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The methodology provides a description about four short term finance sources availed by the businesses. Each one is separately described. Subsequent to that, the liquidity and efficiency ratios of Sainsbury and Tesco have been computed and compared. Four different sources of short term finance Short term finances fulfil the day-to-day operations of business.
A method such as mean-variance analysis helps predict and reduce the amount of risk. Holding a mix of assets, otherwise known as portfolio diversification, is a key concept upon which successful investments in the business world gain greater practicability. The practical applications of portfolio theory abound in different segments of a business.
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Economic value- added (EVA) is a residual income, introduced to improve the internal and external performance of the business. The task of managers is to capitalize on the wealth of shareholders, by well-organized distribution of resources. The information in the financial statement helps the managers and shareholders to evaluate the present as well as future performance of the firm.
After making loss of $40,000 in the fiscal year that ended on 31 March 2011, the business entity was able to record improvement profitability within the fiscal year ending 31 March 2012. From the projections and forecasts of sales and profitability, there is evidence that the firm is likely to pay more tax of either 40% or 50%.
Relevance is a characteristic that is a part of every framework and it has an influence on various economic decisions taken by its users while evaluating any event or confirming any prior expectations. Timeliness is also an important aspect of relevance because relevant information should be available on time when taking any decision.
The banking sector is a crucial component of the economy. Provision of financial and consumption of financial services is essential in the pursuit of economic and social growth and development. However, certain scenarios observed in that pursuit negatively affect the economy, spreading these effects to the entire public.
The performance of any department can be evaluated in a number of ways, among which the fulfillment of budgets is considered the prime way vital. This particular report emphasizes focused on evaluating the performance evaluation of the laundry department on the basis of based on revised budgeted estimates.
Rattan Furniture Division was established four years ago. For the last three years, the company claims to have an annual sales growth rate of 35% and the sales were $60 million last year. The three main product lines they have are a living & dining room, bedroom line and outdoor patio line.
the best-line-of fit does not pass through the origin making the assumption not to hold for sales and assets analyzed. This is because there is no close association between the dependent and independent variables in the study. From the above situations, both cases have a close range on R-square but the first is preferred most.
In each contract, there is always a transaction in which benefits and profits are derived by one party and obligations or losses are incurred by the other party. The general definition of recognition is the acknowledgement of an occurrence. In accounting, the term is used to imply the acknowledgement of monetary value in transaction.
The fact that auditors provide NAS to their clients creates doubt regarding the credibility of their audit although actually, they may be independent. The provision of NAS creates an economic dependence on the client. There exist various threats to an auditor’s independence namely self-review threats, self-interest threats, familiarity threats, advocacy threats, and intimidation threats.
In the first part, sources of short term finance for businesses’ have been listed and then explained. Whereas, the second part contains evaluation of the financial performance of two organizations, that is, McDonalds and Burger King on the basis of the latest annual reports released by the two companies along with the financial ratios.
The financial crisis which started in 2007 impacted significantly on many countries, most especially the United States, the United Kingdom, Greece, Japan, and other developed nations. Although other countries were not directly affected by the crisis, they were still significantly affected by the crisis as their economies also crashed, the prices of oil and other commodities skyrocketed, and the banking crisis overwhelmed their economy.
On the other hand, the second part entails the comparison of financial performance of two companies, namely, Electronic Arts Inc and Activision Blizzard Inc on the basis of annual reports and financial ratios. Body Paragraphs Task 1 The four sources of short term finance available to any business comprise of Trade Credit, Bank Credit, Customers’ Advances and Loans Account Receivables.
Hence to be on the safe side the financial analysis is imperative. In this case the concepts of NPV and Payback are the indicators to be used to assess whether the business will carry good returns or not. “Net Present Value (NPV) is the excess of the present value (PV) of future cash inflows to be generated by the project over the amount of initial investment.” On the other hand “Payback period is the length of time it will take the company to recover its initial investment.” In this scenario e.g., if the initial investment is $15,000 and the annual after tax cash saving are $3000, then the payback period would equal 5 years.
