CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-2 Analyzing an Income Statement.

Slides:

Advertisements

Similar presentations

Rate Earned on Average Total Assets n (January 1 Total assets + December 31 Total Assets) / 2 = Average Total Assets n Net Income after Federal Income.

Advertisements

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 11-3 Calculating and Journalizing Dividends for a Corporation.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 22-1 Preparing a Work Sheet for a Corporation.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 22-4 Adjusting, Closing, and Reversing Entries for a Corporation.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-1 Recording Adjusting Entries.

Financial Statements for a Corporation CHAPTER 15 Financial statements provide the primary source of information needed by owners and managers to make.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning REPORTING FINANCIAL INFORMATION The financial information needed by business managers and.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6-2 Planning Adjusting Entries on a Work Sheet  Planning adjustments on a work sheet.

Financial Statements for a Corporation

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-1 Preparing an Income Statement.

© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO1 Prepare an income statement for a service.

LESSON 15-1 Preparing an Income Statement Mr. Hunter

CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 13-2 Financial Statements and Analysis.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 13-2 Financial Statements and Analysis.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 23-2 Distribution of Net Income and Owners’ Equity Statements.

© 2014 Cengage Learning. All Rights Reserved. Learning Objectives © 2014 Cengage Learning. All Rights Reserved. LO6 Calculate earnings per share. LO7 Calculate.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 13-1 Work Sheet for a Corporation.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 17-2 Calculating Earnings Performance and Efficiency Analysis.

Preparing an Income Statement.  Financial statements provide the primary source of information needed by owners and managers to make decisions on the.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-2 Analyzing an Income Statement.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 17-3 Calculating Financial Strength Analysis.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6-3 Extending Financial Statement Information on a Work Sheet.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-2 Recording Closing Entries  Need for permanent and temporary accounts  Need for.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-2 Recording Closing Entries.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6-4 Finding and Correcting Errors on the Work Sheet  Finding and correcting errors.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 16-1 Business Decisions Using Present Values.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 13-3 Other End-of-Fiscal-Period Work.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 17-1 Trend Analysis and Component Percentages.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 14-2 Budgeted Income Statement.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 7-3 Accounts Receivable Turnover Ratio.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-1 Preparing an Income Statement.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-1 Preparing an Income Statement  Uses of financial statements  Income statement.

CHAPTER 15 FINANCIAL STATEMENTS FOR A CORPORATION

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 8-2 Recording Closing Entries.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-2 Analyzing an Income Statement  Component percentages  Income statement showing.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6-2 Planning Adjusting Entries on a Work Sheet.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 6-3 Extending Financial Statement Information on a Work Sheet.

 =   –  + ++= = = = = CALCULATING FEDERAL INCOME TAX Lesson 25-3, page 647.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 7-1 Preparing an Income Statement.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 14-6 Calculating Federal Income Tax and Completing a Work Sheet  Federal income tax.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 22-1 Preparing a Work Sheet for a Corporation.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning Chapter 7 Objectives 1.Define accounting terms related to financial statements for a service.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 4-2 Interim Departmental Statement of Gross Profit.

© 2015 Cengage Learning. All Rights Reserved. Learning Objectives © 2015 Cengage Learning. All Rights Reserved. LO3Perform efficiency analysis of a business.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 7-1 Preparing an Income Statement.

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 16-1 Recording Adjusting Entries.

Preparing an Income Statement

LESSON 15-1 Preparing an Income Statement

© 2014 Cengage Learning. All Rights Reserved.

LESSON 15-3 Preparing a Statement of Stockholders’ Equity

© 2014 Cengage Learning. All Rights Reserved.

© 2014 Cengage Learning. All Rights Reserved.

INCOME STATEMENT 1. Net Sales 2. Net Purchases

CALCULATING COMPONENT PERCENTAGES

© 2014 Cengage Learning. All Rights Reserved.

Lesson 13-2 Financial Statements and Analysis

© 2014 Cengage Learning. All Rights Reserved.

LESSON 15-3 Preparing a Statement of Stockholders’ Equity

© 2014 Cengage Learning. All Rights Reserved.

LESSON 15-1 Preparing an Income Statement

LESSON 15-1 Preparing an Income Statement

LESSON 15-1 Preparing an Income Statement

Lesson 13-2 SHARE OF NET INCOME ASSIGNED TO PREFERRED AND COMMON STOCK

© 2014 Cengage Learning. All Rights Reserved.

LESSON 15-1 Preparing an Income Statement

LESSON 15-1 Preparing an Income Statement

CAPITAL STOCK SECTION OF THE STATEMENT OF STOCKHOLDERS’ EQUITY

Presentation transcript:

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning LESSON 15-2 Analyzing an Income Statement

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 2 LESSON 15-2 TERMS REVIEW financial ratio – comparison between two items of financial information earnings per share – amount of net income after federal income tax belonging to a single share of stock Net Income after Fed. Income tax/Number of Shares Outs. 80, / 2500 = Earnings per share price-earning ratio – Relationship between market value per share and earnings per share of stock Market Price per share/Earnings per share 345/32.13 = 10.7 Price-Earnings Ratio page 460

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 3 LESSON 15-2 ANALYZING AN INCOME STATEMENT SHOWING A NET LOSS page 457

CENTURY 21 ACCOUNTING © 2009 South-Western, Cengage Learning 4 LESSON 15-2 Price-Earnings Ratio = Earnings per Share ÷ Market Price per Share Earnings per Share = Number of Shares Outstanding ÷ Net Income after Federal Income Tax FINANCIAL RATIOS page 459 Earnings per Share Price-Earnings Ratio $32.13=2,500÷$80, =$32.13÷$345.00