Accounting and the Business 1
Environment
Coffee, Anyone?
‘dn Jackon eared atthe lispthe banker
iad given im during tele meeting
Businen plan eas flow projesons\ finan
aaement ta rerrns. Aiken ad visite ith
the banker becrase he had 2 dex of opens
ing a clle chop nea campus, He knew there
swat 4 need; students were aways looking for 3
pice to seid and vis ich their Fiend. He
tho had the expeience, He had worked for
the pase thie years as 2 manager of eofee
shop in neighboring town. Aiden needed ne
thing, though—money. He had saved smal
{mount of money fom bis job and received
evel contbutions from fly
ad fiend, but he sl did hare
‘enough to open the business. He
Thad decided the bese option
wat to get a loan from
his bank. Aier the mestng, Alden fle
‘overwhelmed and unsure ofthe farae of his
bases
"ou might chink dat Aden wa Big an
‘gposibesuaon, but youd be wrong, Almost
Sey nw busines fo 8 simdse smo. The
Cer sare with an npn, and then be ot she
‘rola prod enough continous cach
fw sould she busines. Tn a
tion, the owe tt make dese
ont such ae Shull ead
‘anther bon’ Do ae,
ag mene w pre 4
‘af ater? How do fnew
the busine made pr?
‘Show docs Alen get
stared? Keep reading. Thats
‘wha accountng teaches you.
ny Stay Accounting?
‘The stunton that Ace foe sino he stuns faced inthe undng
of mest businesses, Starbuds Capra, or example, fest ope its doors
In Sate, Waenngton 197). Tve partes, ley Sa, Zev Sie rd
otdonSowke, were np 2 rear of sein high-aaty afes,e now
the deo wat suc! because Starbucks any sore than 9.000
stresin 6 counties, How i Studs gow om asl ones shop to
whats day? The parr undertood aceontng the anguage uses
They ndestood hw to measure the acts ofthe busines, pees that
‘formation it reports rac sateen and then we tase repos 9 mate
uses dese. Yur raulege of courting wil ep you beter derstand
burns wl ake you abate busines owe, ele or nestor 2 Bre
Chapter 1 Learning Objectives Bes.
CBsiuen scuning wimprant ond it tte =A Ute scong equi tana tancins
‘hr arg oman 2 rope enc ators
2 ower gipiorsans Maton rtp sates de oe ROA
sons etree
2 one ne ara ei ante aes
prcsaborety
WHY IS ACEQUNTING IMPORTANT?
Learning objective 1 Yue eh cing ht hs cA the nbn 9m
Esunem aunts: tht men bane si prc te imation soo porte commons
woot anltftsnsl cau dcon mak Aapunng th gg ern The youd
eminent nom
pgs orm ve ene
senate "fend dink of wrong ey. How scuning much
entoraungeen mre dha simple rendepingo ulti Tolys aon uf
iments yond nage facies he veri far ede be devon
SeeeEtateitaa comput popunsw poe sung infra se commento of
‘Simiwcneaie incl rea Inet pace The new of aig ley ey 0
‘pt bono dons is
‘es nen fom ao the acuning commas, Gi the Pao
Comino snopes a ion mat x 1) el sue nd
‘sho ot Pathways Vision Mode
s
‘ergo ‘wowace
metnermgrenauesinbeabbion Sane aoe Accouingond ie Baines Envinmen EB
hepa undevtnd wha acuningis The mois iende epi inv woy
‘ur scons lid Accuntng marth nomi estat sero
‘ean ee ung itel hig and Judge ete al incmation hat
nile pod denn The mol emphases pod dessa
Spon acting flea omen slays cot ce Bow of
{Gis nd ci, Aco vere thn ving eis aber rence nen
‘Seufe piysrc cin poring prop snsy
Decisog EW: The Users of Accounting Information
“ecm did nonin nt wo major Fie acl acaming and marge
cining eens) asjutny prove ination forse decon ma
snc ar oie nero, mer an he ee pen Seni
ccd ous oo wei eden male nach whe pays
ranges empl
EEE hae he atau Sani acrning ad mag
securing Reino whcc they we etal or eral te oan l dosson
‘kee atl iron to mee te ba XG) The Merce tai he oe
‘Simon den eles nd Lea ok Se py OE wr go
‘coming fran ome peta deions
ima es?
