Jj’s Jammers Assignment

JJ’s Jammers Assignment, Week 1

Veronica Herrera

FIN/486

Angela Guest

July 18, 2016

The Financial Statement

The Income Statement provides a summary of the company’s operating results for a specific period. The reporting timeframe is usually a year with a pre-determine end date, usually the last day of the year. The Balance Sheet provides a statement of the firm’s financial status for a specific point in time. The statement compares the company’s assets and financing, showing what the company owns versus what they owe. The Statement of Cash Flows provides a summary of the organization’s operating, investment, and financing transactions over a specific timeframe. It then reconciles these numbers with the change in cash and company’s marketable securities within the same period. Together, the Financial Statement provides owners, managers and investors with a snapshot of the organization’s financial health and profitability.

The role of the Financial Manager

Financial Managers have a variety of responsibilities. To name a few, Financial Managers prepare and evaluate company budgets, customer credit data, oversee and approve large expenditures and provide guidance is raising funds and revenue. Following the recent financial crisis, it has become more important that Financial Managers be more specialized and experienced with foreign markets and currencies. Regulations, technological advances and foreign competition has emphasized the importance and complexity of the Financial Manager’s duties. Because organizations and investors are more frequently participating in foreign business and trade, it is crucial that Financial Managers be able to adequately “manage cash flows in different currencies and protect against the risks that arise from international transactions” (Gitman & Zutter, 2015, "Managerial Finance"). Managers must be fully aware of the financial markets in which they do business. Although, the responsibilities of a Financial Manager...