October 11, 2012
CLASS 11: FINANCIAL ACCOUNTING
• Cost structure – will having an extra student affect costs of prof, TA, etc?
• What was the likely reaction to the Campbell’s announcement?
o Their share prices increased
• “Wall Street” – major financial institutions; analysts
• Employees are a firm’s valuable asset?
o Never, this is not an accounting item – Can’t quantify
• For calculation of ending retained earnings, dividends:
o Subtracted from opening retained earnings and Net income
o Net loss – negative retained earnings
o Income -> R.E. $ -> Dividends
• Total assets for Coca-Cola
o About $80,000,000,000
o $48 billion debt
• Accounting equation:
o Assets – Liabilities = Shareholders’ Equity
• Debt not necessarily bad