Myers, S.C. (1984). “Finance Theory And Financial...

Myers, S.C. (1984). вЂњFinance Theory and Financial...
Myers, S.C. (1984). "Finance Theory and Financial Strategy". Interfaces, 14.
Introduction
This journal explained how to bridge the gap between strategic planning and finance theory. Myers wrote this journal to explain why finance analysis
had only slight impact on strategic planning, even though strategic planning needs finance. Strategic and financial analysis are not reconciled. When
low net present value (NPV) projects are nurtured "for strategic reasons," the strategic analysis overrides measures of financial value, and vice versa.
Relevant Financial Theory
The financial concepts most relevant to strategic planning are those dealing with firms' capital investment decisions. To select the projects to be
financed, we calculate ... Show more content on Helpwriting.net ...
There is also a lesson for current appli cations of finance theory to strategic is sues. Several new approaches to financial strategy use a simple,
traditional DCF model of the firm, [For example, Fruhan 1979, Ch. 2]. These approaches are likely to be more useful for cash cows than for growth
businesses with substantial risk and intangible assets. The option value of growth and intangibles is not ignored by good managers even when
conventional financial techniques miss them. These values may be brought in as "strategic factors," dressed in non–financial clothes. Dealing with the
time series links between capital investments, and with the option value these links create, is often left to strategic planners. But new developments in
finance theory promise to help.
Conclusion
Myers argued that the standard discounted cash flow techniques will tend to understate the option value attached to growing, profitable lines of
business. To bridge the gap between strategic planning and finance theory, Myers suggested that the financial theorist need to apply existing finance
theory correctly and extend the theory on real option pricing to model time–series interactions between investments. Both sides should reconcile
financial and strategic analysis to uncover hidden assumptions to have deeper understanding on strategic
... Get more on HelpWriting.net ...

Strengths And Weaknesses Of Ratio Analysis
The Study of the ratio analysis technique to financial statements offers potential in expanding insight into specific strengths and weaknesses of a
company financial situation. The primary objective of financial analysis is to provide information useful for decision making.
1.1 INTRODUCTION: RATIOANALYSIS:
There are various methods or techniques used in analyzing financial statements, such as comparative statement, trend analysis, common– size
statement, schedule of changes in working capital, fund flow analysis, cost – volume profit analysis. The ratio analysis is one of the most powerful
tools of financial analysis. It is the process of establishing and interpreting various ratios (quantitative relationship between figures and groups ... Show
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12,00,000 & credit sales are Rs. 30,00,000. so the ratio of credit sales to cash sales can be described as 2.5 [30,00,000/12,00,000] or simply by saying
that the credit sales are 2.5 times that of cash sales.
C] As a percentage: In such a case, one item may be expressed as a percentage of some other item. For example, net sales of the firm are Rs.50,00,000
& the amount of the gross profit is Rs. 10,00,000, then the gross profit may be described as 20% of sales [ 10,00,000/50,00,000]
NATURE OF RATIO ANALYSIS:
Ratio analysis is a technique of analysis and interpretation of financial statements. However ratio analysis is not an end in itself. It is only a mean of
better understanding of financial strengths and weaknesses of a firm. Calculation of mere ratio does not serve any purpose, unless several appropriate
ratios are analyzed and interpreted. There are number of ratios which can be calculated from the information given in the financial, statements, but the
analyst has to select the appropriate data and calculate only a few appropriate ratios from the same keeping in mind the objective of analysis.
STEPS INVOLVED IN RATIO ANALYSIS:
1)Selection of relevant data from the financial statement depending upon the objective of the analysis.
2)Calculation of appropriate ratios from the above

Financial Statements Of Foreign Companies Essay
Unlike here in the United States., financial statements of foreign companies are not always readily accessible. Most importantly, it is often not in
English. However, an analyst or any interested party can always obtain a convenience translation of financial statements either through
pay–database–services or by requesting it directly from the companies. Of course, different currency is also a concern. Yet, it can easily overcome by
converting and translating previous years' balances as well as current year's balances (and line items) at current year currency exchange rate; this helps
eliminating distortion and translation adjustments. Nevertheless, some other serious concerns such as terminologies discrepancies, general accepted
accounting principles (GAAP) differences, and financial ratio analysis may still arise when analyzing "translated" foreign financial statements
(Doupnik & Perera, 2012) .
Terminologies Discrepancies Though foreign financial statements may be in English, the terminologies may not carry the same meanings. For instance,
the financial terms differences between British English and American English. Thus, it is important to have familiarity of financial terms interpretation
and applications in the countries of foreign companies.
Table 1
Differences between British and American Reporting Terms
British
Creditors
Debtors
Ordinary share
Profit and loss account
Share
Stock
Share premium
Gilt–edged stock (gilts)
TurnoverAmerican
Accounts

Financial Statements And Financial Statement Analysis Essay
CHAPTER TWO
LITERATURE REVIEW
INTRODUCTION
Financial statements are usually means of communicating information on a company's operations. They contain information on the revenues,
expenses, assets, liabilities and retained earnings of the business.
2.2 FINANCIAL STATEMENT ANALYSIS
According to Drake (2010), financial statement analysis is the selection, evaluation, and interpretation of financial data, along with other pertinent
information, to assist in investment and financial decision–making. Moreover, it is also the process of identifying financial strengths and weaknesses
of the firm by properly establishing relationship between the items of the balance sheet and the profit and loss account. Brigham, E., & Houston, J.
(2007), "Financial statements report both a firm's position at a point in time and its operations over some past period. However, their real value lies in
the fact that they can be used to help predict future earnings and dividends". Financial ratios are designed to help one evaluate a financial statement.
Ffigures derived from the published annual financial statements and accounts of the companies are used to produce values that interpret financial
meaning. Organizations regularly evaluate their financial statements by means of ratios and compare the values to those of similar entities or analyze
their firm's financial ratios over time (trend analysis) to show weaknesses or opportunities for improvement as it is critically important for decision

Examples Of Financial Data Analysis For Healthcare
Running Head: FINANCIAL DATA Financial Data Analysis Wanda Douglas Financial Management In Health Care /HCS 577 April 02, 2012 Tricia
Jenkins Financial Data Analysis Since 1975, Patton Fuller Community Hospital (PFCH) has been serving the people of the Kelsey and the surrounding
communities. PFCH is a for–profit organization and is owned by physician active within the facility. Owned by the physicians active at the hospital,
the organization is governed by a 14 member board of directors, which consist of 12 physician–owners, with the Chief Executive Officer (CEO) and
the Chief Financial Officer (CFO) as non–voting members. The facility is dedicated to providing cutting–edge medical services. PFCH... Show more
content on Helpwriting.net ...
774 |72,572 |41% | |Equipment, net | | | | | |Total Assets |587,767 |548,535 |39,232 |7% | | | | | | | |Liabilities and Equity |2009 |2008 |$ Change 000 's |%
Change | |Current portion of long–term|14,599 |4,185 |10,414 |249% | |debt | | | | | |Accounts payable, accrued |9,198 |4,185 |5,013 |119% | |expenses | | |
| | |Bond interest payable |10 |10 |0 |0 | |Total Current Liabilities |$23,807 |$

Analyzing The Functions Of A Business, Many Relies On...
Business quality is of upmost concern when investing or owning a business. To analyze the functions of a business, many rely on financial statement
analysis. The analysis explains the findings of the financial statement. Financial statement analysis recognizes a company's weaknesses in order to take
corrective actions (ЕЅager, 2012). Financial analysis uses three different methods, vertical analysis, horizontal analysis, and ratio analysis. A vertical
analysis of income is a vertical column of data expressing each expense category as a percentage of sales (Lita Epstein, 2014). An expense
percentage is figured by dividing the expense amount by the profit amount and multiplies by one hundred. The total of the expense percentage will be
one hundred percent. For example, County Hospital's vertical analysis shows operating expenses use forty seven percent, taxes paid use sixteen
percent; cost of goods sold use twenty four percent, and net income was twenty percent of their income. Vertical analysis only shows percentage and
less detail than other methods of financial evaluation. An alternative method of financial evaluation is horizontal analysis. Epstein' textbook defines
horizontal analysis as a compartment of data from two different periods to look for trends in a company 's income (Lita Epstein, 2014). In a
horizontal analysis of a Nursing Home financial statement, classifications show an increase or decrease percentage over the previous year. For
example, Wayne Day

