MSN Money offers information about companies, industries, and related news items
ID: 429529 • Letter: M
Question
MSN Money offers information about companies, industries, and related news items. For researching a company, the website is a good place to start gathering basic information. Go to http://moneycentral.msn.com. Pick a large company that does business in your community and view their financial results. For the most recent year list the amounts reported for sales, cost of goods sold, and total net income. Does the amount reported for revenue represent cash received from customers during the year? If not, what does it represent? What does the amount reported for cost of goods sold represent? Is your company a profitable company? How can you tell? Does your company use accrual-based or cash-based accounting? How can you tell?
Explanation / Answer
MSN - MicroSoft Network has a unique way to describe the way money works in renowned companies. It shows the flow of currency and place at which the company stands among its competitors. The large company that does business in my community is Mahindra & Mahindra LTD ( MAHMF)
Mahindra & Mahindra LTD (MAHMF)
All the numbers given in Cr. rupee( Indian currency)
Amount reported for sales - 41,333.
Cost of goods sold- 40,237.
Total Net income - 38,945.42
The cost of goods sold represent - the manufacuring cost of the goods .The cost incurred in producing the good. Inclusive of all other costs like raw materials and transport have also a big share in the cost of manufacturing the good.
The company is a profitable company since the fiscal year 2015 , the company made a profit of 3321.11 Cr ( rupees in profits).
The company uses accural-based accounting.
Accural based accounting is the way that matches the expenses to related revenues and is only reported when the transaction of expense takes place. It shows a exact way to match the incomes and the expenditures of the company. As the latest technology and highly skilled technical man power also supports the companies to know the standards and terms of business world.
The company records the adjusted revenues and earings per share suggesting that they report the earnings as the transaction happens not when the cash is generated.
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