TO: The PQR Company (Current Shareholders)
TO: The PQR Company (Current Shareholders) FROM: Financial Accountant SUBJECT: Assessment of Financial Performance and Position of PQR DATE: 10th December 2004 INTRODUCTION The report that will follow will outline the financial performance of PQR for the past 3 years. The Company's financial statements will be reviewed from 2002 till 2004 in order to obtain a picture of the company's financial position. The company's performance has been illustrated via Ratio Analysis. A detailed calculation of various ratios is obtainable from the appendix. However a summary table has been included below for reference. RATIOS 2002 2003 2004 PROFITABILITY RETURN ON CAPITAL EMPLOYED % LIQUIDITY CURRENT RATIO QUICK RATIO EFFICIENCY DEBTORS DAYS CREDITORS DAYS STOCK DAYS 12.1 4.3 1.5 61 33 136 12.7 3.5 1.8 48 48 107 13.0 2.6 1.3 47 44 81 The report will be split into Profitability, Liquidity and Efficiency, under which the company's financial statements will be analysis to some degree. The conclusion will bring the report together. PROFITABILITY As can be seen from the data supplied sales have increased from £3,600,000 to £4,010,000, an increase of 11%. Calculation based on the difference between 4,010 and 3,600, over 3,600. At the same time cost of sales fell. We can straight away tell the company's gross profit
My hypothesis is that the top 3 sets (A, B and C) predict both the size of the angles and the lengths of the line better than the middle 3 sets
My hypothesis is that the top 3 sets (A, B and C) predict both the size of the angles and the lengths of the line better than the middle 3 sets (D, E and F) and the bottom sets (G, H and I). I think this is correct because the top set is supposed to be smarter and I think they should be able to estimate closer to the correct amount. The are 185 pieces of data in the whole population. 77 are in the top sets. 70 are in the middle sets. 38 are in the bottom sets. Overall, there is too much data so I need to choose a sample. I need to make sure my sample size is appropriate. 10 will be too small and is not enough to represent my population and 100 will be too large. I will choose a sample size of 40 as that is not too small and not too large. It is just over 20% of my population so it is enough to get a representative amount of data. There are not the same amount of people in top, middle and bottom sets so I cannot have the same amount of people from each group. They have to have the same proportion. I worked this out in the table below: Set How many people in total Calculation Answer Sample size Top sets (A, B, C) 77 40*(77/185) 6.64 7 Middle sets (D, E, F) 70 40*(70/185) 5.14 5 Bottom sets (G, H, I) 38 40*(38/185) 8.22 8 Now I know how many people I am going to take from each set, I need a random way of picking people so everyone has a fair chance of
Personal finance - I am an advice worker for 'Life Start Bradford', which is an advice centre for young people in the Bradford. Many of my clients are young employed adults who are in their first jobs and living away from home.
GNVQ INTERMEDIATE BUSINESS PERSONAL FINANCE ASSIGNMENT 1 I am an advice worker for 'Life Start Bradford', which is an advice centre for young people in the Bradford. Many of my clients are young employed adults who are in their first jobs and living away from home. I see most of them on a regular basis because they have difficulty managing their personal finance, so now I feel it is time to write a guide for them which will help them avoid some of their financial problems. TASK . The importance of planning personal finance It is important to plan personal finance because money and finance are part of every day life so you need to keep track of the money coming in and money going out which will probably help you achieve your financial goals. You probably won't be able to achieve every financial goal you've ever dreamed of. So if you identify your goals clearly and decide which are most important, by concentrating your efforts, you have a better chance of achieving what matters most. The best way to do this is by having money stashed in savings accounts or invested in stocks and bonds, which would grow gradually. You should draw up a list of goals, you should look for things that will help you feel financially secure, happy or fulfilled. Some of the items that you need save on are: * a emergency fund * getting out of debt * and paying the kids education Financial
The point of this guide is to show you the different ways of borrowing and the advantages and disadvantages of each one. I will also give examples to help you understand. Borrowing is when you get or receive (something) on loan with the promise or understanding of returning it or its equivalent value. Borrowing is important because without it you wouldn't be able to afford it if you get into any money trouble. For example: if your business goes down hill and you have put your money in it and so you will lose everything when it shuts down. In this circumstance you would borrow money to help you get back on track. However in other circumstances you will have to control your urge to spend as it can have disastrous effects for example if your girlfriend wants some new shoes if you can't afford them don't buy them. TOP TIP!!! If you can't afford it, don't buy it!!!! To decide the best borrowing 'account' then you would have to decide how much risk and return you want. TOP TIP!!! The higher the risk the higher the return. For example if you put all your money into a business then you have a high risked chance of losing all the money. However if you have a share in a business then you will only be putting a small amount of money into something and also be able to carry on with your life quite normally. A repayment period is the amount of time that you can pay back the
Ethical behavior is just as important as competence in the accounting and financial field.
