Sac Financial Information

Sac Financial Information

SAC Financial Information
Colorado Technical University

SAC Financial Information
    Sparklin Automotive Company (SAC) is a company that supplies spark plugs to United States automotive manufactures and the automotive aftermarkets. They have been in business since 1930 and have recently made changes in the spark plug production that increases the quality of the spark plug. The new spark plug is guaranteed to last 100,000 miles. So far, this process has been a success for the company.
    As a financial analyst, there are financial statements that are important to them. Financial statements are based on historical data but determine what might happen with the company in the future. Stockholders, creditors, and managers analyze the financial statements to help compare the company with others in the market and to determine the health of the company. The following paragraphs will explain what financial statements are needed, what information is contained in the statement and how managers use the information to help the company grow.
Financial Statements and Their Content
    There are four basic financial statements that are used to gather information about a company. The names for these statements are the balance sheet, statement of changes in owner’s equity, income statement, and cash flow statement. Each one of these statements provides different information about the company even though they are all related. These statements can be prepared on a monthly, quarterly, or annual basis. The first statement that should be prepared is the Balance Sheet. This statement contains a list of the company’s assets and company debts. “A balance sheet presents an overview of what a company is worth by weighing what a company owns to what it owes” (How to Read a Balance Sheet). The statement is divided into three sections: assets, liabilities, and equity. Assets of a company have a positive monetary value unlike liabilities. Equity on the balance sheet is sometimes...