Premium Essay

Pejenca Statements

In: Business and Management

Submitted By moe1233
Words 959
Pages 4
Pejenca Industrial Supply
Statement of Changes
August 31st 1998-August 31st 2002 (4 years)

Change in Cash (2002-1998)
= 277.4–93.9
= 183.5

Sources
Prepaid Expenses 200
Accounts Payable 38,500
Due to Related Parties 80,300
Net Fixed Assets 2,200
Incorporate Costs 800
Loan from Shareholders 300,000
Retained Earnings 231,500
TOTAL 653,500

Uses
Accounts Receivable 193,800
Receivable from Related Parties 4,000
Inventory 189,500
Income Taxes Recoverable 5,600
Income Taxes Payable 2,100
Current Portion of Long-term Debt 30,000
Mortgage 45,000
TOTAL 470,000
NET CASH FLOW 183 500 653 500

Option 2
Exhibit 1
Pejenca Industrial Supply LTD.
Projected Statements of Earnings
Year Ending: August 31, 2003
($000s)

Sales 6168 (5140*1.20) Cost of Goods Sold 4317.6 (6168*0.7)
Gross profit 1850.4
Expenses
Advertising 86.4 (6168*0.014)
Automotive 92.5 (6168*0.015)
Bad Debts (recovered) 4.1 (6168*0.00066)
Business Taxes 14.2 (6168*0.0023)
Interest on Long-Term Debt 2.3 (150*0.06/4)1
Computer Expenses 26.5 (6168*0.0043)
Delivery 31.5 (6168*0.0051)
Dues and Fees 11.7 (6168*0.0019) Insurance 20.5 (6168*0.003+2)2
Supplies 30.8 (6168*0.005)
Postage 7.4 (6168*0.0012)
Professional Fees 7.2 (6168*0.00088+1.8)3
Repairs and maintenance 11.1 (6168*0.0018) Telephone 27.8 (6168*0.0045) Utilities 9.8 (6168*0.0011+3)4 Training 0
Wages and employee benefits 1134.9 (6168*0.184)
Depreciation and amortization 24.7 (6168*0.004)
TOTAL EXPENSES 1543.4
EARNINGS FROM…...

Similar Documents

Premium Essay

Financial Statements

...Financial Statements Patty Reagan ACC/561 September 24, 2012 Bethany Kessel Financial Statements The financial statements of a company give the reader a view of the financial health of the company. The four major reports are the income statement, balance sheet, cash flow statement, and the statement of shareholders’ equity. By understanding the statements and how they relate to one another can help any individual to understand the financial position of the company and will aid in making good decisions when relating to the company. Each report is of importance to the management, creditors, and the investors. Income Statement The gains, revenues, losses, and expenses of a company are listed on the income statement (Johnson, 2012). The money that a company earned from the usual business operations is the revenue. The costs that are associated with earning revenue are expenses. If a company were to sell an asset, it will be considered to be either a capital gain or loss. The amount of net income is found on the cash flow statement as well. This report will be important to investors, creditors, and management. All involved parties want to see if the company is making money or if it is losing money. Balance Statement The balance sheet is a summary of a company’s assets, liabilities, and shareholders’ equity for a particular period (Balance Sheet, 2012). The three segments will give an investor a view of what a company owns and owes and the amount that......

Words: 887 - Pages: 4

Free Essay

Income Statements and Cashflow Statements

...In order to determine how income statements and statements of cash flows influence business decisions, it is important to know the definition of the two. Income Statements are defined as the summaries of an entity’s revenues, expenses, gains, and losses for a period of time and thereby reports the entity’s results of operations for that period of time. It determines if an entity operates at a profit during a certain time frame, and reports revenues, expenses, gains, and losses. The Statement of Cash Flows is a financial statement that explains the change of cash flows during a fiscal period. This includes operating cost, investments, and financial activities of an entity. Its purpose is to identify the sources and uses of cash throughout a fiscal period, and report all activities involving operations, investments, and financing. Both statements are very important in making long term and short term decisions in business. Income statements are important in determining these decisions because they allow investors to determine their role in an entity’s success by viewing its operating potential, management to determine decisions within the entity dealing with material costs, sales strategies, and consumer response to those changes, and CEO’s to view revenue reports, expenses of operating costs, and the gains and losses of the entity during a defined fiscal period before making major decisions on the direction of that entity. Statement of cash flow allows CEO’s, Investors, and......

