The statement of owner equity
Download
1 / 7

THE STATEMENT OF OWNER EQUITY - PowerPoint PPT Presentation


  • 206 Views
  • Uploaded on

THE STATEMENT OF OWNER EQUITY. EXAMINES CHANGES IN OWNER EQUITY IN THREE CATEGORIES: 1) RETAINED EARNINGS AND CONTRIBUTED CAPITAL 2) PERSONAL NET WORTH 3) CHANGE IN VALUATION EQUITY.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'THE STATEMENT OF OWNER EQUITY' - adamdaniel


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
The statement of owner equity l.jpg
THE STATEMENT OF OWNER EQUITY

  • EXAMINES CHANGES IN OWNER EQUITY IN THREE CATEGORIES:

    1) RETAINED EARNINGS AND CONTRIBUTED CAPITAL

    2) PERSONAL NET WORTH

    3) CHANGE IN VALUATION EQUITY


Slide2 l.jpg

  • AN IMPORTANT ASPECT OF UNDERSTANDING THE FINANCIAL PROGRESS OF A BUSINESS IS TO SEPARATE THE CHANGE IN EQUITY FROM RETAINED EARNINGS FROM THE CHANGE IN EQUITY FROM CHANGES IN THE MARKET VALUE OF ASSETS.

  • WITHDRAWALS OF NET INCOME OR RETAINED EARNINGS FOR FAMILY LIVING AND PERSONAL INVESTING ARE CRITICAL ITEMS IN RECONCILING OWNER EQUITY.


Slide3 l.jpg

  • CHANGES IN OWNER EQUITY OF A BUSINESS IS TO SEPARATE THE CHANGE IN EQUITY FROM RETAINED EARNINGS FROM THE CHANGE IN EQUITY FROM CHANGES IN THE MARKET VALUE OF ASSETS. =

    NET INCOME

    MINUS WITHDRAWALS

    PLUS (MINUS) CAPITAL ADDITIONS (DISTRIBUTIONS)


Slide4 l.jpg

  • WITHDRAWALS REPRESENT ANY USE OF NET INCOME OR BUSINESS CAPITAL WHICH MAKES THAT INCOME OR CAPITAL NO LONGER AVAILABLE FOR BUSINESS USE.

  • CHANGE IN PERSONAL NET WORTH IS A SIMPLE COMPARISON OF BEGINNING AND ENDING PERSONAL NET WORTH FIGURES. ONLY EFFECTS THE MARKET VALUE MEASURE OF OWNERS EQUITY.


Slide5 l.jpg


Statement of cash flows l.jpg
STATEMENT OF CASH FLOWS OWNER EQUITY. VALUATION EQUITY IS THE DIFFERENCE BETWEEN THE CASH VALUATION NET WORTH AND THE MARKET VALUATION NET WORTH.

  • THE STATEMENT OF CASH FLOWS FOCUSES ON CASH FLOWS AND SEGREGATES THEM INTO CASH FLOWS FROM OPERATING, INVESTING, AND FINANCING ACTIVITIES.

  • OPERATING ACTIVITIES GENERALLY INVOLVE PRODUCING AND DELIVERING GOODS AND PROVIDING SERVICES.

  • INVESTING ACTIVITIES FOCUS ON CASH FLOWS FROM THE PURCHASE AND SALE OF CAPITAL ASSETS AND NON-FARM ASSETS.

  • FINANCING ACTIVITIES INCLUDE BORROWING AND REPAYMENT OF LOANS.


Slide7 l.jpg


ad