‘Soe nwo te bres?
Cena oy ta
lndivduate
ow much eh do you have? How much do you nd seach mow res
cera age Fp for yoar hdres cole uctin?Acouning ca help you ar
‘isto lke thee By sing scounng nema, Youcanmanae your mayo
ean oy and bee deie whether you can ford by new computer une
anes eco
oa evn ue scouting ifoaton wo stg meme prope tra howe
‘pals and make llusnents when nee, The nae tarmens ge owner
Iraton they need help make thw decons.Fianil sateen ne pl wen, fr
‘campe«bsnes ovr wants know whether hs other Boch enough ch fo
Puchas another compute
er
{eae ye ‘Ouside inven who hve ve orseip inert oem prve he money © ge ¢
nes going Supe you conirig vein n= basne. How wold you declse
‘theses gd vee? In making hi ein you igh ef pete nmaure
‘Ficone you wold camo three Alf aingae vee earn
) Ste ncopanys ancl cra ale how thr avermee proing
‘ou igh have the oppoyt lve inte sock se ough Yur com
ays tment pln, Which ovesent shoud you ple Urea a ompanye
5 Fane aemens wl bp you decide You ca View te fun acenents of rg
companies shat sport othe SEC hy legging to heplne manera. com,
(Q\itptegsoge conan, ote Sent ad Exchange Commision FDGAR
dabei govedgr shal
cred
Cet Ay prin 6bsnes to whom aba once money ia ces Before ending
nypo srtaneztovion sei busing a erebnor ents the companys aly © make he payments Py
eines marek iin fecal Stemens. Cros fll the me poco when you need ©
‘om money fra at esx out The cdr eviews couneng dato deerine
You si oma he ln foymen. What der our ancl poston tl he edo
“Et your bo py the le Ayu god Hk rth bk?
Taxng Authors
Le ee, and eel pvermens yt sie cael sng conn
‘tian, Cod scontng mors cn Bo dessa busine ake ranage
{Flow deacons Waa od eh, heTRSCah Glow wx deductions eng,
‘na ihrer nd pene y
‘The Accounting Profession aC
‘What do business auch st Amon com, Walmart, or cten yout lal sandwich shop
270 re campus ve acon Tey al ed sen Tha why 2 depen
‘rooming ope many doo vpn groin
centtarante Youve probaly had f+ CPA bebe. Ceved Publi Acnantans, of UN,
coma) ae Heed rol scoutans no eve the nel pic PAS work ft pub
vemgapelemon scores gcoumag fmt, uneceperent ety of elec instons. What
ween eae GTi ake to bet CORY Alok regimens ay Hewett be cid in
{pln oc mat met the educrnd andlor expr equines and pus
‘qallfingesm: The vee tos o Cig ei taco AICPN We
Seep reahtonocpacom)cntaie sweats imation Saat becom
wartimore Greed Management Accountant, of CMAs, ceed profeions who
infomation about spc In aountng th Obancal management knowlege Gener, CMAS wok
‘etaming a CPA fea lage company. ev oie id infer sbus owing CAA how CA
a cuant— itcrs fem sCP%rand chy empline se coghting GMA cereton ow he
ttt of MomganeneAcountne MAY Webs Qagfwrmennearg). He
as work spending be Sine nd energy for counting ceed cried our
{ins peal ake 10-15% mow dn ter nonered eaeagcs when hey eer,
ert araganent the workforce
‘tcc touna) Saying secounting and sang cel profes a ed wo fnancialy
‘ettcptena escent Rob Mas 2014 Suey Guide the tp pion In demand
foncemenaettng tnd Secon scoung ll cone, ancl anal x newunans odor
STEN tsn cont scone, nd bcs sptens aa How mach do oe pes of wun
‘gy __ ak’ Eh 13 prove sono he eang poral ry Posto. Acouning id be Baines Eavionnens EBs
mio 1-3 Comparison of Accounting Postions
Postion Job Deverioion ‘Solr Ronee
gente re ame so ssc
he ‘a
recs Ae ro ri wise
aan lad DF vacationers SSO
cod (mum
Te gerne rie
ads “eighcl ansi oe
‘sonar ym sree
extort ‘yeas oh mpage $0 80085000
Mosman z
enrteenal adc ragiininis RT
Neate oc cna
Accountants peneraly work cher in pubic priate, ar pera scouring.
