Running Head: TEMID RETAILERS FINANCIAL STATEMENTS 1 TEMID RETAILERS FINANCIAL STATEMENTS 2 Temid Retailers Financial Statements PART ONE Company Overview Temid retailers are one of the biggest retail company located in the United States. The company has more than 45 branches in the United States where it has an established market for its products. The company has been in the industry for more than 25 years now, and it has been able to strive in the industry because of its strategic plan that it has implemented to help it establish itself in the retail industry. The company like earlier said has more than 45 branches in the United States and it has continued to accrue popularity in the country and the world over. The organization has more than 780 employees who work for the company in its four branches in America (Williams, & Connell, 2010). For the past few years, the company has been earning profit year in year out. Temid retailers are based locally and have no foreign subsidiaries in the world or rather in the other nations. The company has been making more than $45 billion which is the highest in the company history. The company has faced challenges and competitions from other retailers in America including the giant retailer Wal-Mart among other companies. The company has been buying goods from other manufacturers, and it has been able to maintain its place in the retail industry because of its strategic plan which has witnessed the company add value to the products it sells to the people (Agrawal, & Smith, 2015). Other competitors include Home Depot and the Costco. Based on the company profit or rather a revenue, the company is one of the leading retailers in America, and it has been in operation for more than 24 years in the retail industry in the country. Company Budgeted Financial Statement Company balance sheet The company has been in operation in the industry for more than 24 years, and it has been able to gain its current position in the industry because of its strategic plans. A balance sheet is also known as the financial position statement. A balance sheet is made of three parts, the assets, liabilities, and the owners' equity. Assets are tangible properties that are used to make the business possible. Liabilities are the bills that the business accrues during operations while equity can be described as what the business is worthy (Adrian et al. 2010). A balance sheet can be used to indicate the progress of the business early enough so that appropriate actions can be taken to make amends. It is recommended that company owners examine the balance sheet from time to time to ensure that the business is fine financially. A balance sheet shows the financial ratio of assets and liabilities information that is very important as far as understanding the financial health is concerned. Balance sheets are also important to the potential shareholders as it indicates the growth of the company ...

1. Running Head: TEMID RETAILERS FINANCIAL
STATEMENTS
1
TEMID RETAILERS FINANCIAL STATEMENTS
2
Temid Retailers Financial Statements
PART ONE
Company Overview
Temid retailers are one of the biggest retail company located in
the United States. The company has more than 45 branches in
the United States where it has an established market for its
products. The company has been in the industry for more than
25 years now, and it has been able to strive in the industry
because of its strategic plan that it has implemented to help it
establish itself in the retail industry. The company like earlier
said has more than 45 branches in the United States and it has
continued to accrue popularity in the country and the world
over. The organization has more than 780 employees who work
for the company in its four branches in America (Williams, &
Connell, 2010). For the past few years, the company has been
earning profit year in year out. Temid retailers are based locally
and have no foreign subsidiaries in the world or rather in the
other nations. The company has been making more than $45
billion which is the highest in the company history. The
company has faced challenges and competitions from other
retailers in America including the giant retailer Wal-Mart
among other companies. The company has been buying goods

2. from other manufacturers, and it has been able to maintain its
place in the retail industry because of its strategic plan which
has witnessed the company add value to the products it sells to
the people (Agrawal, & Smith, 2015). Other competitors include
Home Depot and the Costco. Based on the company profit or
rather a revenue, the company is one of the leading retailers in
America, and it has been in operation for more than 24 years in
the retail industry in the country.
Company Budgeted Financial Statement
Company balance sheet
The company has been in operation in the industry for more
than 24 years, and it has been able to gain its current position in
the industry because of its strategic plans. A balance sheet is
also known as the financial position statement. A balance sheet
is made of three parts, the assets, liabilities, and the owners'
equity. Assets are tangible properties that are used to make the
business possible. Liabilities are the bills that the business
accrues during operations while equity can be described as what
the business is worthy (Adrian et al. 2010). A balance sheet can
be used to indicate the progress of the business early enough so
that appropriate actions can be taken to make amends. It is
recommended that company owners examine the balance sheet
from time to time to ensure that the business is fine financially.
A balance sheet shows the financial ratio of assets and
liabilities information that is very important as far as
understanding the financial health is concerned. Balance sheets
are also important to the potential shareholders as it indicates
the growth of the company and owners to attract more investors
can, therefore, use it. It helps them to understand where they are
investing their money and what they expect to earn on their
investments in future.
Temid Retailers Balance Sheet As At 09/01/2018