Common Methods Of Financial Statement Analysis
Financial statement analysis is used to identify the trends and relationships between financial statement items. Both internal management and external
users (such as analysts, creditors, and investors) of the financial statements need to evaluate a company's profitability, liquidity, and solvency. The most
common methods used for financial statement analysis are trend analysis, commonвЂђsize statements, and ratio analysis. These methods include
calculations and comparisons of the results to historical company data, competitors, or industry averages to determine the relative strength and
performance of the company being analyzed.
A branch of economics concerned with resource allocation as well as resource management, acquisition, and investment. Simply Finance deals with
related to money and the markets. To raise money through the issuance and sale of debt and equity.
It is observed that while considering the firm performance, the profit and wealth maximization are liked and effected by one another. A company's
financial performance therefore is normally ... Show more content on Helpwriting.net ...
These statements allow analysts to measure liquidity, profitability, company–wide efficiency and cash flow. There are three main types offinancial
statements: the balance sheet, income statement and cash flow statement. The balance sheet is a snapshot in time of the company's assets, liabilities
and shareholders' equity. Analysts use the balance sheet to analyze trends in assets and debts. The income statement begins with sales and ends with
net income. It also provides analysts with gross profit, operating profit and net profit. Each of these is divided by sales to determine gross profit
margin, operating profit margin and net profit margin. The cash flow statement provides an overview of the company's cash flows from operating
activities, investing activities and financing

Acc 301 Final Exam
ACCT 301 Final Exam http://homeworkmonster.com/downloads/acct–301–final–exam/ ACCT 301 Final Exam 1. (TCO 1) What is the accounting
equation? Suppose your company sold $12,000 in merchandise to a customer for cash. How does this transaction impact the accounting equation? 2.
(TCO 2) What are the four basic financial statements? Describe the balance sheet, and explain why it is important 3 What is the Sarbanes–Oxley Act?
Do you think this act has more importance for the accounting profession or for investors? Why 4 What is horizontal analysis of financial statements?
How does horizontal analysis differ from vertical analysis? (TCO 8) Why is capital budgeting important? What is the IRR method? How is it
calculated? (TCO 9) What are... Show more content on Helpwriting.net ...
(TCO 5) What is CVP analysis? Why is this an important analysis for a company to perform? (TCO 6) What is an operating budget? What does it
result in? What is the first step in completing an operating budget? (TCO 7) What is responsibility accounting? What is a cost center? How does a cost
center differ from a profit center? ACCT 301 Final Exam http://homeworkmonster.com/downloads/acct–301–final–exam/ ACCT 301 Final Exam 1.
(TCO 1) What is the accounting equation? Suppose your company sold $12,000 in merchandise to a customer for cash. How does this transaction
impact the accounting equation? 2. (TCO 2) What are the four basic financial statements? Describe the balance sheet, and explain why it is important 3
What is the Sarbanes–Oxley Act? Do you think this act has more importance for the accounting profession or for investors? Why 4 What is horizontal
analysis of financial statements? How does horizontal analysis differ from vertical analysis? (TCO 8) Why is capital budgeting important? What is
the IRR method? How is it calculated? (TCO 9) What are five different types of decisions that could use incremental analysis? What are the relevant
costs in a make–or–buy decision? (TCO 10) How is a transfer price determined? Describe the cost–based method. Do you think it is better than the
market–based method? (TCO 11) What are direct materials? Give an example of a direct material. How do direct materials differ from indirect

Ratio and Financial Ratio Analyisis
Ratio and Financial Statements Analysis
Kimberly Y. Gruber
University of Maryland University College
Dr. Sunando Sengupta
07/25/2013
Turnitin Score: 23%
Executive Summary
The purpose of this paper is to examine ratio and financial statement analysis. Such analysis is a useful tool for managers and stakeholders to evaluate
a company's financial health in order to identify opportunities for growth and areas of weakness so as to institute corrective measures. Financial
statements are used in order to predict trends of cash flow within the business as well as predict the potential of a business and if they are capable of
financial growth. Ratio analysis examines the probability of a company's profit or a company's loss. This ... Show more content on Helpwriting.net ...
Financial statement and ratio analysis is also used to drill down within the larger financial performance of the company as a whole to evaluate various
divisions and product or service lines. These analyses are critically important as they are often used to enhance the firm's credibility in the larger
marketplace; assist in determining its own creditworthiness; and comparing its performance to that of potential competitors.
In examining company reports the focus is primarily on revenues (gross profit), and net income (earnings after expenses). For example, Apple Inc.,
might be interested in conducting a detailed evaluation of its revenue in order to isolate the amount being generated by various products (i.e., the sales
of the iPhone compared to the iPad). The revenue report might even assist in identifying the underlying issue, such as lack of advertising, if there is a
wide disparity in sales. Evaluating net income helps the financial manager ascertain the amount of profit that the company ultimately gained after
expenses, such as manufacturing and advertising, are taken into account. Apple, Inc. can then use the results of these evaluations to make cost–benefit
judgments that could lead to new marketing campaigns, redesign, or even potential elimination of a product line.
Types of Ratio Analysis Traditionally the current ratio and the quick (acid test) ratio were used to analyze the short term

Financial Analysis of MacyвЂ™s Inc. and Nordstrom Essay...
Financial Analysis of Macy's Inc. and Nordstrom
Macy's Inc. has established itself as a strong player in the retail industry, with over 850 Macy's and Bloomingdale's stores in 45 states. Macy's competes
against retail giants like Nordstrom, Kohl's, JC penny and Saks Fifth Avenue for market share in the increasingly competitive department store industry.
This financial report will choose Nordstrom as the major competitor, and serves as the comparison company.
The annual report and 10–K filings were obtained from Yahoo! Finance. The financial statements for both companies used in this report are
Consolidated Statement of Income, Consolidated Balance Sheets, and Consolidated Statement of Cash Flow from 2010 to 2012. All tables are ... Show
In 2011, Macy's had the 5.6% increase in sales. Because the management was able to control its cost of goods sold (6.17% increase) and
SG&A expenses (0.25% increase), plus the big gain from sales of property, the company resulted a 27.3% increase in operating income. In 2010,
Macy's net sales increased 6.45% over 2009, part of it is due to the huge decrease in the impairments, store closing costs and division consolidation
costs account.
The interest expense increased in 2010 over 2009, while the same account decreased 22.8% in 2011 over 2010. This decreases benefited from lower
levels of borrowings during fiscal 2010 and the repayment of debt at maturity. 2.2 Vertical analysis
2.2.1 Vertical analysis ofBalance Sheet
From table 3, we can see that accounts receivables, inventory and other current assets accounts, their percentage of total assets didn't have big
difference over the three years trend. The increase of cash and cash equivalent from 7.1% of total assets in 2010 to 13% in 2011 is the main reason that
total current asset in terms of the percentage of total assets had significant increase (from 33% to 40%).
Macy's total current liabilities represent a slightly higher percentage of total liabilities and stockholders' equity at FY 2011 than FY 2010 and 2009.
This increase is balanced by a slight decrease in the relative percentages of long–term debt.
2.2.2 Vertical analysis of Income

