Horizontal Analysis Horizontal analysis is a type of trend analysis that compares both percent and amount changes from one year to another. This type of analysis is performed on both the income statement and the balance sheet to allow detection of trends and to identify performance issues. The analysis itself can be very useful, especially if more than two years are included. However, caution must be taken not to draw conclusion on this analysis itself, as it can mislead without any context. It
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directly impacted by the gross profit. Earnings before income taxes, provision for income taxes, and net earnings show the largest reduction of 81.6% from year 7 to 8. The balance sheet of Competition Bikes Inc. clearly displays the change of cash and cash equivalents. From year 7 to 8 there was a
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by 31.8% for a change of $1,048,000. Even though the Cost of Good Sold increased significantly it is still less than the Net Sales increase of 33.3%. This resulted in a Gross Profit of 37.5% or $447,000. This indicates strength for CBI, as the management was able to control their costs to turn a profit on the increased sales. This is also a positive for the shareholders because increased profits mean more revenue for the shareholders. Between years 6 and 7 CBI’s Advertising expenses increased
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Contents Introduction 2 LO1. Understand the importance of cost, volume and profit for management decision making in the travel and tourism 2 1.1 Importance of Cost and Volume 2 1.2 Pricing Methods 4 1.3 Factors Affecting Profit 5 LO2. Understand the use of management accounting information as a decision making tool in travel and tourism businesses 7 2.1 Types of Management Accounting Information 7 2.2 Decision Making Tool 8 LO3. Be able to interpret financial accounts to assist
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CONTENT Content | Page | 1. Product, service & Industry Background | 1-2 | 2. Recognizing opportunities/techniques for generating ideas. | 2-3 | 3. Feasibility Analysis | 3-10 | 4. Financial/Funding Aspect | 10-13 | 5. Business Model | 13-16 | 6. Ethical & Legal Issues | 16-17 | 7. Critical Risk Factors | 17-18 | | | 1.0 Product, Service & Industry Background Korean Restaurant Running a first Korean restaurant in Kampar will be the business
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BALANCED SHEET INCREASE (DECREASE) ASSETS 2008 2007 Increase(Decrease) Percentage Current Assets Cash and cash equivalents 1,207,342,389 875,927,694 331,414,695 37.84 Available-for-sale-investment 840,687,402 816,893,531 23,793,871 2.91 Receivables-Net 113,434,183 158,278,935 (44,844,752) -28.33 financial Assets at fair value through profit or loss - - - - Held-to-maturity
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TASK 1 – FINANCIAL STATEMENT ANALYSIS AND CONTROLS Requirements for Task 1: A. Prepare a summary report in which you do the following: 1. Evaluate the company’s operational strengths and weaknesses based on the following: In order to evaluate company’s operational strength and weaknesses accurately it is important to have access to more than one year worth of data. The company, of course, will not be evaluated on the basis of couple of ratios, it is very important to analyze all the available information
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Objective • Identify risk and reward management policies regarding strategic planning, decisions and new product development and acquisitions. • Analysing market, realistic costing and implications of competing ideas. • Understand quantitative analysis of multiple options and inform resource allocation decisions. Here the conflicting demands and short term and long term sales is understood and the tension between successful consumer companies and major retail partners over shelf space is to
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project. It is performed by professionals who prepare reports using ratios that make use of information taken from Profitability statements and other reports. These reports are usually presented to top management as one of their bases in making business decisions. Based on these reports, management may: Continue or discontinue its main operation or part of its business; Make or purchase certain materials in the manufacture of its product; Acquire or rent/lease certain machineries and equipment
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threat, each of these factors is important to take note of and document. External factors typically reference things you or your company does not control, such as: • Market trends, such as new products and technology or shifts in audience needs. • Economic trends, such as local, national and international financial trends. 2. Strengths A company's strengths are usually easy to identify, through its continuing dialogue with customers and suppliers. Your records (eg sales) will also help to indicate
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