3. Current Period
Prior Period
Increase (Decrease)
09/01/17 to 09/01/18
09/01/16 to 09/01/17
09/01/17 to 09/01/18
ASSETS
Current Assets:
Cash
$ 13,345.00
$ 11,368.00
$ 1,977.00
Petty Cash
123.00
120.00
3.00
Accounts Receivables

4. 4,015.00
4,000.00
15.00
Inventory
10,887.00
11,000.00
(887.00)
Prepaid Expenses
1,198.00
1,100.00
(98.00)
Employee Advances
90.00
-
90.00
Temporary Investments
-
-
-
Total Current Assets
29,658.00
27,588.00
1,995.00

5. Fixed Assets:
Land
110,000.00
110,000.00
-
Buildings
34,235.00
34,235.00
-
Furniture and Equipment
29,000.00
28,000.00
(1,000.00)
Computer Equipment
3,300.00
3200.00
-
Vehicles

6. 42,500.00
42,500.00
-
Less: Accumulated Depreciation
(31,183.00)
(30, 183.00)
1,000.00
Total Fixed Assets
187,852.00
186,752.00
1,100.00
Other Assets:
Trademarks
3,400.00
3,400.00
-

7. Security Deposits
1,100.00
1,100.00
-
Other Assets
300.00
400.00
(100.00)
Total Other Assets
4800.00
4900.00
(100.00)
TOTAL ASSETS
$ 192,652.00
$ 196,552.00
$ 3,900.00
LIABILITIES

8. Current Liabilities:
Accounts Payable
15,000.00
14,900.00
100.00
Business Credit Cards
5,000.00
4,000.00
1,000.00
Sales Tax Payable
2,050.00
2,000.00
50.00
Payroll Liabilities
2,300.00
2,500.00
(200.00)
Other Liabilities

9. 700.00
1,000.00
(300.00)
Current Portion of Long-Term Debt
11,000.00
11,000.00
-
Total Current Liabilities
36,050.00
35,400.00
650.00
Long-Term Liabilities:
Notes Payable
20,000.00
20, 000.00
-
Mortgage Payable

10. 142,000.00
141,000.00
1,000.00
Less: Current portion of Long-term debt
(200.00)
(200.00)
-
Total Long-Term Liabilities
162,000.00
161,000.00
1,000.00
EQUITY
Capital Stock/Partner's Equity
140,000.00
140,000.00
-
Opening Retained Earnings
65,500.00
59,500.00
(6,000.00)
Dividends Paid/Owner's Draw

11. (3,000.00)
(3,000.00)
-
Net Income (Loss)
8,000.00
9,000.00
(1000.00)
Total Equity
210,500.00
205, 500.00
(5,000.00)
Significance of a Balance Sheet
The question of the importance of a balance sheet has lingered
in the minds of several business owners. From the analysis and
literature, a balance sheet is a very important document in the
life of business owners and accountants because it provides the
easiest way to understand the company financial health at any
given time. A balance sheet can be used to indicate the progress
of the business early enough so that appropriate actions can be
taken to make amends. It is recommended that company owners
examine the balance sheet from time to time to ensure that the
business is fine financially (Adrian et al. 2010). A balance sheet
shows the financial ratio of assets and liabilities information
that is very important as far as understanding the financial
health is concerned. Balance sheets are also important to the
potential shareholders as it indicates the growth of the company
and owners to attract more investors can, therefore, use it. It
helps them to understand where they are investing their money
and what they expect to earn on their investments in future.

12. Apart from the balance sheet is important to investors, it has
been used by creditors and other financial institutions to
measure the financial capabilities of the company to gauge the
amount the company can comfortably pay as a loan.
Income Statement
Among the major financial statements in any given company is
the income statement apart from the balance sheet and the cash
flow and the statement of shareholders equity. In most cases,
the income statement is referred as profit and loss statement and
as a statement of income. It should be noted that income
statement indicates revenues, expenses, gains, and losses as far
as the business operation are concerned (Drehmann, &
Tarashev, 2011). However, it does not show cash receipts and
cash disbursements. The income statement is important as most
of the investors pay attention to the profitability of any
organization and one of the documents that can be used to
indicate this is the income statement. Bankers and creditors are
always worried about the income statement as net loss
demonstrates that the company is not able to work effectively
and make returns on investments.
Temid Retailers Income Statement for Period Ending 09/01/18
Income Statement:
Revenue
29,658.00
Cost of Goods Sold
17,900.00
Gross Profit
11758.00
Operating Expenses:
Selling, General, and Administrative Expenses)

