Facebook Pixel Code
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Financial Statements of the Bank of America Corporation

This is a preview of the 10-page document
Read full text

This paper illustrates that the review of the balance sheet of Bank of America Corporation (BAC) reveals that the total assets of the corporation were $2.3 trillion as of the year ending 2010, which was an increase of 2% as compared to that of 2009. During the same period, the total liabilities of BAC also increased by 2% and rose to $2 trillion. In the year 2010, BAC implemented a fresh consolidation regulation that resulted in the desegregation and integration of certain entities in the consolidated balance sheet of BAC. These entities such as credit card trusts and multi-seller conduits among others were not formally recorded in BAC’ s consolidated balance sheet.

The implementation of the fresh consolidation regulation resulted in a net increase in the assets by an amount of $100.4 billion and also in the growth of total liabilities by an amount of $106.7 billion. This value of the total liabilities included long-term debt worth $84.4 billion. The shareholder’ s equity of BAC for the year 2010 also decreased by $3.2 billion as against that of 2009. The decrease was primarily due to expenses worth $12.4 billion owing to goodwill impairment as well as the effect of the implementation of the fresh consolidation guidance.

The review of the cash flows of BAC reveals that the cash and cash equivalents of the corporation declined by an amount of $12.9 billion during 2010 owing to the reimbursement and maturities of long-term debt as well as purchases of available for sales (AFS) securities. The cash from operating activities of BAC was $82.6 billion in 2010 as against $129.7 billion in the year 2009. This was because of the decline in the credit losses provision, reductions in the trading as well as derivative assets and the expenses due to the goodwill impairment.

In the year 2010, BAC’ s cash from financing activities of $65.4 billion, illustrated that the decline in the long-term debt owing to maturities were more than the issuance of new debts during the period. The net cash worth $30.3 billion was utilized in investment activities, which largely included the purchases of AFS debt securities.

This is a preview of the 10-page document
Open full text
Close ✕
Tracy Smith Editor&Proofreader
Expert in: Management, Marketing, Macro & Microeconomics
Hire an Editor
Matt Hamilton Writer
Expert in: Management, Finance & Accounting, Human Resources
Hire a Writer
preview essay on Financial Statements of the Bank of America Corporation
WE CAN HELP TO FIND AN ESSAYDidn't find an essay?

Please type your essay title, choose your document type, enter your email and we send you essay samples

Contact Us