The Main Types Of Financial Statements
Introduction
The three main types of financial statementsВ¬–balance sheets, income statements, and statements of cash flows–provide essential information about a
firm when tracking a company's performance. These financial statements are provided and distributed by firms in the form of an annual report. As
noted by Ciuhureanu, Baltes, & Gorski (2009), financial statements are essential to business management because "they are the fundamental
information means of communication towards users" (p. 166). At a high level, company performance is best monitored through profit and loss values
on each financial statement. Closer examination of these three types of financial statements reveals firm–specific details about company performance.
... Show more content on Helpwriting.net ...
For the benefit of investors, firms will also report net income on a per–share basis. Major expenses outlined on income statements are typically of a
fixed and stable nature. Advertising costs and salaries are good examples of expenses found on income statements.
Balance Sheet As outlined by Melicher & Norton (2013), the balance sheet is "a statement of a company's financial position as of a particular date"
(p. 358). While income statements demonstrate a company's performance over a length of time, the balance sheet provides a "snapshot" of a firm's
revenues and expenses on a specified date. The most important values presented on a balance sheet are the values for liabilities, assets, and equity.
Different types of assets and liabilities noted within a company's balance sheet can reveal information about the company's financial structure and
plans for future operations. A balance sheet is "balanced" because every dollar listed as an asset must be financed by a dollar of liabilities. Major
assets appear on the balance sheet in order of liquidity. Examples of assets included on this financial statement include cash (or cash equivalents),
accounts receivable, inventories, and other fixed and long–term assets. The claims of creditors and owners are all the debts that the business owes to
other parties. On the balance sheet,

Case Study : ' Corporate Finance And Investment Planning '...
`A Training Report
On
Analysis of Financial Statements
Carried at
Micromax Informatics Ltd.
In partial fulfilment of the requirements for the award of degree of Bachelor of Technology in Electronics and Communication + MBA
For evaluation in 11th semester
By
Harshit Goel
A2324811007
B.Tech ECE + MBA (2011–16)
Under the guidance of
Industry guide Faculty Guide
CA. Sanjay Kumar SahMs. Tavishi
(Micromax Informatics Ltd.)(Amity University)
Amity Business School
Amity University Uttar Pradesh
Noida, U.P.

July, 2015
Declaration
I, Harshit Goel, student of B.Tech ECE + MBA, Amity Business School, Amity University Uttar Pradesh, Noida, hereby declare that the project titled "
Corporate Finance and Investment Planning" which is submitted by me and carried out at Micromax Informatics Ltd. In partial fulfilment of
requirement for the award of degree of Bachelor of Technology in Electronics and Communication, has not been previously formed the basis for the
award of any degree, diploma or other similar title or recognition.
Noida
DateHarshit Goel
Certificate
On the basis of declaration submitted by Harshit Goel, student of B.Tech ECE + MBA, Amity Business School, Amity University Uttar Pradesh,
Noida, I hereby certify that the project titled "Analysis of Financial Statements", at Micromax Informatics Ltd., submitted to Amity University, in partial
fulfilment of the requirement for the award of degree of Bachelor of

Liculaty Analysis: Liquidity Analysis
3.1LIQUIDITY ANALYSIS Liquidity analysis can be done with the help of liquidity ratio where these ratio measure the ability and capacity of the
company to pay off its debt obligation. These ratios measure the ability and capacity of a company to pay off its short–term liabilities when they fall
due. The liquidity ratios are a result of dividing cash and other liquid assets by the short term borrowings and current liabilities. They show the number
of times the short term debt obligations are covered by the cash and liquid assets. If the value is greater than one it means that the short term
obligations are fully covered. Generally, it is said that if the higher the liquidity ratios are then the company posses to meet its current liabilities.... Show
In other words, a company should possess the ability to change its short term assets into cash quickly on demand. The liquidity ratios tries to measure
this ability of company to meet its financial obligation. Liquidity ratios are used to determine and understand a company's ability to meet its short–term
debt obligations. Every investors often take a closer look at liquidity ratios when performing fundamental analysis on a firm or a company. Since a
company that is constantly having trouble its short term debt is at a higher risk. Liquidity ratios are the perfect tool to measure whether a company
will be able to fill the gap that will effect in paying of the debt and comfort a continuing of the business. Any type of ratio analysis should be looked
at within the correct context. For instance, investor's should look forward at a company's ratios against those of its competitors(which will give a clear
picture of the business), its sector and its industry and over the previous and other backward years. Liquidity ratios using time–series analysis,
competitive analysis which helps in knowing the company's perforamace. 3.2 Why It Is

Financial Statement Analysis And Ratios
Chapter 17 covers the financial statement analysis and ratios. Financial statement analysis is the process of examining financial statements that will
depict the financial position of the company allowing them to make better financial decisions. A typical financial statement consist of a balance sheet,
income statement, cash flow statement and notes to account. The most common being the balance sheet and the income statement. The balance sheet,
also referred to as a statement of financial positon, is usually made up of assets and liabilities and provides information about the financial position of
the company. It is a two sided report, assets on one side, and liabilities on the other. Liabilities typically include accounts payable, accrues expenses,
income tax owed, stockholders' equity (net worth), and loans. The income statement, also referred to the earning and loss statement, depicts the
profitability of the company. It shows to total sales revenue for one year. The expenses the company incurs in producing finished good to sell is
subtracted from the sales revenue. Also deducted is the operating cost expenses and the deprecation. When analyzing the income statement, it is
important to note that the profitability isn't just the total profit. It is important to look at the ratio of expenses as a percentage of profit. A company
with high profits and high expenses could easily be mismanaged.
However, balance sheets and income statements have little meaning by

Employer Analysis Paper
Memorandum
Date: January 31, 2017
To: Cindi Clayton Schnitker, Instructor
From: Jill Martin, Student JM
Subject: Employer Analysis Report
Introduction
For this assignment, I am going to conduct a thorough analysis of a prospective employer. This includes an organization description, history, financial
analysis, and industry profile. I am also going to identify a position I plan to pursue throughout this course as well as a position summary and
benchmarks. The Employer I am going to analysis is SS&C Technologies, Inc.
Position Summary
The position I plan to pursue throughout this course is a Fund Accountant Summer Internship at SS&C Technologies, Inc. located in Evansville,
Indiana. For this position, SS&C is looking for a college ... Show more content on Helpwriting.net ...
SS&C is a leading provider of investment and financial management software, and fund administration services to the Hedge Fund, Private Equity, and
Institutional Financial Services Investment industry (Technologies, "About Us"). SS&C has more the 7,500 employees working worldwide in offices
located in North America, Asia, Australia, and Europe (Technologies, "SS&C History").
в€’History
SS&C Technologies, Inc. was founded by William Stone in 1986. Stone is currently Chairman of the Board of Directors and CEO of the company.
He took the company public in 1996 which was later acquired by entities connected to The Carlyle Group in 2005 and was taken private. In 2010 the
company began trading on NASDAQ and has a ticker symbol of "SSNC". SS&C has acquired 43 business, since 1995, with products, services, and
technologies specific to their own industry (Technologies, "SS&C

Examples Of Ratio Analysis Financial Analysis
FINANCIAL STATEMENT ANALYSIS RATIO ANALYSIS Ratio Analysis is a type of Financial Statement Analysis that is utilized to achieve a
quick indication of a firm's financial performance in numerous key regions. Financial ratios aid in deciding the connection between two variables in
the financial statements. The data necessary for the computation of the ratios is supplied by the financial statements of the firm. Areas where
performance has improved or deteriorated over time can be recognized this way. Ratios are utilized methodically to deduce the strengths and
weaknesses of a firm and also its historical performance and current financial conditions. CURRENT RATIO: A surplus of current assets is required by
companies to enable them to meet their... Show more content on Helpwriting.net ...
Lower ratios imply that the firm isn't utilizing its assets proficiently and most likely has management problems. The analysis shows that AnandRathi's
ability to generate sales from its assets has been declining over the years. It was highest in 2009–10 indicating that 0.67 paise was generated with every
rupee of asset. It declined to 0.38 times in 2013–2014. RETURN ON CAPITAL EMPLOYED: ROCE is a long–term profitability ratio which measures
the competence with which a firm's capital is used. The ratio measures the firm's efficiency at assigning its resources to produce the maximum
return. Thus ROCE shows the relationship between invested capital and return. It can be used to depict how much a business is gaining for its
assets, or how much it is losing for its liabilities. Return on Capital Employed = Earnings Before Interest and Tax Capital Employed Interpretation: A
higher ROCE is favorable as it denotes more efficient use of capital. It implies that the profit generated from each rupee of capital employed is more
when the ratio is higher. The ratio was highest in 2009–10 compared to the other four years. In 2012–13 it increased to 11.44% compared to 10.47% in
the preceding year. It was the least in 2013–14 i.e. 9.46%. This shows that the company's ability to generate revenue from its capital investments has
declined over the

