...of this paper is to compute the financial ratios of long term rivals of soft drink industry; Pepsi and Coca Cola. In order to calculate the financial position and performance of these companies various ratios for the year 2009 were calculated. These ratios includes debt ratio, liquidity ratios like current ratio, profitability indicators like return on assets, return on equity, operating performance indicators like fixed asset turnover ratio and price/earnings ratio for the investment valuation. Moreover, this paper explained list of financial ratios which can be used to measure the value given to the shareholders and their level of satisfaction and proposed guidelines to be followed when selecting any of these companies to invest in. Apart from financial ratios and performance of these two companies, this paper also discussed the non-financial elements that are important when one considers to invest in a company. DEBT MANAGEMENT OF PEPSI & COKE DEBT RATIO Debt ratio is a type of financial ratio which indicates the proportion of debt a company has to pay against its assets. If the debt ratio of a company is greater than 1 than it means it has to pay more debt than its assets. On the other hand, if the debt ratio is less than 1 then the company is better able to pay its debts. It determines to the investors the level of risk involved in doing business with company (investopedia). The debt ratio of Pepsi Co., for the year 2009, is 0.33 which is higher...
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...Financial Statement Paper xxxxxx ACC/290 January 29, 2013 Dr. Norris Dorsey Financial Statement Paper This week’s individual assignment is to identify the four basic financial statement reports used in basic accounting principles and concepts. It also is to describe the purpose of these four reports and how they would be of use to both managers and employees as an internal component. It is also to describe the external use to investors and creditors. The four monetary financial statements are the balance sheet, income statement, capital statement as well as the statement of cash flows. A balance sheet shows what a business has. A balance sheet is a statement of business or institution that lists the assets, debts, and owner’s investment as of a specified date in time. An income statement is a summary of a management's performance as reflected in the profitability (or lack of it) of an organization over a certain period. It itemizes the revenues and an expense of past that led to the current profit or loss, and indicates what may be performed to improve the results. The capital statement is wealth in the form of money or assets, taken as a sign of the financial strength of an individual, organization, or nation, and assumed to be available for development or investment (businessdictionary.com). In layman’s term money invested in a business to generate income. The statement of cash flow reports the money received as well as used during a specific time frame. The cash...
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...Financial Statements Paper - Part I Bridgette Toutant ACC/497 March 31, 2014 Ken Goranson Financial Statements Paper - Part I A financial statement offers users, such as management, board of directors, and potential investors, information related to the company’s activities and it gives them the ability to make decisions in relation to the company. A certain amount of urgency should exist when providing this useful information because the financial statements are considered to be a powerful and commonly used tool. The most commonly used of all the financial statements would be the income statement because it can be used to examine the profits and losses of a company. Many users do also find that the balance sheets and cash flow statements just as useful in the decision making process. The following will include the analysis of Home Depot’s annual report by examining the income statement, balance sheet, and cash flow statement and looking at how they can help with business decisions. The Consolidated Statements of Earnings, the income statement, tells the user about the sales and expenses of Home Deport during each fiscal year. Analyzing the income statement for Home Depot, it appears that the company had strong sales numbers of over $71 billion each year. Even though the company was able to keep sales over $71 billion, it is noticeable that the sales and gross profits declined from 2007 to 2009 (The Home Depot, 2009). It also seems that an increase in expenses...
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...Financial Statement Differentiation Paper Introduction Whether someone is running a business or wants to invest it is crucial to know how to use financial statements, how each statement impacts the other. Financial statements users can see how the company allocates its resources and can also compare one company to another. The four main prepared according to GAAP financial statements are: 1. the income statement, 2. the balance sheet, 3. the statement of cash flow and 4. the retained earnings statement. Accurate, reliable, and timely statements are used for internal and external purposes. Income Statement An income statement shows how much revenue any business earned over a certain period, such as a year or a quarter, and the costs, and expenses associated with it. The financial statement users can see if the business were profitable or lost money. It is most likely the most used financial statement because it has helpful information like interest and insurance expenses, tax payments, etc. Investors are interested in this statement because it calculates net income, an important indicator of current and future profitability. They can see how effectively management is controlling expenses and investing their money. Creditors also need information about the future earnings because their loans need to be repaid. And if they did not think it would be repaid, they would not loan the money to company (Kimmel, 2009). On this statement...
