# Group Exercise I: Calculating the Revenue Requirement

Save this PDF as:

Size: px
Start display at page:

## Transcription

1 Group Exercise I: Calculating the Revenue Requirement Ron Davis Principal Economist Colorado Department of Regulatory Agencies Public Utilities Commission 1560 Broadway, Suite 250 Denver, CO P F

2 Rates Recover Costs The utility s revenue requirement represents the total amount of money a utility must collect from customers to pay all costs including a reasonable return on investment The regulatory proceeding for determining the revenue requirement for an investor-owned electric utility in Colorado is the Phase I rate case 1

3 Revenue Requirement Formula RR t = (RB t )R t + OC t + D t + T t + F t Where: RR = Revenue requirement R = Rate of return RB = Rate base (Gross Investment Accumulated Depreciation) OC = Operating costs D = Depreciation expenses T = Taxes F = Other costs (Franchise Fees) t = Test year 2

4 Phase I Methods Surprisingly unsophisticated proceedings Operating costs pass-through at cost Assets book value; actual cost incurred at purchase Depreciation straight-line over useful life of asset Allowed rate of return Weighted Average Cost of Capital Price of debt actual cost of bonds and other borrowing instruments Price of equity analysis (DCF) of returns of similarly situated companies (risk profile) 3

5 Test Year The foundation for developing Phase I rate case The test year is a measure of the operations and investment in some specified 12-month period A test year may be a recent historic 12-month period (historic test year) A test year may be a projected 12-month period (future test year) The financial statements in a test year are developed by the utility Historic test years derive from the company s books and records Future test years come from the utility s budget 4

6 Adjustments to the Test Year A test year is restated to the extent necessary (or permitted) to produce the data considered reflective of conditions during the period rates are to be in effect The adjustments that need to be made to the test year are generally classified as: Commission prescribed adjustments Accounting adjustments Pro forma adjustments 5

7 Pro Forma Adjustments Made to reflect an ongoing change Typically made to historic test year data Should be readily reconcilable to the test year without creating serious possibilities of distortion or mismatching Typical pro forma adjustments include: Normalization - restate the period data for abnormal conditions Annualization - extend over the period, or eliminate from the period, events that had partial period effects and are either recurring or have terminated Out-of-period - required when an event is recorded in one period but applies to another period Reclassification - add or remove items for purposes of rate recovery 6

8 Rules of Thumb Rates are set based on what will be reflective of the utility s financial operations in the future Adjustments generally not more that one year out of the test year Known, measurable, quantifiable or contracted In the historic test year framework, pro forma adjustments usually generate the most debate of any adjustments made to the test year data 7

9 Rate Base Rate base represents the investor-supplied plant facilities and other investments required to supply utility service to customers. Criterion for components to be included in rate base based on used and useful and prudent investment concepts The principal method for valuing rate base is original cost at the time plant is placed into service Categories of plant in rate base- production (generation), transmission, distribution, and general Includes franchises, rights-of-way, land, structures, wires, furniture, tools, equipment, vehicles, software development, etc. 8

10 Rate Base Components Plant in Service: land, land rights, infrastructure, etc. used to provide service to customers in the test period Utility Plant Held for Future Use: land, land rights, and complete units of property that have not yet been used or have been removed from providing service now to preserve them for later use Construction Work in Progress: work orders for electric plant under construction Cash Working Capital (CWC): average amount of capital provided by investors, over and above the investment in plant and other specifically measured rate base items, to bridge the gap between the time expenditures are required to provide services and the time collections are received for such services Prepayments: payments made in advance of the period to which they apply, such as prepaid rents, insurance, and taxes Utility Materials and Supplies: inventories of plant materials and operating supplies purchased primarily for use in the utility business for construction, operation and maintenance purposes such as poles, transformers, cables, etc. 9

11 Example Rate Base Plant in Service Utility Plant Held for Future Use Construction Work in Progress (CWIP) Common Utility Plant in Service Allocated Cash Working Capital (CWC) Prepayments Utility Materials and Supplies Gross Rate Base at Original Cost (thousands) \$2,200, , ,000 75,000 15,000 75,000 50,000 \$3,015,000 Less: Reserve for Depreciation & Amortization Accumulated Deferred Taxes Customer Advances for Construction Customer Deposits Allocated to FERC Total Deductions Net Rate Base \$2,000, ,000 25, ,100 \$2,200,000 \$ 815,000 10

12 Public Service s Phase I Model Exhibit DAB-1 (May 1, 2009) Development of Rate Base Schedule 3 Concepts: Categories of Plant (Functionalization) Uniform System of Accounts (FERC Accounts) Jurisdictional Allocation (Retail Revenue Requirement) Customer Deposits Customer Advances for Construction 11