Words: 360 - Pages: 2

Premium Essay

Financial Statements

...financial statement. The financial statement lets the person and business know what debits have been taken place in a monthly and yearly time and also credits that have been done in a monthly ans yearly time. There are four types of a financial statement and that is a balance sheet, a profit and loss statement, a statement of a change in equity, and a statement of cash flow. These four types of a financial statement have their own purpose in the accounting field and they are all very important to the businesses and individual people that use each of them. The balance sheet lets the businesses and people that use this sheet know what assets, liabilities, and ownership equity at anytime they need it, monthly, quarterly, or yearly. The balance sheet is also a summary of a sole proprietorship, business partnership, and other business organizations, if companies and businesses need them depending on if there is an audit of the company or needing them for month end or yearly end purposes. A balance sheet usually has assets in one section of the statement and liabilities and net worth in the other section. There are two types of a balance sheet and that is an account form and a report form. The balance sheet for personal use has current assets such as cash flow whether is would be in the checking account and or in a savings account or liabilities such as mortgages, and other debits that go through the account. The profit and loss part of the financial statement is the......

Words: 1060 - Pages: 5

Premium Essay

Financial Statements

...Financial Statements Paper Angela Carson Acc/280 Principles of Accounting Stephen Willden October 4, 2010 The purpose of accounting is to help users of financial information to understand how a company or individual is functioning in the economy. Accounting takes the financial information of an organization and it identifies records and communicates its economics to the interested parties. There are four basic financial statements. The income statement shows the revenues, expenses and income of a company over a specific period of time. The retained earnings statement summarizes the changes in earnings over a specific period of time. The balance sheet shows a report of assets, liabilities and equity for an exact point in time. The last would be the statement of cash flows which summarizes cash flows in and out of a company over a specific amount of time. The four basic financial statements are interrelated with one another. They should be prepared in a specific sequence. Net income, which is the income statement, is completed first. The net income is needed to help determine the ending balance in retained earnings. The retained earnings statement provides information if there was an increase or decrease during the specific period of time. The end balance from the retained earnings statement is used to prepare the balance sheet. This is where the basic accounting equation, Assets equal Liabilities plus Equity, is used to calculate the balance sheet. The balance sheet......

Words: 382 - Pages: 2

Premium Essay

Accounting Statements

...Accounting Statements Bethany Edings Acct/290 January 25, 2013 Doyle Jones University of Phoenix Accounting Statements In business finance there are four main statements. The financial statements are balance sheets, income, cash flow, and statement of retained earnings. Each statement shows specific information about a business’s financial history. A balance sheet shows a company its current debts and how much it has at any given time. Income statements illustration what was spent and how much of a profit the business made. A cash flow statement shows the relationship between a company and the world during a given date. Next a statement of retained earnings indications any changes that would affect stockholders over time. A balance sheet gives information about a company’s assets, liabilities, and shareholders’ equity. Balance sheets have three components. The components of a balance sheet are assets, liabilities, and stockholders’ equity. Assets are objects or property that has cash value. These items can be used or sold to make a product or to provide services. Cash and investments are also assets. Liabilities are what a company owns to other companies or people. This can include loans, taxes, rent, cost of materials, and payroll. Liabilities are also services or products due to a customer. Shareholders’ equity or capital is what a company would have if the liquidated assets and......

Words: 729 - Pages: 3

Premium Essay

Pejenca Case

...Pejenca Industrial Supply LTD. Case 3.9 COMM 1007EL-02 Austin Davey February 15, 2012 Executive Summary Pejenca Industrial Supply Limited of London is in need of an $150,000 extension to their facility to provide them with additional inventory space that they are in desperate need for. Pejenca needed to decide whether or not they were in need of a loan to finance this extension or whether it could be paid through their cash and revenues on hand. Pejenca had a time limit of one week to make their decision regarding the expansion and how they were going to finance it. The cash sources and uses analysis showed that Pejenca in its current time has a negative cash flow from operations, which could have potential meaning that Pejenca cannot handle to finance its current amount of inventory, this however does not mean that Pejenca has no cash. The ratio analysis' were more positive, showing that Pejenca has strength in their liquidity, stability, profitability, however not so much in their growth which was potentially due to the inventory limitations. From looking at the projected financial statements it was clear that even without the loan Pejenca had enough money to finance the extension themselves as their cash balance in the projections was much above the required $130000. Because of these factors discussed briefly above and more in depth below, our recommendation was that Pejenca not request a loan and finance the extension themselves. A loan costs extra money due to......