Commercial Enterprises : The Business Of Making Money
Commercial enterprises are in the business of making money. This endeavor may be served by producing widgets, providing resources, services, or any
other number of possibilities. While businesses may have differences in what they do to generate revenue, they all share a need to accurately reflect
their financial situation. This information is critical to business management, business strategy, their shareholders (present and future), and in credit
transactions. Companies utilize financial statements to report their financial health. These documents include income statements, balance sheets, and
cash flows. Together they provide insight into the firm's financial health.
An income statement is intended to display a firm's revenue and ... Show more content on Helpwriting.net ...
Balance sheets help determine a firm's financial standing and can gauge future capability, for example a firm flush with debt is not positioned to invest
into a new product or facility.
A balance sheet reflects two broad categories of information, assets and liabilities. Both of these can be broken down into more specific types of asset
or liability. For example, types of assets include: current assets, inventories, accounts receivable, fixed assets (such as buildings), long term assets, etc.
Liabilities are figured as current or long term obligations. These can include accounts payable, various debts, income taxes, wages, etc (Melicher,
p.359–360). A balance sheet also reflects owners' equity.
Owners' equity refers to the investment into the firm by the firm's ownership and is reflected on the balance sheet as the difference between total
liabilities and total assets. Owners' equity can range from cash injections to materiel components, such as equipment or facilities. Owners' equity may
also be increased by directing the firm's profits back into itself, as an investment. There are three types of accounts that make up owners' equity, these
are preferred stock, common stock, and the retained earnings accounts. Preferred stock is stock that provides investors with a fixed dividend, payable
at a priority

Apple Financial Analysis Essay example
Financial Analysis Project
APPLE INC.
Rev 1.1
A Financial Analysis Project
By
Josie Chavez
Submitted to Kendra Huff, Ph.D.
Assistant Professor of Accounting and Finance
College of Business Administration
Texas A&M University–Kingsville
BUSINESS FINANCE 3338
Spring 2011
TABLE OF CONTENTS LIST OF TABLESiii LIST OF FIGURESv 1.CORPORATE OVERVIEW1 1.1 Overview of Industry1 1.2 Overview of
Corporation2 1.2.1 Product/Service Description4 1.2.2 Earnings History7 1.2.3 Stock History8 1.2.4 Current News 9
2.FINANCIAL STATEMENTS5 2.1 Income Statement11 2.2Balance Sheet12 2.3 Statement of Stockholder's Equity14 2.4 Statement of Cash ... Show
1.1.1 Yahoo Finance (2011)
Industry Browser – Technology– Personal Computers – Company List (2011)
The figure above shows Apple Inc, the Market cap lead, and Dell, the Market cap last, corporations and their market share compared to the industry
and the technology sector. As you can see above Apple Inc. is almost as close to the market cap for the Personal Computers industry. Although, it does

have a smaller P/E ratio compared to the industry it still is the highest among the top leaders within the industry. Compared to the industry Apple's does
not have a debt to equity ratio, which is excellent. Apple's net profit is also the highest within the top competitors and the industry. The price to free
cash flow exceeds the industry as well as the technology sector.
1.2 Overview of Corporation
Apple, Incorporated, 1 Infinite Loop is located in Cupertino, CA 95014. Their website is www.apple.com.Their Industry category is Computer
Hardware/Personal Computers located in the Technology Sector. The Fiscal Year
–end of 09/2011 recorded revenue of $65.23B with net income of
$14.01B. Their 2010 Sales Growth was 52.0% and now has a total of 49,400 employees. Apple inc. is a corporation that was created in 1977 in
California. The company product lineup consists of a large range of personal mobile communication devices, media devices, computing devices, and a
variety of services and software. It also consists of

Sports Direct Financial Analysis Essay examples
BUSINESS ACCOUNTING
AC1010
SPORTS DIRECT INTERNATIONAL PLC.
Table of Contents
1.0 Overview..............................................................................................3
2.0 Company Background..............................................................................3
3.0 Performance during the last 5 years.............................................................3
4.0 Ratios Analysis.......................................................................................4 * 4.1 Earning per Share Ratio...........................................................4
* 4.2 Quick Ratio.........................................................................5
* 4.3 Current Ratio.......................................................................6
* 4.4 ROCE Ratio.........................................................................6
5.0 Company Funding and Gearing..................................................................7
6.0 Qualitative Issues.....................................................................................8
7.0 Conclusion..............................................................................................8

8.0 References..............................................................................................8 ... Show more content on Helpwriting.net ...
They opened more stores in Europe and they gain better retail and logistic skills. Revenue was ВЈ147,62m higher than in 2010. (Sportsdirectplc, 2012)
Share price over the last 5 years
Source:http://markets.ft.com/Research/Markets/Tearsheets/Summary?s=SPD:LSE
4.0 Ratios Analysis
4.1 Earning per Share Ratio
A graph below represents Earning per Share ratio. EPS ratio is used when the company wants to know how are they doing in their businesses from year
to year. EPS is shown in pence. (Dyson, 2010) A year 2009 was not so profitable for company as EPS was–2,79p. This means that business was
making little money, which was not good for shareholders. However, in 2010 the EPS was quite high, 14,76p, what means the company is making
profit and shareholders want to invest in business.
4.2 Quick Ratio
The Quick Ratio also known as Acid Ratio is used by firms to determine liquidity position. It explains if the firm is able to pay all of their current
debt liabilities. (Dyson, 2010) The graph above illustrates that over the period from 2007 to 2011 quick ratio was not more that 1, which means that
their debts might not be covered all. The graph also indicates that a peak was in 2011.
4.3 Current Ratio
The graph above shows a current ratio. It is used for measuring an ability of the company to pay off

Lowe's vs. Home Depot Financial Comparison & Analysis...
Home Depot & Lowe's | Financial Comparison and Analysis| | INTRODUCTION Lowe's (LOW) and Home Depot (HD) are competitors in the every
growing market of Home Improvement. The following analysis of each company will examine the home improvement industry, the individual
companies, their operating philosophies, their financial strengths or weaknesses, and a final conclusion on which company would be a better
long–term investment. INDUSTRY OVERVIEW The growing trend of home improvement has perpetuated a larger demand for box store home
improvement shops such as Home Depot and Lowe's. There are several types of companies that contribute to the booming renovation industry. Home
Depot and Lowe's provide all the... Show more content on Helpwriting.net ...
On January 26, 2009 Home Depot announced the planned closing of EXPO, THD Design Center, and Yardbird stores as part of the continued focus
on core business (Home Depot, 2008 Annual Report P.1). The Home Depot mission statement reads as follows: "The Home Depot is in the home
improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We
are a values–driven company and our eight values include the following: excellent customer service, taking care of our people, giving back, doing the
"right" things, creating shareholder value, respect for all people, entrepreneurial spirit, and building strong relationships." Home Depot caters to the
three categories of customers. Do–It–Yourself Customers (DIY): These customers are typically home owners who purchase products and complete
their own projects and installations. Do–It–For–Me Customers (DIFM): These customers are typically home owners who purchase materials
themselves and hire third parties to complete the project or installation, or both. Home Depot arranges for the installation of a variety of The Home
Depot products through qualified independent contractors. Professional Customers: These customers are professional remodelers, general contractors,
repairmen, small business owners and

