...Chapter 2—Financial Statement and Cash Flow Analysis MULTIPLE CHOICE 1. Which of the following items can be found on an income statement? a. Accounts receivable b. Long-term debt c. Sales d. Inventory ANS: C DIF: E REF: 2.1 Financial Statements 2. If you only knew a company’s total assets and total debt, which item could you easily calculate? a. Sales b. Depreciation c. Total equity d. Inventory ANS: C DIF: E REF: 2.1 Financial Statements 3. How do we calculate a company’s operating cash flow? a. EBIT - taxes + depreciation b. EBIT - taxes - depreciation c. EBIT + taxes + depreciation d. EBIT - Sales ANS: A DIF: E REF: 2.2 Cash Flow Analysis 4. Holding all other things constant, which of the following represents a cash outflow? a. The company sells a machine. b. The company acquires inventory. c. The company receives a bank loan. d. The company increases accounts payable. ANS: B DIF: E REF: 2.2 Cash Flow Analysis 5. Which of the following is a liquidity ratio? a. Quick ratio b. P/E- ratio c. Inventory turnover d. Equity multiplier ANS: A DIF: E REF: 2.3 Analyzing Financial Performance Using Ratio Analysis NARRBEGIN: Bavarian Sausage, Inc. Bavarian Sausage, Inc. Bavarian Sausage, Inc. posted the following balance sheet and income statement. Balance Sheet Cash Accounts Receivable Inventories Net Plant and $ 50,000 125,000 225,000 Accounts Payable Notes Payable Long-term debt $185,000 125,000 115,000 Equipment 525,000 Total Assets $925,000 Common Stock...
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...Investment Report [Portfolio Investment Analysis] Portfolio management is an important factor that determines the performance of the portfolio. To perform well in the portfolio, it is not only essential to develop personal investment strategies, but analyzing current financial trend is also vital. Stock Trak is an online portfolio simulation that allows students to try out different investment strategies, and also get a hand on experience in what the real market trading conditions are. By managing the portfolio, I have acquired some new knowledge of investment strategies and also become more familiar with the current market by following closely to the financial headlines. My portfolio composed of only a few specific stocks of some large information technology companies. The main compositions are Apple Inc., Google Inc., and International Business Machines Corp (IBM). By investing different stocks in the same industry, it comes to my attention that even though they are in the similar category, the life cycles of these stocks are still very different. It is interesting to compare and analyze the different progress of those companies, and also to see how different factors affecting the performance of a specific stock and the portfolio as a whole. [Portfolio Performance Analysis] My overall return is 7.92%, which is about average and is a little over performed comparing to the S&P 500 average of 7.71% during the same period of time. Analyzing the historical data and financial report...
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...DECLARATION | I am Md. Mahmudul Hasan khan, a student of BBA, Bangladesh University of Business & Technology (BUBT), hereby declare that the internship report title “Financial Performance Evaluation of Southeast Bank Limited” has not been submitted by me before for any degree, diploma, title or recognition. It is persuading under the supervision of Md. Tanim-ul-Islam, lecturer, Department of Accounting, Bangladesh University of Business & Technology. Md. Mahmudul Hasan khan ID No. 11121101008 BBA, 26th Intake Major in Accounting Bangladesh University of Business & Technology (BUBT) SUPERVISOR’S CERTIFICATE | This is certify that Md. Mahmudul Hasan Khan is a student of BBA, ID No.11121101008 successfully completed his “Internship Program” entitled “Financial Performance Evaluation Of Southeast Bank Limited” , a Concentrated Study on “Southeast Bank” under my supervision the partial fulfillment for the award of degree Bachelor of Business Administration (BBA), in Accounting to the Bangladesh University of Business & Technology (BUBT) . He has done his job according to my supervision and guidance. He has tried his best to do this successfully. I think this program will help him in future to build up his finer career. I wish his success and prosperity. Md.Tanim-Ul-Islam Lecturer, Department of Accounting Bangladesh University of Business...
