...Task 1: (a) Outline the roles that budgets traditionally play in organizations. Every organization needs a budget and cannot progress or meet its financial goals without budgeting. Budgeting is the most important activity in a business, it gives direction and helps reach the targets easily. Budget is a plan – quantified in monetary terms – which covers income, expenditure and capital investment and prepared prior to a defined period of time. It is always for the future. The time for which prepared is certain (6 months / 1 year / 3 years). Prepared in quantitative details. Reflects well-defined objectives and roles in organizations. The roles that budgets traditionally play in organizations are as follows: 1. To ensure the achievement of the organization’s objectives. Targets may be set for individual departments and organization as a whole to be achieved within the timescale of the budget plan. 2. To compel planning and decision-making. Planning makes management to look in future, to make decisions, to prepare detailed plans for attaining the targets, to foresee problems and give the organization direction. 3. To communicate ideas and plans. Each person affected by the plans should be aware of what he or she is supposed to be doing. Hence one-way or two-way communication is necessary in each level of organization. 4. To co-ordinate activities. It is important to co-coordinate all the activities of different departments of organization in order to ensure maximum...
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...years. This report will analyze financial analysis by using several key ratios. Prospective analysis will be based on these ratios to assume the company’s position in the future. Valuations of the company can be determined by fore valuation models. Sensitive analysis can be tested according to optimistic and pessimistic view. Some recommendations will be present by using these analysis. 1. Reformatted Financial Statements and Financial Analysis 2.1 Ratio analysis ROE The company’s return on equity (ROE) measures a company’s performance. In general, the return on equity of Oroton group shows a decrease tendency from 0.84 in 2011 to 0.06 in 2015, whereas these numbers increased gradually to 0.22 in 2014. However, in 2013, the ROE of Oroton group has decreased rapidly to 0.17. It means that Oroton group shows an unfavourable position during the 5 years. ROE can be affected by three contributors, including return on net operating assets (RNOA), financial leverage (FLEV) and difference between lending and borrowing rates (Spread). RNOA can be determined by profit margin and asset turnover, and it is to measure a company’s capacity to gain profits. The group of Orton group indicates a decline tendency on PM and a stable status on ATO from 2011 to 2015, because the things, which are the changes in marketing strategy and operating strategy, have changed as the Oroton group. As a result, the change of PM and ATO have influenced RNOA. Financial leverage (FLEV) is another factor...
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...AN ANALYSIS OF THE BUSINESS AND FINANCIAL PERFORMANCE OF AN ORGANISATION OVER THE PREIOD OF THREE YEARS THE CASE STUDY OF ACCESS BANK PLC BEING A PROJECT SUBMITTED TO OXFORD BROOKES UNIVERSITY IN PARTIAL FULFILLMENT FOR THE AWARD OF B.SC (HONS) IN APPLIED ACCOUNTING BY xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx ACCA REG. NO: xxxxxxx E-mail: xxxxxxxxxxxxxxxxxxxxxxxxxxxxx MAY, 2011 PAGES: 29 WORD COUNT: 6345 TABLE OF CONTENTS PART 1 1.1 Introduction 1.2 Reason for choosing the topic 1.3 Aims and Objectives of the report 1.4 Research questions 1.5 Research Approach PART 2 Information gathering 2.1 Sources used for information gathering 2.2 Description of methods used: 2.3 Limitations of information gathered 2.4 Ethical...
