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Accounting Week 3

Accounting Week 3

Description

SEC 10K Project

This is the second section of your SEC 10K project: The Income Statement. 

REQUIREMENT:    Between Weeks 2 and 6, you will develop one part of the SEC 10K project.   You are to follow UMGC’s APA requirements to prepare your report. An overview of the APA format can be found in the Accounting Toolbox. Additional support may be found with the UMGC Writing Center. This section should be approximately one page long, written by you and following the appropriate in-text citations as required.  

The Income Statement, sometimes referred to as the Profit and Loss Statement summarizes revenue and expenses. They are categorized based on types of income and types of expenses.

Operations:

What products does your company make and sell?

Do they manufacture their products or purchase from others?

Trends in revenues and impact on inventory and accounts receivable:

Are sales increasing or decreasing year to year? 

How does this relate to changes in inventory and accounts receivable?

Business environment:
What issues might your company experience relate to risk? Search your company’s PDF version of the SEC 10-K for the word risk. Are other companies and brands under your corporation’s control; locations where they operate; and other big picture business concerns? 

  • Income Statement costs:
    What are the costs reported as line items on the income statement? Consider how these relate to the operations of the company. Are they increasing with sales or other changes? 

You might also consider the concept of competitive advantage. Companies are required to disclose certain financial information to comply with good business practices. How could this impact their competitive advantage over competitors?