COMPETITIVE BIKES, INC. INTRODUCTION The Financial Analysis of Competitive Bikes Inc. involves a complete assessment of the liquidity, profitability, competitiveness, and stability of the business. These reports will be using both the income statements and balance sheet provided by the business. Financial statement information is used by both internal and external users including creditors, investors, managers, and executives to make business decisions (Edmonds et al., 2010, p.100) The main objective
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Horizontal Analysis Horizontal analysis is one of the two main ways to analysis the financial statements of a business. This analysis provides a year to year look at the financial performance of the business being evaluated. The spreadsheet that is attached provides a horizontal analysis of years 6, 7, and 8 for the balance sheet and income statement for Competitive Bikes and Two Wheel Racing. The horizontal analysis can take into account either the dollar amount of the changes over the years or
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Financial Analysis (COURSE CODE: JET Task 1) A1 a. Horizontal Analysis Results Income Statement Based on the review of Competition’s Bike’s Horizontal Analysis, revenue shows a decline of $897,000 or 15% in Year 8 compared to Year 7. The decline was mainly due to the current economic conditions. This also resulted in the decline in gross profits by $266,600 or 16.3%. The selling expenses of the company fell by 14.9%, compared to a 16.3% decline in the gross profits from year 8 to
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Financial Analysis JET Task1 Western Governors University Prepare a summary report in which you do the following 1. Evaluate the company’s operational strengths and weakness based on the following: A. Horizontal analysis of financial statements involves comparison of a financial ratio, a benchmark, or a line item over a number of accounting periods. This method of analysis is also known as trend analysis. Horizontal analysis allows the assessment of relative changes in different
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Date: 16 December 2011 Subject: Performance Analysis 2008-2009 Introduction The following contains a detailed report of Marstons Group’s performance for the year ended 2009, compared with its performance for the year ended 2008. The report also contains calculative analysis of the company’s performance in the past financial year and its variances from previous year’s performance. Trend Analysis A vertical and horizontal trend analysis has been performed so as to detect any major
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[pic] Virtual University of Pakistan [pic] Evaluation Sheet for Internship Report Spring 2010 FINI619: Internship Report (Finance) Credit Hours: 3 |Evaluation Criteria |Result | |Written Work Status |Pass | |(Internship Report) | | |Presentation & Viva Voce |
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economy is no excuse for the dip in the company; we must find ways to improve the company’s performance. Reviewing the financial statements will allow us to determine how to improve the company’s financial performance for the future. A1a. The horizontal analysis based on the income statement has indicated the net sales from years 6 and 7 were 33% , net sales from years 7 and 8 were -15%. That is huge differences in nets sales; this decrease is net sales in a weakness. The cause of the decrease can be
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Horizontal analysis results Horizontal analysis compares the company’s finances over several years, with a base years for comparison. Competition Bikes uses year 6 as the base year, and a comparison of changes from year 6 to 7 and then with years 7 and 8. The strengths are mostly for year 6 to year 7. Net sales were $4,485,000 for year 6 and increased by $1,495,000 to $5,980,000 in year 7. Then from year 7 to 8 there is a decline in sales by $897,000 this decrease was the major weakness. The cost
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Financial Statement Analysis and Controls Prepared for Competitive Bikes, Inc. Horizontal Analysis Using a horizontal analysis of the income statement for Competitive Bikes, several things stand out. Years 6 and 7 Comparing Years 6 and 7, the company did very well. They saw a 33% increase in net sales during Year 7, which gave them a 31.8% increase in cost of goods sold. Subtracting the dollar amounts of cost of goods sold from net sales yields an increase of 37.5% in gross
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SECTION 1: EXECUTIVE SUMMARY In this section provide a brief overview of the corporation. Participants are not limited but, at a minimum, should provide the following information: • Official name of the corporation Wal-Mart Stores Inc. • Location of the corporate headquarters 702 SW 8th Street Bentonville, AR 72716 • The state in which the company is incorporated Arizona • Company Internet address http://www.walmart.com • Stock symbol of the corporation and the exchange on which it is
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