FINANCIAL STATEMENT ANALYZE

Financial Statement Analyze

Financial Statement Analyze

Income statement

The income statement is an accounting document summarizing all the expenses and revenues of the company of the financial year. It is known as the profit and loss statement of the company. (Gowthorpe, 2008)

Income Statement for Fiscal Year 2004

Balance sheet

Balance sheet is the snap shot of the company's financial position. All the resources and the resources include in the balance sheet of the company. On the left side of balance sheet all the resources (assets) are recorded and on the right hand side the liabilities and owner's equity is recorded. (Friedlob, 2003)

Balance sheet for fiscal year 2004

Statement of common shareholders' equity

It is the financial statement that records the changes in the equity portion of the balance sheet. The equity portion of the balance sheet includes the retained earnings, common stock, and preferred stock, and other comprehensive income. (Helfert, 2001)

Answer #1

A =1036

B = 90

C =60

D =1146

E =573

F =600

G =110

H = (6)

I =673

J =110

Answer #2

Comprehensive income Comprehensive income is the additional income that is not included in the net income. Other comprehensive incomes are excess or deficit in equity restatement, effects of foreign currency translation, and adjustments to stockholders' equity for the additional liability of the employee retirement, deferred income tax that is applied directly to stockholders' equity. (Gowthorpe, 2008)

Formula Comprehensive income= net income - other comprehensive adjustments. The net income is 110 and the gain on the foreign currency translation is 4. In the net income, the comprehensive income adjustments have added i.e. 110 +4 = 114. 

Core operating income A company's total operating income after taxes. This non-GAAP measure excludes any after-tax benefits or charges such as effects from accounting changes. It is the company after tax operating total income. This excludes all the benefits and charges after tax. The formula of core operating income after tax is operating income - taxes. (Friedlob, 2003)

Net sales 2000

Core operating expenses (300)

Operating expenses before tax 700

Tax reported 60.

Tax on unusual items (14-4) (10x0.353) (3.53) 56.47

Core operating income after tax 643.53

 Net financial expense Net financial expense is the firm's net disbursement for financing, net of tax. The formula is Financing Expenses - Financing Income) x (1 - Tax Rate. The financing expense is 21 whereas the financing income is 5 and the tax rate is 35.3%.

Net financial expense = (21-5) x (1- 0.353)

Net financial expense = (16) x (0.647)

Net financial expense =10.352

Return on net operating assets (RNOA) The RNOA calculation differentiates the operating items and non operating items. These items differentiate from the balance sheet and income statement. (Friedlob, 2003)The formula for RNOA is NOPAT/NOA. For calculating NOPAT, pretax income is $170M, and income tax expense is $60M, resulting in the tax rate of 35.29% (60/170). The operating income is $200M then applying 35.29% ...