13 FERC Form 1 Plant Accounts 12

14 Phase I Cost Allocations Cost allocations between: Separate corporate entities Regulated and non-regulated activities Different regulatory jurisdictions Allocators can evolve into a large and contested issue in a Phase I rate case 13

15 The 12CP-PROD Allocator 14

16 CWIP in Rate Base From 2008 Historic Test Year (Exhibit DAB-8) 15

17 Capital Structure A utility s capital structure identifies the source of funds and the cost of those funds, i.e., debt and equity The utility uses these funds to purchase assets for the provisioning of service Debt is where the utility has borrowed money and pays a interest rate on the amount owed Equity is where utility has gone to the market and sold shares of stock (ownership) of the company 16

18 Customer Deposits Customers, typically new customers, with a poor credit record or payment history pay a deposit with the electric utility Customers paid interest on deposit held by the utility; Commission sets interest rate Deposits considered a source of funds that the utility is free to use in support of rate base investment Liabilities are treated as deductions to rate base Generally refunded after 12 months after good payment record 17

19 Customer Advances Payments to the utility from customers for utility investments needed to provide service Line extensions Transmission line Advances considered a source of funds that the utility is free to use in support of rate base investment Liabilities are treated as deductions to rate base Customer advances for construction may be refunded to the customer either wholly or in part, generally over time 18

20 Other Exclusions from Rate Base Accumulated Depreciation: dollars invested in plant are depreciated (depreciation expenses) over the plant s useful life on a straight-line basis and accumulated as a reserve Accumulated Deferred Taxes: taxes that have been deferred as a result of revenues and expenses being recognized in different periods for book and tax purposes 19

21 Rate of Return Represents the amount allowed to be earned, expressed as a percentage of the utility s rate base The rate of return (ROR) is intended to allow the utility to: Meet its obligations to present investors (interest and dividends) Compete on reasonable terms in the financial markets for future capital requirements Primarily consists of debt, preferred stock and common equity Often the most controversial component of the revenue requirement 20

22 Example Capital Structure Composite Amount Ratio Cost Return Debt \$80 40% X 8.0% = 3.2% + Equity \$120 60% X 12.0% = 7.2% Total \$ % ROE ROR 21

23 Public Service s Phase I Model Exhibit DAB-1 (May 1, 2009) Development of Rate Base Schedule 2 22

24 Operating Expenses Operating expenses comprise the costs of using and maintaining the utility s electric plant in providing utility service For transmission and distribution, operating expenses primarily consists of labor, materials, supplies and other necessary expenditures Fuel costs handled by fuel clause Expenses are presumed to be reasonable and necessary for efficient operation until proved otherwise Pro forma changes often include: Salary and wage costs Uncollectible expenses Postage expenses Rate case expenses Pension costs Depreciation expenses Property taxes 23

25 Public Service s Phase I Model Exhibit DAB-1 (May 1, 2009) Development of Expenses Schedule 4 Concepts: Removal of Fuel and Purchased Energy (Fuel Clause) Labor and Non-Labor Operations and Maintenance Allocation of Service Company Expenses Taxes 24

26 Depreciation Depreciation is the way in which the electric utility recovers its capital investment costs. The recognition in financial statements that physical assets are consumed in the process of providing service. Measures the loss in service value not restored by current maintenance Depreciation expense increases the revenue requirement, while accumulated depreciation is a deduction to the utility s rate base, reducing the revenue requirement Depreciable property groups can be defined in any convenient manner, but they are often the individual primary plant accounts specified by the Uniform System of Accounts Utilities prepare periodic depreciation studies measuring the mortality characteristics of plant and file for regulatory approval of book depreciation rates Book depreciation rates are applied to original cost plant balances to calculate the depreciation expense 25

27 Taxes Taxes are a major component of a utility s cost of service for ratemaking purposes Include federal and state income taxes, as well as many other taxes, such as property, payroll, franchise, gross receipts, excise and sales taxes. However taxes that are based on the utilities gross revenues are usually not included in the revenue requirement formula Gross-up Factor Used to calculate the pro forma adjustment to income taxes (and other costs that vary in direct proportion to changes in revenues) in determining the overall revenue requirement Formula: 1 / (1 - Tax Rate) Example: 1 / (1-35%)= 1 /.65 = To increase net operating income (return) by \$1,000, an increase of \$1, in gross revenues is required, because the utility s income tax expense will increase by \$

28 Income Statement For ratemaking purposes, the income statement summarizes: (1) the funds collected by the utility from its customers; (2) the company s spending and its use of resources in providing service to customers; and, (3) the company s net operating earnings. The income statement includes: Operating Revenues Operating Expenses Depreciation Amortization Taxes Net Operating Earnings 27