Ethics Article Keneisha Dunlap University of Phoenix FIN-324 GA04BSMO9 Emmanuel Ogunji October 5, 2005 Financial Translations Four Corners article assist stakeholders with the understanding finance and financial statements, the four corners represent the four basics of financial statements. The first corner is the balance sheet, which is a statement of equity that includes assets, stockholders, and liabilities. The balance sheet must give an account of the total assets and total liabilities. The balance sheet is usually done quarterly or per fiscal year. The second corner is income statement. The income statement is reviews a company's revenues and expenses, they also project sales, expense, profit or loss. The income statement just as the balance sheet is done quarterly or yearly. The third corner is the statement of retained earnings. This statement gives the company two opportunities to either distribute the dividends that have been saved rather been paid out and distribute them amongst shareholders or retain the dividends within the company to finance more assets. The fourth corner is the statement of cash flows it assists the company with keeping track of where the revenue comes from, and the expenditures. The casement also includes information on operating, investing, and financing. The statement also gives information on generated revenue from the operations of
Learning Team Assignment: Xtreme Toys Case Study
Learning Team Assignment: Xtreme Toys Case Study Nathan Church Megan Leite-Ferraz David Oxley Sue Oxley Michael Shannon FIN 475 March 24, 2004 Xtreme Toys Case Study Imagine the excitement of the management team at Xtreme Toys at their recent board meeting when told about the company's increased sales statistics. However, joy soon turned to bewilderment when confronted by the company's shrinking cash flow situation. Convinced that the figures must have been misstated, the board members appointed a team from the finance accounting department to investigate. The following paper details the team's findings, including their recommendations on what actions the company should adopt to reduce its cash gap predicament. The Situation Xtreme Toys is a small manufacturing company in Southern California that has experienced rapid expansion in sales over the past year. The expanding sales have caused intense pressure for increased inventory production, combined with a receivables buildup that is now draining the company of its cash resources. With management focused on increasing sales as the best way for the company to prosper, insufficient resources were dedicated to working capital management. The substantial growth in sales has increased the company's current assets such as accounts receivables and inventory, and now requires financing beyond internal funds and retained
Coke v Pepsi WACC
In order to find the WACC for both Coca-Cola and Pepsi, we need to first determine different costs and values. To begin, we need to find the debt and equity weights of each company. The market value of equity of a publicly traded company is simply the number of outstanding shares multiplied by the current market share price. This is shown below. Finding Market Value of Equity: The Coca-Cola Company: Share price as of December 4, 2000: $62.75 Diluted Outstanding shares: 2,487,000,000 Market Value of Equity = ($62.75) (2,487,000,000) = $156,059,250,000 PepsiCo, Inc: Share price as of December 4, 2000: $43.81 Diluted Outstanding shares: 1,475,000,000 Market Value of Equity = ($43.81) (1,475,000,000) = $64,619,750,000 Next we need to find the value of debt for each company. Market value is generally the best way to achieve this, but because we were not given the number of outstanding shares the book value is sufficient. This is acceptable because neither company has experienced a significant change in credit ratings in the recent years. We look to the Balance Sheets of both companies and use the most recent year (2001). The main contributors to Book Value of Debt are Notes Payable, the Current Portion of Long Term Debt, and Long Term Debt. This is shown below. Finding Book Value of Debt The Coca-Cola Company: Loans and Notes Payable: $3,600,000,000 Current
Stock Control Stock control is essential. Records and keeping an update of stock is of high importance. Stock must be motivated by not only one person and re-checks should be carried out. The store keeper should ask a superior for the latter. Records should show: The present current stock - for the company to know what is in stock & so when it comes to stock taking there won't be any problems. Stock Description - to be able to distinguish one item from another. Usually stock is in number format with a barcode or item number. The Re-order level - for the company to be aware that it is in- need of ordering new stock. The Re-order quantity - the amount that the company usually orders when the re-order level is reached The Expiry date - so the company would not finish with old stock in the stock rooms without selling it before it expires. Usually companies offer a special offer on the item to attract customers to buy it. Etc... It is important for a company to keep such records because if not the company would not know what is going on with its stock, thus causing disadvantages for the company. These disadvantages are: * Disadvantages of holding too much stock - Buying too much cost can be an expense to the company. If the stock bought is extra and not going to be in use then that money spent could have been put to better use. - When too
This informal report endeavours to examine the current accounting environment that exists in the UK. A combination of both desk and primary research shall be conducted prior to the final compilation and conclusion of the piece of work.
HND HOSPITALITY MANAGEMENT INVESTIGATION OF THE ACOUNTING ENVIRONMENT .0 INTRODUCTION .1 This informal report endeavours to examine the current accounting environment that exists in the UK. A combination of both desk and primary research shall be conducted prior to the final compilation and conclusion of the piece of work. .2 Specifically, this report will identify the authoritative accounting bodies that exist within the UK. In addition to the roles and missions of these bodies, the standards they create and maintain will also be identified and discussed in terms of their relation to the preparation of the final accounts for J.Browns Catering Ltd. .3 The bodies to be examined in this report are: * The Accounting Standards Board * The Financial Reporting Council * The Financial Reporting Review Panel .4 The underlying motivation catalysing formation of the aforementioned bodies will be identified, and the primary advantages for their existence related. .3 The piece will be concluded and sources identified, with any supplementary information provided in appendices. 2.1 ORIGIN OF AUTHORITATIVE BODIES 2.1.1 The time line below identifies the history and background surrounding accounting bodies. 947 * Companies Act 1947 stipulates that all financial statements prepared public distribution should be "true & fair". 948 - 1968 * Companies Act policies were
Accounting Report. The aim of this report is to analyse the handling of cash, credit and inventories and outline the role that internal controls play in the business.
Date: 4th August 2011 Report to: Mr William Darcy Re: Internal Controls for cash, credit and inventories A close examination of your business practises shows that whilst a few of the practises in the operation of your store are correct, there are some that require significant attention. The aim of this report is to analyse the handling of cash, credit and inventories and outline the role that internal controls play in the business. Furthermore, I will provide appropriate recommendations both in terms of maintaining profit and functionality of your business. Internal controls are important, in that it encourages better control on almost all aspects of the business. It is categorized into two different factors: accounting controls and administrative controls. Accounting controls are steps taken to safeguard assets and promote accuracy and reliability in the business regarding the accounting data. The administrative controls are methods carried out that are designated to facilitate proper adherence to managerial policies and procedures. In general, the main aims of internal controls are to detect and minimise any errors made in the business, prevent theft or fraud from occurring and increase efficiency of business procedures. There are a few main principles that internal controls are built around. In order for a business to run