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...2 BAE Business Report on Santos Name: Chun-Ting, Chen (Ting) Number: 30611 Class: BAE 5 Date: 20/06/2012 Table of Contents Executive summary 1 1. Introduction 2 2. Evaluation of ethical performance 3 2.1 Environmental issues 3 3. Evaluation of financial performance of Santos 5 3.1 Share price history 5 4. Recommendation 7 References 8 Executive summary Evaluating companies for their ethical and financial performance are important processes before deciding whether these firms could be invested in. The report aims at analyzing the energy company of Santos and to assist the client who is interesting in making ethical investment. This report focuses on environmental concern with pollution and the financial performance. The results indicate Santos did not perform ethically. The way of fracking could cause water pollution as well as fracking would endanger the health of human beings. In terms of financial performance, analyzing of financial performance of share price history over five past years indicated decrease. Overall, the graph shows that the share price fall dramatically in these years. It is recommended that not to invest in Santos, due to the ethical issue of fracking would pollute environment and damage health of people and the decline of the share price...
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...BRICS), related market outlook, and analyzing the market using technical and fundamental analysis approaches. • Conduct intense researches and making forecast on market developments, broader economical trends, and monetary policies for central banks. • Analyzing financial information relating to specific financial assets (Forex & Money Markets, Bonds, indices, commodities, and derivatives instruments), using specialist media sources and the specialized platforms (Reuters Eikon & Bloomberg Professional). • Keeping up to date with market developments and all other areas that can affect the markets, e.g. movements in the economies of followed countries. • Writing research reports and trading strategies to be sent to clients. • Making presentations and recommendations. • Perform training session (In-house and online) for clients to practice trading strategies and ideas. • Regularly invited to express my opinion about recent market development on Major channels (such as: CNBC Arabia) , to find more about my track record please check my Twitter account @mzidan112 . CAVEO BROKREAGE CO. — Kuwait CHIEF FINANCIAL MARKET STRATEGIST, 1/2012 TILL 8/2013. Key responsibilities: • Maintain an in-depth understanding and knowledge of our trading approach and market outlook. • Conduct intense research and report on market developments and broader trends. • Analyzing financial information relating to specific financial assets. • Keeping up to date...
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... : 27666340 E-mail : emmie.siu@polyu.edu.hk Consultation : Monday 2:30 pm to 6:30 pm Role and Purpose This subject aims to introduce an analytical framework for carrying out business analysis and valuation by using financial statements for valuing different kind of businesses. It contributes to the achievement of the BBA Programme Outcomes by enabling students to identify and resolve ethical issues contained in the financial statements (Outcome 4), apply basic accounting and financial theories to analyze financial reports and to identify potential problems and risks (Outcome 7). By the end of this subject, students will become a professional user of financial statements to advance further into the field of business valuation as investment analysis. It requires students to present and communicate effectively in English for general business communication (Outcome 1). Learning Outcomes Upon completion of the subject, students will be able to: a. Develop the ability to critically assess a firm’s financial condition through analyzing financial statements; b. Apply analytical tools to make forecasts and value firms and projects using different valuation techniques; in certain business context such as credit analysis and equity valuation. c. Evaluate and compare corporate valuation decision in specific contexts such as securities analysis, credit assessment...
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...to clients. Bank not only oldest private banks but also surpassed almost all banks in terms of overall growth and profit. Stability of the financial institute in terms of growth, profitability and management is desirable for up-gradation of bank’s image in the market. Security of the deposit maintained i.e. the level of efficiency and effectiveness of the investment portfolio of the bank, as the deposit maintained is used for investment portfolio of the bank, direct relationship over the customer loyalty and this is the prime factor affecting the image of any financial sector in the market. The Bank should have automated operations in the service windows to. New Products and Services add value to the brand image of the Bank. Insurance on deposit and loan products protect not only the bank’s interest but also the interest of the public. Limitations of operations are to be minimized to have superior customer satisfaction. Liquidity of deposits has direct impact on the public sentiment and hence has ample effect on the customer loyalty. The report on “Financial Performance Evaluation of Uttara Bank Limited.” This report gives an idea about the activities of Financial Performance of Uttara Bank Limited .The objective of this report is to analyze and focus on the over-all financial operation. This report aims to providing financial performance evaluation of Uttar Bank Limited. Here, all sorts of ratio analysis have been executed; on order to analyze how efficient, liquid and desirables...