29 Example Income Statement Operating Revenue Sales of Electricity Other Operating Revenue Total Operating Revenue Operating Expenses Fuel Purchased Power Production Expenses Transmission Expenses Distribution Expenses Customer Operations Expenses Administrative & General Expenses Subtotal O&M Expenses Depreciation & Amortization Taxes other Than Income Income Taxes Total Expenses Net Operating Earnings AFDUC Addition FERC Allocation Deduction Total CPUC Jurisdictional Net Operating Earnings (thousands) \$ 100,000 5,000 \$ 105,000 1,000 1,000 2,000 1,000 1,000 3,000 4,000 \$ 13,000 \$ 15, ,100 \$ 30,600 \$ 74, (500) \$ 74,000 28

30 Public Service s Phase I Model Exhibit DAB-1 (May 1, 2009) Development of GRSA Schedule 28 Concepts: Test Year Revenue Billing Determinants General Rate Schedule Adjustment (GRSA) 29

31 General Rate Schedule Adjustment In the absence of a Phase II rate proceeding, existing rates need to be adjusted up or down in order for them to recover the Phase I revenue requirement A percentage increase or decrease Sometimes there are multiple Phase I cases before there is a Phase II case 30

32 Other Revenue Reduction 31

### What is Cost of Service Regulation? Basic Issues in Rate Proceedings. Basic COS Component: Operating Expenses

Tariff Development I: The Basic Ratemaking Process The Ratemaking Formula and Basic Components Darryl Tietjen Public Utility Commission of Texas Briefing for the NARUC/INE Partnership 1 2 What is Cost

### CHAPTER 26. SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS.

26.201. Cost of Service. (a) (b) (c) Application. Unless the context clearly indicates otherwise, in this section the term "utility," insofar as it relates to telecommunications utilities, shall refer

### STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS

C H A P T E R 1 0 STATEMENT OF CASH FLOWS AND WORKING CAPITAL ANALYSIS I N T R O D U C T I O N Historically, profit-oriented businesses have used the accrual basis of accounting in which the income statement,

### US REGULATORY ACCOUNTING SYSTEM. Presented by: Moshrek M. Sobhy, IURC Staff

US REGULATORY ACCOUNTING SYSTEM Presented by: Moshrek M. Sobhy, IURC Staff Accounting and Regulation Accounting is a core regulatory skill. Accounting and accountability go hand in hand. Annual financial

### JAMES A. MICHENER ART MUSEUM

FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2010 CONTENTS INDEPENDENT AUDITOR'S REPORT 1 FINANCIAL STATEMENTS Statement of Financial Position 2 Statement of Activities 3 Statement of Functional Expenses

### BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PENNSYLVANIA ELECTRIC COMPANY DOCKET NO. R-2016-2537352. Direct Testimony of Jeffrey L.

Penelec Statement No. 5 BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION PENNSYLVANIA ELECTRIC COMPANY DOCKET NO. R-2016-25752 Direct Testimony of Jeffrey L. Adams List of Topics Addressed Cash Working

### FINANCIAL MANAGEMENT

100 Arbor Drive, Suite 108 Christiansburg, VA 24073 Voice: 540-381-9333 FAX: 540-381-8319 www.becpas.com Providing Professional Business Advisory & Consulting Services Douglas L. Johnston, II djohnston@becpas.com

### Income Statement. Revenues, Operating Expenses, Depreciation, and Income Taxes

Income Statement Revenues, Operating Expenses, Depreciation, and Income Taxes 1 WHAT IS IT? Same as Profit and Loss Account Report of operations summarizing the revenues, expenses, and income attributed

### COLORADO WOMEN'S EMPLOYMENT AND EDUCATION, INC. DBA CENTER FOR WORK EDUCATION AND EMPLOYMENT, INC.

Financial Statements and Independent Auditors' Report June 30, 2014 and 2013 Table of Contents Page Independent Auditors' Report...1 Financial Statements Statements of Financial Position...3 Statements

### TOPIC LEARNING OBJECTIVE

Topic Mapping 1 Transaction Analysis Understand the effect of various types of transactions on the accounting equation, accounting journal and accounting ledger. Concepts and Skills Accounting Equation

### STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION. BALANCE SHEET As of

STATE OF FLORIDA DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION BALANCE SHEET As of ASSETS CURRENT ASSETS Cash and Cash Equivalents Cash - Restricted Accounts Receivable - Trade Accounts Receivable

### Introduction to Regulatory Accounting

Introduction to Regulatory Accounting John Caldwell, Ph.D. Director of Economics EEI Advanced Rates Training Course July 23, 2012 Agenda for Today s Presentation 1. Review of General Ratemaking Concepts

### CH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS

C H 2 3, P a g e 1 CH 23 STATEMENT OF CASH FLOWS SELF-STUDY QUESTIONS (note from Dr. N: I have deleted questions for you to omit, but did not renumber the remaining questions) 1. The primary purpose of