abi scouning loveless acho ding and ex prepuranon, elena
public accounting Bre inclae Erst& Young, Oct, PwC: and KPMG, Pte
ecouning inoles woking fo sage company sich as Amaron com. Wala of
Del Othe aczourcaer work for he odo ovate poernmens Wherever ara
fans work, demang for their enc high. According vo the US. Barn of abet
Siniatc, emplopmen of scrontants aod tat ie apece te gow 13% fo
aon30)
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‘Mies teenage m eon
| Confit muigecer acon; shiners ym ha mens ban i pr ht
‘nbmatan inc and namie ein sn mae
as i Sedheopehs eke al
4 ori pb aun ptt ee sh gene |
‘rac pring ar) C Ethics n Accounting and Busifesg hic eden fc sung, Indi nd et a ate {aly eps tron ow amp they eaves in nn tory to, Compan arto te poli we fin goeng to vet Indep to pent tfc msm ins man a porate Bonne ‘tte ple wy Smet thar ppg epoca of Ine For cane fogs copy ig pot er wrt hee deci produce The company might ne we te hs norton wih ‘Seu tru I oad pty a tebe pry. On tet han, Inrot would wae tron shot he pong Ios hat hey cod ake m2 ‘Mel ection tt tigi ene To ade he off wand {pe ler te SEC pes pu hd compan ae ht sue: fdnel satemena med by nen sect An su neni of sneanainotscngiys —teampus fence an sen Te aden anans ee3 swoossaemwa rea yd as whe te foc semen es ar paw he company So ato "Tews of woman do hi be ronal ane bet e fn eit ba sehen Urn ni ho hee ake hehe trent yoeu rebel input En sod Worldcom pring cada, he US. permet tenis Aation9 woh mf tan pee te Satan ke 0, fled noe fe ‘Suiting Sande SOK mins compet sew ta co en we ages fe Terumo owe Geary sad smplacea fh fancier alton, SOX made H+ scoparia wo ly ancl remem Toc Suan Oly At abo eed ¢ tal Soe wathdog orgy he Pe Conny csundng Ov Bead (PCAOB), {Sono two of indeendene never ho tlc pb compa, Noe tect ash he Boe deff al wich Me Mat pede ply i acading nude fire by ogling report are fae edemied he ac th nen epg Th may wa mor ition ferforemprng penmegadte anes own HOW DO YOU ANALYZE A TRANSACTION? Aecouning ic hd on sual atacions, A eaacion i ny event ag che fcal poioa ofthe bute and cn te meed wih Ah pram, ‘Tanna wat the company hus toms ots nt woth Many even ad company indudingconomie boom nd mesons. Acounnn bower do nt meal thea of hore evens An acount rsd ony hoe vents hate dlr amon tharcan be meansed lay ch ar he pach of balling ale of merchandg d the payment fe Transaction Analysis for Smart Touch Learning “To tha sou fr 4 bse, we Smart Touch Ling, he bse ino: Aicediler We soon fr he natin of Sar Touch Lenin rng Nowe SO1¢and sow how exh wanacon afer the serunengeqaon “uanscton 1-Ovnee Cemrbution Ase Shens Bight the aw busine 22k propriconip named Sis Touch Ueaming. The eleng binaries $30,00 a Eom the ewer, Sheena Bight. snd he busine ge api tober The eet of hanson othe counting ea fw of the bone allow s+ _sQurY he cia +0000 Learning objective ¢ tte aur gute 2 ps nano Tne atte fd Enbececuedin els a ‘Assets ves An ac tam economic nou tht expel oben the busines inher Konnicmaucatare Anctraetomathing of ve ht the bushes ownso bar conta of Cash mean feeescteaticraren remo nue and nd expo sc Seotronlet— apiities Ly sis Chis 0 thoes ome om o soreness a debs tata udder thar nc owed to don Lisa someting the basins