This website uses cookies to ensure you have the best experience. Learn more

Profit Loss Statement Essay

556 words - 3 pages

Profit Loss
Carlos Figueroa
BSA/310
12/16/2013
Sanford Schram

Profit Loss
With any business, the bottom line is to find whether the company is profitable or if it depreciating in value. In this documentation, it will be discussed the profits and losses for Riordan Manufacturing for the fiscal years of 2010 and 2011. For the most part Riordan Manufacturing saw positive profits in most aspects. Those aspects are assets, liabilities, and stockholders’ equity.
For the fiscal year of 2010 the total assets were $34,825,498 and the fiscal year for 2011 the total assets were $47,409,137, which is a positive in total assets of $12,583,639 from one year to the next. In most subsections of assets Riordan Manufacturing saw a positive. However, the one category that needs ...view middle of the document...

Another section in assets that needs attention is Inventories. In the fiscal year of 2010, Riordan total assets for Inventories were $102,976 and in 2011, their totals assets for inventories were $84,255. When the math is done that is a loss of Inventories Assets of $18,721. Once again, Riordan Manufacturing needs to make some changes in this category to not continue the trouble they are having in this field.
The total liabilities for the fiscal year of 2010 Riordan Manufacturing had $4,878,506. For the fiscal year of 2011 Riordan their total for liabilities were $13,961,155. The difference between the 2010 and 2011 was $9,082,649 which is a positive. The Stockholders’ Equity totals for 2010 was $29,946,992 and for 2011 the totals were $33,447,982. The differences between the two years were $3,500,900 which again was a positive. When the totals are added for both liabilities and Stockholders’ Equity the totals are $47,409,137 for 2011 and for 2010 the total are $34,825,496 which once more is a positive.
After reviewing all the totals for the following categories of assets, liabilities, and stockholders’ equity; Riordan Manufacturing is excelling in most subsections in multiple categories. However, like anything else, no company is perfect. While Riordan is doing very well, they need to address the issues they do have. Which are Other Assets and Inventories, in both categories they saw loss. If they do not fix these issues, Riordan could potentially start pit falling in other categories as well. This is not something successful companies want to do. This is why it is important Riordan Manufacturing implements a new strategy to combat these two subsections, however, continues to do the same things in all other aspects. Since, in all other sections, are seeing positives.
.

Other Papers Like Profit Loss Statement

D2 - the Adequacy of Accounting Ratios

1626 words - 7 pages for ISIS 3.1 Profit and loss account A profit and loss account gives us an overview on how well or bad the business has done with their finance, it will also include a record of their profit and loss. To make it even clear, it is a financial statement that summarises the revenue, cost and expenses of the business during the financial year. If the business has made profits, they will remain the same on their trading performance or if

Course Syllabus Essay

668 words - 3 pages the profit or loss of a company but the cash flow statements show whether the company made cash. References Business Dictionary. (n.d.). Cash flow statement. Retrieved from http://www.businessdictionary.com/definition/cash-flow-statement.html NetMBA. (2002-2007). Preparing the financial statements. Retrieved from http://www.netmba.com/accounting/fin/process/statements/ U.S. Securities and Exchange Commission. (2007). Beginners' guide to financial statements. Retrieved from http://www.sec.gov/investor/pubs/begfinstmtguide.htm

B120 an Introduction to Business Studies Tma 3

1133 words - 5 pages there are likely to be any shortfalls in cash flow. This then enables the business, to make informed decisions as to how these shortfalls can be dealt with. • It can identify if there is a large surplus of capital. Which then can be used for business investment, or the surplus can be moved to a higher interest paying account. Word count 259. 3(b) Explain the purpose of a profit and loss statement and what an analysis of the profit and loss

The Income Statement

3239 words - 13 pages …………………………………………………………………. 17 EXECUTIVE SUMMARY Financial statements are the most frequently read part of any corporation’s annual report. The income statement provides reader with a financial summary of the corporation’s performance. The income statement was originally known as the profit or loss statement. The gross profit section lets the reader know what the revenues attained were and the associated costs of sales and inventory. The operating income

