Financial statements

Look at the four basic financial statements in the most recent annual report (listed as "10K") for any publicly traded corporation. You can find them at the SEC website using the search tool. What basic information does each of these statements provide? Find the total assets, liabilities, and shareholders' equity for the most recent year. Then make a list of 10 questions you have about the financial statements. Save the list so you can check to see how many of the questions you are able to answer at the end of the course.
You are a consultant who advises potential new business owners. An acquaintance is planning to start a small business that he wants to run as a sole proprietor. But he explains that he does not understand other business forms that he may adopt, and two of his friends may want to join the business in management roles. The business will be a landscaping firm that is expected to grow rapidly and require large investments in equipment in two to three years. Create a PowerPoint presentation for the potential new business owner that compares and contrasts the three main business forms and addresses advantages and disadvantages of each form. Include examples of types of businesses that would best fit each form. Present your recommendation for best business type for the new business owner.
You have formed a new sole proprietorship and your primary business is buying and selling fine art. Your business is not publicly traded so you can choose to use the cash basis method or the accrual method for your business. Which would you use and why? Since your business is not publicly traded, is it important for you to prepare journal entries and financial statements? Explain why or why not. Research computer systems methods you can use to record your transactions and create your financial statements.
MSN Money offers information about companies, industries, and related news items. For researching a company, the website is a good place to start gathering basic information. Go to Pick a large company that does business in your community and view their financial results. For the most recent year list the amounts reported for sales, cost of goods sold, and total net income. Does the amount reported for revenue represent cash received from customers during the year? If not, what does it represent? What does the amount reported for cost of goods sold represent? Is your company a profitable company? How can you tell? Does your company use accrual-based or cash-based accounting? How can you tell?

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