Sales have increased over the years, but the rate of this increase is not steady. The highest sales point was in 2006. Cost of sales and expenses with the exception of other expenses have increased at a steady rate. Other operating expenses have fluctuated over the years; the lowest point was in the first year with the highest being in 2006. Finance cost seems to have reached a peak in 2006 and the fallen by 2008. Net Profit after Tax follows a similar pattern to sales. CC3 CONSOLIDATED BALANCE SHEET…
Revenue. Revenue includes net sales, cost of goods sold, and gross profit. Gross profit continues to grow at 30.4% with .23%/ $4,900 from year 12 to 13, and .93%/ $19,600 from year 13 to 14. Net sales also showed the same growth at 100%. The company expects continued growth over the next three years and according to the trend analysis, has the ability to do so. This demonstrates the company’s ability to keep overhead under control and maintain constant margin in relation to sales, consistent year after year. The expenses are variable in relation to the sales. Higher gross sales leads to higher operating income available to service debt in the form of interest payments.…
the balance sheet important? What business decisions could be made using the balance sheet? What does the statement of cash flows tell you about the company? What business decisions could be made using the statement of cash flows?…
8. What are the company’s total current assets at the end of its most recent annual reporting period?…
ACC/291 March 25,2012 Liquidity Ratios Current Ratio: Current Assets/Current Liabilities 2005 $14,555,092/ $6,974,752= 2.09:1 2004 $14,643,456/ $6,029,696=2.43:1 Acid Test Ratio: Cash+ Short-Term Investments + Receivables (Net)/ Current Liabilities 2005 $305,563 + $283,583 +$6,133,663/ $6,974,752= .96:1 2004 $357,216 + $133,504 + $5,775,104/ $6,029,696=1.04:1 Receivables Turnover: Net Credit Sales/ Average Net Receivables 2005 $50,823,685/ ($6,133,663 + 5,775,104/2) $50,823,685/ $5,954,384= 8.54 times 2004 $46,044,288/($5,775,104+6,569,344/2) $46,044,288/ $6,172,224=7,46 times Inventory Turnover: Cost of Goods Sold/ Average Inventory 2005 $42,037,624/ ($7,850,970+$7,854,112/2) $42,037,624/$7,852,541=5.35 times 2004 $37,480,050/ ($7,854,112+8,074,880/2) $37,480,050/ $7,964,496=4.71 times Profitability Ratios Current Assets 2004 2005…
b.) By looking at the statement, there are a few reasons for concern. The first thing I would like to point out is that even if the business is making a profit, the margin from 2011 to 2012 has decreased dramatically. The net profit is £249,200 less than previous year. A decreasing net profit means less money to spend in to the business for next year. Another cause for concern is the cost of goods sold for 2012, a cost of £793,300, compared to the gross profit of £799,000. This is concerning as the business is spending too much money on stock without barely making a profit.…
Does management’s assessment of the financial condition agree with your assessment from the Financial Statements Paper Part I? Explain. Support your answer using trend analysis, vertical analysis, and ratio analysis.…
Compute P&G's gross profit for each of the years 2009-2011. Explain why gross profit decreased in 2011.…
1. WHY DO YOU THINK THE CEO IS SO CONCERNED WITH THE AMOUNT OFASSETS REPORTED ON THE BALANCE SHEET?(5 MARKS)…
The gross margin went down a lot because the overhead cost in 1989 went up…
Xerox Corporation is a global document management company which manufactures and sells a range of color and black-and-white printers, multifunction systems, photo copiers, digital production printing presses, and related consulting services and supplies. Xerox is headquartered in Norwalk, Connecticut, though its largest population of employees is based in and around Rochester, New York, the area in which the company was founded.…
1. Start with the Capital Accounts. How do they differ? How are they the same? Are they realistically presented? What are the Book Values, and what are the present Ratios of the stock Prices to Book Value.…
Percent of change in sales for 2011 are up from last year but still less than industry average. Inventory’s percent of change has increased to 19.6% from 2011 to 2010. This is 8.2% above the industry’s average, which might lead to obsolesce of inventory. Gross profit margin and net profit margin has increased but gross profit margin is above industry average and net profit margin is below industry average. We noticed a couple one-sided entries on the books for pre-paid expenses and accrued expense. Analyzing the cash flows statement, we found a mathematical error in the decrease of cash and cash equivalents. Analyzing the balance sheet to the general ledger, we found a few a few misstatements with account receivable and inventory. Also a misstatement in the calculation of fixed assets, both in this year’s financial statement as well as last years. We noticed a few related party transactions that were not disclosed in the financial statements such as the relationship with Netgear. Mr. Elmer Gates is VP of network technologies at Netgear.…
U.S. Securities and Exchange Commission. (n.d.). The Laws that Govern the Securities Industry. Retrieved from U.S. Securities and Exchange Commission: http://www.sec.gov/about/laws.shtml…
Note: Answers to only half the questions have been provided. It gives you an opportunity to work…