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...Liquidity ratios: | | | | | | Name of the ratio | formula | Working 2011 | Results 2011 | Working 2012 | Results 2012 | Current ratio | Current Assets Current Liability | 102,900 68,500 | 1.5:1 | 130,000 80,000 | 1.63:1 | Quick ratio | Current Assets –Stock Current Liabilities | 102,900-33,500 68,500 | 1.01:1 | 130,650 – 45,000 80,000 | 1.06:1 | Name: Hira Awan ID Number: 81528 Group: A Lecturer: Yaw Sarpong Task: illustrate the financial state of a given business Efficiency Ratios: | | | | | | Name Of The Ratio | Formula | Working 2011 | Results 2011 | Working 2012 | Results 2012 | Stock turnover Period | Average stock X 365 daysCost of sales | 34,850 X 36511,5000 | 111 days 106 | 47,000 X 365146,700 | 112 days | Creditors Payment Period | Trade creditors X 365 daysCredit purchases | 60,500 X 365112,300 | 197 days | 70,500 X 365142,700 | 180 days | Debtors Payment Period | Trade debtors X 365 daysCredit sales | 48,900 X 365383,000 | 47 days | 55,500 X 365373,000 | 54 days | Investor Ratios: | | | | | | Name of the ratios | Formula | Workings2011 | Results 2011 | Working 2012 | results | Gearing ratio(External funds) | Borrowings X 100Total shareholders fund + borrowings | 20,000 X 100104,800 + 20,000 | 16% | 20,000 X 100116,400 + 20,000 | 15% | Interest cover | NPBITInterest paid | 135,0004,000 | 34:1 | 81,5004,000 | 20:1 | Dividend per share | Dividend paidNumber of shares | 73,00040,000 | £1.82Per share...
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...outside America. Auditing and accounting principles in the United States of America are considered strong and sophisticated. Transparency and disclosure are really emphasized in American companies, and because of this the downfall of Andersen and Enron still raises questions. This has since become a case of reference in review of issues concerning financial reporting and auditing. It has also been used to explain about regulations on auditing and accounting inside and outside America. This case has brought about huge implications on corporate governance to other countries. Enron Corporation declared its bankruptcy in the year 2001. Afterwards, Anderson’s downfall occurred in 2002. It has been a big question, outside America, on what brought about this failure. The General Accepted Accounts Principles, in the US, are very well developed. These principles require clear disclosures of financial statements that are audited. They also require an established federal agency and a commission to monitor financial reporting. Cases have been written, from the failures of Enron and Andersen, for the exploration of accounting, auditing and financial reporting issues in the US. The head of auditing of Enron Corporation was fired during the company’s downfall for destroying important documents, upon realizing that the company’s accounting methods were being investigated by the commission of Securities and Exchange. The destruction of the accounting documents compromised with accounting standard...
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...Typical Business Plan for a Financial Advisor A.) Executive Summary: The role of the wealth manager is not to simply sell a financial product to a prospect. Instead, a wealth manager’s first concern is developing a comprehensive understanding of the client, a client-centric approach to providing financial solutions. Next the wealth manager must match the right solutions to the client’s needs and desires and ensure he or she receives an exceptional service experience. After that, product and service sales opportunities will naturally follow. Making the transition is clearly a trade-off between short-term results and long-term success. Financial security through goals-based wealth management. As a wealth manager with Merrill Lynch, the emphasis would be on marketing and looking for ways to help clients with a broad array of financial capabilities. The objective is to help clients achieve their goals and dreams, whether it’s living in luxury, providing charitable contributions and/or leaving a legacy for family and friends; consult and advise clients how to best save and structure their investments to reach their goals. 1. What would your specific goals be for new assets under management? a. Year 1 – 10 Million of Assets Under Management ( 10 qualified contacts per day, 1-2 new accounts per week ). b. Year 2 – 20 Million of Assets Under Management ( 20 qualified contacts per day, 2-3 new accounts per week ). c. Year 3 – 30 Million of Assets Under Management ( 30 qualified...
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...How can the financial performance of privately owned business be monitored? What are the main ways of monitoring to ensure the sound financial performance of an organization? Make use of examples to illustrate your arguments and answers. Name: XIE Yang (Jasmine) Tutor’s name: Diane Marsh Date: 16/09/2013 Word count: 1403 Introduction A primary responsibility of any business is to understand the financial situation. With this understanding, the company can run accordingly with management. Shen Yuchu (2005) illustrates that it is significant for the privately-owned firms to understand whether profit status influences performance. “Financial performance is measured by the entity’s ability to generate profit after tax, the accumulated change in retained profits and the entity’s ability to generate positive operating cash flows. These metrics were selected as they are standard techniques employed in the private sector when evaluating the performance of firms” (Aulich. C & Hughes. M, 2013). Financial performance with different ownership may be overseen in different aspects, so privately owned companies should be monitored from a specific perspective. This paper will examine the sound measures to monitor the financial performance in privately owned business. Firstly, some financial measures will be introduced to monitor the performance from the privately-owned nonprofit entities, presenting by a health center in the USA. Next to this, Melbourne...
