Financial statements
Páginas: 2 (311 palabras)
Publicado: 16 de septiembre de 2012
PAOLA PORTILLA
ENGLISH SPECIALIZED I
The readings explain us financial statements in United States, which are and how they work. The author explains in an easier way tounderstand, but he exposed each of its components. Additional the reading is in a key order to know the concepts.
First, if a company wants to offer, for example shares, company shouldhave three important reports: Annual, Quarterly and 14A Proxy Statement. These reports are presented to Securities Exchanged Commission and they review. SEC governs all reportspresented and the authorized reports, if these are ok in agreement with the rules: Generally Accepted Accounting Principles (GAAP).
The Reading explains us how the system works. It’s acircle and operates in 4 steps:
1. Capital Supplied.
Basically the capital is coming from investors (Stock), and this is the best option for a company, but money comes from bankstoo (Debt), but money has to be payback.
2. Balance Sheet
The balance sheet is a set between assets and liabilities that a company has, but both have a relation, for examplea company buys assets with capital from stock and debts too.
3. Cash Flow
Companies do cash flow in all year, because it’s the money in or out. The reading shows us in green orred both and if add or subtract. There are three different kinds statements in the cash flow, cash flow from financing (CFF), cash flow from investing (CFI) and cash flow fromoperations (CFO). At the end when we all are added obtain the net cash flow, but we should remember to subtract payments and costs.
4. Retain and Return.
This is the last step, anda company obtains from the net cash flow. A company have to decide if reinvest money obtain or return to investors. Although is the last step, also to start the first: The capital.
ENGLISH SPECIALIZED I
The readings explain us financial statements in United States, which are and how they work. The author explains in an easier way tounderstand, but he exposed each of its components. Additional the reading is in a key order to know the concepts.
First, if a company wants to offer, for example shares, company shouldhave three important reports: Annual, Quarterly and 14A Proxy Statement. These reports are presented to Securities Exchanged Commission and they review. SEC governs all reportspresented and the authorized reports, if these are ok in agreement with the rules: Generally Accepted Accounting Principles (GAAP).
The Reading explains us how the system works. It’s acircle and operates in 4 steps:
1. Capital Supplied.
Basically the capital is coming from investors (Stock), and this is the best option for a company, but money comes from bankstoo (Debt), but money has to be payback.
2. Balance Sheet
The balance sheet is a set between assets and liabilities that a company has, but both have a relation, for examplea company buys assets with capital from stock and debts too.
3. Cash Flow
Companies do cash flow in all year, because it’s the money in or out. The reading shows us in green orred both and if add or subtract. There are three different kinds statements in the cash flow, cash flow from financing (CFF), cash flow from investing (CFI) and cash flow fromoperations (CFO). At the end when we all are added obtain the net cash flow, but we should remember to subtract payments and costs.
4. Retain and Return.
This is the last step, anda company obtains from the net cash flow. A company have to decide if reinvest money obtain or return to investors. Although is the last step, also to start the first: The capital.
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