Although systematic financial innovations facilitate those objectives, devising the appropriate regulatory measures for activities of financial institutions regulators should seek to provide a principle-based approach that upholds clarity and presents a safe environment for all characters present in the financial market.
This paper has successfully addressed various questions such as the importance of accounting information to various users, usefulness of financial ratios, how to identify reasons behind trends identified by analysis of financial ratios and difference between relevant and irrelevant costs. The paper has also identified different sources income generation for an organization.
During the planning, the audit team will inform the Apollo Shoes of the audit, hold formal discussions on the objectives and scope with the management, gathers information on important processes, and evaluates existing internal control system and information on important processes gathered (Choi & Jeter, 1992).
A contribution is a reward or compensation to a common fund or compilation. It can be referred to as the payment which an individual offers for any particular purpose. Besides, the entire contributed amount of an individual is calculated based on price and cost. Moreover, contribution varies from one individual to another.
The budgetary information is less important in evaluating the performance as per this approach. Although, it is still used to infer if the manager has achieved success in the budgeted targets but the most important consideration is the intention of the manager to work towards the overall long-term interests of the organization.
The short-term finance refers to that finance which is obtained for a shorter period of time, generally for a period of less than one year. After obtaining the short-term finance, the companies make use of it in either raising working capital for the business or financing other areas of the business.
These goals are usually set by an organization and are difficult to achieve unless there is synergy between the members of the organization. Many organizations provide human resources with certain tools to make it easy for them to coordinate their activities. Much work and the bulk of the activity in the organization is done through communication.
The institutions therefore have different governments and other international organization as the main shareholders. The most popular international financial institutions have multinationals shareholders although bilateral financial institutions are also classified as international financial institutions.
They are used to cushion for cash flow or secure liquid funds in the short run of the business. A comparison of Mark & Spencer and Morrison Company is analyzed below for liquidity and management of working capital. Modes of short term financings used by these companies are also assessed.
The company has more than 8,500 stores in more than 15 nations and operates the stores under different names such as Walmex in Mexico, Asda in the UK, Seiyu in Japan and Best Price in India. According to the Forbes Magazine (2000), Wal-Mart is the eighteenth largest corporations in the entire world.
International Economic and Financial demands: Freedom of capital flows Freedom of investment Freedom of trade in every goods and services containing intellectual property and living organisms. “Transnational corporations -- those corporations which operate in more than one country or nation at a time - have become some of the most powerful economic and political entities in the world today” (Transnational Corporations 2003).
rs of the business entity about its financial information. The financial reports prepared in accordance with the accounting procedures followed can be used both internally within the business entity as well as externally. The former is known as management accounting and the later as financial accounting or reporting.
In most cases, the accounting majors work internally to the company and their actions are limited to the internal operations of a company or organizations. Therefore, majority of the times accounting majors are responsible and accountable to the organizations management and shareholders.
The funding history of the small technology-based firms has been explored and analysed to get an idea of the funding market. Along with this, recommendations have been presented in order to select the best possible source of funds.
In essence, dividend yield and PER of value stocks is better than growth stocks because of their high market price which declines dividend yields and worsens the price earnings ratio. Their findings revealed that CAPM model is inadequate in explaining stock prices fluctuations because it is concerned with only one element of risk i-e beta.
Since the company in question is one of the giants in the beverage industry, not even in Australia but all over the world, therefore, the company always focuses on increasing its growth in number of different ways. Extension in existing product line of the company is also another way through which the company maintains its objective of growth increase.
The analysis of financial results suggests that Westcoast Air should accept Travel International’s offer as it results in an operating profit of $7,500 on each of the 24 flights carried out by the tour operator. For a company such as Westcoast Air, which is currently incurring a huge operating loss per flight, this offer is no less than a bonus.
This paper intends to convince a client about the benefits of using an internal auditor. Functions of an Internal Auditor An internal auditor has an objective of assisting “all members of management in the effective discharge of their responsibilities, by furnishing them with analyses, appraisals, recommendations and pertinent comments concerning the activities reviewed” (Ridely, 2008, p.9).
