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Analysis of Income Tax...Analysis of Income Tax
Income tax is defined as the tax levied on the earnings of an entity or an individual; there are different types of taxes that paid to respective governments (Investopedia)
In the case of Thomas there are different taxes that he will have to pay to the government, the first step in calculating the tax liability is to calculate the taxable profit that Mr. Thomas has made from his business activities.
£
Net Profit as per the scenario 72,000
Less: Additional Income (Note 1) (7,700)
Add: Salary of Thomas (Note 2) 25,000
Add: Council Tax of Thomas’s house (Note 3) 2,000
Add: Replacement of house front door...
8 Pages(2000 words)Assignment
Income Statements of International Financial Reporting Standards...
Income Statements of International Financial Reporting Standards
Introduction
U.S GAAP (Generally Accepted Accounting Principles) is practiced only in United States while IFRS (International Financial Reporting Standards) are adopted by the International Accounting Standards Board (IASB). There are notable differences between IFRS income statement and a typical income statement prepared using U.S GAAP.
Differences in Income Statements
Firstly, income statement captions are not required in the case of US GAAP while IFRS prescribes minimum caption in...
4 Pages(1000 words)Term Paper
Analysis of Financial Statements...their expenses'
Both the companies' costs in relation to sales are on a relatively stable level over the years, which signifies an effort on the part of management in terms of controlling expenses.
What are the financial strengths and weaknesses of these businesses'
Both companies are definitely profitable; these companies' ability to maintain a level of sales is a financial strength. By looking at their income statement, both of them has the ability to control costs over the course of four years in order to come up with a stable level of net profit to sales ratio, and return on assets ratio.
A major financial weakness of these companies lies in their liquidity position. These companies in some...
27 Pages(6750 words)Research Paper
Analysis of Financial Statements...Panorama Inc. is a company looking for advice in order to determine the best of action as far as finding a suitable partner for a joint venture. The company needs to make this decision based on the analysis of the financial statements of the company. The financial analysis that is going to be performed is called ratio analysis. Ratio analysis is a great a analytical tool because it provides a good basis for comparison, while at the same time providing numbers that analyze different facets of a business. The first step in the financial analysis simulation is to determine the best ratio analysis suite.
The suite that I...
2 Pages(500 words)Essay
Comparing Income Statements From Different Industries...Finance and Accounting Income ment Income ment is a part of a company’s financial report expressing the financial position of the company. The report includes all the factors which are associated with income and expenditures of the company. It includes revenue, expenses, profits, loss and incomes of the company (Buffett & Clark, 2008).
Companies publish income statements to inform their shareholders about the business activities which have been carried out during the period covered by the statement and whether such activities have resulted in a profit or loss to the business. Different companies include different factors...
2 Pages(500 words)Essay
Financial statements ratio analysis...=1.095times
530000/503750
=1.052times
Current ratio
Current assets/current liabilities
195000/264000
=0.7386
276250/292950
=0.943
Debt to total asset ratio
Total liabilities/total assets
345000/615000
=56.1%
288250/780000
=62.6%
Return on equity
Net income/total equity
98200/270000
36.4%
80380/291750
=27.6%
b. Do a complete analysis and comparison for the two years of operation of the company
Profit margin shows the ability of a company to covert its sales into profit (net income. The company has a low profit margin hence it has a lower ability to convert sales into net income. In 2012 the company had a higher profit margin than in 2013 meaning its ability has...
4 Pages(1000 words)Essay
Financial Statements analysis....
Consolidated Income Statement (figures in millions GBP)
Particulars
2013
2012
2011
Total revenue
17557
16905
15833
Operating Expenses
Cost of goods sold
5289
5232
5013
Selling, admin, genl exps
8344
7968
7387
Depreciation/amortization
324
302
266
Other income
439
283
64
Other operating expenses
2370
2249
2093
Total operating expenses
16756
16026
14817
Operating income
801
879
1016
Other
(15)
(17)
(1)
Net income before taxes
721
789
958
Provision for income taxes
287
178
264
Net income after taxes
434
611
694
Consolidated Balance Sheet
Particulars
2013
2012
2011
ASSETS
...
7 Pages(1750 words)Essay
Financial Statements Analysis...Financial ment Analysis of the Financial ment Analysis Financial ment of a company comprises of three major documents. They are income statement, balance sheet and cash flow statements. The information of these documents is used to calculate financial ratios. Financial ratios illustrate company’s financial health and show its position in the business landscape. Financial ratios are tools that help to interpret a company’s financial planning, and its performance during the existence of the business. It allows the company to compare own activities with respect to previous years as well as among other companies. Financial ratios enable to understand...
4 Pages(1000 words)Research Paper
The absorption and contribution income statements.... In other scenarios, the activities of a business entity may prompt the production of multiple income statements. The reason may be due to the kind of sourcing of the funds and the types of activities and programs that the company undertakes. The user of different income statements is also dependent on the immediate goal of the income statement. Some of the objectives that lead to different losses in profit accounts are the different goals the company may target. They include, establishing the past performance of the business entity, assisting in the future prediction of the future performance of the company or the assessment of the...
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Comparing Income Statements From Different Industries..., and net profit margin. Additionally, the different ways in which different entities in different industries account for their inventories also affect their margins.
References
Entrepreneur Media, Inc. (2009). Income Statement. Retrieved January 28, 2015, from Entrepreneur Media, Inc.: http://www.entrepreneur.com/encyclopedia/income-statement
Tracy, A. (2012). Ratio Analysis Fundamentals: How 17 Financial Ratios Can Allow You to Analyze Any Business on the Planet. Sydney: RatioAnalysis.net.... A Comparison of Income ments from Different Industries Introduction This paper aims at identifying and studying a company in the automobile manufacturer, pharmaceutical, technology, and retailer-grocery industry and study their gross...
1 Pages(250 words)Essay