...revenue and geography and through Battlefield – The CAT Rental Store operations in Canada. With the help of CIMCO Refrigeration, it also supplies refrigeration equipment used by the food and beverage industry and by the NHL to keep artificial ice surfaces frozen. Toromont was a spin-off of Enerflex, its natural business, in 2011. Enerflex and CIMCO made up Toromont’s Compression Group segment. The company maintains operations primarily in Canada, the United States, and Australia. The primary focus of Toromont is to lead by example and continue to improve the quality of all products and services. This financial analysis report will evaluate several general accepted accounting principles which may include past years performance based on the past years of Toromont’s’ economic status. The existing financial report for 2011 contains an income statement, balance sheet, and a statement of cash flows as well as other consolidated documents. The balance sheet contains a list of all current and total assets and liabilities with also a list of stockholders equity. The income statement lists all revenue, operating income, earnings (losses), continuing and discontinuing operations. Operating, investing, and financing activities are listed on the statement on cash flows. It is well known in the accounting community that the two simplest ways to analyze a company’s...
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... the balance sheet, and the statement of cash flows. I will discuss some details of each sheet, the importance of the contents, business decisions associated with each sheet, and the benefits gained from the information contained in the sheets. The Consolidated Statement of Earnings-- income statement-- tells the reader about the sales and expenses applied by The Home Deport during the most recent fiscal year. An immediate analysis of this income statement indicates the company has net sales figures between $70 billion and $80 billion per year. This is a significant difference over a three year time period. The one very noticeable issue is the substantial decrease in sales from 2008 to 2009. The Home Depot´s net sales in 2008 dropped roughly eight percent compared to the previous year. Operating expenses increased by approximately 105%, while operating income decreased by about 40%. The increase in operating income helped bring the numbers up, but after it is all said and done, the bottom line is the fact that net earnings were down approximately 49% in 2008 compared to the previous year. The Home Depot attributed the significant decline in sales to the decline in the residential (new) construction and home improvement markets. In addition to the decline in sales, The Home Depot reported higher expenses during fiscal 2008. The Consolidated Statement of Earnings contains information the user will find helpful when making financial decisions. For example, upper management...
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...Student Number: 10314497 Course Title: MBA (Finance Stream) Lecturer Name: Enda Murphy Module/Subject Code: B9AC106 Module/Subject Title: Financial Analysis Assignment Title: Analysis of Financial Statements No of Words: 3418 (Excluding Citation, Bibliography, Table of Content and Charts) Date of Submission: 12 November, 2015 Table of Content Introduction..............................................................................................................................3 Ratio Analysis of Tata Motors..................................................................................................5 Profitability Ratio.....................................................................................................................5 Gross Profit Margin..................................................................................................................6 Net Profit Margin/Profit for the year (after tax).......................................................................7 Profit before Tax (PBT) Margin................................................................................................8 Return on Equity.......................................................................................................................9 Efficiency Ratio.........................................................................................................................9 Average Receivable Collection Days....................
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...Business Analysis II MGT 521 October 10, 2011 Hoda Bagdady-Asal PhD Abstract The following is a business analysis of the Apple Company. This analysis has been used to determine the financial health of the Apple Company through review of its financial statements. Also, I have included a summary of Apple’s technological advantages over other companies in the same industry, as well as, a benchmarking analysis also comparing Apple to other companies. To invest in a company or not, its economic activities gives idea of the status in the market. Financial statement gives information of financial status of the company as well as its stability. Financial statement is an accounting report of the financial activities of a company base on the entrance and exists of money. Managers use financial statement of the company to evaluate performance of their employees, to prepare a budget of the company base on expectations, to make a decision that can modify operations in the company, for example, when Jobs came back to Apple in 1997 as a chief executive officer, base on the financial statements, closed plants, reduce number of employees, and sold stock to Rival Microsoft Corporation. His purpose was to obtain capital to inject to the company. Also manager uses financial statement for annual report of the company to stockholders. This financial statement is important for investors, lending companies, stockholders, for example evaluated...
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...ANALYSIS OF A COMPANY’S LIQUIDITY BASED ON ITS FINANCIAL STATEMENTS Pacurari Doina Universitatea din Bacau, Facultatea de Stiinte Economice, Bacau, str.Spiru Haret nr.8, E-mail doinap_ro@yahoo.com, Telefon 0740 179097, Muntean Mircea Universitatea din Bacau, Facultatea de Stiinte Economice, Bacau, str.Spiru Haret nr.8, E-mail doinap_ro@yahoo.com, Telefon 0740 223535 Abstract: The liquidity characterise the financial situation of the company, its ability to convert assets into cash or to obtain cash to meet short-term obligations. Lack of liquidity may affect seriously the continuity of the company activities. Computation and analysis of the liquidity are made by a system of ratios based on the data within the financial statements. An absolute value of a liquidity ratio is not relevant. For a correct analysis of the company’s financial situation more liquidity ratios have to be considered and their trend also. Key-words: liquidity, ratio, analysis, financial statements Introduction The fundamental source of the bankruptcy risk consists in the insolvency of the company. Solvency is represented by the capacity of the company to cover all its obligations that result either from previous contracts or from current operations. Solvency must be analysed on short-term (liquidity), as well as on long-term. Thus, liquidity expresses the capacity of the company to meet its short term obligations, that is, to cover its cash outflows with adequate cash inflows and, moreover, to ensure...
