FINANCIAL REPORTING AND

ANALYSIS
Session 1: Introduction to Finance
9
th
July 2013
Financial Reporting and Analysis
Financial
Statements
Income
Statement
(Session
3 & 4)
Balance
Sheet
(Sessio
n 2)
Financial
Statements-
integrated exercise
( session 9)
Cash flow
Statement
(Session 7
& 8)
Accounting
The
Mechanics
of financial
Accounting
(Session 5
& 6)
1. Revenue
Recognition
(Session 10)
2. Accounting for
- Inventory (Session
(Session 11)
- Long Lived Assets
(Session 12)
- Liability and Equity
Financing (Session 13)
- Off Balance sheet
items (Session 14)
- Income Tax (Session
15)
- Consolidated
Financial Statements
(Session 16)
Financial
Analysis
- Annual
Report
(Session 17)
- Financial
Statement
Analysis
(Session 18 &
19)
Scope Of Financial Reporting
3
Financial reporting concepts and standards
Company
Transactions
Recording system
Report
preparation
Users of entitys
Financial
Statement
- Operating
- Investing
- Financing
Tracking and
recording
transaction
Financial
Statements
- Managers
- Investors
- Analysts
- Lenders
- Customers
- Suppliers
- Unions/
employee
- regulators
- Journal
- Ledger
- Closing and
Adjusting entries
- Balance sheet
- Income
statement
- Statement of
cash flows
Auditors
Users business decision
The meat of the matter
4
Assets
Liabilities
Equity

Sales
Costs and expenses
Profit and loss

Cash flows

AHM Case 1-1: Ribbons an Bows, Inc
EXHIBIT 1
Assets/ Application of Fund ($) Liabilities/ Sources of Capital($)
Cash 4000
Inventory 3300
Supplies 100
Prepaid rent 1200
Prepaid Advertising 150 Cousin's Loan 10000
Computer/ Software 2000 Carmen's equity 1000
Cash Register deposit 250
11000 11000
Carmen's March 31, 2010, Ribbons an Bows Assets and Capital
Sources List
Ribbons an Bows P&L A/C
Revenue 7720
Cash sales 7400
Credit sales 320
Less Expenses
inventory 2100 Cash A/c
opening blc 3300 Opening balance 4000
purchases 2900 Sales 7400
closing blc 4100 11400
wages 1600 wages 1510
wages paid 1510 inventory 2900
wages outstanding 90 rent 1800
Rent 1800 sewing machine 1800
office supplies 80 8010
Interest 200 closing balance 3390
Depreciation 310
Sewing machine 60
software 250
prepaid advertising 150 6240
Profit/Loss 1480
Carmen's March 31, 2010, Ribbons an
Bows Assets and Capital Sources List
Assets/ Application of Fund ($) Liabilities/ Sources of Capital($)
march 31 june march 31june
Cash 4000 3390
Inventory 3300 4100 interest due 200
Supplies 100 20 wages due 90
Prepaid rent 1200 1200
Prepaid Advertising 150 0 Cousin's Loan 10000 10000
Computer/ Software 2000 1750 Carmen's equity 1000 1000
Cash Register deposit 250 250 profit 1480
Sewing machine 1740
Debtor 320
11000 12770 11000 12770
Carmen's March 31, 2010, Ribbons an Bows Assets and Capital Sources List