Business Finance and Accounting

TO: Owners, XYZ Construction
FROM: Kenneth Moseley, MD&T Chief Consultant
DATE: December 08, 2013
SUBJECT: Group #1 Concepts in Financial Management
With the changes that XYZ Construction are making in the upcoming IPO, the production of financial statements are one of those changes. In this memo,   five things will be reviewed for XYZ Construction first is the Balance sheet where an assessment of your Assets and Liabilities will be laid out, a review of the income statement for XYZ Construction, which will show the net income which is a measurement of the company's profit margin. Next a measure of the Operating Cash flow will be taken which in itself has four parts to show the availability of working capital. Then we have the statement of retained earnings,   which is calculated by taking the net income and subtracting the dividends. The memo then will give information on the Net   Capital, which are available funds to run the short term aspect of the business.
Balance Sheet
    The information that is obtained in a balance sheet will give a financial view from a point in time of the company this is called a snapshot. (NCU, 2013) Provided in the snapshot are a list of the assets that XYZ Construction and a list of its liabilities, each taken a half of the page. Below there has been a sample of the information laid out in a balance sheet:

  TABLE 1 XYZ Construction inc Inc. Balance Sheet (Check APA chapter 5 for more details on tables and iumages – they are quite tricky.)

  If you take an image from a source – it needs direct citation and details provided as it is considered more content copying than a quotation
Income Statement
The income statement also know as the Profit & Loss or "P&L" should not be confused with the Balance sheet, were the balance sheet lists assets and liabilities of the organization. The income statement provides us with a Period of time the money coming in and the money going out or income and expenses, which could use anywhere...