Financial Statement Review 1

ACC/561 Version 5

University of Phoenix Material

Financial Statement Review
What is the net income for the current fiscal year? Is it up or down from the prior year? Why would this
information be important to investors?
The net income for the current fiscal year is $17,099,000 (2105) compared to last year’s net income of
$16,695,000 (2014).There was an increase of $40,400 from 2014 fiscal year to 2015 fiscal year. This
information would be important to investors since they would not want to invest in a company that is
losing money from one fiscal year to the next. Investors would want to verify that the company is making
a profit before investing financially into the corporation.  
$17,099,000 – 2015
$16,695,000 – 2014

What is the ending balance in stockholders’ equity? Why would a labor union potentially be interested in
this information?
The ending balance in stockholders’ equity is $81,394,000. Labor unions would potentially be interested
in this information because union members are shareholders in the corporation through their pension
plans. If stockholder’s equity is decreasing that would in return mean that their pension funds could also
be decreasing.
$81,394,000

What is the total value of assets? Why would this information be important to a potential creditor?
Total value of assets is $203,706,000. This information would be important to creditors since they need to
determine how much of a financial risk they are taking by lending the company money, equipment, etc..
Also, creditors need to have reassurance that if for whatever reason you are unable to pay back your debt
to them there is some way for them to obtain the monies or the value of the goods given to you through
other means. 
$203,706,000

What is the total cash flow from operation?

The total cash flow from operations is $28,564,000.
$28,564,000

What financial statement user would find this information most important?

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