGraw-Hill Companies, Inc., 1999Irwin/McGraw-Hill
Assignment:Problem (3) Self comprehensive
Problems II on page 237