Statements, financial

A basic knowledge of accounting and financial statements is necessary for a chemical professional to be able to analyze a firm s operation and to communicate with accountants, financial personnel, and managers. Financial reports of a company are important sources of information used by management, owners, creditors, investment bankers, and financial analysts. All publicly held companies are required to submit annual reports to the Securities and Exchange Commission. As with any field a certain basic nomenclature is used to be able to understand the financial operation of a company. It should be emphasized that companies may also have their own internal nomenclature, but some terms are universally accepted. In this section, the common terminology is used. 

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DISCLOSURE DATABASE Disclosure Inc. BRS, Data-Star, Dialog, Dowjones, Lexis financial statement... 

Principles of Accounting Accounting is the art of recording business transactions in a systematic manner. Financial statements are both the basis for and the result of management decisions. Such statements can tell managers or engineers a great deal about their company, provided that they can interpret the information correctly. 

To distinguish between cash flows and earnings, let us look at a grossly simplified set of financial statements for a company. The three statements are a... 

Two other factors that need to be considered in project evaluation that are not expressly found in financial statements are inflation and debt-equity ratio. 

Scotts Company. (2002). The Scotts company 2001 summary annual report and 2001 financial. statements and other information. Marysville, OH The Scotts Company. 

United States Securities and Exchange Commission. (2001). The Scotts Company Annual Report, United States Securities and Exchange Commission (2001). The Scotts Company Quarterly Report, U.S. Securities and Exchange Commission, Scotts Company (2002). The Scotts Company 2001 summary annual report and 2001 financial statements and other information. Marysville, OH The Scotts Company. 

Figure 2.1. Trends in the financial statements of major pharmaceutical manufacturers, top 10 firms, 1990-2000. Source Kaiser Family Foundation (2001), Exhibit 31, p. 45.

Appendices including tables, graphs, raw data, sample forms, financial statements, and other materials that you do not expect your reader to read, but provide in case your reader wants to look up something specific... 

Cash flow statements are the easiest of the three main financial statements to understand because they are just like a checkbook. The amount of money coming in, less the amount of money going out, equals the net increase or decrease in cash from all sources. 

Refer to your financial statement in completing the following ... 

Translation or accounting exposure refers to the effects currency fluctuations can have on consolidated financial statements... 

Accounting Keep the books Record financial transactions Prepare financial statements Manage cash flows Analysis of profitability... 

Scenario 2 Doug Danforth, Pharm.D., is training a technician regarding information that needs to be collected during an initial patient interview. Scenario 3 Casey Kulpinski, Pharm.D., is reviewing her pharmacy s financial statements to determine if her diabetes care center met her chain s financial goals. 

Most organizations use a number of different financial statements. However, there are three types of financial... 

Table 15-1. Three Main Types of Financial Statements...

Financial ratio analysis is only as valid as the financial information on which it is based. If the information provided in the financial statements hasn t been independendy verified (audited), the results of a financial ratio analysis are not likely to give the reader an accurate assessment of the financial performance of that organization. While financial ratio analysis can provide valuable insight to the performance of any organization, it is important that the users of financial ratios are also mindful of their limitations ... 

Budgeted financial statements, often called pro forma financial statements, show how the pharmacy organization s financial statements will appear at a specified time if operations proceed according to plan. Budgeted financial statements include a budgeted income statement, a budgeted balance sheet, and a budgeted statement of cash flows. 

Identify and describe the components of personal financial statements and budgeting. 

This chapter describes a six-step process that has been proven to be useful in beginning to manage one s personal finances. Personal financial statements, the use of credit, investment strategies, and retirement planning also are discussed. The chapter concludes with seven principles of effective personal finance. 

As described in step 1 above, you must know where you are presently before you can go somewhere else. Personal financial statements tell you where you are in your financial journey. Among the most pertinent financial statements are personal balance sheets, cashflow statements, and the development of a monthly budget. 

A logical starting point for an individual or family is to determine the present financial statement. In essence, this entails determining what is owned, what is owed, and what is left over. 

Regardless of which method is used, most pharmacies also conduct a physical inventory at least annually. This encompasses counting or scanning every item in the pharmacy. Pharmacy staff then can compare the product on-hand quantities in the computer or the value of inventory on the financial statements with what is actually on the shelves. It is important to conduct a physical inventory to verify periodically the accuracy of the pharmacy s financial records. Additionally, pharmacy managers should follow state board of pharmacy regulations with respect to inventory counts and control with respect to controlled substances, especially narcotics. 

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