Stephanie Shumway McCleneghan
Colorado Technical University Online
An annual report is a document that companies must provide to their shareholders that describe the organizations operations and financial conditions (Annual Reports, 2014). There are many components that an annual report usually contains such as different financial highlights, management discussion and analysis, auditors reports, and corporate information. All annual reports revolve around financial data, so it is safe to say that when beginning a report, you need to focus on the fiscal numbers. To gather this data, you will want to sit down with the accounting department to review that ...view middle of the document...
The company’s financial summery section contains many different aspects of the business, such as profit and loss accounts, balance sheets, and cash flow. A profit and loss statement reviews the company’s revenue and expenses. This is calculated by identifying all areas of sales within the business and their budgets. Next, you take the amount earned from each division and subtract the amount spent. Once this is done for each division, you tally up each of the amounts earned and the actual sales for the total profits and loss.
Balance sheets are financial statements that help to summarize a company's assets, liabilities, and shareholders' equity (Balance Sheet, 2014). The assets are calculated using a specific formula: Assets (everything the company has) = Liabilities (barrowed money) + Shareholders’ Equity (shareholder investments). This is an important sheet as it visualizes what the company owes and what the company owns and the amount invested.
A cash flow statement is exactly as it sounds as it tracks the organization’s income and expenditures. There are several factors that will not affect a...