Apple Inc: Analysis of Financial Statement Essay examples
An Analysis of the Financial Statements of Apple
Intermediate Accounting III
INTRODUCTION
I chose Apple for my course project mainly based on the fact that they release all their records to the public and they have excellent accounting
practices. Their paper work is easy to read and follow and based on their records they have an endless amount of revenue in the billions. As we have
discussed about Apple in class I was very intrigued how they looked in the books on a specific level of detail and this course project was the perfect
way to take initiative to find out just how their numbers actually add up answering the following questions.
1. What amount of deferred tax assets or deferred tax liabilities are on the two most ... Show more content on Helpwriting.net ...
What is the amount of income tax provision in the two most recent years on the income statement? What information is disclosed in the footnotes
relating to income tax expense? Does the company have a net operating loss carry forward or carryback? What are the guidelines for carry forwards
and carrybacks?
Income Tax Provision:
Income tax provision on income statement for September 24, 2011 is 8,283 million and for September 24, 2010 is 4,527 million.
Disclosure relating to provision for income tax
Income tax

Nike Financial Planning
Expanding globally is a very serious decision for any corporation. Before making this decision, management should take into consideration the health of
the corporation and identify the long term financial goals. In this assignment, I will discuss the importance for the financial managers of Nike Inc. to
use economic variables in identifying long term financial goals and the major techniques/tools that the financial managers of Nike Inc. can use for
forecasting future directions in the stock market and in the economy as a whole. First, I will discuss the importance for the financial managers of Nike
Inc. to use economic variables in identifying long term financial goals. Economic variables are simply economic indicators that are used to determine ...
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can use for forecasting future directions in the stock market and in the economy as a whole. Major techniques/tools that the financial managers of Nike
Inc. can use for forecasting future directions in the stock market and in the economy as a whole are fundamental analysis and market indicators. Market
indicators are technical indicators that can be used to predict the direction of major financial indexes. (Investopedia) Advance/Decline Index, Absolute
Breadth Index, and Arms Index are just some examples of market indicators. Advance/Decline Index is a tool that analysis use that represents the
difference of advancing and decline security prices. The financial managers of Nike Inc. will be able to use the Advance/Decline Index to confirm if an
upward trend will continue by identifying rising values of the advance/decline. The Absolute Breadth Index will indicate to the financial managers the
volatility levels in the market without factoring in price direction. The Arms Index will indicate to the financial managers by comparing the advancing
and decline stock issues and trading volume as an indicator of overall market sentiment. (Investopedia) Fundamental analysis has several strengths that
will increase its popularity to the financial managers of Nike Inc. Strengths of fundamental analysis are long–term trends, value spotting, and business
acumen. Fundamental analysis allows the financial managers of Nike Inc. to have the ability to identify and predict long–term economic, demographic,
technological or consumer trends can benefit patient investors who pick the right industry groups or companies. (Stock

Positive And Negative Factors Of Franchising In The Hotel...
Franchising is a type of business or a relationship (Chatfield et al., 2009), where a party (franchisee) acquires the right to use a company's (franchisor)
property knowledge processes and trademarks (Investopedia, n.d.). In other words, by paying a start–up and annual licensing fees, the franchisee can
use the franchisor's name, distribution channels, software, operations manual, and others, to sell a product or offer a service (Collins & Perret, 2015).
Moreover, franchising has positive and negative factors for both sides. On the franchisee's side, the positive factors are: full operational control,
franchisor's support, and higher profits after fees. The negative components are: bound to franchisor's global initiatives and no control of brand
reputation. On the franchisor's side, the advantages are: company's growth, no operating risk, and more business fees with minimal effort. On the other
hand, the limitations are: lack of operational quality, satisfaction of guests and employees, and company's image (Collins & Perret, 2015). Today,
franchises account for a big part of the world's businesses, such as stores and restaurants. In the hotel industry we can see this type of business
happening with Hampton by Hilton and Day's Inn (Investopedia, n.d.). Management Contract is a relationship or business, where business owners will
hire a brand or a management company to be in charge of the business' operations in exchange for a fee (Chatfield et al., 2009). Furthermore, under

Financial Analysis For A Business Management
The capability to use financial analysis to drive action is a vital skill for the market facilitators. Capacity making starts by first understanding the
fundamental financial tools to engage market actors across all the levels in a chain in financial discussions (Harris. J 2009). This will ensure to absorb
financial analysis into decision making and further will ensure interventions are focused on financially feasible actions. As a market organizer, your
potential ability to use financial analysis when taking decisions will support you assist your internal staff and external clients to make more balanced
decisions by understanding the financial restrictions faced by markets.
Market Facilitation demands the capacity to take confidant ... Show more content on Helpwriting.net ...
In this process of analysis whole range of instruments and procedures can be used. Firstly, it reviews comparative financial statements and the vertical
analysis procedure with structural financial statements and the horizontal analysis procedure. With the help of horizontal analysis, the proneness and
dynamics of particular financial statements positions can be examined. We judge efficiency and security of the company on the basis of the
observations. On the contrary, financial statements are the foundation for vertical analysis that allows awareness in financial statement structure.
Financial statements structure is very important for business quality. With the help of financial statement analysis we get familiar with the business
quality, however the questions of the analysis are not answered by horizontal and vertical analysis procedures. When business quality needs to be
measured with the help of financial statements, the most indicative are different financial ratios. (Zager. K 2006). Ratios play a very important role in
the function of management accounting of the organization. (Smith. H 2011)
RATIOS
A method of expressing relationships between companies's accounting numbers and their trends over a period of time which analysts use to construct
values and assess risks. (Harvey. C 2012). Ratios must be used perfectly for it to be effective. Ratio is examining two values in management
accounting; any change in each of these values

Financial Statement Analysis Paper Example
Financial Statement Analysis Paper
Example 1: Dell Computer Dell Inc.
Income Statement Revenue Cost of Goods Sold Gross Profit R&D Selling General & Administrative Non Recurring Others Operating Income
Depreciation Expense Other Income/Expense EBIT Interest Expense Tax Expense Income from Cont Operations Net IncomeBalance Sheet Cash Short
Term Investments Accounts Receivable Inventory Other Current Assets Total Current Assets Long Term Investments PP&E Net Goodwill Intangibles
Other Assets Total Assets Current Year $ 61,494 49,128 12,366 661 7,302 0 0 4,403 970 116 3,549 199 715 2,635 2,635 Percent 100.0% 79.9%
20.1% 1.1% 11.9% 0.0% 0.0% 7.2% 1.6% 0.2% 5.8% 0.3% 1.2% 4.3% 4.3% Prior Year $ 52,902 42,789 10,113 624 6,465 0 0 3,024 852 12... Show
However, the company did have higher costs on a dollar basis. This increase in amortization of intangible assets and other cost is due to the increase in
intangible assets from the Perot Systems in Fiscal 2010. Also, the company had a migration to contract manufacturers and closures of certain
manufacturing facilities that caused an increase in severance and facility action costs. Even with all these value increases, the company has done a
good job keeping their costs stable
as a percentage of revenues. Dell is well managed and knows how to control their costs. The company is on top of every detail and there are no
surprise costs to harm the company. (Part 2, Item 7, Form 10–K, Dell Inc. 2011) The net income performance of the company has been excellent for
fiscal 2011 with an 84% increase from the previous year. This big increase in net income resulted in a 1.6% growth in profit margin and a 2.5% growth
in ROA (return on asset). Higher revenues and good cost control are responsible for these growths. Another reason for the growth in net income is the
change in the business operation of the company. Its service operations are expanding and have a lower cost than manufacturing the products. Fiscal
2010 had a decrease in net income of 42.2% mainly due to the drop in revenue and the acquisition of Perot Systems. Dell is planning to

