Revenue is the profits a company receive from sale of goods or services before any cost or expenses are subtracted; it is known as the top line on a company (Investopedia, 2016). General Electric recognizes revenue when all sales are final upon delivering or sales agreement are in place. Most of the GE multiple components are in the same agreement. GE total revenue as of December 31, 2012 was $ 146,684,000, as of December 31, 2013 was $146,045,000 and as December 31, 2014 was $148,589,000 (Yahoo Finance, 2016). The revenue for all three year had big difference; for example, 2012 to 2013 had $639,000 decrease of revenue, 2013 through 2014 we see an increase in revenue of $2,544,000 (Yahoo Finance, 2016). General Electric revenue from 2012,…
The most significant differences in liability composition for 2014 for Mid Penn Bancorp, Inc. versus its peer group of banks with between $500 million to $1 billion in assets:
Mid Penn Bancorp, Inc. has a higher proportion of interest-bearing deposits - 76.40 percent of total liabilities and capital versus 66.13 percent for the peer group.
Mid Penn Bancorp, Inc. has a higher proportion of other borrowed funds - 7.01 percent of total liabilities and capital versus 3.60 percent for the peer group.…
Earnings and profit are related, but not exactly the same. They are different in the terms of how they are calculated. Earnings and profit calculations are used to identify the financial health of a business. They are typically used in reporting business income to tax authorities. New business owners usually make mistakes, they want to see the large number of sales on financial statements, if the number of sales is high they think they are operating good, but they should actually look at how…
developed nations” (Dubay, 2015). Meaning, that U.S. companies pay a lot more in taxes than foreign companies do. Therefore, if Congress eliminated corporate taxes, Amazon would report a higher income since their earnings will no longer be taxed. This higher income would allow Amazon to partake in more investments such as the purchases of plant assets that they can use to earn additional revenue. Since Amazon would be doing well financially they would be able to provide more jobs as well. This…
year or a quarter), plus the costs and expenses related to generating that revenue. The “Bottom Line” demonstrates net earnings or losses over the period.
Income statements also show earnings per share (EPS). EPS shows how much money shareholders would receive if all of the net earnings for the period were distributed. (A highly unlikely occurrence; they’re usually reinvested.)
Income statements are set up stepwise. Starting at the top we see the total amount of sales made during the accounting…
Iron Eagle Corporation.
(a) Compute (i) Current assets (ii) Current liabilities (iii) Working capital, (iv) Shareholders’ equity for the corporation.
(b) If the firm had a net income of $550,000 after taxes, what is the earning per share?
(c) When the firm issued its common stock, what was the market price of the share?
|Table 1. Balance Sheet…
Calculating net operating profit after taxes or NOPAT.
EBIT is the profit earned by the business by selling product before deducting financing cost and taxes.
Net operating profit after taxes = Earnings before interest and taxes (1 – tax rate)
NOPAT = EBIT(1-tax rate)
Calculating net operating profit for 2013
NOPAT = $17,440 (1 – 0.40)
NOPAT = $17,440 x 0.60
NOPAT = $10,464
Calculating net operating profit for 2012
NOPAT = $209,100(1-0.40)
NOPAT = $209,100 x 0.60
NOPAT = $125,460
name du Pont is taken from the company du Pont corporation which started using this formula and it spread worldwide
Its formula is return on investment is equal to profit margin multiplied by assets turnover multiplied by equity multiplier
Profitability is measured by profit margin and operating efficiency measured by asset turnover. And financial leverage measured by equity multiplier
It is used by many companies worldwide. It has many advantages
It is by fairly means the most effective model…