### APPENDIX VIII FORMULA FOR CALCULATING ANNUAL BASE TRANSMISSION REVENUE REQUIREMENTS UNDER SDG&E S TRANSMISSION OWNER TARIFF

APPENDIX VIII FORMULA FOR CALCULATING ANNUAL BASE TRANSMISSION REVENUE REQUIREMENTS UNDER SDG&E S TRANSMISSION OWNER TARIFF This Appendix VIII sets forth the formula for calculating the annual Base Transmission

### Plan and Track Your Finances

Chapter 9 Plan and Track Your Finances 9.1 Finance Your Business 9.2 Pro Forma Financial Statements 9.3 Record Keeping for Businesses Ideas in Action Electronic Safekeeping Katelin Shea addressed the unmet

### Study Guide - Final Exam Accounting I

Study Guide - Final Exam Accounting I True/False Indicate whether the sentence or statement is true or false. 1. Entries in a sales journal affect account balances in both the accounts receivable ledger

### SUPPLEMENTAL INVESTOR INFORMATION. Fourth Quarter 2012

SUPPLEMENTAL INVESTOR INFORMATION Fourth Quarter 2012 Kevin Bryant Tony Carreño VP Investor Relations and Strategic Director Investor Relations Planning & Treasurer 816-556-2782 816-654-1763 anthony.carreno@kcpl.com

### how to prepare a cash flow statement

business builder 4 how to prepare a cash flow statement zions business resource center zions business resource center 2 how to prepare a cash flow statement A cash flow statement is important to your business

### ACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL)

Page 1 ACC 255 FINAL EXAM REVIEW PACKET (NEW MATERIAL) Complete these sample exam problems/objective questions and check your answers with the solutions at the end of the review file and identify where

### COMPONENTS OF THE STATEMENT OF CASH FLOWS

ILLUSTRATION 24-1 OPERATING, INVESTING, AND FINANCING ACTIVITIES COMPONENTS OF THE STATEMENT OF CASH FLOWS CASH FLOWS FROM OPERATING ACTIVITIES + Sales and Service Revenue Received Cost of Sales Paid Selling

### Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased.

Accounts Payable are the total amounts your business owes its suppliers for goods and services purchased. Accounts Receivable are the total amounts customers owe your business for goods or services sold

### Report Description. Business Counts. Top 10 States (by Business Counts) Page 1 of 16

5-Year County-Level Financial Profile Industry Report Architectural Services (SIC Code: 8712) in Prince George County, Maryland Sales Range: \$500,000 - \$999,999 Date: 11/07/08 Report Description This 5-Year

### THE OPEN HEARTH ASSOCIATION, INC. Report on Audit of Financial Statements. December 31, 2011

Report on Audit of Financial Statements December 31, 2011 CONTENTS Independent Auditors Report 1-2 Statements of Financial Position December 31, 2011 and 2010 3 Statements of Activities for the Years Ended

### HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2013

HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED FINANCIAL STATEMENTS MARCH 31, 2013 HARMONIC DRIVE SYSTEMS INC. AND CONSOLIDATED SUBSIDIARIES CONSOLIDATED BALANCE SHEETS ASSETS

### G8 Education Limited ABN: 95 123 828 553. Accounting Policies

G8 Education Limited ABN: 95 123 828 553 Accounting Policies Table of Contents Note 1: Summary of significant accounting policies... 3 (a) Basis of preparation... 3 (b) Principles of consolidation... 3

### Galapagos Conservancy. Financial Report March 31, 2013

Financial Report March 31, 2013 Contents Independent Auditor s Report 1 Financial Statements Balance Sheet 2 Statement Of Activities 3 Statement Of Functional Expenses 4 Statement Of Cash Flows 5 Notes

### Sri Lanka Accounting Standard-LKAS 7. Statement of Cash Flows

Sri Lanka Accounting Standard-LKAS 7 Statement of Cash Flows CONTENTS SRI LANKA ACCOUNTING STANDARD-LKAS 7 STATEMENT OF CASH FLOWS paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS

### DEPRECIATION AND AMORTIZATION EXPENSES

Filed: September, 00 Exhibit C Tab Schedule Page of DEPRECIATION AND AMORTIZATION EXPENSES.0 INTRODUCTION The depreciation and amortization expense for Hydro One s Distribution business in its 00 test

### ENTERGY NEW ORLEANS, INC. GAS SERVICE Effective: June 1, 2009 Filed: May 1, 2009 Supersedes: New Schedule

ENTERGY NEW ORLEANS, INC. GAS SERVICE Effective: June 1, 2009 Filed: May 1, 2009 RIDER SCHEDULE GFRP-3 Supersedes: New Schedule Schedule Consist of: Three Sheets Plus Attachments A - F Page 13.1 GAS FORMULA

### SAMPLE XYZ Contracting Corporation Financial Statements December 31, 20XX

Name SAMPLE Financial Statements December 31, 20XX CPA Accounting Firm Name Table of Contents Page Accountant s Review Report 1 Financial Statements Balance Sheet 2 Income Statement 3 Schedule of General

### Account Numbering. By separating each account by several numbers, many new accounts can be added between any two while maintaining the logical order.

