Business Finance Research Paper Example | Topics and Well Written Essays - 1500 words

Business Finance - Research Paper Example The Financial Review is where business performance is quantified in dollars The Financial Review has two major parts: Discussion and Analysis, and Audited Financial Statements. A third part might include information supplemental to the Financial Statements. In the Discussion and Analysis, management explains changes in operating results from year to year. This explanation is presented mainly in a narrative format, with charts and graphs highlighting the comparisons. The Operating results are numerically captured and presented in the Financial Statements. (http://www.terry.uga.edu/akefalas/courses/mirrors.htm 2005) The balance sheet represents the financial picture as it stood on one particular day, December 31, 19X9, as though the wheels of the company were momentarily at a standstill. Typical Manufacturing's balance sheet not only includes the most recent year, but also the previous year. This lets you compare how the company fared in its most recent years. The balance sheet is divided into two sides: on the left are shown assets; on the right are shown liabilities and shareholders' equity. Both sides are always in balance. ... Current liabilities Accounts payable $60,000 $57,000 Notes payable 51,000 61,000 Accrued expenses 30,000 36,000 Income taxes payable 17,000 15,000 Other liabilities 12,000 12,000 Total current liabilities $170,000 $181,000 Long-term liabilities Deferred income taxes $16,000 $9,000 12.5% Debentures payable 2010 130,000 130,000 Other long-term debt 0 6,000 Total libilities $316,000 $326,000 Shareholders Equity Preferred staock $5.83 cumulative,$100 par value authorized, issued and outstanding60,000 shares $6,000 $6,000 Common stock $5.00 par value,authorized 20,000,000 shares,19x9 issued 15,000,000 shares,19x8 14,500,000 shares 75,000 72,500 Additional paid-in capital 20,000 13,500 Retained earnings 249,000 219,600 Foreign currency translation adjustments 1,000 (1,000) Less: Treasury stock at cost (19x9-1,000; 19x8-1,000 shares) 5,000 5,000 Total shareholders' equity $346,000 $305,600 Total liabilities and shareholders' equity $662,000 $631,600 Typical Manufacturing Company Inc. Consolidated Income Statement December 31,19X9 and 19X8 (dollars in thousands) 19X9 19X8 Net sales $765,000 $725,000 Cost of sales 535,000 517,000 Gross margin $230,000 $208,000 Operating expensesDepreciation and amortization 28,000 25,000 Selling, general and administrative expenses 96,804 109,500 Operating income $105,196 $73,500 Other income (expense) Dividends and interest income 5,250 9,500 Interest expense (16,250) (16,250) Income before income taxes and extraordinary loss $94,196 $66,750 Income taxes 41,446 26,250 Income before extraordinary loss $52,750 $40,500 Extraordinary item: Loss on early extinguishmentof debt (net of income tax benefit of $750)

Benefits that are associated with good growth Essay

Benefits that are associated with good growth - Essay Example This essay discusses that once the living standards decline or stagnate, there is little or no progress at all in most societies toward any of the aforementioned goals, this leads to retrogression in many instances. The importance of good economic growth cannot therefore be overlooked as it ensures standards of living are improved as well as the well being of the economy itself. The impacts of economic growth should not necessary be negative towards the environment. It has been argued by some economist that economic growth can ultimately lead to environmental improvement, notwithstanding the increase in environmental degradation in the past associated with economic growth. As Robert Reich puts it, economic growth does not necessarily mean production of a lot of stuff, but rather, it is all about the nation’s ability to produce everything that the inhabitants of that nation want and need, which include improvement of public health, schools, as well as effective management of en vironment. This statement is validated by the argument advanced by Friedman to states that even though there is a wide belief that a bigger GDP ( availability of more services and goods) show the way to more satisfied and happier citizens, the proposition is more complicated than it seem. According to him, most individuals do judge their well being through weighing themselves against other people. For this reason, in the event that the average income of a given country increases the expectations of the people also go up. Consequently, the levels of GDP taken alone per individual in a particular nation, does not essentially give a clear reflection of the level of happiness among the citizens. The absence of a direct connection between the levels of GDP per individual in a given country and individual satisfaction seems to challenge the purely economic point of view in support of growth. This raises the question as to the veracity of people having to go through all the turmoil of econ omic restructuring as well as technological change while, the availability of bigger homes and more gadgets are not going to make people happier It has been the contention of other economist economic growth is good and important as people get to see their own earning increasing, and they do not have to worry about comparing themselves with others. Eventually, that state generates a more conducive environment for both social and political advancement in a given country. As pointed out earlier, economic growth does not necessarily have to go hand in hand with environmental degradation; as a matter of fact growth can be a very vital tool in controlling and managing environmental degradation as pointed out by Robert Reich. According to Dinda (2005), contrary to most people beliefs, continues economic growth can be the best means through which environmental degradation can be addressed. This can only be done by developing a mechanism that defines the relationship between income generated and environmental degradation. As Dinda (2005) puts it, when a particular country attains a satisfactorily high living standard, the citizens of such countries attach more importance to environmental facilities around them. To put it more simply, the more people become wealthier, the more time they will have to consider other things as opposed to the poor people who only think about basic survival. The wealthy on the other hand, will have more time to think about being more richer and environmental conditions. Since they do have significant influence, they are capable of influencing the local and national government to look into the issue of environmental improvement. Study shows that, even though during the early stages of economic growth there