Based on the activity based costing (ABC) method, the company should increase the number of department stores, as part of its expansion strategy (Chakraborty, 2004). This is because, unlike the direct simple costing method, the activity based costing (ABC) has a higher level of accuracy.
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Any organizational failure is attributed to financial mismanagement through improper accounting records. It is due to this sole reason that Accounting Information Systems in crucial to the entire management. As Hall asserts further in his publication, Accounting Information Systems (AIS), a subset of Management Information System, focuses mainly on financial transactions.
This is about the fact that budgeting is among the most important aspects of an organization’s operations. Budgetary control is driven by responsibility centers, with a clear emphasis on budget construction details for effective control of the organization's performance. A budget is a formal statement of financial resources.
The company is a brand leader in its segment of the business, with Pepsico USA coming second in terms of revenues and profits as well as worldwide sales and distribution. Both these companies have been famous for their innovative marketing and sales strategies and indulged in price and branding wars that have benefitted consumers as well as the whole industry.
A company can borrow from a bank or offer stocks and bonds in the open market. It can spend or invest the cash in current or future projects that will increase the worth of the firm and maximize the wealth of its owners. The process of deciding which projects to invest in and which not to is called Capital Budgeting (Brigham & Ehrhardt, 2010).
Although both projects are yielding a negative NPV, but the second option is giving a smaller negative number, hence we can safely conclude that the company should wait for 5 more years before buying the latest technology crane ALII. NPV shows us that the project would yield more cash inflow than outflow, but the negative number shows us that the outflows would be greater than the inflow.
It is a well recognised fact that for a company to be successful it needs to protect the interest of the stakeholders, employees, internal as well as external customers and the environment in and around the company (Broadley, 2006). Foreign investors feel better in an environment where the basics of the corporate governance is defended and practiced.
We see that this kind of management can diversify the company’s sales, production facilities, and the needed material required for the production and inputs purpose. Matters dealing with finance are also diversified to raise more money needed in more than a single capital market and various and numerous different currencies.
This state of affairs creates a changing environment and a fresh prospect for internal audit to display its value. In the ever- hanging environment, numerous companies are finding it difficult to identify and manage the complex risk exposures, of which will assist Apollo Shoes. Our firm will offer services aimed at revolutionising the function of internal audit. Our company offers a combination of consulting services tackling the vital issues challenging internal auditors, such as risk assessments, technology, training, organizational and process- reengineering, reviews on quality assurance, as well as benchmarking.
Generally speaking, this essay aims to present an analysis of the qualitative characteristics of financial information and the major constraints presented by these characteristics. The financial reporting conceptual framework is a coherent system of concepts that underlie financial information reporting.
The overall standards of financial information in all aspects: materiality, neutrality, reliability, relevance, and prudence improved by a fair margin. There is an urgent need to come up with more such laws in other parts of the world as well so that the overall credibility and accuracy of the financial information gets better internationally.
Finance and accounting Name: Course name: Course instructor: Date: Introduction According to Judge Holmes presentation on finance and accounting, accounting is a type of business function which basically involves recording and also reporting financial information for the internal and the external users.
Performance Management Student Name Instructors Name Course University Date of Submission Performance Management UGC Plc has decisions to make regarding the construction of the new system whether to carry the project in house or outsource the project to a subcontractor.
As an accountant, my ethical philosophy is based on serving the needs of the clients, while at all times comply with the generally accepted accounting principles. For me, honesty and trust are important qualities that I will use in my interaction with clients or other accountants working in an accounting department.
The CEO pointed out that his company had lost about 30 to 34 percent of the business customers across their business territory while their competitors were flourishing. Maney (2006), further describes that the CEO noted that BellSouth had lost about 8 percent of the consumer business all which he supported with business reports.
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The financial statements are of different kinds, namely the statement of financial position, statement of comprehensive income, statement of cash flows and the statement of changes in equity. Business entities and corporations are required to keep the financial statements for auditing purposes since it is the financial statements that external parties can gage the performance of the business.
The shredding of those documents, which the accounting firm was well aware could be used in an SEC investigation, and also was in itself a crime. The case of Enron led to a number of individuals that were charged with different tasks being charged with serious crimes with some of them pleading guilty.