Chart of Accounts The chart of accounts is a listing of all the accounts in the general ledger, each account accompanied by a reference number. To set up a chart of accounts, one first needs to define

### BENEVOLENT HEALTHCARE FOUNDATION DBA PROJECT C.U.R.E. FINANCIAL STATEMENTS MAY 31, 2014

BENEVOLENT HEALTHCARE FOUNDATION DBA PROJECT C.U.R.E. FINANCIAL STATEMENTS MAY 31, 2014 C O N T E N T S Independent Auditors Report 2-3 Statements of Financial Position 4 Statements of Activities 5 Statements

### Vol. 1, Chapter 7 The Statement of Cash Flows

Vol. 1, Chapter 7 The Statement of Cash Flows Problem 1: Solution Transaction # Identification 1 Operating 2 Investing 3 Noncash transaction 4 Financing 5 Noncash transaction 6 Operating 7 Investing 8

3 4 5 6 FINANCIAL SECTION Five-Year Summary (Consolidated) TSUKISHIMA KIKAI CO., LTD. and its consolidated subsidiaries Years ended March 31 (Note 1) 2005 2004 2003 2002 2001 2005 For the year: Net sales...

### Financial Statements

Financial Statements The financial information forms the basis of financial planning, analysis & decision making for an organization or an individual. Financial information is needed to predict, compare

### Consolidated Financial Statements. FUJIFILM Holdings Corporation and Subsidiaries. March 31, 2015 with Report of Independent Auditors

Consolidated Financial Statements FUJIFILM Holdings Corporation and Subsidiaries March 31, 2015 with Report of Independent Auditors Consolidated Financial Statements March 31, 2015 Contents Report of Independent

### NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS

NAS 03 NEPAL ACCOUNTING STANDARDS ON CASH FLOW STATEMENTS CONTENTS Paragraphs OBJECTIVE SCOPE 1-3 BENEFITS OF CASH FLOWS INFORMATION 4-5 DEFINITIONS 6-9 Cash and cash equivalents 7-9 PRESENTATION OF A

### The Nature of Accounting Systems

Basic Accounting & Budgeting February 4, 2009 The Nature of Accounting Systems Accounting is the process of recording, classifying, summarizing, reporting and interpreting information about the economic

### MEDICAL MINISTRY USA dba MEDICAL MINISTRY INTERNATIONAL

Financial Statements Together with Independent Auditors Report For the Year Ended SWALM & ASSOCIATES, P.C. Certified Public Accountants FINANCIAL STATEMENTS Table of Contents Page Independent Auditors

### Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows

Contents Indian Accounting Standard (Ind AS) 7 Statement of Cash Flows Paragraphs OBJECTIVE SCOPE 1 3 BENEFITS OF CASH FLOW INFORMATION 4 5 DEFINITIONS 6 9 Cash and cash equivalents 7 9 PRESENTATION OF

### CONNEXUS ENERGY. Financial statements as of and for the Years Ended December 31, 2010 and 2009, and Independent Auditors Report.

CONNEXUS ENERGY Financial statements as of and for the Years Ended December 31, 2010 and 2009, and Independent Auditors Report. INDEPENDENT AUDITORS REPORT To the Board of Directors of Connexus Energy

### (c) Are insurance contracts monetary items? (paragraphs 13-14)

IASB/FASB Meeting June 2010 week beginning 14 June IASB agenda reference FASB memo reference 2D 50D Project Topic Insurance Contracts Foreign currency cash flows Purpose of this paper 1. This paper deals

### Accounting Cycle. Matching Principle

CHAPTER 3 Accounting Cycle Analyze and record the transactions Post the transactions and prepare trial balance Adjust the accounts and prepare trial balance Prepare the financial statements Close the accounts

### Financial Statements Years Ended September 30, 2012 and 2011. LB&B Associates Inc.

Financial Statements Years Ended September 30, 2012 and 2011 LB&B Associates Inc. LB&B Associates Inc. Contents Page Report of Independent Auditors 1 Financial Statements Balance Sheets 2 Statements of

### UNIFORM SYSTEM OF ACCOUNTS FOR WATER AND WASTEWATER UTILITIES

23-1 CHAPTER 23 UNIFORM SYSTEM OF ACCOUNTS FOR WATER AND WASTEWATER UTILITIES CLASSIFICATION OF WATER AND WASTEWATER UTILITIES Water and Wastewater Utility Classes (based on annual revenues): Class A:

