\u00a02 Discussion question replies 200 words each with 2 references each.
\n\u00a0Christopher Lavoie\u00a0
\nLowes (LOW on NYSE)
\nAfter reviewing the Annual Report (10K) for Lowes Companies Inc., I have made several observations about the companies report.\u00a0 After reviewing the financial statement, it seems to be one of the most important parts of the overall report.\u00a0 The financial statement is import to investors and potential investors because it shows whether or not the company is doing well and the data to determine if the future of the company will be the same.\u00a0 \u00a0The cash flow, balance sheet and shareholders information with all the companies liabilities are there for someone to review and look over.\u00a0 The notes section gives further details on the companies financial information and how decisions are made.\u00a0 By reviewing the income statement an investor can determine what outside factors effects the companies profits and losses.\u00a0 In the report the section Management?s Discussion and Analysis of Financial Condition and Results of Operations breaks down the report to show how the company is doing and what management expects the future to look like.\u00a0\u00a0
\nThe Financial Statement provides a great place to start researching a company, it does have some shortcomings.\u00a0 Sometimes assets can be overvalued or they can be hard to put a value on for some businesses.\u00a0 Companies can have value that is hard to put on a balance sheet, brand names that have been built over a long period of time or relationships can have large values that are hard to quantify. \u00a0 This problem has been made worse as more private equity funds have started putting different values on companies.\u00a0 Since the valuation on assets can be subjective, this can cause balance sheet revisions. For example in 2016 General Electric(GE) purchased a business for $10 billion even though it had a $-7 billion of value on its statement.\u00a0 GE justified the purchase by saying that the acquisition brought in revenue for cross-selling opportunities.\u00a0\u00a0
\nWith all this information being considered, it doesn\u2019t seem that too much information is being put out for competitors to take advantage of. Especially knowing that there can be some information that can be subjective and more specific information can be with held or not fully explained.\u00a0 These reports give a good overview of how the company has performed in the past and managements outlook on the future.\u00a0
\nFridson, M. S., & Alvarez, F. (2022). Financial statement analysis a practitioner?s guide Workbook. New York, Ny Wiley.<\/p>\n
\u00a0 Ellianna Citro\u00a0
\nFor this assignment, I have chosen to review the 2023 Annual Report for The Coca-Cola Company.
\nCoca-Cola\u2019s annual report compares and contrasts financial data within its statements with those from previous years. Through this comparison, managers and potential investors can clearly notice the upward or downward trends in net income and various accounts. The financial statements make up a significant portion of the annual report, including comprehensive notes for each of the statements.
\nThe management discussion does mention the financial statements, and goes further to include several smaller tables that display information relevant to the topic, such as net operating revenue. Notably, the management discussion also includes unique financial tables, such as one that that displays the net operating revenue for different continents.
\nThe financial statements include sufficient information for potential investors. The statements provide a thorough breakdown of asset accounts, equity, cash flow, etc. Investors can make informed decisions and determine profitability through analysis of the financial statements.
\nIt is difficult to determine if the statements provide too much information, specifically in regard to competitors. While annual reports need to be concise enough to conceal information from competitors, they also need to provide adequate information for managers, investors, and other stakeholders. According to the text, \u201cInvestors, creditors, and workers rely heavily on accounting information to evaluate which businesses are worthy of receiving resources.\u201d (Edmonds, 2023). I find the information provided to be sufficient for stakeholders while also not providing too much information. For example, the notes to the financial statements provide concise information, limiting it when needed. When noting concentrations of credit risk, the only information provided is the following: \u201cWe believe our exposure to concentrations of credit risk is limited due to the diverse geographic areas covered by our operations.\u201d
\nThe financial statements provide the company and stakeholders with crucial accounting information that is essential to business operations. Without the financial statements, they would be unable to make informed decisions. Furthermore, the notes on the financial statements breakdown further financial information on other regions and areas of operation. Through the statements, the company can determine whether certain divisions are profitable or not. Additionally, through the comparison of previous years, the company can determine whether recent business decisions have had any significant influence in revenue and expenses.
\nReferences
\nEdmonds, C., et al., (2023) Survey of Accounting.\u00a0(7th ed.). McGraw Hill.
\nThe Coca-Cola Company. (2023, December 31).\u00a0Annual Report for the fiscal year ended December 31, 2023. https:\/\/www.sec.gov\/ix?doc=\/Archives\/edgar\/data\/21344\/000002134424000009\/ko-20231231.htm.<\/p>\n
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\u00a02 Discussion question replies 200 words each with 2 references each. \u00a0Christopher Lavoie\u00a0 Lowes (LOW on NYSE) After reviewing the Annual Report (10K) for Lowes Companies Inc., I have made several observations about the companies report.\u00a0 After reviewing the financial statement, it seems to be one of the most important parts of the overall report.\u00a0 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15],"tags":[],"class_list":["post-14846","post","type-post","status-publish","format-standard","hentry","category-essays"],"_links":{"self":[{"href":"https:\/\/academicwritersbay.com\/solutions\/wp-json\/wp\/v2\/posts\/14846","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/academicwritersbay.com\/solutions\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/academicwritersbay.com\/solutions\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/academicwritersbay.com\/solutions\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/academicwritersbay.com\/solutions\/wp-json\/wp\/v2\/comments?post=14846"}],"version-history":[{"count":0,"href":"https:\/\/academicwritersbay.com\/solutions\/wp-json\/wp\/v2\/posts\/14846\/revisions"}],"wp:attachment":[{"href":"https:\/\/academicwritersbay.com\/solutions\/wp-json\/wp\/v2\/media?parent=14846"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/academicwritersbay.com\/solutions\/wp-json\/wp\/v2\/categories?post=14846"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/academicwritersbay.com\/solutions\/wp-json\/wp\/v2\/tags?post=14846"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}