BUS 320 Lecture Notes - Lecture 3: Current Liability, Tax Bracket, Ordinary Income
CH 3 – Financial Statements, Cash Flows, and Taxes
The Annual Report
• Balance sheet – provides a snapshot of a firm’s financial position at one point in time.
• Income statement – summarizes a firm’s revenues and expenses over a given period of time.
• Statement of cash flows – reports the impact of a firm’s activities on cash flows over a given
period of time.
• Statement of stockholders’ equity – shows how much of the firm’s earnings were retained,
rather than paid out as dividends.
Overview of D’Leon INC
• Snack food comp. underwent expansion in ‘15. Expansion results, unsatisfactory:
o Company’s cash position is weak.
o Suppliers are being paid late.
o Bank has threatened to cut off credit.
Balance Sheet: Assets
Balance Sheet: Liabilities and Equity
Income Statement:
Board of Directors has ordered that changes must be made.
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Other Data:
Statement of Stockholders’ Equity (2016)
Statement of Cash Flows (2016)
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