### SAMPLE ASSOCIATION, INC. AUDITED FINANCIAL REPORT

, INC. AUDITED FINANCIAL REPORT December 31, 2003 CONTENTS Page INDEPENDENT AUDITORS REPORT 1 FINANCIAL STATEMENTS Statement of financial position 2 Statement of activities 3 Statement of cash flows 4

### NEWSONG COMMUNITY CHURCH OF ORANGE COUNTY

NEWSONG COMMUNITY CHURCH OF ORANGE COUNTY Financial Statements With Accountants' Review Report August 31, 2012 NEWSONG COMMUNITY CHURCH OF ORANGE COUNTY Table of Contents Accountants' Review Report 1 Financial

### Financial Statements Tutorial

Financial Statement Review: Financial Statements Tutorial There are four major financial statements used to communicate information to external users (creditors, investors, suppliers, etc.) - 1. Balance

### Orange and Rockland Utilities, Inc. 2011 Annual Financial Statements and Notes

Orange and Rockland Utilities, Inc. 2011 Annual Financial Statements and Notes Financial Statements Report of Independent Registered Public Accounting Firm Consolidated Income Statement Consolidated Statement

### 2-8. Identify whether each of the following items increases or decreases cash flow:

Problems 2-8. Identify whether each of the following items increases or decreases cash flow: Increase in accounts receivable Increase in notes payable Depreciation expense Increase in investments Decrease

### In this chapter, we build on the basic knowledge of how businesses

03-Seidman.qxd 5/15/04 11:52 AM Page 41 3 An Introduction to Business Financial Statements In this chapter, we build on the basic knowledge of how businesses are financed by looking at how firms organize

### WASHINGTON ANIMAL RESCUE LEAGUE

WWW.MCB-CPA.COM FINANCIAL STATEMENTS TABLE OF CONTENTS Page Independent Auditors Report 1 Financial Statements: Statements of Financial Position 2 Statements of Activities and Changes in Net Assets 3-4

### 2. Cash Working Capital Lead/Lag Study. Cash Working Capital Lead/Lag Study

Cash Working Capital Lead/Lag Study May 2007 Table of Contents 1.0 Introduction...1 2.0 Method and Approach...1 2.1 Method...1 2.2 Approach...2 3.0 Lead/Lag Study...3 3.1 Revenue Lag...4 3.2 Expense Lag...4

### Orlando Utilities Commission

THREE MONTHS ENDED December 2015 1 Table of Contents Management s Discussion and Analysis 3 Statements of Revenues, Expenses and Changes 6 in Net Position based on Budget - Unaudited Statements of Net

Understanding Financial Statements For Your Business Disclaimer The information provided is for informational purposes only, does not constitute legal advice or create an attorney-client relationship,

### Financial Statements and Report of Independent Certified Public Accountants. The California Wellness Foundation. December 31, 2014 and 2013

Financial Statements and Report of Independent Certified Public Accountants The California Wellness Foundation December 31, 2014 and 2013 Contents Page Report of Independent Certified Public Accountants

### Public Service Company of North Carolina, Incorporated Condensed Consolidated Balance Sheets (Unaudited)

Public Service Company of North Carolina, Incorporated Condensed Consolidated Balance Sheets March 31, December 31, Assets Gas Utility Plant \$1,341,820 \$1,325,608 Accumulated Depreciation (295,733) (290,081)

### Appendix B Revised Schedules for FERC Forms 1, 1-F, 2, 2-A, and 6-1-

Appendix B Revised Schedules for FERC Forms 1, 1-F, 2, 2-A, and 6-1- This Form is: (1) G An Original (2) G A Resubmission Dec 31, List of Schedules Enter in column the terms "none", "not applicable or

### RAPID REVIEW Chapter Content

RAPID REVIEW BASIC ACCOUNTING EQUATION (Chapter 2) INVENTORY (Chapters 5 and 6) Basic Equation Assets Owner s Equity Expanded Owner s Owner s Assets Equation = Liabilities Capital Drawing Revenues Debit

### STANDARDIZING A CHART OF ACCOUNTS AND AN ANNUAL REPORT

STANDARDIZING A CHART OF ACCOUNTS AND AN ANNUAL REPORT WHAT IS A UNIFORM SYSTEM OF ACCOUNTS? It is an accounting system that standardizes the accounting classifications to achieve uniform accounting records

### Florida Foundation Seed Producers, Inc.

Florida Foundation Seed Producers, Inc. Financial Statements and Independent Auditors Reports CONTENTS Independent Auditors Report 1 Financial Statements: Statements of Cash Flows 2 Statements of Financial

### BOB WOODRUFF FAMILY FOUNDATION, INC. FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 2014 AND 2013

FINANCIAL STATEMENTS YEARS ENDED TABLE OF CONTENTS YEARS ENDED INDEPENDENT AUDITORS REPORT 1 FINANCIAL STATEMENTS STATEMENTS OF FINANCIAL POSITION 2 STATEMENTS OF ACTIVITIES 3 STATEMENT OF FUNCTIONAL EXPENSE