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...Chapter 01 Financial Statements and Business Decisions True / False Questions 1. Accounting is a system that collects and processes financial information about an organization and reports that information to decision makers. True False 2. Assets on the balance sheet are recorded at market value or replacement cost. True False 3. In accounting and reporting for a business entity, the accounting and reporting for the business must be kept separate from other economic affairs of its owners. True False 4. The accounting period in which service revenue is recognized (i.e., revenue for services rendered) is generally the period in which the cash is collected. True False 5. Total assets are $70,000, total liabilities, $40,000 and contributed capital is $20,000; therefore, retained earnings are $15,000. True False 6. The payment of a cash dividend to stockholders increases stockholders' equity. True False 7. The accounting model for the balance sheet is: Assets + Liabilities = Stockholders' Equity. True False 8. A decision maker who wants to understand a company's financial statements must carefully read the notes to the financial statements because the notes provide useful supplemental information. True False 9. The financial statement that shows an entity's economic resources and its liabilities is the statement of cash flows. True False 10. Companies prepare...
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...Financial Intermediation and Credit Policy in Business Cycle Analysis∗ 1 Introduction To motivate interest in a paper on financial factors in business fluctuations it use to be necessary to appeal either to the Great Depression or to the experiences of many emerging market economies. This is no longer necessary. Over the past few years the United States and much of the industrialized world have experienced the worst financial crisis of the post-war. The global recession that has followed also appears to have been the most severe of this era. At the time of this writing there is evidence that the financial sector has stabilized and the real economy has stopped contracting and output growth has resumed. The path to full recovery, however, remains highly uncertain. The timing of recent events, though, poses a challenge for writing a Handbook chapter on credit market frictions and aggregate economic activity. It is true that over the last several decades there has been a robust literature in this area. Bernanke, Gertler and Gilchrist (BGG, 1999) surveyed much of the earlier work a decade ago in the Handbook of Macroeconomics. Since the time of that survey, the literature has continued to grow. While much of this work is relevant to the current situation, this literature obviously did not anticipate all the key empirical phenomena that have played out during the current crisis. A new literature that builds on the earlier work is rapidly cropping up to address...
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...A Comparison of Business Models and Financial Management of Google and Microsoft Anitra Williams-Bender Jackson State University Abstract Google and Microsoft are two of the world’s leading providers for technological services and products. Both companies offer superior services such as search engines, e-mail, and other services designed to connect users with the rest of the world. Although these organizations may have similar products and services, there are limitless factors that set them apart from one another. The business models and financial management strategies for Google and Microsoft differ, directly correlating with the success of the company. Financial ratios help to indicate the success or failure of a company’s attempt to gain profit by selling products and recruiting investors. Annual reports track the expenditures, assets, and net income for Microsoft and Google. Leadership styles, new products and services, and company goals are influenced by annual reports. The technological competition continues, as both of these companies attempt to increase and retain revenue, beat out their competitors, and attract more and more customers. The core business of an organization outlines the most important and essential activities to the company. This sector of business activity fulfills the purpose for the organization, and it is needed for the organization to function properly. The core business can be viewed as the foundation for the organization; aspects of the...
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...reasons for its selection ..................................................................................... 5 Aim of the Research Report ...................................................................................................................... 5 Research Objectives .................................................................................................................................. 5 Research Questions .................................................................................................................................. 6 Research Approach ................................................................................................................................... 6 Part Two: Data Sources and Business and Accounting Techniques.............................................................. 8 Sources of information for research work ................................................................................................ 8 Annual Reports: .................................................................................................................................... 8 Online libraries and Websites: .............................................................................................................. 9 Books and Academic...