ome and pre te 7 cron dns onthe bain ate For eampl 3 cdr who ha ted money ort snes chim ome of cheba sae the bins py the be Many labie bave he word poe he es. saplsincde aca payable, sot pale nd lars pyle Equity teviy Then lime he sc of bn tld gu (lle ener ‘ecmerdomstotnatot gy present ih amant of see ae le ve afer the company ha al ks ‘Sebiares abies Ie the company woh. ‘gi nee widh ne combusons and rvenuc: Over conbutons comarscaal bone ae tlened oa ne opal. Ab ownet arco sho ther tt mercer brn fach a quien te busin a eve apa Eguy ial ined by Por ruc, Rance se cing ha rt fo dering ode o eves fo caso nouns Bansal ence see me et ene oganenatenstry PP ee wa cp ad omg Epc ct of aggrecan dca lg catty gna ttt ERE ef cpam nt ape te pre png ee ls = onwaseioumias Opes cle ding) omen yyy of) rmetctenuytRecnre” othe owace Widen can be a inthe fxm of chor overt and ae nat ‘pens As owner ny nya make witha om the Baie: Owner ith ‘Eva the oppo of owner cotibos ad, thet, decree ease uy can Be ken out no our components shorn in the xparded scout quan oad won remuteeaues sft ats ne st sme, Whe onset ser an xen el ReNeaaa toe ia pair nt nsome: When expense ate reer ha ene the est ‘Sreuemne — Wanerlow Acouningsathe Baines Eovinnen SB _ DeRpTB Mach he sera teil the deinios Me con rnc ‘ren tein and porns fanaa wand nh Ud Ss ‘moron onan obese cma ut Fe ‘cera US. an atts ese %6 yn hat anand ves cone asa sees eae osm amp suntan ty wile operat fr fre ate 14. Goingconsm aumento te an aon on i mary 15.1859 Es recompense nde ue na (Gijon olin Myoung 0 Formas ran rcs st. trough 1-5, Accounting WHAT IS THE ACCOUNTING EQUATION? MY, “The bate lof csouming i th ssoting oui, Imam the rors of Laing Objective 3 asia cheba ws ora contro) andthe cin tone aout (what Des cour equon the bse owe ced and fo the Orne). The aceuning eqn bade up of tere eet, bio thee ptr nie, apd qutyand shows bow hoe We par ae ies =) ‘Acs appa on theese fh guason, a he ic sod egy appt on the os rei zou ten Fee th muting patie am pein te oF the gustav he i de of te ext. -Bcampl If bunt hase of $230.00 and Into $120,000, is equity mes ‘be siaoo0 (5230000 = $120,000 {ase = able + Egy | Seow > sagpoo + ‘oom = $2950 + strom 2 MB tages tthe» de ok athe preetingamicton Flaming tae ep Shep 1: Went the acount and the scour pe ach wanton must havea at fre acount bus cou ane ote. The me aun ied we Cash (Ase) and Bight ‘Copal ui Sep 2 Dele If each counties decrees Renerber tales view his orm YY {be bina’ pepe oo fn he wna carom perp Cash inne: The Vp ‘near hat mor coh han bd Ble Sigh Capel ree: The basins rece $50.00 conuon fom te ommee ‘Sup 3: Determine if the accounting equation i Balne. Fr cach rant, he Tine on tc sid fhe quan nega cesar on the igh ie $30,000 = sp00 onsacloy@-Pyrase of Land for Cash “Te busines purine and for a fice an, paying eth of $20,000. Thi rane inact dhe sunt gto Smart Touch Ling a lows Sst wssumes + coum oe ty era h Ea mone AG 8 & Some sane [TC 2 ae ee OU. am Lever de nansn sig teproelnant Op Sep te un ne sap Te Cab in ia Step 2: Decie fc scout incr or dees Cash dave The bans pid (Soh, Lond ne The barns now bs ed ‘Sep 3: Deere th acxuntng qt ia ance. $10.00 + £20000 = $30,000 ‘ansaction 3-Purchaea of Ole Supplies