1. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Chapter 09 Financial Statements for merchandizing businesses 商业企业财务报告

2. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Accounting Cycle Journalize transactions. Post entries to the ledger accounts. Prepare trial balance. Make end-of- year adjustments. Prepare adjusted trial balance. Prepare financial statements. Prepare after closing trial balance. Journalize and post closing entries.

3. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Classified Statements Classified Balance Sheet Classified Income Statement

4. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Classified Income Statement An income statement can be prepared in either a multiple-step or single-step format.

5. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Proper Heading { Income Statement (Single-Step) Example Expenses & Losses { Revenues & Gains {

6. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Classified (multiple-step) 多步式 Income Statement Exh. 4.4 Cost of GOOD Sold Section: Beginning Merchandize Inventory +Net Purchase -Ending Merchandize Inventory =Cost of Good Sold Cost of GOOD Sold Section: Beginning Merchandize Inventory +Net Purchase -Ending Merchandize Inventory =Cost of Good Sold Operating Expenses Section : Selling Expense + General and Administrative Expense + Depreciation Expense +Wages Expense ……. =Total Expenses Operating Expenses Section : Selling Expense + General and Administrative Expense + Depreciation Expense +Wages Expense ……. =Total Expenses Net Sales Section: Sales - sales Returns and Allowances -Sales Discount = Net Sale Net Sales Section: Sales - sales Returns and Allowances -Sales Discount = Net Sale

7. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Revenue form Sales Cost of Good Sold Operating Expenses Income Statement (Multiple-Step) Example

8. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Gross Profit Rate 毛利率 Gross Profit Rate 毛利率 Used by investors to evaluate the Profitability with each dollar sale. Gross profit rate Gross Profit for the year Net sales for the year = *100%

9. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Inventory Turnover Rate 存货周转率 Measures how quickly a company sells its merchandise inventory. A ratio that is low compared to competitors suggests inefficient use of assets. Avg. Inventory = (Beg. Inv. + End. Inv.) ÷ 2

10. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Return On Investment (ROI) 投资回报率 Used by investors to evaluate the efficiency with which financial resources are employed. (Beginning Capital +Ending Capital)/2

11. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill 13-11

12. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill 13-12

13. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Working Capital 营运资本 Working capital Working capital is the excess of current assets over current liabilities.

14. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Current Ratio 流动比率 Current Ratio Current Assets Current Liabilities = Current Ratio $65,000 $42,000 = =1.55 : 1 This ratio measures the short-term debt- paying ability of the company.

15. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill The Accounting Cycle Journalize transactions. Post entries to the ledger accounts. Prepare trial balance. Make end-of- year adjustments. Prepare adjusted trial balance. Prepare financial statements. Prepare after closing trial balance. Journalize and post closing entries.

16. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Special Closing entry for Merchandizing Business Revenue Sales Returns and Allowances Sales Discount Sales Balclosing Bal closing Income Summary DrCr

17. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Special Closing entry for Merchandizing Business Expenses Purchases Returns and Allowances Purchases Discount Purchases Balclosing Bal closing Income Summary DrCr

18. © The McGraw-Hill Companies, Inc., 1999 Irwin/McGraw-Hill Assignment: Problem (3) Self comprehensive Problems II on page 237