M3 2: Discussion—Applied Ratio Analysis

Four Financial Statements

The Financial Statements are formal record of financial activities for a company. The records qualify the financial strengths, performance and company liquidity. They reflect on the financial effects the business transaction and other activities of the company (Cao et al., 2015). In this paper, the financial statements that are identified and reported about the entities are Income Statement, Balance Sheet, Statement of Shareholders’ Equity and Cash Flow Statement. The entities identified are Invesco QQQ Trust, Advanced Micro Devices, Inc., Flex Ltd and PowerShares QQQ TrustSM, Series 1 (QQQ).

The INVESCO QQQ Trust Income Statement indicated that the entity attained income of $71,794,600. On the balance sheet, the entity indicated Assets of $ 74.10 B, liabilities of and equity was $45,456. The Statement of Shareholders Equity was standing at $395.45 M. According to the Cash Flow Statement, income was $65.91 B expenses ration of 20% and profits of $150.13 (Du et al., 2018).

The Advanced Micro Devices, Inc. Income Statement indicated that the entity attained income of $5,329,000 from sales and shares. On the balance sheet, the entity indicated Assets of liabilities and equity was $43,000. The Statement of Shareholders Equity was standing at $7,000. According to the Cash Flow Statement, income was $5,329,000, total expenses $3,506,000 and profits of $1,823,000 (Du et al., 2018).

The Flex Ltd Income Statement indicated that the entity attained income of USD 25,441 M on the balance sheet, the entity indicated Assets of, liabilities and equity was USD 79 M. The Statement of Shareholders Equity was standing at 1,200 M According to the Cash Flow Statement; income was USD 1,563 M expenses USD 1,019 M and profits of USD 544 M (Du et al., 2018).

The PowerShares QQQ TrustSM, Series 1 (QQQ) Income Statement indicated 50,000 shares sold in the fiscal year 2017 through in-kind basis. According to its Balance Sheet, PowerShares QQQ TrustSM had total assets of $54,228,710,761 and 52,177,634,729 total liabilities. This indicated that the entity had spent more money in operational liabilities unlike the money used to acquire more assets that can be used for generation of income. In the Statement of Shareholders’ Equity, the PowerShares QQQ TrustSM was standing at 1.3% in the United States Securities and Exchange Commission. This translated into $358,550,000. Much of the financial flow of the PowerShares QQQ TrustSM is from shares sales and investments in its operations. In 2017 fiscal period, the entity was attained 32.72% cash flow from share sales and the rest through production and distribution of the products (Du et al., 2018).

References

Cao, M., Chychyla, R., & Stewart, T. (2015). Big Data analytics in financial statement audits.

Accounting Horizons, 29(2), 423-429.

Du, X., Deng, L., & Qian, K. (2018). Current Market Top Business Scopes Trend—A Concurrent

Text and Time Series Active Learning Study of NASDAQ and NYSE Stocks from 2012 to

2017. Applied Sciences (2076-3417), 8(5).