on Aero Snare Touch Lzing bay oe spp om scour (ei aging to py $500 ihn 30 dee, The win ice bah he sets and he bis of he busines fallow: + sour + ia, es oo som a = 4 + Beas Acouing nie PasnesEnieamens 3 Shep Is Mena the aconns and the acount spe. The ae acts led ee Ofer Sipps (a) and Acoums PybleLsi,Oce Sopa an ast, not an pens, crs he plies ae sed up yet bt wl be in she Fre. The abt rented by pcan “on scant san accounts opal, which ashore bi willbe Aun ae oid nce Sr pyle away ly Sere ty tte ‘Sep Dei f exch acount incre er deca, Of Sip ince. The bane "2" = ow i in fs pp than i had fee: Aen Pai cee The sae nom ‘ese deh a bere Step 3: Deen f the acouningequsion iin blanc. $10.00 + $500 + $20,000 Sooo 30000 Tate ow hep i when ai) partons ts mara tas yu a lee. we te eso cpl te tas Mig rid ty ring he Step gus ee kg te ascin als “eanaction taming of Serves Rovers fr och ‘Snr Touch Laing eas src eum by proving ening se Yen. bie ery $5,500 of rerena and aloes ch smoaee inch The eo ne The Ingeqeon an nce Ca sd an cen Seve Reem sows C77) Cah + Oice + Land | | Accouns + Bighe, + Senice sips | Tate "Sabai treme tat siogn0 + 1500» sr0ac0/ “$800 so0000 tose | 50 tal Sissro + mo + oom) | e+ fiom + issn Arsene anacton ows th buss sbown by telnc ia meando Tansiction 5—Eaming of Service Revenue 0° Account Smut Touch Laing proms enforces who do ot py timed. The Basin rece the con! promi fo pe $3.00 within pe month Th OMI Ee rae soar an seni arhable eatse hebuites apes ocolkcr the eu othe fare Ace Inscouning wey that Smart Touch Laing peormed thse or acon. Iis in Ue toscana pat peorming the see ong the wo ab coecing thee, hat the company warms ‘oar forans peter enema pwesgiorasene 8 fen ti nel ot 2A np ena neta ee ep he rene. Ain Tranaton 4 inceing rena nro Sar Touch exing ‘ore he eng of $3,00 af ena a cant flow = a, eno ____ ayy Tin aang + og + toe | | Age + Ba + i Vip; ‘ecenable Supales = | Payal Capa Revere 1 x sisson NE ao t=) "Sao + so + ESIC emo + ia500 Tt oo sz x eed oar err cas Ree oc Ans Pie the ies wi beech ef. th conpany wi isla eta te ie vl be gg eh he tie eo wierd wy As ua teansnton &Feyment at pees wh cash “Toe bine oye 320m xh pe $00 fet and 81.200 plat slr Te ditcron he mca te lows sins fuss + sun On soe | ame” SB AC ei deme saa 3500 + "Shame + Sor + szomoo {| oro! + sano + 5038) @ 320 _ | — am 4am al 312300 + Food + 500 + $0000 | | FeO + «FUNG +" Fs00 - Fa.om0 - Fi.200 tapes spose ft fr. ape ih he en oe er Fake ned ep ead Less oinsingesosan Seto Sees adv Gon») ‘cx Eee pn en a 200 © San + 0% Shao spon Sno 390 S500 S30) TansacionF=Foymenon cunt cnn Pepe} ‘etal py Sethe fw a pee! oii onion 3 Sciatic ro eng TL ac iacenno ses mca our cet pene + omg vio | | tence ¢ pm > cee ~~ a * Ss, aos * TBS * teed sa snge + “Sew Sie soom f=! "Wee + na «sso fap «as os ls Te = a Cie + Tim + + moms | G6 Ta» Ha Tawhones + sour Tai > arg © og + too | | Aten — Be de = Re" ies” | | a) su. sigan « "ono » ne + nome") "eo 4? soe Bm * Sim || = Siam + Tia = TB + oe | T+ TD “TRirnctn cod ar incon oe ae (Ca and a deren in til svc (ecu Rei) ech counting equation lin ulna Reon ped / ‘tod anime tnd decree of he sreetonaten ste SdecT he xcounng ee (on, the coating eq roo tun oer wordy etl ame abe, ‘rd iy sel