Financial Accounting Basics for Purchasing and Supply Professionals
Dr. J. Patrick Cancro
Dr. J. Patrick Cancro, Assistant Professor of Business, Penn State New Kensington, Upper Burrell, Pennsylvania 15068-1798, firstname.lastname@example.org
Dr. Michael A. McGinnis, C.P.M., A.P.P.
Dr. Michael A. McGinnis, C.P.M., A.P.P., Associate Professor of Business, Penn State New Kensington, Upper Burrell, Pennsylvania 15068-1798, email@example.com
88th Annual International Conference Proceedings - 2003 - Nashville, TN
This paper introduces basic financial accounting statements and selected financial ratios. It demonstrates how these statements and ratios can be used to evaluate suppliers and contribute to the organization’s financial strength. The following section provides an overview of the balance sheet, income statement and selected financial ratios. The second section discusses how these statements and ratios can help manage internal inventory and equipment as well as evaluate suppliers. The final section discusses how purchasing and supply decisions can affect the organization’s financial strength, and how these decisions can increase purchasing and supply’s credibility with accounting and financial staff.