13. 3,720
Other Operating Expense
200
Operating Income
9,540
Non-Operating Income Expense
21
Interest Expense
400
Unusual Expense
-
Pretax Income
8,300
Income Taxes
1,500
Equity In Earnings Of All Affiliates Income
120
Other After Tax Adjustments
-
Consolidated Net Income
3,700
Minority Interest Expense
-
Net Income Continuing Operations
3,700
Preferred Dividends
-
Net Income Available to Common Basic Shares
3,700
Earnings Information:
EPS Diluted Before Unusual Expense
0.67
EPS Basic Before Extraordinariness
1.21

14. EPS Fully Diluted
0.98
Significance of Income Statement
Income statements are very important as analysts use them to
calculate financial ratios such as return on equity (ROE), return
on assets (ROA), gross profit, operating profit, earnings before
interest and taxes (EBIT), and earnings before interest taxes and
amortization (EBITDA) (Drehmann, & Tarashev, 2011). It is
also important as it is used to determine company sales and
auditors can use the information to determine major expenses in
the organization. Professionals also use the income statement to
compare year-over-year (YOY) and quarter-over-quarter (QOQ)
performance.
PART TWO
Based on your research Identify the key elements of your
company where you would like to evaluate and measure
performance.
From the above analysis, it is very clear that the company
financial statements have had issues in the past. It is very clear
that the selling and general expenses are too high and are eating
into the company revenues. It is therefore important to evaluate
and measure this element to determine its performance.
Evaluating and measuring this element will make it possible for
the company management to come up with strategies that the
company can implement to reduce the expenses and add on the
company profitability. Another element that must be evaluated
and measured to determine its performance is the operating
income expenses (Said & Tumin, 2011). The figure is too high,
and it must be evaluated to determine reasons as to why it is
that high in the first place. Having a high figure as income
expenses is not a good indicator of the company financial
health, and it may result to increase in the net loss hence eat
into the company revenue. Another key element in the company

15. that needs to be evaluated and measured to determine its
performance is the interest income. Interest income is a key
element of the financial statement that must be monitored by the
company. The three key elements must be evaluated and
measured to come up with different strategies that can be
implemented by the company to increase the profitability of the
company. Evaluating and measuring the above-identified
elements of the balance sheet and income statement is important
as it provides a clear picture on how the organization is
performing regarding finance and can be used to provide insight
on how it can be improved in the short-term.
Create a computer-based analysis. For example, if you select a
hospital you may want to know the average cost per patient per
day or what is your return on investment.
It may prove to be difficult to monitor the number of goods sold
in a single day in a big retail shop like Temid Retailers.
However, with a best-developed computer-based analysis
system, this may be very simple (Said & Tumin, 2011).
Computer-based inventory is one of the analysis systems that
can be used by the Retailer in this case to analyze the sales per
day. A system where all the goods are entered into the inventory
and the system detects the number of products that have been
sold and tally them automatically against each product price and
at the end of the day provide a print out of all the branch sales
is the best system that can be used to analyze stock turnover and
sales at the company. The system will be able to subtract buying
price from the selling price and provide gross profit at the end
of each day which can be used to estimate the return on
investment in the company every day depending on the sales
and expenses.
Discuss how the analysis you created will improve the
performance of the company you have selected.

16. For a long time now with the recent developments in
technology, business has derived accounting system that is
based on technology which has helped them meet the required
accounting standards. Technology has been important to the
business accounting departments as the automated system has
helped accountants too identify errors in the financial
statements and correct them with a lot of ease before presenting
the statements to the managers and the board of directors for
analysis. The three key elements must be evaluated and
measured to come up with different strategies that can be
implemented by the company to increase the profitability of the
company (Said & Tumin, 2011). Evaluating and measuring the
above-identified elements of the balance sheet and income
statement is important as it provides a clear picture on how the
organization is performing regarding finance and can be used to
provide insight on how it can be improved with time. A system
that can be used to analyze financial statements like the one at
hand is imperative to any business organization as it will rule
out any possibility of fraud in the finance department and will
also improve on the reliability of the financial statements in the
short-term. With the aid of the internal control measures, the
developed system will help to identify some discrepancies in the
financial system and allow for their correction before using the
data entries to prepare final statements.
Discuss internal controls that need to be put in place to ensure
proper financial reporting.
Most companies come up with policies and procedures that they
use to ensure that the financial statements made are reliable and
valid. This policies and procedures are what is known as the
internal controls (Said & Tumin, 2011). It is important for any
company to have a genuine financial report as it is based on this
that managers and decision-makers derive their decisions from.
From the analysis of the company, it is important that the