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...FINANCIAL DECISION MAKING FOR MANAGERS: Ratio And Financial Statement Analysis NAME: JAMES B. TAYLOR DATE: 04/09/2015 Table of Content I. Executive Summary.....................................................................................3 II. Introduction..................................................................................................4 III. Financial statements tools and techniques...................................................4 IV. Exhibits…………………………………………………………………...10 V. Analysis of Results.....................................................................................11 VI. Recommendations……………………………….......................................13 VII. Conclusions……………………………………………………………….13 VIII. References………………………………………………………………...14 Executive summary This paper is focused to assess financial health of a business firm. I have chosen one of the leading retail companies in the country (Higgins, 2011). This paper will carry out a financial analysis on Hamster Limited in order to have a comprehensive assessment about its financial health analysis. This paper will analyze and assess the financial environment in which the company operated. Through a comprehensive analysis, my objective is to understand the influence of financial factors in the firm and its decision making. I will evaluate different ratios to acknowledge their impact on Hamsters performance over the few years. I will identify, assess and interpret...
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...Management, Control & Accountability for Financial Resources INTRODUCTION The purpose of this paper is to identify the information needs of the internal and external stakeholders in a manufacturing concern and how they can be met. All stakeholders of a firm require different types of information to help them in the decision making process. The top management which comprises of the Chief executive officer and the board of director require information pertaining to the finances of the firm, the key issues of the firm and the performance of the firm to formulate the strategic policies and strategies of the firm. The middle management consisting of the marketing manager, production manager etc will require information to effectively fulfill their job responsibilities and take actions accordingly. The external stakeholders such as the shareholders have invested their hard earned money in the business and would want to be informed about how well the firm is doing and the return that they will be getting for the money that they have invested. The shareholders are usually interested in the financial reports of the firm to see how profitable and liquid the firm is and will it be able to provide dividends to them. Financial reporting is necessary for management, control and accountability purposes. It helps to assess whether the resources of the firm are being utilized in the most efficient manner and the firm is meeting its objective of generating the maximum profit. Information...
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...Guidelines for the Strategic Audit Report Revised Sep 2013 Adapted and revised from: Wheelen and Hunger, (2008). Concepts in Strategic Management and Business Policy, 11th Ed., Pearson Education, Inc. Purpose of the strategic audit assignment Your assignment Selecting a company for the strategic audit An effective report Required format for the strategic audit report Required sections of the strategic audit report Executive Summary Current situation Corporate governance External environment: Opportunities and threats Internal environment: Strengths and weaknesses Analysis of strategic factors (SFAS) Strategic alternatives and recommended strategy (TOWS) Implementation of recommended strategy Conclusions Evaluating mission statements Evaluating the Board of Directors Preparing the tables: EFAS, IFAS, SFAS, and TOWS Common-size statements Analyzing financial statements Analyzing financial ratios Writing guidelines Relaxed APA rules Useful resources Purpose of the strategic audit assignment A strategic audit is usually done to help the firm’s management decide how to proceed, or to support a potential investment or loan. The purpose of a strategic audit is essentially to answer the question, “What condition is this firm in?” Because the audit is focused toward answering this question, there must be a conclusion about what the audit shows. Therefore, while this is mostly an objective, informative report, there is a persuasive twist at the end. 1 The point of this assignment...
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...30th January, 2014 Internship Report On: Financial Performance Analysis of Grameenphone Ltd. Submitted To: Mr. Abdullah Iftikhar, Lecturer, School of Business Studies, Southeast University. Submitted By: Fakhruddin Ahmed Rubaiyat, ID: 2010010000199, Batch: BBA-24th, Major Subject: Finance. Letter of Transmittal January 30, 2014 Mr. Abdullah Iftikhar, Lecturer, School of Business Studies, Southeast University, Dhaka. Subject: Internship Report on Financial Performance Analysis of Grameenphone Ltd. Dear Sir, It is a gratification for me to submit the internship report on Financial Performance Analysis of Grameenphone Ltd. Here in this report I endeavored to analyze how the leading telecom company in Bangladesh is actually performing based on financial data. I would like to thank you for giving me the opportunity to work on this topic. I took this report as an opportunity to prove my ability in making a quality report. Despite many limitations, I tried my level best in making this assignment accurate and reliable. If you have any further enquiry concerning any additional information, I would be very pleased to clarify that. Hope you will enjoy reviewing this report. Sincerely Yours, Fakhruddin Ahmed Rubaiyat ID: 2010010000199, Batch: BBA – 24th, Major Subject: Finance. Letter of Endorsement This internship report on Grameenphone Ltd. has been submitted...