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...Google’s business model and financial management with Microsoft’s, which launched Bing. Access Google and Microsoft’s annual reports and financial statements at their Websites. In addition to the text, you may access some other sites and or sources to understand the how to analyze an income statement and a balance sheet. For example, the following sites can provide guidance: Understanding the Income Statement at: http://www.investopedia.com/articles/04/022504.asp Reading the Balance Sheet at: http://www.investopedia.com/articles/04/031004.asp However, if these sites are not available, there are other sites that can be accessed that will provide sufficient information and guidance. Write a 7-8 page paper in which you: Calculate or identify from each company’s most recent annual report the six (6) specific financial ratios listed and provide as an appendix to the paper. Liquidity measurement ratio: Current ratio Profitability indicator ratios: Return on assets Return on equity Debt ratio: Debt ratio Operating performance ratio: Fixed asset turnover ratio Cash flow indicator ratio: Dividend payout ratio Investment valuation ratio: Price / Earnings ratio (If you need help with ratios you could access Web sites that provide guidance such as: http://www.investopedia.com/university/ratios/ However, if this site is not available, other sites can be accessed that offer similar information.) Compare and contrast each company’s business model: (1) core business, (2) leading...
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...Financial Prospectus Content Paper Starting a new business involves time, money, expectation, planning, and decision. New venture needs to create a business plan outlining business ideas, concepts, goals, trends, strength, and weakness. There are 7 components of a financial prospectus to put a business into motion such as: - Business description - Market analysis - Market plan - Competitor Assessment - Operating Plan - Financial Plan - Executive summary The new business venture I planned to invest would be a Shrimp Farmer. The market demands of organic food have increased the global production of freshwater shrimp farming. Shrimp has become the most popular seafood in the United States. On the other hand, consumers are becoming more conscious and concerned about the environment damage. Many shrimp farmers often use antibiotics and hormones to increase the shrimp production. The methods used before to meet the shrimp’s demands have dramatically damage environment. Now, many advances in researcher found new methods and technology that have changed the scenario. Business Description Carrillo’s Shrimp Farm would be placed in the Desert of Imperial Valley to combine the effects of the hot sun with the qualities of deep pumping well water allowing a faster growth. The shrimp would be raise in a pond with significantly depth water having as a mission a fresh, healthy, and free hormone shrimp. Since the well water rich in mineral would be...
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...Assignment Course Title : Financial Management Course Code : BUS 302 Section : 03 Submitted To :- Shafayat Hossain Chowdhury Lecturer School Of Business University of Liberal Arts Bangladesh Submitted By :- Asma Ull Husna | 143011145 | Bytul Mahmud | 142011154 | Nasima Islam | 142011201 | Afsar Uddin Mollah | 142011186 | Galib Md. Fazal Khan | 112011142 | Date: 26th June, 2016 Aramit Cement (ARAMITCEM ) Income Statement 2014 149,462,391 122,198,920 Gross Profit EBIT DOL = = = 1.22 122,198,920 122,198,920 - 105,664,296 EBIT EBIT - I DFL = = = 7.39 DTL = DOL * DFL = 1.22 * 7.39 = 9.01 Confidence Cement Limited (CONFIDCEM) Income Statement 2014 606,412,471 443,602,779 Gross Profit EBIT DOL = = = 1.37 443,602,779 443,602,779 - 65,010,833 EBIT EBIT - I DFL = = = 1.17 DTL = DOL * DFL = 1.37 * 1.17 = 1.60 Lafarge Surma Cement Limited Income Statement 2014 4,466,871,000 3,778,223,000 Gross Profit EBIT DOL = = = 1.18 3,778,223,000 3,778,223,000 - 0 EBIT EBIT - I DFL = = ...
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...Read full version essay Financial And Business Accounting Financial And Business Accounting Print version essay is available for you! You can search Free Term Papers and College Essay Examples written by students!. Join Essays24.comand get instant access to Financial And Business Accounting and over 30,000 other Papers and Essays Category: Business Autor: anton 01 December 2010 Words: 1039 | Pages: 5 Financial accounting is defined as measuring and recording business transactions and providing financial statements that are based on generally accepted accounting principles. It focuses on external reporting. The purpose of financial accounting it to aid accounts in their function of overseeing an organizations financial assets. The central outputs of financial accounting are audited financial statements such as balance sheets and income statements. Financial accounting is geared toward providing information to parties outside the firm, for example prospective shareholders. By contrast, managerial account which measures and reports financial and non-financial information tat helps managers make decisions to abide by the goals of an organization. It focuses on internal reporting. The tools used by managerial accountants to meet their goal of decision support are such things as budgets, activity-based costing and financial planning. Managerial account is designed for internal use by firm’s managers. Cost accounting is a subset of the more inclusive area of managerial...
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