Valencia, A-BUSN604 Week1 Part 1

docx

School

American Military University *

*We aren’t endorsed by this school

Course

604

Subject

Sociology

Date

Apr 3, 2024

Type

docx

Pages

Uploaded by MinisterHerring4256

Running head is no longer used in APA7 1 Assignment Week 1 Andrew L. Valencia American Public University BUSN604: Fundamental of Business Analysis Dr. Shelley 02-11-2024

Running head is no longer used in APA7 2 Assignment Week 1 Throughout this paper many topics will be discussed in relations to the fundamentals of business analysis. Topic which includes the purpose of keeping track of a company's performance. This can be achieved by reviewing its financial statements - income statement, balance sheet, and statement of cash flows. The purpose of the income statement Firstly, the purpose of the income statement will be explored. Then identify the major types of expenses that are shown on the typical income statement. When it come to the income statement one can see that it is a financial statement that shows you the company's income and expenditures. It likewise shows whether a company is making income or loss for a given period. When identifying types of expenses shown on a typical income statement one sees that they include They include “the cost of goods sold (COGS); selling, general, and administrative (SG&A) expenses; depreciation or amortization; and research and development (R&D) expenses. Typical items that make up the list are employee wages, sales commissions, and expenses for utilities such as electricity and transportation” ( Chen, 2023). The purpose of the balance sheet The balance sheet is crucial to both financial modeling and accounting. The balance sheet shows the company’s total assets and how the assets are financed. This be through either debt or equity. It can additionally be referred to as a statement of net worth or a statement of financial position. The balance sheet is established on the fundamental equation: Assets = Liabilities + Equity. “The most liquid of all assets, cash, appears on the first line of the balance sheet. Cash Equivalents are also lumped under this line item and include assets that have short-term maturities under three months or assets that the company can liquidate on short notice, such as

Running head is no longer used in APA7 3 marketable securities. Accounts Receivable this includes the balance of all sales revenue still on credit, net of any allowances for doubtful accounts (which generates a bad debt expense). As companies recover accounts receivables, this account decreases, and cash increases by the same amount . Inventory includes amounts for raw materials, work-in-progress goods, and finished goods. The company uses this account when it reports sales of goods, generally under cost of goods sold in the income statement. Accounts Payables, or AP, is the amount a company owes suppliers for items or services purchased on credit. As the company pays off its AP, it decreases along with an equal amount decrease to the cash account” (CFI Team, 2022). There are other names for owners' equity, such as stockholders' equity and shareholders' equity. Certain firms' balance statements list owners' equity line items in a very thorough and confusing manner. Preferred shares, common shares, or common stock, and retained earnings are the usual categories they fall into. A financial report that shows how money came into and went out of a company over a given reporting period is called a cash flow statement. According to the online course Financial Accounting: “The purpose of the statement of cash flows is to provide a more detailed picture of what happened to a business’s cash during an accounting period.” The cash flow from investment activities, cash flow from financing activities, and cash flow from operating activities make up the three components of a conventional cash flow statement. Conclusion In conclusion, this essay spoke about the connection with business analysis principal subject that covered the goal of monitoring an organization's performance. Examining the company's income statement, balance sheet, and statement of cash flows will help one do this.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Running head is no longer used in APA7 4 References Chen, J. (n.d.). Income statement: How to read and use it . Investopedia. https://www.investopedia.com/terms/i/incomestatement.asp#:~:text=They%20include %20the%20cost%20of,such%20as%20electricity%20and%20transportation. Financial accounting . HBS Online. (n.d.). https://online.hbs.edu/courses/financial-accounting/

Related Documents

Application Project 2.docx

SOC-FPX1150_Hannah Halstead_Assessment one_attempt one.docx

SOC-FPX1150_Hannah Halstead_Assessment three_Attempt ONE.docx

SOC_FPX1150_Hannah Halstead_Assessment Five_attempt one.docx

SOC-FPX1150_Hannah Halstead_Assessment Two_attempt one.docx

SOC-FPX1150_Hannah Halstead_Assessment Four_attempt one.docx

Terrorist type.docx

Module One Journal Defining Terrorism.docx

infosharing.docx

5060 Review Quiz.docx

Community Policing Data.docx

annotated-Goldstein%20Ch.%205.pdf

Recommended textbooks for you

Social Psychology (10th Edition)

Sociology

ISBN:9780134641287

Author:Elliot Aronson, Timothy D. Wilson, Robin M. Akert, Samuel R. Sommers

Publisher:Pearson College Div

Introduction to Sociology (Eleventh Edition)

Sociology

ISBN:9780393639407

Author:Deborah Carr, Anthony Giddens, Mitchell Duneier, Richard P. Appelbaum

Publisher:W. W. Norton & Company

The Basics of Social Research (MindTap Course Lis...

Sociology

ISBN:9781305503076

Author:Earl R. Babbie

Publisher:Cengage Learning

Criminalistics: An Introduction to Forensic Scien...

Sociology

ISBN:9780134477596

Author:Saferstein, Richard

Publisher:PEARSON

Sociology: A Down-to-Earth Approach (13th Edition)

Sociology

ISBN:9780134205571

Author:James M. Henslin

Publisher:PEARSON

Society: The Basics (14th Edition)

Sociology

ISBN:9780134206325

Author:John J. Macionis

Publisher:PEARSON

SEE MORE TEXTBOOKS

Recommended textbooks for you

Social Psychology (10th Edition)
Sociology
ISBN:9780134641287
Author:Elliot Aronson, Timothy D. Wilson, Robin M. Akert, Samuel R. Sommers
Publisher:Pearson College Div
Introduction to Sociology (Eleventh Edition)
Sociology
ISBN:9780393639407
Author:Deborah Carr, Anthony Giddens, Mitchell Duneier, Richard P. Appelbaum
Publisher:W. W. Norton & Company
The Basics of Social Research (MindTap Course Lis...
Sociology
ISBN:9781305503076
Author:Earl R. Babbie
Publisher:Cengage Learning
Criminalistics: An Introduction to Forensic Scien...
Sociology
ISBN:9780134477596
Author:Saferstein, Richard
Publisher:PEARSON
Sociology: A Down-to-Earth Approach (13th Edition)
Sociology
ISBN:9780134205571
Author:James M. Henslin
Publisher:PEARSON
Society: The Basics (14th Edition)
Sociology
ISBN:9780134206325
Author:John J. Macionis
Publisher:PEARSON