Study of Mission Statement as a Marketing Strategy:

An Analysis of Amazon.com and Wal-Mart Mission Statement

BUS 5110 - Managerial Accounting

Portfolio Activity Unit 1
9 November - 17 November

Dr. Angela Palmer

Professor

When considering companies’ financial statements, we often think of investors and

analysts using the information contained in those statements to assess whether or
not to invest in the companies. However, financial statements are not just for
investors. Please explain who else should be concerned with a company’s
financial statements and why they are important.

As portfolio activities are to be self-reflective, please make sure to connect the

portfolio assignment to:

• Your personal experiences. Reflect on how this assignment topic is applicable

to and will benefit you.
• Course readings and any external readings.
• Discussion forum posts or course objectives.

The Portfolio Activity entry should be a minimum of 500 words and not more than
750 words. Use APA citations and references if you use ideas from the readings or
other sources.

This activity will be assessed using the Portfolio Rubric.

 Introduction

Financial statements are classified according to their intended audience: public, private,

or internal. The term "public" refers to everyone interested in a company or an individual, such

as investors or other interested parties. Lenders and creditors who have been granted access to

the documents by the issuer are considered private users. Internal users are those inside a

business who need access to specific sections of the document to do their tasks, such as

managers and workers with buying power.

An entity like Genpact has its stocks traded in the stock market, it is considered a public

company, and therefore its financial statements are prepared following the statutory

requirement of its domicile.

Three kinds of financial statements exist income statement, balance sheet, and cash

flow statement. The income statement describes an organization's profits and expenses over a

specific time, while a balance sheet depicts an organization's assets, liabilities, and equity at a

certain point in time. Finally, the cash flow statement summarizes the amount of money that

entered or left a firm during a particular time.

Not only are financial statements required for investors, but they are also required for

creditors, suppliers, and employees. They assist creditors in determining a company's ability to

repay loans by evaluating the balance sheet and revenue statement. Suppliers use them to

determine how much inventory they should have on hand or how much they should obtain from

a particular firm. Finally, the information is utilized by workers to decide whether to invest in

publicly listed shares or alternative assets such as debt.

As a multi-national company, Genpact also prepares and submit the basic financial

statements annually for external reporting to comply with the statutory and audit requirement.
 However, there are various reports that Genpact prepares for internal consumption and

managerial review, such as, DSO Report, which shows the number of days those sales have

been invoiced but not yet paid, and it has a direct impact on the cash flow of the company.

Another example of the internal report is the Top Past Due Account Reports, which shows the

central account with overdue accounts receivable in terms of dollar value.

These internal reports help Genpact managers review and manage accounts receivable

efficiently. For instance, the DSO Report, which shows the number of days those sales have

been invoiced but not yet paid, will alert managers that an issue needs to be resolved by

knowing that the company's money is "sleeping" for quite some time as it seats longer in

accounts receivable and not be converted into cash. On the other hand, the information

provided by Top Past Due Account Reports enables the managers to focus their energy on

delinquent customers, thus eventually reducing the DSO number.

Businesses such as Genpact rely on financial statements to help them create value,

maintain profitability, and achieve their goals. They are essential for decision-making since

they give information on the financial health and performance of the company. It is possible to

compare comparable organizations using financial statements, which is significant since it lays

the framework for comparisons within a particular sector or geographic location.

A company's financial statements are crucial because they show how it has performed

over time, how its asset composition has evolved, how profitable the business is, and other

essential information. When it comes to a company's success, financial statements inform

investors and assist them in predicting the company's future viability.

Financial statements, corporate performance, and decision-making are all enmeshed in

a complex web of relationships. Financial data helps decision-makers to make well-informed

judgments about their companies. The success of any company such as Genpact is highly
dependent on the quality of decisions made by its steward, which ultimately stems from the

information coming from the significant reports generated by the organization - the complete

set of Financial Statements.

Word Count: 634

 References

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