Nordstrom Financial Analysis Essay example
Executive Summary
This report examines the value of Nordstrom Inc. stock and offers existing shareholders and prospective shareholders an insight into the value of the
company. The purpose of this report is to provide potential shareholders with information as to why they should buy into the company and existing
shareholders with information as to why they should hold their stock.
Since Nordstrom opened, the company has achieved critical acclaim for outstanding customer service and inventory selection. Sales have always been
on the rise with the exception of a slight dip after the economic recession, but were quickly regained with the expansion of Nordstrom Rack stores. To
exemplify this, the company report is divided into four ... Show more content on Helpwriting.net ...
Through the 70's the company continued to grow. In 1974 annual sales hit $130 million. By 1980 Nordstrom was the third largest specialty retailer in
the country. Sales hit $407 million and in the next few years, sales continued to rise. Nordstrom's success was due to many factors. Shoes accounted for
about 18 percent of total sales. In addition Nordstrom consistently maintained huge inventories and selection, which were usually twice the size of other
department stores. Anchor malls seek the company, as a cornerstone of downtown renovation projects or as an added jewel for high end shopping
customers. By being able to expand not only by adding locations, but also by expanding merchandise sold, Nordstrom became a dominant force in the
industry and strengthened their market share position.
Inventory
Expansion was not the only change Nordstrom implemented to differentiate the company from competitors. By broadening their inventory selection
and making it more accessible to their customer base, Nordstrom began setting the bar for all retailers in the industry. With the additions of departments
such as juniors and sportswear they began to expand and increase their target market to a younger customer. In the 80's, Nordstrom modernization
continued by adding women and men's vendors such as Calson, DKNY, Kenneth Cole, and Tommy Bahamma. In May 2000, Nordstrom declared
"Reinvent Yourself"

Financial Analysis of Hershey Corporation Essay example
INTRODUCTION The Hershey Company is North America's largest manufacturer of quality chocolate and sugar confectionary products. They
produce and sell a wide variety of confections from the familiar favorites such as Hershey's, Reese's, and Hershey Kisses to the Ice Breaker line of
gums and mints. They have also emerged as the forerunner in the dark and premium chocolate category (http://www.thehersheycompany.com/). This
paper will discuss the history of The Hershey Company, general facts and information pertaining to operations as well as industry statistics including
trends and key competitors. Furthermore, this paper will examine the financial position of The Hershey Company, through use of ratio analyses and
forecasting models in... Show more content on Helpwriting.net ...
When combined the international operations share most of the aggregation criteria and represent less than 10% of consolidated revenues, operating
profits and assets. Industry Overview The confectionery industry while having some difficulty with consumer demands concerning health seems to be
a quite lucrative industry. The food and beverage industry as a whole sustained sales and profitable growth due to improved efficiencies and new and
innovative product lines. The major problem in the food and beverage industry continues to be the rising costs of raw materials and the uncertainty of
being able to increase the price of their products (MergentOnline.com). The Hershey Company and other chocolate confectioners are worried with civil
unrest in the world's largest cocoa– producing country, The Ivory Coast, where prices have remained volatile. During 2006, cocoa prices traded
between .67 and .75 per pound, based on the New York Board of Trade futures contract (The Hershey Company Annual Report). As mentioned earlier,
health conscience consumers also play a huge part in the success or failure of this industry. Although the majority of consumers are still purchasing
junk food and the like, there are a growing number of consumers that demand a healthier option. Several companies including The Hershey Company,
M&M Mars, and Nestle have begun to provide a spectrum of healthier products. According to The Washington Times, companies are

Borland Software Corporation-goodwill and other intangible...
Chapter 02 – Financial Reporting and Analysis
Chapter 2
Financial Reporting and
Analysis
REVIEW
Financial statements are the most visible products of a company's financial reporting process. The financial reporting process is governed by
accounting rules and standards, managerial incentives, and enforcement and monitoring mechanisms. It is important for a user of financial information
to understand the financial reporting environment along with the accounting information presented in financial statements. In this chapter, the concepts
underlying financial reporting are discussed with special emphasis on accounting rules. Next the purpose of financial reporting is discussed – its
objectives and how these objectives determine ... Show more content on Helpwriting.net ...
п‚· Audit Process
2–3
п‚·
п‚·
Generally Accepted Auditing Standards
Auditing Procedures
Audit Report
Types of Audit Qualifications
вЂ•Except forвЂ– Qualification
Adverse Opinion

Disclaimer of Opinion
Analysis Implications from Auditing
Analysis Implications of the Audit Process
Audit Risk and Its Implications
Analysis Implications of Auditing Standards
Analysis Implications of Auditor Opinions
Analysis Implications of Explanatory Language for Uncertainties
Analysis Implications of the SEC
Appendix 2B: Earnings Quality
п‚· Determinants of Earnings Quality
Accounting Principles
п‚· Income Statement Analysis of Earnings Quality
Analysis of Maintenance and Repairs
Analysis of Advertising
Analysis of Research and Development
Analysis of Other Discretionary Costs
п‚· Balance Sheet Analysis of Earnings Quality
Conservatism in Reported Assets
Conservatism in Reported Provisions and Liabilities
Risks in Reported Assets
п‚· External Factors and Earnings Quality
2–4
ANALYSIS OBJECTIVES
п‚· Explain the financial reporting and analysis environment
п‚· Identify what constitutes generally accepted accounting principles (GAAP)
п‚· Describe the objectives of financial accounting, and identify primary and secondary qualities of accounting information
п‚· Define principles and conventions that determine accounting rules
п‚· Describe the relevance of accounting

Uses Of Financial Statements : A Profit And Loss Account
Uses of Financial Statements Income Statements Also referred to as a Profit and Loss (P&L) statement, income statements illustrate a company's
revenues and expense, operating and non–operating income and expense, which is generated and incurred within an accounting period. "The analysis
of income can create a picture of the quality of operations in the composed profit and loss account period" (Jeletic, 2012, pg. 325). In addition, income
statements also inform external users of net profits or losses from the corporation 's equity position during an accounting period. These data are
valuable to a company's stakeholders, respectively. Some external stakeholders may utilize this information to highlight potential risks, financial
strength, the yield on investment and operational abilities of a company (Carrahera & Auken, 2013). Shareholders' Equity Statement A shareholders'
equity statement or statement of changes in equity, provide external shareholders with an in–depth overall view of changes in equity from the
beginning of an accounting period to the end of the accounting period. External stakeholders also review shareholders' equity statement to attain
information on a number of stock sales and repurchased during an accounting period. Some of these equity activities include begging and ending
balances of common stock, net income, and dividends. For example, J&J Furniture Company began its operations at the beginning of fiscal year, 2015.
J&J 's original investment in

Data Mining Techniques And Their Applications
Data Mining Techniques and Their Applications in Financial Data Analysis
Deepika Sattu, 800721246, dsattu@uncc.edu
Abstract– Data mining is a logical process that is used to search through large amount of data in order to find useful data [2].There are many different
types of analysis that can be done in order to retrieve information from big data. Each type of analysis will have a different impact or result. Which
type of data mining technique you should use really depends on the type of business problem that you are trying to solve.
Keywords: Clustering, Decision Trees, Classification, Prediction
I.INTRODUCTION
Data is very critical for any organization, industry or business process. Data which was in gigabytes or terabytes ... Show more content on
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Here are the few typical cases:
Design and construction of data warehouses for multidimensional data analysis.
Loan payment prediction and customer credit policy analysis.
Classification and clustering of customers for targeted marketing.
Detection of money laundering and other financial crimes.[6]
II.DATA MINING TECHNIQUES
Data mining is a logical process that is used to search through large amount of data in order to find useful data [2].There are many different types of
analysis that can be done in order to retrieve information from big data. Each type of analysis will have a different impact or result. Which type of
data mining technique you should use really depends on the type of business problem that you are trying to solve. Different analyses will deliver
different outcomes and thus provide different insights [1].

