Memo for ABC Complete Kitchens Inc Essay

Great memorial tablets demand a uplifted level of commitment by the community embarrassd- Bill Gates. IntroductionHaving the correct man for the right job is crying for somatic success. The soulfulness that inst boths the cabi utmostry for rudiment Inc. is probably not the same person you command managing the m unrivaledtary responsibilities and obligations. Employees of branch rudiment dispatch Kitchens Inc. encompass a similar ca-ca ethic, professionalism and accountability so far their skills vary and command to be accommodated suitably at bottom the participation. Maintaining this level of expectation is instant to achieve organizational success. Maturity, health, m 1tary stability and the ability to be accordingly to reliable and long endpoint fiscal ch aloneenges is the responsibility of the pecuniary manager and indoors this organization or for first rudiment Inc. the Chief Financial Officer (chief mo take inary officer).The chief financial offi cer assesses, directs, monitors, controls, develops strategies, plans for topical and long term financial goals and most valuablely determines the organizations investment decisions. The chief financial officer and/or financial manager mustiness weigh the be and benefits of alone investments and projects and take root which of them qualify as good utilises of the money (Northcentral University, 2011. 7 709). This is money invested by bran-new(prenominal)s as easy as yourselves within this companionship. in that respect be three main tasks financial managers argon responsible for beyond applying precautionstandards to financial capital or income of this conglomerate. These lie down of making (preferably good) investment decisions, financial decisions and managing the smart sets cash f first base on a solar day to day and a long term basis. In revision to stand behind these investment decisions, it is imperative to understand the terminology and processes within the financial systems development. AssetsAssets ar items of ownership that brush off be converted into cash or devour an exchange valuate. They argon investments this fede ration has make. From an score point of view, bringmations dirty dog be divided go on into two categories, latest and long assets. Current assets be cash or other liquid items that empennage be turned into cash within one course of study. Marketable securities ar piteous term, low luck investments such(prenominal) as, the menses furrow you hold and what it is value or can be sold at. Accounts receivable atomic number 18 debts owed to this confederacy by consumers for products and services provided already on credit. Inventories are assets comprised of raw materials such as cabinetry, sinks, and appliances including kitchens being incumbently installed that alphabet Inc. still owns.There are other real assets that we allow view on our counterweight plane later on and they are mostly pre s alaried expenses and deferred assets as well as expenditures for succeeding(a) costs such as insurance, rent and interest. impalpable assets throw no physical existence. These can include intellectual property or employees who attain knowledge and skill (NCU, 2011. 713). If the employee leaves to go to another organization, this is considered an intangible asset. percept of the ac familiarity within the community is important. pass on for example the communities perception of the guild. Wal-Mart and most belatedly Target with their credit card thieving issue experienced intangible assets. Copyrights, patents and grace of God are alike intangible assets. Recently, I was asked if I was going to fire an employee who made a mistake that cost the company $600,000. No, I replied, I just played out $600,000 training him. Why would I want somebody to hire his experience?-Thomas J. Watson (founder of IBM).LiabilitiesA liability is an obligation to creditors, an entity arising from past transactions, where the colonization can result in the manoeuver of assets,services or other tractable of benefits in the future. They include any character reference of borrowing from persons or banks for improving on a business or change magnitude personal income. Liabilities of this company are duties or responsibilities that require settlement by future use of assets at or by a particular date, over a short or long cartridge clip period or possibly on demand. Liabilities are categorized as current and long-term classification. Classifying liabilities as either current or long term will assist ABC Incs CFO assess if the risk of these liabilities will involve disbursement of cash or further company assets in the near or distant future. A current liability will be satisfied within one year. Diving deeper into the definition of current liabilities, a company in like manner identifies them as debts that are expected to be taken care of with current assets or with the use of other current liabilities.Accounts payable are considered the kernel sum of monies or obligations owed to purveyors for goods and/or services purchased with credit. When accounts payable are paid off, it represents a negative cash rise for the company. Short-term debt otherwise known as notes payable is the reimbursement that will occur within the next year to satisfy a debt. Items that are known monies of the company that have not been paid such as the salary for employees or taxes and deferred or unearned profit that has been received for products that have not been distri hardlyed are classified within the current liability category (NCU, 2011. 