Riordan Industries Week 3
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- Date Submitted: 10/06/2012 02:50 PM
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Riordan Industries Week 3
The income statement of Riordan Industries is a short and a deception simple looking form. The form is setup so that it is easy to understand so decision makers con easily read the statement and make decisions quickly and accurately using it. The statement all so has to have all in the information that is needed to evaluate the financial health of the company and make perceptions of the company’s future.
The specific time period that the income statement is prepared for is the year of 2004. For most businesses the financial years starts and end with the normal year Jan 1 to Dec 31. The statement needs to be the same time period for each year. This is so that the statements are consistent and can be easily compared. Using the same time period every years keeps companies from only reporting the good parts of the years on the statement they have to report the entire year both the good and bad parts.
At the top of the statement is Roirdan Industries income or its revenue. Revenue is the income that a company’s generates from the company’s primary business activity. For Roirdan Industries their Primary business activity is the sale of plastics. In the income section of the statement are the line titles for sales and direct cost of goods sold. In the line for Sales is the amount of $549,144. This amount represents the amount that Riordan Industries made selling their good before the cost of manufacturing and shipping is subtracted. Under the line the Sale line is the Direct Cost of Goods Sold line. The amount in this line is $11,604 this is the amount that is cost Roirdan Industries to perches the raw materials, their manufacturing cost, and their cost to ship the goods to the markets. Since the money brought into Roirdan Industries is listed as an asset and the money that was spent to produce goods are listed as a liability the $11,604 in the Direct Cost of Goods Sold is subtracted from the $549,144 of Sales.
The next section of the...
The income statement of Riordan Industries is a short and a deception simple looking form. The form is setup so that it is easy to understand so decision makers con easily read the statement and make decisions quickly and accurately using it. The statement all so has to have all in the information that is needed to evaluate the financial health of the company and make perceptions of the company’s future.
The specific time period that the income statement is prepared for is the year of 2004. For most businesses the financial years starts and end with the normal year Jan 1 to Dec 31. The statement needs to be the same time period for each year. This is so that the statements are consistent and can be easily compared. Using the same time period every years keeps companies from only reporting the good parts of the years on the statement they have to report the entire year both the good and bad parts.
At the top of the statement is Roirdan Industries income or its revenue. Revenue is the income that a company’s generates from the company’s primary business activity. For Roirdan Industries their Primary business activity is the sale of plastics. In the income section of the statement are the line titles for sales and direct cost of goods sold. In the line for Sales is the amount of $549,144. This amount represents the amount that Riordan Industries made selling their good before the cost of manufacturing and shipping is subtracted. Under the line the Sale line is the Direct Cost of Goods Sold line. The amount in this line is $11,604 this is the amount that is cost Roirdan Industries to perches the raw materials, their manufacturing cost, and their cost to ship the goods to the markets. Since the money brought into Roirdan Industries is listed as an asset and the money that was spent to produce goods are listed as a liability the $11,604 in the Direct Cost of Goods Sold is subtracted from the $549,144 of Sales.
The next section of the...