(a) Analysis of financial statements is considered to be an effective tool for analyzing the operating and financial performance of an organization. The analysis of financial statements is useful for taking practical economic decisions by various users. There are different types of tools available for the analysis of the performance of an organization. However, the horizontal and vertical analysis is a very widely used technique for developing a better understanding of financial strengths and weakness of an organization. For the purpose of this assignment, as a Financial Analyst for Middle East Venture Capital LLC, I have chosen Oman Fisheries Co. S.A.O.G. The financial statements from 2014 to 2016 have been used for making a horizontal and …show more content…
Under this form of comparative financial statements, both the comparative income statement and comparative Balance sheet are covered. Such comparative statements are prepared not only to the comparison of the various figures of two or more periods but also the relationship between various elements embodied in profit and loss account and balance sheet. It enables to measure operational efficiency and financial soundness of the concern for analysis and interpretations. Horizontal analysis refers to the comparison of financial data of a company for several years. The figures of this type analysis are presented horizontally over a number of columns. The figures of the variously years are compared with standard or base year. A base year is a year chosen as a beginning point. It is also called ‘Dynamic Analysis’. This analysis makes it possible to focus attention on items that have changed significantly during the period under review. Comparative statements and trend percentages are two tools employed in the horizontal …show more content…
Under this type of analysis, a number of ratios used for measuring the meaningful quantitative relationship between the items of financial statements during the particular period. This type of analysis is useful in comparing the performance, efficiency, and profitability of several companies in the same group or divisions in the same company. In order to avoid the limitations of Comparative Statement, this type of analysis is designed. Under this method, financial statements are analyzed to measure the relationship of various figures with some common base. Accordingly, while preparing the Common Size income statement, total sales is taken as a common base and other items are expressed as a percentage of sales. Like this, in order to prepare the Common Size Balance Sheet, the total assets or total liabilities are taken as a common base and all other items are expressed as a percentage of total assets and
The purpose is “to develop, implement, and establish standards for accounting and financial reporting activities are accurate and reliable, and the resulting financial reports are as accurate and beneficial to the end users.” The end users that are discussed in the purpose are the outside users of the financial statements. Outsider users are……
When being placed in the role of a manager, it is important to understand the finances of the organization and how to read and understand the recording of finances. It is also important to understand how all the different parts of the records fit together to give us the knowledge of where the business is financially. Knowing also the different responsibility centers related to financial recording and how they function is important as a manager. Once a manager understands what and where items belong on a balance sheet, they will better understand the state that the business is in. “It provides you with a picture of the financial health of your practice or organization on a certain date.”
Entire work needed be directive and the evidence is needed to be open, steady and trustworthy. The evidence is going to help to understand in deepness how it is to approach its events in the coming days; how can it organise future cash flows, this is going to give highpoint the company’s financial stage. These are all crucial sides the company is looking up on showing the statements and are alert that all the records collected must be correct. The shareholders, managers and accountants will trust on this evidence to make proper protections for the coming
Amerah alhajri 120016323 Q1 1-clear up assignment reason. on the off chance that the intention is to rouse the utilization of the administrations of a recently framed division, maybe no expenses ought to be dispensed in the event that the reason for existing is to dishearten working division directors from over-utilization of the administrations of bolster offices, then a rate for every unit of administration may be substantial and not in light of genuine expenses on the off chance that the reason for existing is to decide the full cost of items or administrations for long haul estimating choices, then all bolster expenses ought to be assigned 2-recognize cost pools. the reason will figure out if both settled and variable bolster division expenses ought to be dispensed the reason will figure out which expenses ought to be designated Q2 1-physical output. >> 2- market based.>> a-
Financial Statements contain a Balance sheet, Statement of Income and cash flow Statement. (Tutor notes, Accessed on 29/10/2015). Budgets- A budget contains planned sales, Resource Quantities, Cash flows, Costs and expenses, liabilities and assets.