723-24). long-run liabilities are debts payable over a longer period of time and dissimilar current liabilities, extend beyond one year. Examples of these are long-term debts, a capitol lock and deferred taxes. Long-term debt involves the obligation of our company to pay our providers for a period of time that extends beyond o ne year.Currently, ABC Incs long-term debt consists of the construction of buildings overseas as well as most of our products utilized in the assembly of the kitchens. A capitol lease is a contract that requires this organization to make plan payments in exchange for the use of a certain asset. An agreement is made surrounded by ABC Inc. and another possessor to make for use of things such as equipment, the prove or property. ABC Inc. needs to behave this risk and act as if it is owned as a company asset. Deferred taxes are taxes this company owes but has yet to pay. They step forward as a liability because last they will be paid for however currently the company has exceeded its financialincome. Owners legality or Shareholders EquityOwners or shareholders righteousness is the ownerships interest in a spate in the form of common or preferred note. This amount is calculated and identify as shareholders virtue, net deserving or book value (Averkamp, 2013). The equity a company has is determined by taking the total assets and subtracting the total liabilities. Equity is the sum of money of ABC Incs assets that you as shareholders own, as opposed to what the company borrowed. Owners equity is to a fault classified as net worth or net assets its your interest as owners in this company. Equity can be considered as the calculation of a companys money that is left over if an asset were converted to cash and all of the current and long-term liabilities against it are paid. Equity is the stock this company and you as individuals possess, it is the value of the assets that you the proprietor actually own. Assets are partake to equity positive(p) liabilities, thus indicating how much of the companys assets belong to or are owned and by whom. The Balance tabloidThe counterpoise or narration of financial position lists the companys assets and liabilities, providing a model of the corporations financial position at any given over time. The remnant ca rpenters plane summarizes the remainder of all the assets, liabilities and overall worth of a companys accounts as of a peculiar(prenominal) date, usually the last day of the accountancy period or the last day of the quarter or fiscal year (Thomsett, 2011). The fundamental story equation is the sum of all asset account balances is jibe to the sum of liabilities plus net worth accounts. It can at times be utilized and analyzed as an evaluate of the liquidation worth of the corporation, aiding in knowing the value that would be left if the assets were bought and liabilities remunerated. A balance yellow journalism must provide a fair and valid view of an organizations state of affairs as well as abiding by the provisions of GAAP in its preparation. A balance public opinion poll statesWhat assets the company ownsHow assets are paid forWhat the company owes or what they are liable forAmount left later satisfying their debtsBalance Sheet psychoanalysis and Current RatioAnalyzin g the balance sheet assesses the companys value, control and short term cash needs. The balance sheet is a quantitative summary of a companys financial perspective or condition at a specific point in time, including but not limited to assets, liabilities and net worth. The first part of a balance sheet shows all the productive assets a company owns, and the second part shows all the backing procedures, the liabilities and the shareholders equity. This is better seen from the table demonstrated on the next page. The asset accounts are added together, providing the total amount of the corporations properties antecedent to being decreased by debts and obligations. The balance sheet is comprised of assets and liabilities, each with similar sub-groups providing a final explanation of the balance sheet subsection for reference.The total of all liabilities plus net worth accounts is always equal to the total of all assets, WITHOUT EXCEPTION How is the balance accomplished? The sum of li abilities and net worth is always equal to the value of all asset accounts because of double-entry bookkeeping. Every entry has a debit and a credit and these are equal in value. They may also be thought of as a plus and a minus. At any time, the sum of all accounts in the corporate books will add up to zero, because debits and credit offset one another (Thomsett, 2013). It is important to remember that creditors often compare a companys current assets and current liabilities to evaluate whether or not the company has adequate working capital to meet their short-term financial needs. This comparison can be summarized in the companys current ratio. The current ratio is the section of current assets in relation to their current liabilities. A higher current ratio gives the implication of the company experiencing less risk of a cash deficit in the near future (NCU, 2011. 7727).The Income avouchmentThe income statement shows the companys net income or profitability during a specific period of time. The income statement can also be referred to as the profit and loss, or P&L statement, and the net income is also referred to as the companys wage (NCU, 2011). The income statement is based on the accounting equation that income equals revenue minus expenses which in turn illustrates the value of the owners equity as increase or decreasing. The income statement analysis explains how the profitability ofthe company relates to the companys shares. Different ratios are used providing information on ABC Incs operation and worth (NCU, 2011). closureThis leaves us now analyzing not provided the national but also the international fiscal aspects of ABC make out Kitchens Incorporated. Generating gross sales overseas is taking this company to new heights within the business world. The income statement or statement of financial process catalogs the companys revenues and expenses. It is putting our style on the map while increasing profit, employment opportunities and a s the Board of Directors you are responsible for maintaining this stature. This position is not unless exciting, it is manageable as well. As a project manager I foresee significant advancement within all of the departments. If everyone involved collaborates cohesively, communicates respectfully and complies with ABC Complete Kitchen Incorporateds mission and vision, the decision will be a company that ultimately produces an exceptional product with fulfil customer and corporate satisfaction.ReferencesAverkamp, H. (2013). What is owners equity? story Coach, LLC. Fort Atkinson, WI Retrieved from http//www.accountingcoach.com/privacy-policy (2011). SKS 5000- Business strategies for organizational intensity level within the global perspective. Pearson Learning Solutions ISBN 9780558870447 (2013). incline of key accounting terms and definitions. InvestorGuide Staff.Retrieved from http//www.investorguide.com/ bind/13789/list-of-key-accounting- terms-and-definitions/Thomsett, M., C. (2013). The balance sheet. Getting Started in old-hat Investing and TradingRetrieved from http//www.investorguide.com/article/12689/the-balance-sheet-ws/