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...Purpose of Accounting Accounting serves as one of the most important functions of a company. Without proper accounting many businesses like Microsoft, Pepsi, or Home Depot would not be as successful as they are today. Accounting focuses on the economic events of a company and informs internal and external users. The focus of this paper is to define the purpose of accounting; identify the four basic financial statements; and explain how they are interrelated with each other and useful to managers, creditors, investors, and employees. The purpose of accounting is to identify, record, and communicate economic events of an organization to interested users (Weygandt, 2008) which then helps such users to understand the financial direction of a company. The first step in accounting is to identify economic events which may include payment of wages or the sale of a computer. Once specific economic events are identified relevant to a specific business the company accountant or bookkeeper then record the events to have a history of financial activities (Weygandt, 2008). After recording economic events of a company the accounting department will communicate the information to interested users consisting of CEO’s, CFO’s, investors, management, and officers. The accounting information provided by a company is helpful to both internal and external users. Internal users consisting of managers, officers, and directors use the information to make decisions to buy or sell stock, increase or decrease...
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...Initiative Paper "Disney" Marquita Lacy-Polk, Diana Dorsey, Kim Jenkins, Joshua Snooks FIN/370 January 29, 2014 Strategic Initiative Paper "Disney" Disney has grown exponentially to become a household name and a global leader in the industry of family entertainment. Shortly after as a small cartoon company, Ellas Disney, founder of Walt Disney grew the Disney Corporation into something that no one could have imagined. Ellas Disney was always known for his innovation and abilities and still reminiscent today as it was in the 1920s. The company attributes are a majority of and to the success that they have built. In order for organizations to be successful and to survive requires planning for the future, with creative ideas and motivated personnel with an open mind and a strong drive. Two essential business functions are financial and strategic planning, with the great success that Walt Disney has accomplished, then till now there are still financial impacts and risks that still should be considered when making certain decisions when it comes to the company. In this paper our team will be discussing in more detail the current strategic initiatives and the possible new initiatives that Disney has in play, along with the financial impacts and the risk of putting those decisions into effect. The Walt Disney’s annual reports are very important when it comes to strategic and financial planning because it provides a variety of financial information which is helpful when it comes...
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...Financial Statement Analysis Financial statements are the primary information companies publish about themselves. Financial statement analysis is the method used by any interested party to answer questions about a company by extracting the information from company financial statements. Financial statement analysis mainly focuses on investors, since businesses are in business to make profits, financial statements are prepared with shareholders’ in mind. Much of financial statement analysis for investors is relevant to other parties. While the shareholder is concerned with profitability, governmental regulators, short and long term creditors, competitors, and employees are concerned with profitability also. There is also a concern with the riskiness of the business for stockholders’ and employees as well. For the purpose of this paper, I will focus on financial statement analysis in regard to shareholders and short and long term creditors. Stockholders’ (shareholders’) equity can be found on the balance sheet. It is the claim by owners, the residual claim on the assets after subtracting liability claims. This is important to stockholders because it shows the degree of which net operating assets are financed by common equity, financial leverage. The balance sheet is a statement of the company’s investments, from its investing activities, and the claims to the payoffs from those investments. Both assets and liabilities are divided into current and long-term categories...
