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Accounting Clinic I
Prepared by:  Nir Yehuda With contributions by Stephen H. Penman – Columbia University Basic Accounting Principles Accounting Clinic I
Introduction ,[object Object],[object Object],[object Object],[object Object]
The Financial Statements ,[object Object],[object Object],[object Object],[object Object]
The Balance Sheet: Dell Computer Corporation
[object Object]
The Form of the Balance Sheet ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example - Balance Sheet Preparation ,[object Object],[object Object],[object Object]
Solution Retained earnings are calculated as a plug number.
[object Object],[object Object],[object Object]
The Income Statement: Dell Computer Corporation
The Form of the Income Statement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Example - Income Statement Preparation ,[object Object],[object Object],[object Object],[object Object],[object Object]
Solution (1) 5,000,000-42,000 (2) 409,000+(2,548,000+81,000-31,000)-547,000 (3) 257,000+76,000+108,000+58,000  (4) 282,000+26,000+24,000+62,000
The Statement of Cash Flows : Dell Computer Corporation
[object Object]
The Form of the Cash Flow Statement ,[object Object],[object Object],[object Object]
The Form of the Cash Flow Statement ,[object Object],[object Object]
The Form of the Cash Flow Statement ,[object Object],[object Object]
Example – Preparation of a cash flow statement ,[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Solution
The Statement of Stockholders’ Equity:  Dell Computer Corporation
Shareholder’s Equity ,[object Object],[object Object],[object Object]
Comprehensive Income  ,[object Object]
 
The Stocks and Flows Equation ,[object Object],[object Object],[object Object],[object Object]
The Articulation of the Financial Statements Revenues Expenses Net income Income Statement Investment and  disinvestment by owners Net income and other earnings Net change in owners’ equity Statement of Shareholders’ Equity   Cash from operations Cash from investing Cash from financing Net change in cash Cash Flow Statement Cash + Other Assets Total Assets - Liabilities Owners’ equity Beginning Balance Sheet Cash + Other Assets Total Assets - Liabilities Owners’ equity Ending Balance Sheet
Principles of Measurement ,[object Object],[object Object],[object Object]
[object Object],[object Object],[object Object]
Mark-to Market Accounting ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Historical Cost Accounting ,[object Object],[object Object],[object Object],[object Object],[object Object]
Mixed Accounting Measurement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Historical Cost Accounting in The Income Statement ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Cost of Goods Sold: An Application of Matching ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
[object Object],[object Object]
[object Object],[object Object],[object Object],[object Object],[object Object]
R&D accounts: An Example of Poor Matching ,[object Object],[object Object],[object Object],[object Object]
 
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Financial Statement Analysis

  • 2. Prepared by: Nir Yehuda With contributions by Stephen H. Penman – Columbia University Basic Accounting Principles Accounting Clinic I
  • 3.
  • 4.
  • 5. The Balance Sheet: Dell Computer Corporation
  • 6.
  • 7.
  • 8.
  • 9. Solution Retained earnings are calculated as a plug number.
  • 10.
  • 11. The Income Statement: Dell Computer Corporation
  • 12.
  • 13.
  • 14. Solution (1) 5,000,000-42,000 (2) 409,000+(2,548,000+81,000-31,000)-547,000 (3) 257,000+76,000+108,000+58,000 (4) 282,000+26,000+24,000+62,000
  • 15. The Statement of Cash Flows : Dell Computer Corporation
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 23. The Statement of Stockholders’ Equity: Dell Computer Corporation
  • 24.
  • 25.
  • 26.  
  • 27.
  • 28. The Articulation of the Financial Statements Revenues Expenses Net income Income Statement Investment and disinvestment by owners Net income and other earnings Net change in owners’ equity Statement of Shareholders’ Equity Cash from operations Cash from investing Cash from financing Net change in cash Cash Flow Statement Cash + Other Assets Total Assets - Liabilities Owners’ equity Beginning Balance Sheet Cash + Other Assets Total Assets - Liabilities Owners’ equity Ending Balance Sheet
  • 29.
  • 30.
  • 31.
  • 32.
  • 33.
  • 34.
  • 35.
  • 36.
  • 37.
  • 38.
  • 39.  
  • 40.