Words: 4941 - Pages: 20

Premium Essay

Financial Statements

...Financial Statements In accounting there are four basic financial statements that are considered standard practice by the generally accepted accounting principles (GAAP). These are the income statement, the retained earnings statement, the balance sheet and the statement of cash flows. While each of these reports is very important in its own regard, they are also intermingled and depend on each other to represent a complete unbiased view of an organizations financial situation. The income statement reports revenues and expenditures for the given period of time. This report is important because it will show net income or net loss for a given period of time. However, not all monies received are considered revenue and not all monies put out are considered expenditures. For example money received from selling or issuing stocks are not considered revenue. The same holds true for dividends, they are not considered expenditures. This period of time can vary from organization to organization. Most reports are shown on a quarterly and annual basis. When the income statement is properly prepared will produce the company's net income. This amount is then transferred to the retained earnings statement. The retained earnings statement shows the income that is retained by the organization. This report not only shows changes but also the reason for said changes. This allows all interested parties to see and understand if there is a significant variation from the previous report.......

Words: 920 - Pages: 4

Free Essay

Statement

...giving him a ticket for the parking violation when I finish withdrawing the money, and half of the car’s body was out of the zone when the officer was giving the ticket, because saw me finish withdrawing and was about to leave with me before the officer came. and I really did not mean to violate the law, we should not park in the handicapped zone even for a second. However, it's the first time ever for him to do that, and he had always followed the law. I actually should pay this penalty if it really occurs, because all of his behaviors were for helping me. Words failed me to express how guilty I feel for, and I just beg you forgive him this only one time. Please give him a chance. Thank you so much for your time to read this statement. Sincerely,...

Words: 268 - Pages: 2

Premium Essay

Income Statement vs Cashflow Statement

...Question #6 A. Briefly state how the Income Statement is different from the Cash Flow Statement. Give examples of decisions that can be made from the information provided by each of these statements? -The income statement shows how much revenue a company has earned over a period of time, which is usually for a year. The income statement also reports the costs and expenses associated with earning the revenue. At the bottom of the income statement it shows the net inome, which shows the actual earnings after expenses, taxes, etc are taken out. This can be a net profit or net loss, depending on how the company performed that year. The cash flow statement reports a company’s inflows and outflows of cash. The income statement tells whether or not the company made a profit and the statement of cash flows tells you whether the company generated cash. The statement of cash flows is the more important of the two because with negative cash flows it makes it nearly impossible to pay off your debt. It is possible to have a positive net income, with negative cash flows. -A manager can use the income statement to analyze how much revenue is being lost due to expenses. Expenses are necessary in every business, but there are ways to manage them to save money. It also allows management and investors to decide if the company wants to expand into different markets or create new products. If they see sales are consistently increasing year over year, then it may be a good time...

Words: 428 - Pages: 2

Premium Essay

Financial Statements

...Baron Financial Statements The four basic financial statements are the balance sheet, income statement, statement of cash flow, and the statement of retained earnings. The balance sheet depicts the current financial circumstances of the company. This reports the company’s assets, liabilities, and net equity as of a given point in time. The income statement reports the company’s cost and revenues. This reports the company’s income, expenses, and profits over a period of time. The statement of cash flow describes the changes is cash and cash equivalents. This reports the company’s activities, such as its operating, investing, and financing costs. The statement of retained earnings reports the changes in equity. Basically this explains the company’s retained earnings over the reporting period. The internal users would be managers and employees that use the financial statements. They would use the financial statements to obtain the data to use for any future budget concerns. The internal users can use the data to set performance goals for the company. They can also use the data to see where the company needs to increase revenue from a certain department in the company. Along with being able to see where they need to make cutbacks. The internal users rely on the financial statement to direct the company in all its daily activities. The external users for the financial statement would be investors and creditors. The data obtained from the financial statement would be used to......

Words: 326 - Pages: 2

Premium Essay

Pejenca Case Study

...Pejenca Industrial Supply LTD. Case Study - Finance Laurentian University Austin Davey Themistoklis Vlahos 0320252 COMM 1007 EL - 01 
 Executive Summary: Peter Charles is the president and a major shareholder of Pejenca Industrial Supply Limited, which is located in London, Ontario. The company focuses on supplying specialized cutting tools to its desired consumers. With all the success his business has had since the opening in 1989, Peter is in need of an extension to the company’s building. Peter is faced with a tough decision in order to decide which route to chose for his company future. Peter has less than a week to prepare and determine how much financing would be required to add the $150,000 extension to the company’s building. Peter is faced with analyzing the company’s financials to see what would be the most cost effective to his company’s equity. Pejenca’s growth since its opening in 1989, was tremendous. By August 2002, sales had reached just over five million dollars. Peter knew his company was in very good shape with regards to being financially stable. Having already met with the designers and contractors, Peter was able to determine that the extension would cost $150,000. With that being said, Pejenca had nearly $300,000 is cash at the end of the 2002 fiscal period which could be used for the extension if chosen by Peter. But Peter knew $130,000 in cash was needed to sustain the company throughout the course of the operating period.......