Group Discussion: Answer to 11.5 Christina Vass Liberty University Group Discussion: Answer to 11.5 11.5- Christina Vass The objective of this essay is to answer question 11.5 posed in chapter 11 of Business Research Methods. The researcher has been given data from a corporation regarding the annual salary of it’s 200 employees (Cooper & Schindler, 2014). The researcher has been asked to depict the data in ratio, interval, ordinal, and nominal form (Cooper & Schindler, 2014). In addition, the researcher has been asked to illustrate the successive loss of data as the presentation changes from ratio to nominal form (Cooper & Schindler, 2014).
A Financial analysis determines how well an organization is performing financially and whether improvement is needed by reviewing the organization’s financial statements and calculating ratios. I have reviewed Robertwood Johnson University Hospital’s, Saint Peter’s Healthcare System’s (Saint Peter’s University Hospital), Catholic Health East’s (Saint Michael’s Medical Center) financial statements and determined the following calculated ratios. The current ratio using the balance sheet will determine whether Robertwood Johnson University Hospital’s, Saint Peter’s Healthcare Systems, (Saint Peter’s University Hospital), Catholic Health East’s
Ensure that the property, plant and equipment exist and are genuine assets of the business and are beneficially owned by the business and any restrictions, pledges or liens on the property, plant and equipment are identified and adequately disclosed in the financial statements. At the same time, have to prepare fixed assets schedule as to attachment for this section. Test the mathematical accuracy, agree opening balances to prior period working papers and agree closing balances to the nominal ledger and investment ledger where maintained. Vouch against invoices, contract notes, and agreements for any additions or disposals in order to ensure that all property, plant and equipment are included in the balance sheet and gains or losses on realization of property, plant and equipment are correctly stated. In additions, ensure the property, plant and equipment are properly disclosed and
Financial statement begins when receiving the balance from the adjusted trial . The very last of an accounting time frame is the financial statement. There is a lot of different financial statements that would come from this step such as statements of retained earning, balance sheets, cash flow statement, and income statement. This would be the output of the accounting process (edunote (2016).
Assignment: Portfolio Income & costs and profit measures of performance Alibaba.com is a China’s B2B e-commerce company which owns a U.S. IPO that worth $25 billion has become the largest B2B e-commerce company in the world in just a few years and barely anyone expect the company can achieve this results so successful. Referring to the Appendix A, the income of Alibaba has been increasing from year 2010 to 2014. This is because of there has a few key factors of success that carried out by the founder of Alibaba.com, Jack Ma to operate the e-commerce business in the global marketplace.
INTRODUCTION This is the report from our evaluation of the Ryanair Holdings. Ryanair was found in 1985 and has its headquarters at the Dublin Airport Ireland. Flights began between Ireland and the United Kingdom in1986 as the new airline’s Dublin-London route challenged the British Airways-Aer-Lingus duopoly. Ryanair is the pioneer of the low-fares model in Europe and it is the largest European low fares airline. As the time changed, there are many threats come and hurt the Ryanair airline.
Unit 38 – P3: Identify how government policies impact on a selected businesses In this assignment, I will identify on how government policies impact on a selected business, in this case, Honey Tree Holiday Park. Change in Government spending Data and Back up Reference Effect on the business Good or bad news Government rises the National Minimum Wage On the 1st of October 2015, the national minimum wage for adults went up by “57 pence to £3.30 for apprentices and rises by 20 pence to £6.70 per hour for adult workers.” This will have a negative impact on Honey Tree Holiday Park because they now have to pay their staff the minimum national wage, which has increased.
Analysis of Financial Statements Student number: 10221450 Word count: 2993 words Excluding Bibliography Course code: B9AC106 Course title: Financial Analysis Lecturer: Mr. Enda Murphy Company: Whitbread PLC Table of Contents 1. Whitbread plc 3 Financial Ratio Comparison 6 1.1 Profitability Ratio 6 1.2 Liquidity Ratio 9 1.3 Efficiency Ratio 11 2. Intercontinental hotels group plc and Ratio Comparison with Whitbread 12 3. 10% Stake in Intercontinental Hotels Group PLC 13 Conclusion 16 Market Value and Book Value