4. Advise the CFO on three primary ways in which capital may be transferred between savers and borrowers in Jagdambay Exports. Explain the advantages and disadvantages of each within the organization. 5. Advise the CFO on securities trading on physical exchanges or over-the-counter market.
(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.
Week 8 June 1 – Accounting Statements and Cash Flow The topic that I have learnt today is on accounting statements and cash flow. The statement of cash flows contains the operating, investing and financing which are primary in business activity. Inflow is when the money are received and not necessarily earned. Whereas, outflow is when the cash is paid and not necessarily incurred. The information you get from the cash flow statement can help evaluate the company’s ability to meet its obligations.
They came to realise that the usefulness of accounting numbers can be categorized as either timeliness or content. To conduct their research they compared the firm specific changes in stock prices with the unexpected change in the accounting income numbers. The time span for these changes
ii. A financial forecast is a calculated estimate of financial requirements or outcome in a future financial period. The outcome is usually in the form of sales, profits and cash flow. The purpose of the financial forecast is to aid policy formulation and guide operational strategies to achieve goals and objectives set by the organization’s top management. It can also be expressed a set of estimates of revenue and expenditure for the future period under consideration.
It consists of Customer billing statements, Sales orders, purchase Requisitions, Sales analysis reports, Register checking, Vendor invoices, general ideas, payroll information, timekeeping and inventory data, tax information. This data can be used to preparing the accounting statement and reports. (Fontinelle, 2017).Accounting Information System is used for to produce the external stories related to the financial statement, supported through routine activities, Decision Support and Planning and Control, Implementing internal control. Accounting Information roles are classified into External Auditor, Tax Accountant, Consultant and Internal Auditor, Business Analyst, Budget analysts, Financial Analyst, controller and Accounting Clerk. It is discussing the future, and current role of Accounting Information system is analyzing by accountant responsibility and financial
It focuses on the sources and uses of cash through operating, investing and financing activities. Activities that result in the receipt of cash are cash inflows, and activities that result from the spending of cash are cash outflows. SEE APENDIX III STATEMENT OF FINANCIAL POSITION also known as the balance sheet presents the financial position of an entity at a given date. It is comprised of three main components: Assets, Liabilities, and Equity. Statement of financial position helps users of financial statements to assess the financial soundness of an entity in terms of liquidity risk, financial risk, credit risk and business risk.
Generally, cash flow statements are divided into three main parts for reviewing the cash flow from of this three types of activities: (1) operating activities (CFO); analyzes a company’s cash flow from net income or losses. (2) investing activities (CFI); shows the cash flow from all investing activities. (3) financing activities (CFF); shows the cash flow from all financing activities. Although I discuss each financial statement separately, they are all related because any changes in assets and liabilities that on the balance sheet are also reflected in the revenues and expenses that on the income statement, which result in the company’s profits or losses. Cash flows provide more information about cash assets listed on a balance sheet and are related to net income on the income statement but not exactly the same, And so on.
Personal Accounting University of the People Personal Finance 2204 Professor Nathan Rondeau Personal Accounting Accounting is the system through which a comprehensive recording, analysing and assessing of financial transactions for an individual or entity occurs. These records are in turn summarized into reports that may be used internally/ personally or externally by interested economic agents (www.ivestopedia.com ) The three products of accounting or bookkeeping procedures that are most useful in personal financial planning are namely income statements, cash flows and balance sheets. An income statement is a statement that summarizes expenses for a certain period against income with the end result being either a net surplus income or deficit.
GK’s liquidity management process, as carried out within the Group through the ALCOs and treasury departments includes: o Monitoring future cash flows and liquidity on a daily basis o Maintaining a portfolio of highly marketable and diverse assets that can easily be liquidated as protection against any unforeseen interruption to cash flow o Maintaining committed lines of credit Currency Risk Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. GK manages its foreign exchange risk by ensuring that the net exposure in foreign assets and liabilities is kept to an acceptable level by monitoring currency