Financial Statement For A Management Group Essay

Financial Statement For A Management Group Essay

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Financial statement are one of the most important things for a management group. The three most important financial statements are the balance sheet, the income statement and the statement cash flows. It is important that a manager and other groups interested in a business firm’s financial records are able to understand and trust that the numbers are accurate (Pride, Hughes and Kapoor, 2015). To decrease the amount of error or fraud companies go through an audit. An audit is normally conducted by a third party an accountant employed by an outside company. By ensuring that there is an audit complete, and prove that numbers are accurate allows management plan next steps for the company. Next steps can include analyze the growth of the company, know when, where and how to invest on the following quarter, increase employment rate etc. Also through financial statements, potential investors will know how well the organization is getting along monetarily and if such organization merits putting resources into. The statements additionally help financial investors know whether the administration of an organization has made a decent utilization of the considerable number of assets and speculations as of now close by. Through the 2013 JCP annual report for instance, financial investors saw that JCP did not do to well in 2012 and that it could be conceivably hazardous to put resources into JCP at the time.
The objective of a compilation is to assist management in presenting financial information in the form of financial statements. “A compilation does not conte,plate performing inquiry, analytical procedures, or other procedures performed in a review. Additionally, a compilation does not contemplate obtaining an understanding of the enti...

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...ces for specialists, particularly identified with shut stores, protection, wage expenses, case and natural possibilities; and benefits and other retirement benefits accounting(JCP 10-K Annual Report 2013 page 56). Despite the fact that evaluations results are once in a while not quite the same as genuine results, they don 't have any impact on the combined monetary articulations.

-The Consolidated Statement of Operations is located in page 51 of the JC Penny annual report. -The Consolidated Statement of Comprehensive Income/(Loss) is located in page 52 of the JC Penny annual report.
-The Consolidated Balance Sheet is located on page 53 of the JC Penny annual report.
-The Consolidated Statement of Stockholder’s Equity is located on page 54 of the JC Penny annual report.
-The Consolidated Statement of Cash Flow is located on page 55 of the JC Penny annual report.

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