Income Statement Format

A proper income statement format comes in two varieties. The first one discussed here is the single step income statement and the second is the multiple step income statement format. There are key differences between the two and you should know when to use each for the right situation. The downloadable spreadsheet is at the end of the tutorial.


Bill Gates’ Foundation Donates $500,000 to Tuition-Free University

University of the People (UoPeople), the world’s first tuition-free, non-profit online university currently seeking accreditation, announced that they received a $500,000 donation from the Bill & Melinda Gates Foundation. Announcement of this grant follows other donations from the Ewing Marion Kauffman Foundation, Intel Foundation and William & Flora Hewlett Foundation.


Coca-Cola Upgrades Investment Plans for India

Atlanta, Georgia based multinational soft drink giant Coca-Cola and its local bottlers said Tuesday that they plan to invest $ 5 billion in India by 2020, approximately 3 billion more than the company had originally planned.  This expansion strategy and investment is targeted as a result of consistent growth the company has seen in India over the past five years.  


Financial Analysis Example – Planning for Retirement

While a robust financial analysis example can teach you many things and span across numerous practical applications, there is none that is as relevant as the one involved in your own personal financial planning. This particular financial analysis example shows you how you can set up a spreadsheet model to evaluate and attain your personal financial goals. Relevant concepts such as Present Value, Future Value and Real Rate of Return, among others, are discussed. The exportable spreadsheet can be found at the end of the tutorial.


ETFs A Safe Bet For Novice Investors

Mutual funds are a very popular form of investment these days. Most people already own mutual funds within their brokerage account or retirement plan. New investors should understand this type of investment and why a significant number of people prefer them.

Mutual funds are investment that will involve a group of investors that combine their money. They employ a portfolio manager that could invest their asset funds inside in the stock market or other securities. The manager will deal with researching and maintaining winning assets around the stock market.


Cash Flow Analysis

Cash is king! When evaluating a company’s performance, most stakeholders whether internal or external, are interested in how well the company is generating cash. Having a strong grasp of cash flow analysis can give you great insights into the company’s past, present and future performance. There are a few types of cash flow analysis and in a series of tutorials we will explore the cash flow statement, cash flow ratios, discounted cash flow and free cash flow.


The Basics And Pricing Of Debt Securities (Bonds)

When a company is fortunate enough to have excess cash sitting around it may invest in debt securities that are either issued by the government or other private entities. Similarly, a company in need of financing to improve its cash position may find it necessary to issue debt to investors who are interested in generating interest income in addition to any potential discount they can benefit from based on the face value of the bond.


Accounting for Bonds

This is a continuation of “The Basics and Pricing of Debt Securities” post. If you have not read that post / are unfamiliar with how bonds are priced, please do so before reading this article.


Basics of Inventory Valuation

For merchandisers, manufacturers and wholesalers, inventory is often times the largest asset item represented on the balance sheet as a current asset. It is considered one of the more liquid assets because the basic assumption is that inventory owned by a company will be sold in the near future and converted to cash (the most liquid of any asset type). Inventory includes items that are ready for sale (finished goods), items in the process of being produced (work in progress) and raw materials that will be used to produce the final goods.


U.S. GAAP (Generally Accepted Accounting Principles)

Generally Accepted Accounting Principles (GAAP) are a set of common and widely accepted standards used by accountants and organizations in preparing financial information about a business entity. GAAP is borne out of some clearly defined objectives which include the necessity for business organizations to provide financial information that are useful for evaluation by external parties like creditors and investors. Consistency in the approach, format and presentation derived from the accounting framework and applicable laws makes the provided information very helpful in the decision making process for outside parties.