Understanding Financial Statements
Company Performance

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Below are the top discussions from Reddit that mention this online Coursera course from University of Illinois at Urbana-Champaign.

This course is designed to provide a basic understanding of financial statements with an emphasis on the income statement.

Income Statement Financial Ratio Financial Statement Balance Sheet

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Taught by
Kevin E. Jackson
Associate Professor of Accountancy and PwC Faculty Fellow
and 13 more instructors

Offered by
University of Illinois at Urbana-Champaign

Reddit Posts and Comments

0 posts • 1 mentions • top 1 shown below

r/news • comment
1 points • zacker150

Please go and take a basic finance course.

They received $122,286 in revenue, and paid $94,654 for the goods sold. The equipment they own (refrigerators, cash registers, etc) depreciated by $3,289.

This gives them a gross income of

$122,286 - $94,654 - $3,289 = $24,343 (i.e 19.91% margin)

From this gross income, they paid $21,829 in Selling, General & Administrative Expenses, which includes the salaries of ever employee from the cashiers to the CEO. This leaves them with an earnings before interest and tax of

$24,343 - $21,829 = $2,514

They paid $263 in one-off expenses, received $329 in non-operating income, and paid $599 in interest on various loans.

This gives them a pre-tax income of

$2,514 + $329 - $263 - $599 = $1,981 (i.e 1.62% margin)

They paid $469 in income tax and received $19 in after tax income and $147 in dividends from companies which they have a minority interest in.

This gives them a net income of

$1,981 - $469 + $19 + $147 = $1640 (i.e 1.34% margin).

No matter how you slice it, their margins are ridiculously low.