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...Leslie M. Rogakis HCA 240-0500 03/29/2015 Professor Tirizia York Variance Analysis A variable department manager has many factors to consider when interpreting and analyzing a variance report. Variances can be attributed to factors such as increased or decreased volume, wage increases, cost increases for equipment and cost increases for supplies. Variance reports are a tool that can be utilized to analyze how well a company is doing with meeting current budgetary goals as well as a means for forecasting information for future budgets. In preparing a variance analysis report to be presented to the vice president, the information needs to be simple enough to understand easily, but detailed enough for the information to be useful to the person reading the report. To ensure a well-rounded variance report it should include information such as budgeted values, the actual values for the specific term as well as the overall variance. This paper will explain the relationships between variance reporting, interpreting or analyzing variance report results, and actual results of performance. A variance report is a valuable tool used to analyze a company’s or a specific department’s performance in a given period. When variances in wages occur, there are several factors that could have contributed to that variance. Such factors include higher than expected patients admittance, longer than average patient days and possibly wage increases awarded to staff. An additional factor could...
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...FINANCIAL ANALYTICAL TOOLS Financial analysis involves evaluating the current financial statements of an organization in order to access the current profitability and also compare same with past performance (time series analysis) and the performance of other players within the industry. In other words, analyzing the financial statements assesses the financial health of a company. The major statistical tools used in financial analysis are ; • Ratio Analysis • Cash Flow Analysis • Common Size Analysis Ratio Analysis Investopedia describes ratio analysis as , ‘A tool used by individuals to conduct a quantitative analysis of information in a company's financial statements’. Ratio Analysis can be viewed along the following lines; • Liquidity Ratios • Profitability ratios • Debt ratios • Operating performance ratios • Cash flow indicator ratios • Investment Valuation ratios In reviewing the liquidity ratios, the current ratio, also known as working capital ratio, is used to calculate the proportion of current assets that is available to cover current liabilities, the formula can be calculated as Current Ratio = Current Assets Current Liabilities Its limitation however rests in the fact that in assessing liquidity, it assumes all the company’s assets will be liquidated to cover this and no indication has been given to the amount of time required to liquidate these current considering an organization is a going concern and as such the key to liquidity...
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...always be more than the cost of capital, risk investment should be least. It is also needed in expanding a business. Today’s Managers need to be more commercially aware more so than ever before. Even if they do not have to manage budgets or finances themselves as part of their role they still need to understand about the financials of a company, what it all means and impact of their actions on the bottom line. If one plans the financial side of a business accurately he/she will be able to track the progress of their business in terms of profit and cash surpluses. Accurate financial documents will allow them to keep track of their cash flow and monitor how much of their loans have been paid off. They can measure their success through accurate financial planning. Financial documents will help them in keeping the records as- when company has retained enough profits to expand and improve its business. Improving business performance requires an understanding of the components of profit and value. So as to analyze financial information, that will provide managers and business owners with effective financial skills to enable them to improve the financial performance of their business. Conclusion: Finance for Non-Finance Managers is required: To have a general understanding of business finance which will enable them to improve the profits and value of their business,...
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...Companies or Businesses prepare financial statements to give an accurate account of their financial position and performance. The information on these financial statements is used for analysis and data comparison by internal and external users. A company who has separate subsidiaries or divisions prepares consolidated financial statements that give the overall financial picture in one complete package. Consolidated financial statements are usually a combination of the parent company's detailed financials and its holdings, subsidiaries, divisions, or ventures on one set of financial statements. In reviewing consolidated financial statements is a way more useful then examining all the individual income statements separately, this is because it gives a better overall view of the financial performance of the parent company and all the entities combined together. When analyzing and viewing the financial statements for Home Depot you can see strong sales figures of up to $70 billion in sales per year. There was a noticeable drop in sales from 2008 compared to the previous year of 2007. Home Depot´s net sales in 2008 have dropped roughly about 7.8% in comparison to net earnings which were down about 48.5%. Home Depot says the dropped sales were attributed to the decline in residential construction and home improvement markets and products. Also Home Depot reported higher expenses throughout 2008. The user of the statements can find financial information that is very helpful in the...
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