Req 3A 4 Req 3B Prepare an income statement for the year ended May 31, 2016. (Enter your answers in millions, not in whole dollar FEDEX CORP. Income Statement Req 3A (in millions) Req 3B Req 3C eginning Balance, 6/1/2015 repare a statement of retained earnings for the year ended May 31, 2016. (Enter your answe ollars.) FEDEX CORP. Statement of Retained Earnings Ending Balance, 5/31/2016 Req 3C $ 0 0
Reporting Cash Flows
Reporting of cash flows means a statement of cash flow which is a financial statement. A cash flow statement is prepared by gathering all the data regarding inflows and outflows of a company. The cash flow statement includes cash inflows and outflows from various activities such as operating, financing, and investment. Reporting this statement is important because it is the main financial statement of the company.
Balance Sheet
A balance sheet is an integral part of the set of financial statements of an organization that reports the assets, liabilities, equity (shareholding) capital, other short and long-term debts, along with other related items. A balance sheet is one of the most critical measures of the financial performance and position of the company, and as the name suggests, the statement must balance the assets against the liabilities and equity. The assets are what the company owns, and the liabilities represent what the company owes. Equity represents the amount invested in the business, either by the promoters of the company or by external shareholders. The total assets must match total liabilities plus equity.
Financial Statements
Financial statements are written records of an organization which provide a true and real picture of business activities. It shows the financial position and the operating performance of the company. It is prepared at the end of every financial cycle. It includes three main components that are balance sheet, income statement and cash flow statement.
Owner's Capital
Before we begin to understand what Owner’s capital is and what Equity financing is to an organization, it is important to understand some basic accounting terminologies. A double-entry bookkeeping system Normal account balances are those which are expected to have either a debit balance or a credit balance, depending on the nature of the account. An asset account will have a debit balance as normal balance because an asset is a debit account. Similarly, a liability account will have the normal balance as a credit balance because it is amount owed, representing a credit account. Equity is also said to have a credit balance as its normal balance. However, sometimes the normal balances may be reversed, often due to incorrect journal or posting entries or other accounting/ clerical errors.
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Fedex Corporation reported its balance sheet at May 31, 2016. Assume the following alphabetically listed accounts were
included in its trial balance immediately prior to preparing the financial statements.
FEDEX CORPORATION
Adjusted Trial Balance
At May 31, 2016
(millions of dollars).
Accounts Payable
Accounts Receivable
Accumulated Depreciation
Cash
Common Stock
Depreciation Expense
Dividends
Equipment.
Goodwill
Income Tax Expense
Income Tax Payable.
Interest Expense
Interest Receivable
Interest Revenue
Notes Payable (long-term)
Notes Payable (short-term)
office Expenses
Prepaid Rent
Rent Expense
Repairs and Maintenance Expense
Retained Earnings
Salaries and Wages Expense
Salaries and Wages Payable
Service Revenue
Supplies
Transportation Expense
Debit
$ 7,240
3,500
2,600
300
47,000
9,800
900
360
10
11,240
700
2,800
2,100
18,600
500
10,000
$117,650
Credit
$ 2,900.
22,700
2,900
770
20
24,270
2,330
360
2,000
50,400
$117,650](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7be1bef2-77c6-46ad-ae76-fae184ecff15%2Fa14d53d5-929c-4ddf-9c01-c61ecfa7c31d%2Fg58vbg8_processed.png&w=3840&q=75)
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