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... Summer 2014 Financial Analysis and Management Dr. Kamal M. Haddad COURSE OBJECTIVES Fin 423 is designed to develop critical thinking at the individual level, and problem solving competencies at both the individual and group levels. Teamwork and group problem solving are stressed. The course provides a thorough overview of financial analysis, including relevant modern theory and practical applications. Topics include financial statement analysis, financial planning, principles of valuation, capital budgeting, capital structure, and issues in financial policy. The course gives students opportunities to apply financial theory to analyze real life situations in an uncertain environment with an incomplete data set. It is integrative in nature, with special attention to the integration of theory and managerial judgment in the process of making financial decisions. BSBA Goals BSBA students will graduate being Effective Communicators, Critical Thinkers, Able to Analyze Ethical Problems, Global in their perspective, and Knowledgeable about the essentials of business. This class contributes to those goals through its student learning outcomes. LEARNING OBJECTIVES Use Financial Statements to evaluate firm performance. Project Financial Statements (B/S, I/S, budgets, etc.). Use Financial Statements to obtain Cash Flows for the firm and equity holders. Calculate and project Free Cash Flow. Determine financial drivers of Free Cash Flow. Calculate...
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...for an Internal Control System It is the responsibility of the Controller to analyze company performance in operations, compliance and reporting, as well as aid management in the development of budgets and goals (McCarthy & Flynn, 2004, p. 265). It is also their responsibility to analyze and manage risks the company may encounter. To perform these tasks controllers and company financial officers establish internal controls. A system of internal controls ensures preparation reliable financial statements, compliance with financial regulations, reduce risks, and identify and achieve short and long-term goals. Management uses internal controls to adapt to economic changes (AICPA, 2011, p. 2). Insurance and portfolio theory are approaches to managing and analyzing risk and play an important part in an internal control system. Internal Control Systems An internal control system is composed of five inter-related components, 1) Control Environment, 2) Risk Assessment, 3) Control Activities, 4) Information and Communication, and 5) Monitoring. The control environment is the company’s fundamental values and directives, risk assessment is the identification and analysis of possible material misstatements, control activities are the policies and procedures used to identify and manage risks, information and communication involves the processing and distribution of information needed to meet company objectives, and monitoring “assesses the quality of the system’s performance over time...
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...com/view/en_US/us/About/university-relations/Deloitte-Foundation/0ac1264f0b0fb110VgnVCM100000ba42f00aRCRD.htm • FASB codification—password to be handed out in class. You may log in at http://aaahq.org/ascLogin.cfm Objectives This course examines: • How accounting principles are established and monitored by standard setters. • The strengths and weaknesses of various accounting methods and how applications of such methods affect decisions of users and preparers of financial statements. • Current issues facing standard setters and the profession. Grades will be determined as follows: 1. Class participation 45 possible points 2. Financial reporting timeline 5 possible points 3. Mini-cases (Trueblood, FASB, HBS or similar) 35 possible points 4. Problem sets and discussion question write-ups 30 possible points 5. Group presentation 10 possible points 6. Research paper 20 possible points 7. Final exam 5 possible points 150 possible points NOTE: I assume that you should plan to invest—at a minimum—three hours of time outside of class for every credit hour in class. Thus, for this 3-credit class, you should plan to invest at least nine hours per week in preparation and homework—plus three hours in class. Class participation. For each class, you must be prepared to respond to questions and contribute to discussion about the assigned readings...
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...How Financial Assessments Help Organizations Managerial Analysis Abstract Financial assessment provides management with the ability to make critical business decisions for their organization; this involves examining existing data to gain insight on the current and future condition of their organization through the balance sheet, income statement. In the book, What Every Manager Should Know about Financial Analysis, Alan Donahue states “The inability to understand and deal with financial data is a severe handicap in the corporate world”, which seems fitting to mention as I discuss in this paper the significance in doing a financial assessment and some of the necessary tools that are needed in order to do a financial assessment. Basic Concept of Financial Analysis for Organizations and its Importance Financial analysis is an assessment of an organization that will determine the organization’s risk and profitability through reported financial information; the two main sources for retrieving such information are the balance sheet and income statement. The balance sheet also provides a wealth of information that enables the organization to determine its stability, vitality, and profitability through utilizing ratios. Ratios can determine the overall performance of the company through such things called liquidity, leverage and profitability. Balance Sheet The balance sheet outlines the the financial and physical resources that a company has avaliable...