whan font receding oa: Why? Besse Se Tooch Laing tachangrd one at (Cs) for anodes (coun Recall casing eo eto he ‘ol amount of si the scout equation ($2.0 ~ $2000» $0. “ransoton Swine Withdrawal of Steins Beige wide $5000 enh fom the Busine The cc onthe acounting Gah > Aart + Ofia > land | | Acme + Bh — ge ene” ites Ve "pd tu, sigona + “Stoo + "Feo" + saoaon }~| "Bea" = $8000 so eee son ‘The omnes wads decrs the boss ch and ci, Wide do et mont a pen bcs tye nt aed te ering ofr, Theo with (Der ase bi tine nets zs Wy aide we cord an rereaie 0 Ofc Supe? We aremsting 3 peymant tortie spokes: woul we tncrene Ofce Supplies and ecsone Cosi? feet see feome pene fret + soo - Snow - samo TR - i TR eyrt hove to pucan ‘ng o the at ie eounig amount on the fig se of the equ on te ‘equation to bares? sour ‘winoves"Reens orene” Gout + Sete Sooo - Sao = Be + HD - Ti - 6 ter say fineness or Sa Tic eigen a. seit Anata ot ranesctlons Smart Touch Loraine uray 8 17 ing he fan pte ai af on Sev moto ening ene fe May! Tesch $1700 adel a Lalor ove May ahned sera 81.440, Mays ‘efeitos $200, My $e chr gas moe, May ear ier af S00, och or nmr nin Wrangler hep pcmnighwaoniioee torre phe eat tdi st.banastn. MyAecountingt pecuninginbeDaina Eicon HOW 90 YOU PREPARE FINANCIAL STATEMENTS? Wein ow coded Smart Touch Leaning rations hey ae summa nearing ObectivnS FASTING alan egal lair pa ou (90500 ~ $3050. Pee tates Fa ie quai emane: How il ep sc ei formation? The sige’ Elie deco ls der heer Sart Touch Learig cm oy Rife cnr vite res 7 as ie si, et ces Pe, Se en eres acl commas inten ede make Bats Hea eee rina unens pepwed Thoc samen Peps rT are ined bein Ea emo our tea 6 roc sittin ren aon Mon i ropa crete amar treat ndomaay neomemtenresiopee Saas ‘Sheouersan acon ashe re {neirome oreo to pred Income Statement tush nr by oveving he come aso. The income semen (so le de ete asi Sate aoe eects mnmarafaiancs corps rons and ape ira peod ee eet nme 8 Re STR Rica gem orn The income aement leu whether he ies “npr nce ore nat ls Remember Net inane mean rol ene are ret hn epee 1 peti means ul expen ae poe han oa ren ‘evimporant member tat he only wo pe facut tha re pote on he eagpeen are wens and expen EAI 17 (on the Rs og) shows he ‘eee Satenen for Smart ouch Leming. Fey Income soement conta Siar ‘normaon totem anor tely Shown et clalninat arpusebons in 1-8 Statement of Owners Eauty ce cetacean GRIT in ae SE en “The net eent pcp isthe sere of wich ity The arene of omnes Ronettes aor 5 "Revie the autem of omer equ fo Sart Touch Lei in ibe 8, ont are tn ei on anti Nea increta osmrepeetoor tc ‘Segaeaneargeaatans a) |_ (eee) eae Aconingudibetonertvioner $9 sonenen of ocr gh, The net income mut eb lated on the name se- Sansa Tend then cr othe ate of owns Gi opto st bead Te Sacha tues at Somacene Balance Sheet \ e alace sh (a cle theater of ancl potion) fis snes ene es orca apc dae ely eed fv mong SNE Sine ccs ter rsp of tees Airc orcadharan Soar eet TRG aan men eat hes by tng ee fell anwar ‘BART Gmc heat Soar Touch sing i Ben 19, Eroy Unes or crosStor? shea prepared slr mano O70 & ‘en | Balance Sheet C [fastesginectmp em (Commerce | hon yo are rearing the fc ses, sin yeti which cc oot cn eh stener Ext ctl oly bo of steer. xe