### Reporting and Analyzing Cash Flows QUESTIONS

Chapter 12 Reporting and Analyzing Cash Flows QUESTIONS 1. The purpose of the cash flow statement is to report all major cash receipts (inflows) and cash payments (outflows) during a period. It helps users

### 1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is known as a voucher system.

Accounting II True/False Indicate whether the sentence or statement is true or false. 1. A set of procedures for controlling cash payments by preparing and approving vouchers before payments are made is

### SAMPLE CONSTRUCTION COMPANY. FINANCIAL STATEMENT AND SUPPLENTARY INFORMANTION For the Year Ended December 31, 2011

FINANCIAL STATEMENT AND SUPPLENTARY INFORMANTION For the Year Ended December 31, 2011 The financial statement, prepared by an independent Certified Public Accountant, is essential for bonding purposes.

### Darfon Electronics Corp.

Darfon Electronics Corp. 4Q 2010 Investor Conference March 4, 2011 www.darfon.com.tw Investor@darfon.com.tw Agenda 4Q 2010 Financial Highlights Business Outlook Q&A Safe Harbor Notice We have made forward-looking

### Brief Report on Closing of Accounts (connection) for the Term Ended March 31, 2007

MARUHAN Co., Ltd. Brief Report on Closing of (connection) for the Term Ended March 31, 2007 (Amounts less than 1 million yen omitted) 1.Business Results for the term ended on March, 2007 (From April 1,

### GBA 521 Midterm Review Dr. Markelevich

GBA 521 Midterm Review Dr. Markelevich Multiple Choice (3 points for each question) Identify the letter of the choice that best completes the statement or answers the question. Wynn Corp. Wynn Corp. reported

### CASH FLOW STATEMENT. MODULE - 6A Analysis of Financial Statements. Cash Flow Statement. Notes

MODULE - 6A Cash Flow Statement 30 CASH FLOW STATEMENT In the previous lesson, you have learnt various types of analysis of financial statements and its tools such as comparative statements, common size

### Fuel and purchased power expenses decreased primarily due to:

Entergy Gulf States Louisiana, L.L.C. Management's Financial Discussion and Analysis The Louisiana Act 55 financing tax settlement sharing variance results from a regulatory charge because the benefit

### Lane County, Oregon Statement of Net Assets June 30, 2010. Governmental Activities. Business-type

Statement of Net Assets June 30, 2010 Governmental Activities Business-type Activities Assets Current assets Cash and cash equivalents \$ 152,238,503 \$ 32,077,526 \$ 184,316,029 Investments - 3,748,272 3,748,272

Advanced Placement (AP) Accounting The Advanced Placement (AP) Accounting Course is a full academic year course. The course is based on high school teachers having 120 contact hours with students from

### Entergy Mississippi's receivables from or (payables to) the money pool were as follows:

Entergy Mississippi, Inc. Management's Financial Discussion and Analysis The increase was partially offset by \$12.7 million of insurance proceeds received in the first quarter 2015 related to the Baxter

### MULTNOMAH BIBLE COLLEGE AND SEMINARY INDEPENDENT AUDITOR S REPORT AND FINANCIAL STATEMENTS

MULTNOMAH BIBLE COLLEGE AND SEMINARY INDEPENDENT AUDITOR S REPORT AND FINANCIAL STATEMENTS JUNE 30, 2007 AND 2006 CONTENTS PAGE INDEPENDENT AUDITOR S REPORT 1 FINANCIAL STATEMENTS Statements of financial

### HOSOKAWA MICRON CORPORATION AND CONSOLIDATED SUBSIDIARIES

AND CONSOLIDATED SUBSIDIARIES Consolidated Financial Statements For the Years Ended December 2016 Consolidated Balance Sheets Current assets: Millions of yen Thousands of U.S. dollars (Note 1) Assets 2016

### KOREAN AIR LINES CO., LTD. AND SUBSIDIARIES. Consolidated Financial Statements

Consolidated Financial Statements December 31, 2015 (With Independent Auditors Report Thereon) Contents Page Independent Auditors Report 1 Consolidated Statements of Financial Position 3 Consolidated Statements

### OREGON HEALTH MANAGEMENT SERVICES AND SUBSIDIARY

CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION For the Years Ended December 31, 2014 and 2013 CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION For the Years Ended December

### Consolidated Financial Statements

Consolidated Financial Statements For the year ended February 20, 2016 Nitori Holdings Co., Ltd. Consolidated Balance Sheet Nitori Holdings Co., Ltd. and consolidated subsidiaries As at February 20, 2016

### Getting More from APPA s Annual Report on Financial and Operating Ratios

Getting More from APPA s Annual Report on Financial and Operating Ratios APPA s ratio report summarizes data for public power systems that are primarily distribution utilities. The report is based on data