Below are the three steps involved to make certain decisions for development of their businesses [2]
1.Exploration: In the first step of data exploration data is cleaned and transformed into another form, and important variables and then nature of data
based on the problem are determined.
2.Pattern Identification: Once data is explored, refined and defined for the specific variables the second step is to form pattern identification. Identify
and choose the patterns which make the best prediction.
3.

Financial Analysis: PepsiCo Beats Coca-Cola Essay examples
Pepsi vs. Coke the epic battle that every American and from the looks of their financial statements possibly everyone in the world must deal with
does it have a winner. For the fiscal year 2005 it certainly does through analyzing financial statements with vertical, horizontal, and ratio analysis
investors are able to clearly decide who the better choice for their investment is. By careful scruitiny and attention to detail any investor can safely put
their money in a buiseness as an investment so long as they are adhering to rules and regulations of the GAAP. Using the tools for financial analysis
and the information given I will determine the winner of that battle for 2005 at least from the investors point of view.
In our ... Show more content on Helpwriting.net ...
Whereas Coca–Cola did show decline in liabilities they had the same trend for current assets. It may be that these two items are directly related and
the more current liabilities a business has the more current assets they will have as well but I would like to see a company whose liabilities are less
than their current assets like Coca–Cola because it means they are liquid if they went belly up tomorrow they would be able to pay all their debts and
still have money left over. So while Coca–Cola declined year over year they would seem to be a more solid investment. However, due to the fact that
most of Pepsi–Co's debt is current that means they are generally smaller amounts and the company is more agile able to adapt more quickly to a
changing customer base so with a year over year increase in performance and a market agility I think the winner here is PepsiCo as a small investment
could mean large returns due to strategic marketing but it also means volatility so it could result in ruin for the PepsiCo if not handled wisely.
Next, just as important as a Vertical Analysis' it is important to do a Horizontal analysis. A "horizontal analysis evaluates a series of financial
statement data over a period of time," or more particularly what I will look at is the change in assets and liabilities from 2004–2005. Change in total
assets for

Financial Analysis for Ralph Lauren Corporation Essay example
Abstract
Ralph Lauren Corporation (NYSE:RL) is well known in the apparel clothing field. The corporation engages in the design, marketing and distribution of
lifestyle product. This analysis paper will illustrate the current financial situation and forecast the future free cash flow based on the previous financial
statement and financial data collected. These information and forecast are served for the potential investor to have a general understanding of RL
Corporation and make the right choice on their money.
Financial Analysis for Ralph Lauren Corporation
Ralph Lauren, an American designer, established the brand Polo Ralph Lauren in 1967. At first, Ralph Lauren's collection was... Show more content on
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As the creditors' view, they prefer the high current ratio. The current ratio provides the best single indicator of the extent, which assets that are
expected to be converted to cash fairly quickly cover the claims of short–term creditors. However, consider the current ratio from the perspective of a
shareholder. A high current ratio could mean that the company has a lot of money tied up in nonproductive assets.
The return on equity, ROE, is as high as 20.69% (above 15%). It illustrate that the RL Corporation uses the investors' money pretty effectively. As of
return of assets, equals to 13.10%, which reveals how much profit a company earns for every dollar of its assets. Both ROE and ROA for RL
Corporation seems really good and they provide a picture that managers are doing a good job of generating return from shareholders' investments.
The current financial performance is pretty optimistic for RL Corporation. At the same time, we also need to forecast the future financial data after
2012. To forecast the futurefree cash flow, only the internal employees can get the real and accurate information and ratios. As an external observer,
we usually analyze the linear relation between the cost of capital and growth rate, considered as the constant growth model. First of all, we need find
the WACC,Weighted Average Cost of Capital
. The weighted average of the after–tax

Common Size Statement, Comparative Satement and Trend...
COMPARATIVE STATEMENT COMMON SIZE STATEMENT AND TREND ANALYSIS INTRODUCTION We know business is mainly concerned
with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as financial
statements. Financial statements are mainly prepared for decision making purpose. But the information as is provided in the financial statements is not
adequately helpful in drawing a meaningful conclusion. Thus, an effective analysis and interpretation of financial statements is required. Analysis
means establishing a meaningful relationship between various items of the two financial statements with each other in such a way that a conclusion is
drawn. By financial... Show more content on Helpwriting.net ...
It helps them in preparing budgets and assessing the performance of various departmental heads. (iii) Trade unions : They are interested in financial
statements for negotiating the wages or salaries or bonus agreement with the management. (iv) Lenders : Lenders to the business like debenture
holders, suppliers of loans and lease are interested to know short term as well as long term solvency position of the entity. (v) Suppliers and trade
creditors : The suppliers and other creditors are interested to know about the solvency of the business i.e. the ability of the company to meet the debts
as and when they fall due. (vi) Tax authorities : Tax authorities are interested in financial statements for determining the tax liability. (vii) Researchers:
They are interested in financial statements in undertaking research work in business affairs and practices. (viii) Employees : They are interested to
know the growth of profit. As a result of which they can demand better remuneration and congenial working environment. (ix) Government and their
agencies : Government and their agencies need financial information to regulate the activities of the enterprises/ industries and determine taxation
policy. They suggest measures to formulate policies and regulations. (x) Stock exchange : The stock exchange members take interest in financial
statements for the purpose of analysis because they provide useful financial

Xacc 280 Pepsico vs Coca-Cola Essay
CheckPoint: Ratio, Vertical and Horizontal Analysis The calculations you perform for this CheckPoint form the basis of your analysis of your
capstone project. Write an essay in 250 to 300 words an explanation of the three tools of financial statement analysis and the function of each.
Examine PepsiCo, Inc.'s Consolidated Balance Sheet on p. A6 in Appendix A of Financial Accounting, especially its Current Assets, Current Liabilities,
and Total Assets for years 2005 and 2004.
Calculate the following for PepsiCo, Inc. and show your work:
o The Current Ratio for 2005 o The Current Ratio for 2004 o Two measures of vertical analysis–for example, compute the current assets ... Show more
content on Helpwriting.net ...
Vertical (or common–size) analysis is targeted on evaluating financial statements with assigning certain percent from the base amount to each item of
financial statement, and it is usually used for inter– and intra– company needs. This analysis provides comparative volume of each item of financial
statement. For example, current liability can be 2.5% of the total liability, and liability can be 60% of the total liabilities and stockholder's equity. If
applied to separate years, it can also show percentage change for each item. Certain positive factor of this analysis is that large and small companies
can be fairly compared together.
Ratio analysis shows the correlation within certain figures of financial statements, like current assets and current liability, and is used for three types of
company needs– within, intra– and inter–company. Association can be shown in proportion, rate, or percentage and can evaluate company's liquidity,
profitability, and solvency. Liquidity ratios show company's ability to pay obligations and fulfill needs for cash; profitability ratios show wellbeing
and success for the certain time period; and solvency ratios show company's endurance over the years.
Calculate the following for PepsiCo, Inc. and show your work:
The Current Ratio for 2005
Current assets of $10,454 divided by current liabilities $9,406 equals to 1.11 (rounded); so Current Ratio would

