Financial Statement Comparison

Nike (In Millions):
Total Revenue:     19,014                  100%
Total Expenses:    17,136.8             89.7%
Net Income:         1,906.7                10.3 %

LINK: http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?symbol=nke

Under Armour (in millions)

Total Revenue:     1,063.9                100%
Total Expenses:     996                    93.6%
Net income:           67.9                   6.4%

LINK: http://www.dailyfinance.com/financials/under-armour-inc/ua/nys/income-statement
Nike is more efficient because their net income has a greater percentage and overall total than Under Armour.

 Nike (in thousands)
1) Total Assets: 14,464,000
2)Total Liabilities: 4,515,000
3) Total Equities: 9,949,000
http://finance.yahoo.com/q/bs?s=NKE
Under Armour (in thousands)
1) Total Assets: 675,378
2) Total Liabilities: 178,412
3) Total Equities: 496,966
http://finapps.forbes.com/finapps/jsp/finance/compinfo/FinancialIndustrial.jsp?tkr=ua&period=qtr
Under Armour is more efficient because the percentage of assets to liabilities is greater than Nike.

Financial Statement

1) Nike is a swoosh when it comes to successful companies. They are a leading shoe company in the world. I picked it because I currently wear Nike shoes and enjoy their comfortable fitting. They also sell many golf products that I utilize.

2) http://finance.yahoo.com/q/is?s=NKE+Income+Statement&annual

3) The fiscal period is from May 31 to May 31 the following year.

4) Management want to show large profit to it's shareholders and this is just following the busiest time of the year for Nike. People want to snatch spring goods and equipment before summer begins. Thus, they will purchase an abundance of products, increasing the value of the company

Loans and savings

If I were to open a growth money market savings account with Bank of America I would receive an interest rate of range of 13 to .45 per year depending on how much I invest. For a loan on a new car the range of interest is 2.99-3.94. The rate for a used car is 3.49-3.89% per year.

For Capital One

-Savings Account offers an interest rate of 1.2% per year for investment over $1,000

-Auto loan rate is 2.99% up to 36 months

Capital One's savings account and auto loan rates are both advantageous to the investor and individual taking a loan compared to Bank of America. The bank charges more on loans than interest, because they want to make a profit. Their revenue from loans needs to outweigh their interest distributed in order to make a profit. Banks have different rates to appeal to certain consumers and to gain a competitive advantage over other banks.

https://www5.bankofamerica.com/applyonline/process.action
http://www.capitalone.com/directbanking/online-savings-accounts/

C Corp, S Corp, and LLC

There are many pros and cons to a C Corporation, S Corporation, and Limited Liabilities Company. However it is essential to analyze your company before you decide which category you want. A C corporation is regarded as an individual entity, which means there will be less liability on the owners because they will be shareholders. Thus, if the company is sued the owners will only be sued for their investment in the company. However, as a corporation, they are subject to double taxation, once at a corporate level and another when they pay shareholders their dividends. If I were to start an S corp, I should expect higher expenses to my accountant and more responsibility on tax returns. S corporation tax returns are more costly to prepare because of its complexity and length. Also an S corporation is typically required to submit balance sheets as part of its tax return. On the other hand, if my business makes a substantial profit, an S corp can save thousands of dollars per year in taxes. Pro's of a limited liability company include avoiding double taxation and the manager typically is highly rewarded for a profitable company. The downside of an LLC is that they are not well understood, so not many people invest in them. 

Enron's demise on account of accounting

In any business it is essential to be honest with financial revenue. If the financial statements are inaccurate, accounting fraud has taken place. This is what occurred in Enron's case, when their complex business model and unethical actions resulted in misrepresented earnings and a false balance sheet to illegally depict a large revenue. At the time, Arthur Andersen, a well respected accounting firm was in charge of Enron's financial sheets and knowingly went through with illegal accounting practices. When Arthur Anderson was being questioned for fraud, they destroyed all audit material.

http://www.time.com/time/business/article/0,8599,193520,00.html

Student accountant

Hello my name is Robby Bamberger and I am a student Nicolet High School in Glendale, Wisconsin. I look forward to learning the in's and out's of accounting. My passion is golf. See you soon