Accounting

1310 words - 6 pages Statement Income statement (also referred to as (a) statement of income and expense or (b) statement of profit or loss or (c) profit and loss account) is a financial statement that summaries the results of a company’s operations for a period. It presents a picture of a company’s revenues, expenses, gains, losses, net income and earnings per share (EPS). Together with balance sheet, statement of cash flows and statement of changes in

Users of Financial Info

545 words - 3 pages Financial Statements to determine the correctness of tax declared in the tax returns. Government also keeps track of economic progress through analysis of Financial Statements of businesses from different sectors of the economy. ------------------------------------------------- Users of Financial Information * Trading (Statement of Profit and Loss) * Balance Sheet (Statement of Financial

Managerial Accounting Problem 2-16

516 words - 3 pages Do problem 2-16 on physical textbook page 66.   Put your work in an Excel spreadsheet with worksheet tabs for Schedule, COGS, and Answers to Questions.  Submit your work to the drop box Swift Company was organized on March 1 of the current year. After five months of start-up losses, management had expected to earn a profit during August. Management was disappointed, however, when the income statement for August also showed a loss. Augusts

Gross Profit

1214 words - 5 pages provisions in an effort to earn your business. HisCPA PC (A Christian CPA Firm) Offers Free Initial Consultations/Interviews A Profit & Loss Statement (P&L) measures the activity of a business over a period of time – usually a month, a quarter, or a year. This financial report may have several different names: profit & loss, P&L, income statement, statement of revenues and expenses, or even the operating statement. The P&L basically tells

Finance Exercise

1173 words - 5 pages depreciation charge of £20 per day for each of the 5 days Monday – Friday. This will reduce the value of the Fixed Asset. This is not a cash outflow, it is a charge to the Income statement. (Transaction 7) Net Profit before Interest 125 Net Profit before Interest equals Gross Profit minus Operating Expenses

Title

448 words - 2 pages costing “absorb” all costs, including the fixed costs. As a result, the income statement prepared under absorption costing has a net loss of only $4,956 compared to the variable costing income statement net loss of $41,898. The net loss in either case will signal a red flag, but the absorption costing net loss is significantly less than the variable costing net loss. (Kimmel, Weygandt, & Kieso, 2011). Benefits of variable and absorption costing

Marginal Costing

1496 words - 6 pages is marginal costing, also known as ‘variable costing’ or direct costing. Under this technique, only variable costs are charged as product costs and included in inventory valuation. Fixed manufacturing costs are not allotted to products but are considered as period costs and thus charged directly to Profit and Loss Account of that year. Fixed costs also do not enter in stock valuation. Marginal Costing: Definition CIMA London as ‘The

Related Essays

Riordan Manufacturing Profit And Loss Statement

681 words - 3 pages Daniel Case BSA/310 Riordan Manufacturing Profit and Loss Statement Paul Higel October 22, 2012 Riordan Manufacturing Profit and Loss Statement This is a description of Riordan Manufacturing’s (Riordan) profit and loss statements, known as an income statement. Raiborn (2010) stated, “An income statement may also be referred to as a “statement of earnings” or “statement of operations”.” (p. 259). There are many way

Melvin Lockhart Ba220 Week 3 Financial Statement2 Essay

920 words - 4 pages referred as a statement of financial position, reports on a 3 company’s assets, liabilities, and ownership equity. Income statement also known as a statement of comprehensive income, statement of revenue, or profit and loss report, which reports on income, expenses, and profits over a given period of time. Statement of cash reports on a company’s cash flow activities, related to operating, investing, and financing activities. Statement of

Financial Statements Essay

595 words - 3 pages . The profit and loss shown in the income statement also included in the cash flow statement, so changes in the income statement affects the cash flow statement. Retained earnings statement is connected to balance sheet and income statement. At the start of the period and the end of the period the balance sheet contains the movement in the equity reserve that derives from financial statement of changes in equity. Statement of cash flow is

Why Profit Does Not Equal Cash

844 words - 4 pages WHY PROFIT DOES NOT EQUAL CASH Why is profit not equal to cash coming in?   Some differences such as loans received which do not impact the profit and loss statement are pretty obvious.   Others may not be as obvious but you can break them down into three main areas: -       Revenue is booked at sale.   In many cases a sale is recorded for accounting purposes in the profit and loss statement when a company delivers a product or service.   In