Words: 3463 - Pages: 14

Free Essay

Statement

... ANALYSIS, FINDINGS and RECOMMENDATIONS 1.1 Company Profile Background of Dhaka Bank Limited (DBL): DBL is a scheduled bank that was incorporated under the Companies Act 1994, started its operation on July 1995 with a target to play a vital role on the socio-economic development of the country. Aiming at offering commercial banking service to the customers’ door around the country, DBL established 20 branches up-to this year. This organization achieved customers’ confidence immediately after its establishment. At the end of year 2007 the equity ownership of DBL was as follows: Ownership Structure Sponsors Institutional Investors General Public Foreign Chart 1.1: Ownership Structure Source: Dhaka Bank Annual Report 2007 (A) Mission Statement To be the premier financial institution in the country providing high quality products and services backed by latest technology and a team of highly motivated personnel to deliver excellence in Banking. An Evaluation of Business and Financial Performance of the Dhaka Bank Limited 1 January 2005 and 31 December 2007 Slogan Excellence in Banking Objectives • • • • • Be one of the best banks of Bangladesh. Achieve excellence in customer service next to none and superior to all competitors. Cater to all differentiated segments of Retail and Wholesale Customers. Be a high quality distributor of product and services. Use state-of the art technology in all spheres of banking. DBL is now offering different types Depository product for......

Words: 6510 - Pages: 27

Premium Essay

Financial Statement

...Financial Statement Differentiation Paper Financial Statement Differentiation Paper ACC/561 The Four Financial Statements consist of income statement, balance sheet, statement of cash flow, and statement of owner’s equity. The progress with the income statement, states gross revenues, minus the goods sold would give the gross profit of the company. Balance sheet consists of long term assets and long term liabilities that are current issues. The cash flow would be recognized by the money the company has coming in, to where the money goes out, and the statement of owner equity gives details of the account over a period of time. Income Statement have a different description that contains expenses of Revenue during a time period, minus cost of goods sold, which would then give the gross profit. Once the net income would be figured out, the net income would be transferred over to the balance sheet. Balance sheet would consist of any assets and liabilities that are current and long term. The balance sheet has to make sure both ends balance out the same. Statement of cash flow gives the direction of company of where money is taken in from and to give ideas where the money is going to. This would consist of cash and payments. The statement of Owner Equity gives details that have taken place over course of one year of the owners’ equity account. The financial statement that would be of interest to investors would consist of income statement, balance......

Words: 445 - Pages: 2

Premium Essay

The Income Statement

...THE INCOME STATEMENT By Michael Walker Student, Technical Report Writing February 15, 2010 Formal Report Prepared for Lana Sumpter Facilitator, Technical Report Writing Date: February 15, 2010 To: Lana Sumpter, Course Administrator From: Michael Walker Subject: Final Version of “The Income Statement” Report Attached is my report “The Income Statement” which you requested at the start of class on January 7, 2010. The report contains instructions for non-financial personnel to be able to read and comprehend the income statement. The report breaks the income statement down into segments which will allow the reader to better understand the report. This report complied by myself owes a significant amount of gratitude to Benjamin Drummer (CPA, JD, Accounting Instructor) and Vicki Yamasaki (CPA, CRO, One America Insurance) for taking time out their busy schedules to help with the compilation of information. TABLE OF CONTENTS Executive Summary……………………………………………………….. 5 Introduction………………………………………………………………. 6 Background………………………………………………………………. 6 Discussion Gross Profit………………………………………………………. 6 Definitions Description Figure 1 Operating Income (Loss)…………………………………………. 7 Definitions Description Figure 2 Income from Continuing Operations before Income Tax…………. 8 Definitions Description Figure 3 Income from Continuing Operations……………………………… 10 Definitions Description Figure 4 Net Income......

Words: 3207 - Pages: 13

Premium Essay

Financial Statements

...This paper is all about financial statements. An introduction to financial statements is presented to give a background to the reader. In the introductory part, the fundamental accounting concepts used in the preparation of financial statements are included together with the explanation of their basis. Examples are also given as an illustration of its application. This consist the first part. On the other hand, the second part is about the evaluation of the role of financial accounting in aiding the decision-making processes of the four different non-management stakeholder groups. An explanation of the nature of these decisions is also included. The paper ends with the issue on the conflicts arising from the diverse interest of the said entities to the financial statements. Introduction to Financial Statements One of the steps included in the accounting cycle is the preparation of the principal financial statements. They are the Income Statement and the Balance Sheet. These financial statements are a means by which the information accumulated and processed in financial accounting is periodically communicated to the users. Once the worksheet is completed, it is easy to prepare the financial statements as the necessary data have already been summarized. A third financial statement, which is the Statement of Cash Flows, provides information about cash receipts and cash payments into operating, investing, and financing activities. A......

Words: 2321 - Pages: 10