“Role of Finances in the Workplace” Eaton is a complex company in terms of the financial structure given the different sectors and division. Eaton is a manufacturing company, providing customers with energy-efficient solutions in electrical, hydraulics and mechanical power. Eaton sells their products in over 175 countries and in 2014 sales were $22.6 billion. Eaton has two sectors, electrical and industrial. The electrical sector consists of the electrical division for the Americans and world segments. The industrial sector consists of three divisions, hydraulic, aerospace and vehicle. Each division operates independently and then gets funneled up into the corporation. I work for the hydraulics division of Eaton. Within the hydraulics division …show more content…
The statement of cash flow report shows the effect of all transactions that involve or influence cash but don’t appear on the income statement” (Siciliano, 2015, p. 29). Our executives review the income statement along with statement of cash flow to determine what cuts they will be making if the statements are negative or not meeting the projected forecast. Our current market conditions have been on the decline and have been since the third quarter of 2014. The market conditions have declined at an unforeseen rate. The market forecast for 2016 is projected to be flat according to Eaton’s economic analyst, Arun Raha. The finance department puts out a weekly report similar to an income statement for the executives to review. The executives review the report to make tentative plans on what they will do for staffing, plant shut downs and mandatory unpaid leave of absences (MULA) for the following month. Sometimes these decisions are made within a few weeks’ time. An example on November 3rd, the they decided to shut down two of our plants for two days in November that was not originally planned. The results on the income statement has also lead to three rounds of layoffs. Another task I have that is related to our company’s finances is customer credits and debits. On the income statement the T-account method is used for debit and credits for our customer’s account. A debit is an entry that increases an asset or expense account, or decreases a liability or equity account. The debit is entered on the left side of the T-account. A credit is an accounting entry that increases a liability or equity account, or decreases an asset or expense account. The credit is entered on the right side of the
Accounts Receivable has good separation of duties and strong internal controls such as control numbers and reconciliations to sales and bank statements. One weakness in the Accounts receivable system is the accounting supervisor approves summary entries and reconciles the general ledger account, which could indicate a weakness with segregation of duties. We recommend that the controller approves of summary entries to segregate these duties.
Donal E. Kieso, Wegandt J. Jerry, Warfield D. Terry. (2012). Intermediate Accounting. Hoboken, NJ: Wiley.
What do you understand by the phrase “stakeholder analysis”? Attempt a stakeholder analysis of an organisation that you are closely associated with.
As we learned in class by keeping accounting on the simple way of a General ledger the entries goes as follows, every entry is A Debit for 1 account following with a credit on the other for Example when you have a Rent Expenses of $ 15,000 meaning you taking out money from cash account to p...
The second step is entering the transactions of the period in appropriate journals. This step consists of taking the journal entries, assigning each to an asset, liability, equity, expense or revenue account(s) to debit and credit. This can be done by almost anyone. I have had jobs where the bookkeeper does the journal entries and figures out which accounts are affected. I have also had jobs where anyone from a receptionist to a staff accountant does this step. If the person doing the journal entries does not have a background in accounting, or is unfamiliar with which accounts are affected, the person submitting the source documents will write down which accounts should be debited and which should be credited. This practice makes doing the journal entries little more than data entry, which can be done by nearly every employee.
The terms debit and credit are used in recording business transactions which will indicate the increases or decreases of a specific account, be it an asset, liability, owner’s equity or capital, revenue, expenses and the owner’s drawings. Being on the left side of the equation, all assets will increase on the left side or debit side and its corresponding “partner” account like for example, the investment of an owner, will take the right side or credit side.
After completing this exercise and reviewing the accounts such as Mortgage Payment, Insurance, and Income taxes, I now see that those accounts are the control ones in as which the accounts that I need to monitor is the variable expenses such as utilities, food and vacations. This exercise is where I had to perform a vertical analysis. A vertical analysis is a system operation where a single variable of a financial statement is constant and how the other variables relate as a percentage of the single variable. In the vertical analysis the formula that’s used is percentage of base = the amount of individual item/amount of base x 100. By using this technique, I came up with the accounts that are controlled are Mortgage Payment, Insurance, and
The statement of cash flows reports a firm’s major cash inflows and outflows for a period. This statement provides useful information about a company’s ability to generate cash from operations, maintain and expand its operating capacity, meeting its financial obligations, and pay dividends. There are three types of activities to look at in this statement, which are cash flows from operating activities, investing activities, and financial activities (3, 2005).
Cash flow statements provide essential information to company owners, shareholders and investors and provide an overview of the status of cash flow at a given point in time. Cash flow management is an ongoing process that ties the forecasting of cash flow to strategic goals and objectives of an organization. The measurement of cash flow can be used for calculating other parameters that give information on a company 's value, liquidity or solvency, and situation. Without positive cash flow, a company cannot meet its financial obligations.
Managing personal finances is an important skill to acquire. However, no where in school is this subject taught. As a result of a lack of preparation, our society is subject to a high percentage of people who lack financial success. Those who are successful at managing their personal finances will find that they are successful in many other areas as well. To learn how to manage personal finances there are books and web sites that provide a step by step guide to successfully managing personal finances. Those who lack financial success often possess many of the same traits.
Goodman’s last and final point is that employers should “focus on the means as well as the end” (Goodman 2013). This means that employers should always be thinking about their end goals. Goodman says that all incentives that are used to motivate employees to do smaller tasks, should also lead employees to the overall progress of the company (Goodman 2013). According to Goodman, employees should have more than just one goal to accomplish (Goodman 2013). Goodman says that if companies only provide one goal, such as a bonus, then employees will take “shortcuts” (Goodman 2013). Goodman says that instead, employers should have employees striving to accomplish bigger and overall goals of the company (Goodman 2013). Goodman continues by saying that
Decisions are conclusions made by mangers after long cautious thoughts and happen when answers to problems are chosen for discharge. Options here have to be more than one to enable managers to choose between them, hence, making decisions. Managers of an organization make decisions based on financial statements, since the information contained in financial accounting reveals what has already taken place and what is going on in the organization (Socea, 2012). Managers also predict the future of an organization by reporting that future in the current date. According to Socea (2012), managerial accountants use the financial accounting data that is appropriate, dependable, and comparable. According to Breuer,
Topic: Colleges should have personal financial education courses Opening/Attention: Several families during the last year have had issues managing mortgages and foreclosures. Every year, debts continue to increase from credit cards and cutbacks and/or downsizing creating job losses. Though the reasons may be complex, the main factor for these issues is financial illiteracy for many people. Several studies through a financial literacy survey show that adults and youth know little about financial concepts.
Personal finance is a subject some kids learn about in high school. They teach you how to pay your debt, balance a check, and see how much credit you have. Many people think this subject is a waste of time and should not be taught, however I disagree. Kids need to learn this because once you get to the real world you'll need to learn all this information by yourself. Some reasons why kids should have personal finance is they need to know the basics of money management, kids end up having a better credit, and they will not end up with loans.
Personal Finance is a class I’ve wanted to take for a while now. My major is Finance not because I want a career in finance but more to learn about finance for my own personal situation. This class taught me so much! During this class I was able to evaluate my financial situation and set financial goals for myself. The four topics that helped me the most were emergency savings, buying a car, purchasing a home, retirement, and estate planning. After completing this class I have a better understanding of these topics and how to achieve my financial goals.