Cua art Ck fr vam Sie ever en rere 3 ne tee ies, ob As agro eprd one lace ht Cs td Campa on9saemer ca pred on he bre she nd tect of ash ows ad Cat ntpored or th Satna of ure ada se. i i » & aos chapree 1 wat constitutes manipulating tnancial statements? | reccom a mte ton ny tg Sarat tees ube Ss ore mee salar ome see a Me gee Tacs Faeen finan eeeetert bere Sera NON hoc steeena a ippccmecnece Sea a nn | Seti ore Sect core | Sree cea paar Soliton tet serine ate tent cl eae ate fora tol the a abate company eter {areal tion # Wines a rind oe th nd ‘Se bse tan she hod rt ure the bushes fesse menttncnsng he saad egy ofthe aes. ts publ tat re oa shove ees” aah tment cog the amo of epee that eB tess tao Le ra at Bevel ly ‘ese dey te ecapin of eperss nn fo ‘stret icone ten the woud be abe na sone statement of Cash Flows ‘eeepc ould the purchave of ar with amorigage be reposted on the ‘eatement of ce flows? evtnmghiensekosasts tn Asai Sener at “The sxescr of ah ae eer the i zmig I Pstine amon) andthe ch nga nga amoure) dings prod Tony por anectns hat ach Sate ep eet nes deen ding he pid and he ding Sune is sneacinn ene ae tv cn ache pont ta ws ergs nb parted on dsanen of fp "FR cme ofc ows ded in edn aij opeating, ine Ing and ancng Opening eit ear eh esp for erie eh pyres (er Spemer Inet ein nde te pare ad sl of and and eae fc (ch Fe hin secon, fing aie, nudes cath contusions bythe omer ad ‘eal af a bythe owne “ikon ate eens fc ws for Sart Toch Lexning (Ew 1-10) Nath nora en eye oh Rows onan. Acouningsnd te Baie Eicon 8 ‘uta OB 1. Ug i fing ining acme mes, seme of omnes seh mtn Mach 216 Tesbnnsbgpn pains on Max 281 ‘evan Ree sa ‘Sine apne wo ‘esas oe mo Seve Roe 700 ca 30 ‘Speen ne COvnercobuion dng Mach 00 Te 2a000 ne whoa uring Mach 100 Ui Fae 20 Ruano, Cpe March 12016 « (Check yor arene Myhcounnglah oat heplopanonhighercom/ Hora. Force pratima Su acs S14 roghstis. yAecounting.a | 2B toners HOW DO YOU USE FINANCIAL STATEMENTS TO EVALUATE BUSINESS PERFORMANCE? aaning Objective & Ech f the ances provide diet information abo the company th ee eects coef the fan scnt Review Ai 46 fo herman provide and the on eaie parol oc ancl ene “OVA, Green Mountain Coftes Roasters, Inc 1 hs chap we ae vedi nace and Gal statement of Sat Touch Tamia Bos corpany, Now ine apy what wae eared weed uy inch cage il ove he nan stares ren Mountain Ca ‘REMUS Ine You il eam ow oss oan eee aod pth cone pride he haper Tak x omen vw the 2015 Banc semens for Green Mossi in Append Alone a sb eadf your Book, ot cline at huawei gmccom. IEE ty hana the financement ht wee dicused in he cape ‘Te income eatemen pice on page AS of che Annual Repor and called the Conadaed Sure of Operas, Nose Bat the income eaement bate far locome (even mins expen), Gren Moana et name for the yr ening Spm 28, 2013, war 453232000) "Nou he aus shes speed on ag? A ofthe AnnualReport. Can yu nd svc hl a egy? AS we ve eal 3a, Green Mountain ane of $5.761548,000 cal abe and que $3,761,548 000, ewcnan omaiton) Return on Assets (ROA) eaten HY SOMO One fhe many tat ws of anil emen can uc oBgmin ow wll a ESESSEIS! Sipping she company recon anes BON) Reson et eae CESS How can ieviduas make decisions about investing ithe stork meet? ot Carrs ot ioe 