### Preparing Agricultural Financial Statements

Preparing Agricultural Financial Statements Thoroughly understanding your business financial performance is critical for success in today s increasingly competitive agricultural environment. Accurate records

### Income Measurement and Profitability Analysis

PROFITABILITY ANALYSIS The following financial statements for Spencer Company will be used to demonstrate the calculation of the various ratios in profitability analysis. Spencer Company Comparative Balance

### Balance Sheet Accounts

Page 1 of 6 Balance Sheet Accounts The Chart of Accounts is normally arranged or grouped by the Major Types of Accounts. The Balance Sheet Accounts (Assets, Liabilities, & Equity) are presented first,

### DEPARTMENT OF SOCIAL SERVICES DIVISION OF LICENSING PROGRAMS. BUDGET PLANS FOR OPERATION OF A CHILD DAY CENTER (Model)

DIVISION OF LICENSING PROGRAMS FOR OPERATION OF A CHILD DAY CENTER (Model) A. Start Up Costs Renovation of Property Furniture Equipment Supplies (Initial Stock) Children's Supplies Cleaning and Maintenance

### RATE OF RETURN: REGULATION

RATE OF RETURN: REGULATION Mark A. Jamison Public Utility Research Center University of Florida P.O. Box 117142 Gainesville, FL 32611-7142 mark.jamison@cba.ufl.edu Abstract Rate of return regulation adjusts

### New Mexico Community Foundation FINANCIAL STATEMENTS. December 31, 2013 and 2012

FINANCIAL STATEMENTS Board of Directors New Mexico Community Foundation INDEPENDENT AUDITORS REPORT We have audited the accompanying financial statements of the New Mexico Community Foundation (the Foundation),

### > DO IT! Chapter 13. Classification of Cash Flows. Cash from Operating Activities D-1. Solution. Action Plan

Chapter 13 > DO IT! Classification of Cash Flows Identify the three types of activities used to report all cash inflows and outflows. Report as operating activities the cash effects of transactions that

### Consolidated Balance Sheets March 31, 2001 and 2000

Financial Statements SEIKAGAKU CORPORATION AND CONSOLIDATED SUBSIDIARIES Consolidated Balance Sheets March 31, 2001 and 2000 Assets Current assets: Cash and cash equivalents... Short-term investments (Note

### Accounting Skills Assessment Practice Exam Page 1 of 10

NAU ACCOUNTING SKILLS ASSESSMENT PRACTICE EXAM & KEY 1. A company received cash and issued common stock. What was the effect on the accounting equation? Assets Liabilities Stockholders Equity A. + NE +

### Assets, Liabilities, and Net Worth

Assets, Liabilities, and Net Worth C H A P T E R 3 OVERVIEW Assets, liabilities, and net worth are part of the language of finance. As such, it is important to understand both their composition and how

### Essentials of Financial Statement Analysis

Essentials of Financial Statement Analysis An Introduction to Financial Statement Analysis Gregory Mostyn, CPA Worthy and James Publishing www.worthyjames.com Essentials of Financial Statement Analysis

### NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS

Condensed Interim Consolidated Financial Statements of THE BRICK LTD. For the three months ended March 31, 2013 NOTICE OF NO AUDITOR REVIEW OF INTERIM FINANCIAL STATEMENTS Under National Instrument 51-102,

### Financial Reporting & Analysis Chapter 17 Solutions Statement of Cash Flows Exercises

Financial Reporting & Analysis Chapter 17 Solutions Statement of Cash Flows Exercises Exercises E17-1. Determining cash flows from operations Using the indirect method, cash flow from operations is computed

### Cash Flow Analysis. 15.511 Corporate Accounting Summer 2004. Professor SP Kothari. Sloan School of Management Massachusetts Institute of Technology

Cash Flow Analysis 15.511 Corporate Accounting Summer 2004 Professor SP Kothari Sloan School of Management Massachusetts Institute of Technology June 16, 2004 1 Statement of Cash Flows Reports operating

### Independent Auditor s Report

Independent Auditor s Report To the Members of the Board of Directors National Insurance Producer Registry Kansas City, Missouri Report on the Financial Statements We have audited the accompanying financial

### The Basics of Accounting ACCT 201

The Basics of Accounting ACCT 201 Content Accounting definition Accounting equation Accounting elements Asset, Liabilities, & Equity Transactions Accounts Receivable vs Accounts Payable Retained Earnings

### ACCOUNTING COMPETENCY EXAM SAMPLE EXAM. 2. The financial statement or statements that pertain to a stated period of time is (are) the:

ACCOUNTING COMPETENCY EXAM SAMPLE EXAM 1. The accounting process does not include: a. interpreting d. observing b. reporting e. classifying c. purchasing 2. The financial statement or statements that pertain