Reflection Week Essay

Apply ratio, vertical, and flat analyses to financial statements Ratio analyses are used by companies to gather teaching in a companys financial statement. Ratios and numbers from a companys current year are compared to previous years and sometimes even the economy to judge the companys performance. in that location are several ratios such as profitability ratios, liquidity ratios, performance ratios, leverage ratios and market ratios that toilet be used to calculate financial information.In vertical analyses, each entry of the assets, liabilities and equities in a equipoise sheet is represented as a proportion of the total vizor of the financial statement. In horizontal analysis a companys ratios are compared in the financial statements over a period of time. flat analysis can be used from revenues to earnings per share. assemble a statement of immediate payment flows using both direct and mediate methods. When preparing a statement of cash flows, on that point are tw o different methods that can be used there is the direct method, and there is also the verificatory method.The direct method shows operating cash receipts and payments, making it more than consistent with the objective of a statement of cash flow, while the indirect method adjusts net income for items that do not affect cash. The FASB allows both methods to be used because in the end the results of the total amount for net cash provided by operating activities arrive in the same way. Companies use legion(predicate) adjustments when preparing such statements so following a proper guide such as the direct method or indirect method impart help to ensure that everything is properly in order the way it should be.Prepare journal entries associated with the publication of like and common roots and the announcement and payment of dividends The issuance of common stock affects only paid-in-capital accounts. Always record common stock at its par or stated value. Debit bills and refe rence work Common Stock. Preferred stock has preference over common stock. However, preferred stockholders do not have voting rights. The entry is debit to Cash and credit to Preferred Stock. For a corporation to issue cash dividends there must be retained earnings, adequate cash, and a declaration of dividends.A company does not pay dividends unless its board of directors decides to do so, then it is deemed state. When it is declared then it becomes a liability. Three important dates are observed with dividends declaration date, record date, and the payment date. Declaration commits a corporation to legal obligations.