10600 fr er ants She Shee ek a bane sts cil evr ea (CESEPEAA Sie! te mony be soo mete he pare he aceoing orton What she ovo Set Se o'n on of a lcm coogi mat? How ma Geb Go fe bss ve aon se Fence tcoda tmonen ta ererho Gop ‘ou go oe tna resent he eval compre 9 2 Sat acs bemeen be cron? Whe! Web Ser Ya Fouche We St me 4S moacer tosses! Sn saraton sow company 30 a caret ae, sms, od ay omguns Schution ‘natn canst estng et ismet La egy a eat eh cy ead sd cangane sete Drsteion ‘oes he cn cat am ne compa We soo ets ea of on eet La oul ore meng ‘fesccnerangtge Consent ved ste tpifnn fa oe sO a onpuy a een ny See mae ene Te AcoumenguaieainerEnvienens bow pf company ws ae, Res on aes cated by viding ei ome oy aeige sel anes verges cell by nig the begining aod ang tol asc er the tine pr and then ing we. eum on as = Netcom Anetta aes Ae nae = Bagg wa se + Eng 2 sh ent tc Geen Mounts ROA ae mee how poi sewer ane: On 37209 come stant, Gs Moai reported et ene of [SH83252 (thousand) Te a ord gonna asc und onthe ance ‘ber of $3513 79 i hm) edge of $3761.48 Gn tous ‘Gren Mauna ur ona fr 2013 eam on ae = 45338709 + $3.76.) Ten. scans" Tomte ai Howe do we at a nestor kao 131% god or bal WE hay compar the sturn on sacl eompeting compare sch st Caribou Cae Compa. nd Dui’ Bande Grp ne. Wharf we old you that Dol Bric ‘Grup In’ vera on ac was 45% Due 9 Gren Moun higher ROA, owe now har Gren Mourrain has anger en on aes han does Dani Wy {oe ts mc eeu shat Gist Mourn produces move poi per every dla of ‘aw than Duokis da. At you lx more about scouning ou wil explore more rancid wl that ob blpinvoorcauare companys procs. Oly ‘ara or bls athe ig pane of company whe rhe have a ond sexe of ‘be company ivetmen pone ‘Ty KB 19, igi filo norman ce te a aoe er a | ree a coal | acevnenme cael | Check joaranwa olin ln Mphanandngab ort hplinwmpenoshihec Things You Should Know 1. Why Is accounting important? i thclangge ofbsines O, 1 Accounting sed by deson aes inca Indien bane, neon Cars ingore 1 Acouerng an be vied in wo major cds Rania cong and manage eee eee ers Cpemtermn eS ee achat Fg a ademas pen as ee pesca econ «Genel Acxpad Accounting Paci GAAP) ar thera gperm Sere ee eee ec ey fear e treater Re ie amr ise eee ere ee eee fore ee eee 3 What e the accounting equation? Acs = Lis + Fay hace: end anc owas or anus ep: cash Frits nd) + Lidice er the buses ove (mp acouns pb note parable ars pate «Fy Owner tthe st (ample owner apa owners ‘ethdevas vena eS) 4 How do you analyze transaction? 1 A wasn af the ian poson of usin nd cn be measure wih (ah epesenton 1 Transcon a nar ig Hoe 2g: ‘Sup ey he cna decane ype (Asie Eg Sep 2 Decide wher ach acount Ince oF dese nee rename cngn A totes SE Accounting andthe Basie Envionment 25 5: How do you prepare fan statements? ‘cil mene ppd lige 1 lames Sere “epee mance ora snr td 1 Ronan Exar = Na soe orton ‘Hagens ct cg owl apc pad ning’ Ores Coen + atone Nt) — “Stee eat See 3. Se “eo i nnd nt wae a ine Nese iti + Owe Day <2 tah Rowe “toe il pron pp ‘daa ete “ihren ii Inn pre in appara ope Casto een stead pe ce nd Slogger ak » Cahoon hang ccna ea aban a ‘td eh whew pido he omer Ox, 6. How do you use financial statements to evalist business performance? You might also like
