CASH FLOW AND LIQUIDITY ANALYSIS

June 17th, 2018

Analyzing Retained Earnings and Full Income

One of the most vital financial statements is the full income. It involves the change in net asset within the company for a given duration of time from non-owners (Kawanishi,2011). It provides the total assessment of the company's income. This is done to capture all the details of financial statements which were not captured during the assessment. Full income entails the net income and unrealized income. This is evidenced by the unrealized gains or losses within the resultant financial tools. It can also be viewed on the losses or gains on the overseas currency transactions.

On the completion of the analysis, it was discovered that the comprehensive incomes had the flowing items. These flowing items include the cash flow hedge, least amount of pension liability, unrealized gaining's, and the translation of currency. Firstly, the organization recorded an increase in the cash flow between 2013 and 2014 and between 2015 and2016. Secondly, he was a decrease in the minimum pension liability between 2015 and 2016 but in the following year the least amount of pension liability increases. Thirdly, an unrealized gain which was based on the availability-for-sales on security greatly increases simultaneously in both the two years. Finally, an increase in the translation of currency was recorded between the years 2013 and 2014 and between 2015 and 2016.It was discovered that the comprehensive income was at the higher level than the net income. This was due to the change in contribution from the shareholders capital from the non-owner bases which constituted of the net income as well as full income (Klein, 2010.Following the financial statistic, there was a decrease in the company's earnings for each share for the past two years. After the analysis, there was a great change in the company financial status as compared to the previous analysis. There is an increase in the company's openings which indicates the important improvement in its future operation.

References

Kawanishi, Y, (2013). The Definition of Net Income and Comprehensive Income and Their Implications for Measurement. Accounting Horizon,30(4), 511-516.

Klein, E, (2010). University Basic Income. Arena Magazine 142:6-8.