You are contemplating investing in Very Vegetarian or possibly purchasing the company outright. Based on this information, as well as the financial statements provided in the textbook, answer the following questions in a two- to three-page paper. Your paper should use APA style. Why is it advisable to evaluate the company’s financial statements? What key information would you seek to understand about the financial statements? Why? It appears that Very Vegetarian financial statements follow a very strict form. Why must accounting reports be prepared according to specific procedures (GAAP)? Is it permissible for businesses to be allowed some flexibility or creativity in preparing financial statements? Why? Why not? What value do financial ratios offer investors in reviewing the financial performance of a firm? Why is it important to understand that financial ratios can differ from industry to industry? Include APA style reference information as in-text citations and at the end of your paper.
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I need it by friday, here is the additional information if needed
A balance sheet is the financial statement that reports a firm’s financial condition at a specific time. As highlighted in the sample balance sheet in Figure 17.5 (for our hypothetical vegetarian restaurant Very Vegetarian introduced in Chapter 13), assets are listed in a separate column from liabilities and owners’ (or stockholders’) equity. The assets are equal to, or balanced with, the liabilities and owners’ (or stockholders’) equity. The balance sheet is that simple.
Current assets: Items that can be converted to cash within one year.
Fixed assets: Items such as land, buildings, and equipment that are relatively permanent.
Intangible assets: Items of value such as patents and copyrights that don’t have a physical form.
Current liabilities: Payments that are due in one year or less.
Long-term liabilities: Payments not due for one year or longer.
Owner’s equity: The value of what stockholders own in a firm (also called stockholder’s equity).
Financial statement that reports a firm’s financial condition at a specific time and is composed of three major accounts: assets, liabilities, and owners’ equity.
Revenue: Value of what’s received from goods sold, services rendered, and other financial sources.
Cost of goods sold: Cost of merchandise sold or cost of raw materials or parts used for producing items for resale.
Gross profit: How much the firm earned by buying or selling merchandise.
Operating expenses: Cost incurred in operating a business.
Net income after taxes: Profit or loss over a specific period after subtracting all costs and expenses, including taxes.
The financial statement that shows a firm’s profit after costs, expenses, and taxes; it summarizes all of the resources that have come into the firm (revenue), all the resources that have left the firm (expenses), and the resulting net income or net loss.
Revenue left over after all costs and expenses, including taxes, are paid.
Figure 17.8 on p. 480 shows a sample statement of cash flows, again using the example of Very Vegetarian. As you can see, the statement of cash flows answers such questions as: How much cash came into the business from current operations, such as buying and selling goods and services? Did the firm use cash to buy stocks, bonds, or other investments? Did it sell some investments that brought in cash? How much money did the firm take in from issuing stock?
Cash receipts from sales, commissions, fees, interest, and dividends. Cash payments for salaries, inventories, operating expenses, interest, and taxes.
Includes cash flows that are generated through a company’s purchase or sale of long-term operational assets, investments in other companies, and its lending activities.
Cash inflows and outflows associated with the company’s own equity transactions or its borrowing activities.
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If you can get it done no problem I will wait
I was able to make those pages accessible but I was able to download and attach it
Paper started, will have it for you later today. I see you also asked this question in another category, but assume this is the one you want answered. PDtax
can you resend the link
the link you send me is not working