17. company implement the following measures to ensure proper
reporting.
Separation of Duties
Separating the duties of each employee is important as it will
allow splitting of tasks such as bookkeeping, deposits, auditing
and reporting to be done separately (Altamuro & Beatty, 2010).
The more the duties are separated, the fewer chances of
employees committing fraud in the company. Separation of
duties is recommended at the company to promote reliable and
valid financial reporting.
Access Controls
Limiting the number of employees who have access to the
accounting system is also one of the ways that the company can
use as part of its internal control measures (Altamuro & Beatty,
2010). Controlling the accounting systems using passwords,
lockouts and electronic logs is important as it will safeguard the
system and avoid any form of manipulation of the system by
employees. The company can also achieve this by using robust
access and tracking system to deter any employee from
interfering with the system.
Physical Audits
Several companies that have had problems with their accounting
systems have always used physical auditing system to verify
their financial reports. Physical auditing involves counting the
money physically and other assets that are tracked in
inventories, materials, and tools (Altamuro & Beatty, 2010).
Physical counting is the important measure as it can be used to
reveal some of the discrepancies in the accounting systems of
any company as this can be done without using electronic
records. Audits include hand-counting cash and any physical
assets tracked in the accounting system, such as inventory,
materials, and tools. Counting cash in sales outlets can be done

18. daily or even several times per day.
Documentation
Documenting all financial documents in the company is another
mean through which Temid Company can use to mange financial
reporting internally? Documents such as invoices, internal
materials requests, inventory receipts and travel expense
reports, are important should be documented properly to avoid
any form of incontinences when they are needed for accounting
purposes (Altamuro & Beatty, 2010). Lack of proper
documentation system can result in useful documents being
overlooked or even mishandled.
Trial Balances
For many years now, most of the accountants have used the trial
balance to add reliability to their financial reporting and create
confidence in their accounting systems. Using the double-entry
process in accounting is important as it ensures that all the
books are balanced. A trial balance is also important as it can be
used to identify errors in the working before they are posted
finally. Maintaining a weekly or daily trial balance is important
as it brings insight of the company financial documents
(Altamuro & Beatty, 2010). This makes it easy and possible to
discover discrepancies and correct them accordingly.
Reconciliations
Timely accounting reconciliation is another system that can be
used to control financial reporting in organizations internally.
Reconciliation of accounts is important as it allows the
accountant to identify any discrepancies in the accounts and
correct them early before using the entries. The company can
reconcile the accounts by comparing them with the suppliers,
and credit customers (Altamuro & Beatty, 2010). This can also
be done by reconciling the accounts with the bank statements.
Differences between these types of complementary accounts can

19. reveal errors or discrepancies in your accounts, or the errors
may invent with the other entities.
Approval Authority
Temid Retailers can also increase the reliability of its
accounting statements by having particular company
management to sign and approve company transactions on
behalf of the company. This will allow scrutiny and evaluation
of all transaction documents before they are documented for
further use (Altamuro & Beatty, 2010). Requiring approval for
large payments and expenses can prevent unscrupulous
employees from making large mismanaged transactions with
company funds, for example.
Conclusion
Financial statements are the major documents in the company
that should be given the utmost priority when it comes to
business documentation. A balance sheet is important in the
organization as it can be used to determine the net worth of the
business and create a clear picture of whether the business is
growing of it is at a standstill or even making losses. It is also
important as it provides the owner's equity. The income
statement is also important as it can be used to compute return
on investments and return on assets, gross profit, operating
profit, earnings before interest and taxes, and earnings before
interest taxes and amortization. With recent trends in
technology, companies can determine their daily sales and gross
profits by the use of computer-based analysis systems and make
the accounting work ease. It is also important to implement
internal control measures to guarantee the reliability of
financial statements.
References

20. Adrian, T., Moench, E., & Shin, H. S. (2010). Financial
intermediation, asset prices, and macroeconomic dynamics.
Agrawal, N., & Smith, S. A. (Eds.). (2015). Retail supply chain
management: quantitative models and empirical studies (Vol.
223). Springer.
Altamuro, J., & Beatty, A. (2010). How does internal control
regulation affect financial reporting?. Journal of Accounting
and Economics, 49(1), 58-74.
Drehmann, M., & Tarashev, N. A. (2011). Systemic importance:
some simple indicators.
Said, R. M., & Tumin, M. H. (2011). Performance and financial
ratios of commercial banks in Malaysia and China. International
Review of Business Research Papers, 7(2), 157-169.
Williams, C. L., & Connell, C. (2010). “Looking good and
sounding right” aesthetic labor and social inequality in the
retail industry. Work and Occupations, 37(3), 349-377.