Financial Statements:
Financial statements are the accounting reports of any organization that are prepared with a purpose to disclose its past performance and also the assets and liabilities of the company along with the finances. These statements are prepared either on an annual basis or on a quarterly basis.
Balance Sheet − The balance sheet represents the financial position of a company for a particular time period. It is a very important part of the financial statement that shows what the company presently owns and how much liability do they have. The balance sheet basically has three broad headings of its contents namely, liability, asset and the shareholder’s equity. The formula of the balance sheet is written as under:
Cash Flow Statement − The cash flow statement represents the amount of cash that flows in and out of a business for a particular time period. It is mostly prepared on the accrual basis of accounting. The cash flow statement considers the fact that the net profit which a company earns in a year is not necessarily in the form of cash. It can be in the form of other assets as well like the receivables, inventory and so on. Therefore, the cash flow statement represents the total amount of cash that moves into a business organization.
Changes In The Shareholder’s Equity − The changes in the shareholder’s equity represents the changes in the amount of the
To Identify:
The financial statements of the Starbucks Corporation (SBUX) from different sources.
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Chapter 2 Solutions
EBK FUNDAMENTALS OF CORPORATE FINANCE
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