Journal on Financial Ratio Analysis
Session 15: Limitation of Ratio Analysis Learning Objective Explain to the participants on the limitation of ratio analysis. Important Termss Creative
accounting. Accounting Policies. Limitations of Ratios Accounting Information Different Accounting Policies The choices of accounting policies may
distort inter company comparisons. Example IAS 16 allows valuation of assets to be based on either revalued amount or at depreciated historical cost.
The business may opt not to revalue its asset because by doing so the depreciation charge is going to be high and will result in lower profit. Creative
accounting The businesses apply creative accounting in trying to show the better financial performance or position which can... Show more content on
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It is likely to be done in a sensitive period, perhaps when the business 's profits are low. Changes in Accounting standard Accounting standards
offers standard ways of recognising, measuring and presenting financial transactions. Any change in standards will affect the reporting of an
enterprise and its comparison of results over a number of years. Impact of seasons on trading As stated above, the financial statements are based on
year end results which may not be true reflection of results year round. Businesses which are affected by seasons can choose the best time to
produce financial statements so as to show better results. For example, a tobacco growing company will be able to show good results if accounts are
produced in the selling season. This time the business will have good inventory levels, receivables and bank balances will be at its highest. While as
in planting seasons the company will have a lot of liabilities through the purchase of farm inputs, low cash balances and even nil receivables. Inter–firm
comparison Different financial and business risk profile No two companies are the same, even when they are competitors in the same industry or
market. Using ratios to compare one company with another could provide misleading information. Businesses may be within the same industry but
having different financial and business risk. One company may be able to obtain bank loans at reduced rates and may show high gearing

Comprehensive Annual Financial Report Briefing
Comprehensive Annual Financial Report Briefing Abstract
The City of Detroit, founded in 1701, and incorporated in 1806, is in Wayne County, State of Michigan. Detroit is on an international waterway,
which connects by means of the St. Lawrence Seaway to seaports around the world. Existing as the largest city in the State of Michigan, Detroit is
notorious for its tradition in automotive and is a colloquialism for the automobile industry in the United States. Detroit is also known for its popular
music legacies, which residents celebrate in several familiar nicknames, Motor City, Motown or simply the "D." In a city, whose population is likely at
951,270, Detroit is also known for its liquor distribution during the prohibition in 1920. ... Show more content on Helpwriting.net ...
Exclusion of component units alters the state's financial statement in such a way that it would present misleading or incomplete ("Office of Financial
Management", 2012).
Just for clarity, according to "Governmental Accounting Standards Board" (2013), the financial reporting entity consists of (a) the primary government;
(b) organizations for which the primary government is financially accountable; and (c) other organizations for which the nature and significance of
their relationship with the primary government are such that exclusion would cause the reporting entity 's financial statements to be misleading or
incomplete (Summary of Statement No. 14 The Financial Reporting Entity (Issued 6/91)).
With that in mind, governments are likely to construct separate legal entities to perform governmental duties. For example, the City of Detroit has nine
legally separated organizations, which make up their component units. For instance, the Economic Development Corporation, and Museum of African
American History are two of the nine component units included in the government reporting Comprehensive Annual Financial Report – City of Detroit.
(2010).
Considering reporting entities, the Statement of Financial Accounting Standards No. 94 best defines and prescribes the recommended treatment. For
example, the Statement of Financial Accounting Standards prescribes that consolidated reporting is the only appropriate method to report.
Management Discussion & Analysis (MD&A)

Ratio Analysis: Understanding The Nature Of Ratio Analysis
To understand the information contained in financial statements with a view to know the strength or weaknesses of the firm and to make forecast
about the future prospects of the firm and thereby enabling the financial analyst to take different decisions regarding the operations of the firm.
RATIOANALYSIS:
There are various methods or techniques used in analyzing financial statements, such as comparative statement, trend analysis, common– size
statement, schedule of changes in working capital, fund flow analysis, cost – volume profit analysis. The ratio analysis is one of the most powerful
tools of financial analysis. It is the process of establishing and interpreting various ratios (quantitative relationship between figures and groups of ...
Show more content on Helpwriting.net ...
12,00,000 & credit sales are Rs. 30,00,000. so the ratio of credit sales to cash sales can be described as 2.5 [30,00,000/12,00,000] or simply by saying
that the credit sales are 2.5 times that of cash sales.
C] As a percentage: In such a case, one item may be expressed as a percentage of some other items. For example, net sales of the firm are Rs.50,00,000
& the amount of the gross profit is Rs. 10,00,000, then the gross profit may be described as 20% of sales [ 10,00,000/50,00,000]
NATURE OF RATIO ANALYSIS:
Ratio analysis is a technique of analysis and interpretation of financial statements. However ratio analysis is not an end in itself. It is only a mean of
better understanding of financial strengths and weaknesses of a firm. Calculation of mere ratio does not serve any purpose, unless several appropriate
ratios are analyzed and interpreted. There are number of ratios which can be calculated from the information given in the financial, statements, but the
analyst has to select the appropriate data and calculate only a few appropriate ratios from the same keeping in mind the objective of analysis.
STEPS INVOLVED IN RATIO ANALYSIS:
1)Selection of relevant data from the financial statement depending upon the objective of the

Ratio and Financial Statement Analysis Essay
Executive Summary
This paper examines financial ratio analysis by defining, the three groups of stakeholders that use financial ratios, the five different kinds of ratios used
and their applications, the analytical tools used in analysis, and finally financial ratio analysis limitations and benefits.
The paper illustrates that financial ratio analysis is an important tool for firm's to evaluate their financial health in order to identify areas of weakness so
as to institute corrective measures.
While financial ratio analysis does contain limitations that include little theory to guide them as well as the use of accounting data based on historical
costs that may not reflect a firm's true economic conditions, it is an excellent tool ... Show more content on Helpwriting.net ...
One is Working capital to total assets ratio that measures a firm's ability to pay off its short–term liabilities and is calculated by subtracting current
liabilities from current assets divided by total assets. The retained earnings to total assets ratio that measures a firm's use of its total asset base to
generate earnings is also used. It is important to note that retained earnings can be easily manipulated distorting the final calculation. The third
financial ratio used by the Z score formula is the market value of equity to book value of debt. This is the inverse of the debt to equity ratio, and it
shows the amount a firm's assets can decline in value before liabilities exceed assets. For closely held firms, stockholders' equity or total assets less
total liabilities can be used but this amount has not been statistically verified for purposes of the formula. The sale to total assets ratio that measures
a firm's ability to generate sales with its asset base is also used. The fifth financial ratio is the operating income to total assets. This ratio is the most
important factor in the formula because its profit that eventually makes or breaks a firm. In calculating the Z score, each of these ratios is given a
weight factor that is used within the formula. (IOMA's report, 2003). See appendix I for the Z score formula and how to interpret the results obtained.
The Z score is used by firms when running regular financial data and firms use it to spot

What Are The Advantages And Disadvantages Of Using Ratio...
Every company or business using ratio analysis to measures financial performance within a period of time to shows their profit or loss. There is no
doubt that ratio analysis gives great insights about a company. Using ratio analysis by a company also has few disadvantages.
First of the disadvantage of using ratio analysis is difference in accounting methodologies. Certain ratios may be adversely affected by a company's
accounting practices. Different company may be using different accounting method. For instance, inventory valuation methods may differ and it can be
depreciation methods. As a result, comparing ratios of such companies may not describe a correct picture as what should express.
The next limitation of applying ratio analysis is the effects of inflation not taken into considerations. Financial records are made over a period of time.
All of these records might not give a correct picture because of the effects of inflation are not taken into account while recording. For example, office
equipment purchased two years ago was recorded at historical costs in the statement of financial position. These rates might have the different value
currently due to inflation. The value of office equipment and depreciation may have different value now as it had recorded.
Ratio analysis might also guide to a narrow focus on some elements of a ... Show more content on Helpwriting.net ...
But there also have few advantages of using ratio analysis. First advantage is ratio analysis can be used to evaluate the performance of a company
compare to other competitors that run within the same industry. Companies that operate under the same industry generally display similar financial
profiles. So, a measured ratio that is significantly more than or less than the industry average may show a particular strong or weak performance by the
company so that the company can make the improvement to gain more profit than

Myers, S.C. (1984). “Finance Theory And Financial...

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Myers, S.C. (1984). “Finance Theory And Financial...