The review of the financial statements of FedEx and UPS showed that for each one company has built a healthy financial empire. This paper allow for discuss the list financial relationships that exist between the twain companies. The inter-relationships that the data illustrates in each companys financial statements will be examined. The key components of the prefatory accounting equation will be located for each company, as illustrated in their respective financials. Finally, the control techniques and any issues that be discussed in the companies financial statements will be described. This process will use the data from the two most recent pecuniary years and build on the review to help the plug-in better understand the benefits of a merger between these two giants.
Inter-relationshipsThe first step in preparing the financial statement is the cooking of the income statement. This statement shows how much revenue a company capture and the sales and expenses, which results in either profit or loss, the wampum income for the period. The nett income then flows to the balance sheet as a component of retained earnings. The balance sheet shows the company assets, liabilities and stockholders equity. for each one company has assets that can either be sold or used to provide services. These include trucks, equipment, planes, inventory, intangible objects, and specie.
Liabilities are the monies owed to others much(prenominal) as bank notes or other companies. The stockholders equity is the net worth of the company. The change in the balance sheet for the seed of the period to the end of the period is reflected in the statement of cash flow. This statement shows all the cash income, such as parade of receivables, loan proceeds, additional paid-in capital to name a few. consequently all cash-out flows are shown, such as loan payments, decrease in account payable and purchase of fixed...
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