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...Research Paper Review (RM) Submitted by Group 2: Satya Geeta Mounica Kakarla (1527257) Karnica P (1527248) Sandesh U (1527226) Harsh Dhiman (1527213) Arkajit Medya (1527205) The effect of marketing mix in attracting customers: Case study of Saderat Bank in Kermanshah Province Authors: Bahman Saeidi Pour, Kamran Nazari and Mostafa Emami Vol. 7(34), pp. 3272-3280, 14 September, 2013 DOI: 10.5897/AJBM12.127 ISSN 1993-8233 © 2013 Academic Journals http://www.academicjournals.org/AJBM | African Journal of Business Management | Accepted 24 November, 2012 Introduction & Structure of the paper: Progress and transformation in industries, institutions and companies has to do with their ability to deal with problems, activities, as well as competitors. Each institution should adopt policies with respect to long-term vision, mission, goals, opportunities, arrangements and using internal facilities of an external to develop comprehensive marketing, because in today's global business environment there is increasing complexity, rapid change and unexpected developments. Banks and financial markets have become competitive in recent years with the development of science. The task of marketing manager is to analyze, plan, implement and control the marketing program effectively by studying the market and applying marketing mix variables also which is also called marketing management. Today advertisement is also a part of marketing management. Marketing management...
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... | |This assignment cover sheet needs to be included with each assignment. Please complete all details clearly. | |If you are submitting your assignment on paper, please staple this sheet to the front of each assignment. | |If you are submitting your assignment online, please ensure this cover sheet is included in front your assignment. | |Please check your study guide for assignment submission deadline and information. | |Family Name |NGO TRUONG |Given Names |GIANG | |Program/Intake & your Programme |FTDipFM1 & Robert Lim |Student No. |CT00095496 | |Manager | | | | |Module/Course/Unit |Financial Reporting& Analysis |Lecturer |Simon Boey | |Assignment No. |1 |Assignment Due Date |December 7,11 | ...
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...Term Paper on: Sales force management of Banglalion Wimax MKT 364: Sales Force Management Prepared for: Rahma Akhter Faculty, School of Business Prepared by: Group: “Sprit” University of Information Technology and Sciences (UITS) Date of Submission: 6th April 2011 6th April 2011 Rahma Akhter Faculty School of Business University of Information Technology and Sciences (UITS) Dear Madam, We are the student of sales force management course were assigned to submit a term paper on ‘Creating a sales force process. Our term paper is based on “Sales force management of Banglalion Wimax”. We considered your remarks and instructions very carefully while preparing this term paper. We have tried our best to follow your schedule, format and discipline. We tried to focus all the areas related to this term paper and we also used your lecture to fulfill your requirements. Thank you for your consideration. Sincerely Yours, MD. Shahadat Hossain ID: 09310010 Group List |Sl No |Name |Id | |01 |MD. Shahadat Hossain (G.L) |09310010 | |02 |Sorif Hossain Majumdar ...
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...Running head: THE FEDERAL RESERVE AND THE FINANCIAL CRISIS The Federal Reserve and the Financial Crisis Laura Brotherton Strayer University Principles of Economics ECO 100 Professor Isley March 13, 2013 The Federal Reserve and the Financial Crisis Government-sponsored enterprises (GSEs) are financial services corporations established by Congress with the hope of enhancing the flow of credit to certain targeted sectors of the economy making them more efficient and transparent. They also intend to reduce the risk to investors and other suppliers of capital. GSE’s make homeownership more available by injecting liquidity into the mortgage market. The GSE purchases mortgages from banks which provide cash for those banks to make additional guaranteed loans to borrowers. Securitization is a financial practice of pooling various types of contractual debt such as mortgages, auto loans or credit card debt obligations and selling this debt as bonds, pass-through securities, or collateralized mortgage obligation (CMOs) to various investors. Principal and interest on the debt, underlying the security, is paid back to the various investors regularly. The complexity inherent in securitization can limit investors' ability to monitor risk, and that competitive securitization markets may be particularly prone to sharp declines in underwriting standards. Bad mortgage products and practices are a trigger. Moreover, low interest loans allow more and more people...
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