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...enabled you to develop your research skills, as well as deepening your subject knowledge by following particular interests. These tasks were not assessed, but will be of great help to you for your assessed work in teaching block two. Throughout teaching block two you are required to undertake an individual research project, focussing on one space from the list attached. You will present this research in the form of a research journal (artefact one). Each studio has been allocated a ‘type’ of space, either domestic, sacred or public and you can choose your individual space from within this list. In studios, you will break into groups to compare and contrast your spaces, come to some conclusions about each ‘type’ based on this comparative analysis, and present your findings in the form of an exhibition (artefact two). Each group will consist of 6-7 students. Marking of the work will be based on a combination of your...
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...accounting concepts we will deal with this semester. The familiarity of the context should enable you to associate managerial accounting terminology with real world phenomena. 2. The structure of this series of exercises also provides an opportunity to develop your skills in using Excel to do financial modeling. Irrespective of your preferences for a career choice, financial modeling will be a critical skill in your professional life. Marketers and HR specialists take note: there is no avoiding the numbers. 3. The majority of you are still relatively early in your path through the School of Business program. Case analyses will be an important element in several of your subsequent courses. One key to successful case analysis is meticulous organization of relevant facts and information. The approach I am suggesting is one way to ensure that you have all the information you need in one place. We’ll work through the case over several days, developing an increasingly sophisticated understanding of the concepts and terminology of managerial accounting. At times, the CIC case will be very much in the foreground as we use David’s situation to illustrate...
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...Distribution Project ➢ . A few words on the world’s best homemakers…… WIL was incorporated in 1960 by J R Desai in collaboration with Kelvinator International Corporation, USA. Later the company integrated backwards to manufacture electrical grade stampings used in motors, compressors, super enameled copper wire and other allied products. Electrolux, Sweden, the worldwide consumer durable giant has 12.5% stake in Whirlpool. Electrolux tried to increase its holding to 51%, however, the idea was stalled due to price disagreements. In 1995, WIL negotiated with Whirlpool Inc, US, another major player in the global white goods market, who was willing to buy a company at a higher price. The deal ultimately went to Whirlpool who invested $200mn mainly to acquire 51% in Desai family owned Kelvinator of India. They set up a Rs3.65bn Greenfield project in Pune to make frost-free fridges. The new management hived off the automotive and compressor divisions and amalgamated WIL with Whirlpool Washing Machines Ltd and Expo Machinery Ltd in 1996. Later in 1997 Whirlpool Financial India Private Ltd was merged with WIL. Subsequently Whirlpool Inc increased its stake to 82.3% in the Indian arm. Whirlpool Inc, US are the world's leading manufacturer and marketer of major home appliances. The company has principal manufacturing operations and marketing activities in North and South America, Europe, and Asia. Whirlpool's primary brand names - Kitchen Aid, Roper, Bauknecht, Ignis, Brastemp...
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...A comparative studies of consolidated financials Table of Contents: 1. A. Description of Expanded accounting equation for Hal Burton Web consulting for the period of 1-30, 2015 B. Basic and consolidated financial statements of Hal Burton Web consulting for the period of 1-30, 2015 1. Income Statement. 2. Statement of financial position 3. Statement of owner’s equity 4. Statement of Cash Flows. 2. A. Requirements of International Accounting Standards (IAS-1) and its comparison with US-GAAP for the presentation of financial statements. B. Supporting examples of financial statements prepared under IFRS and US GAAP References. 1) A. Analyze and summarize the below transactions using the accounting equation in the form of a table showing different assets, liabilities, capital, revenue and expenses. Table 1. Expanded Accounting Information | | | |Hal Burton Web | | | | |Consulting | | | Statement of Owners Equity | | | | ...
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...lending money or not. As for managerial accounting this information is provide to senior management to help them make a better assessment when making decisions regarding the company’s business activities and future plans. When referring to managerial accounting, there are different types of accounting information. For example, a budget report will used to compare actual performance against budgeted performance. According to Answers.com (2011), in a budget report there are columns for actual performance and for budgeted performance and the difference between the two is a variance. Senior management will review a break even analysis on a new product. The break even analysis informs management the required unit sales or dollar sales that the company needs to not suffer a loss on a product. According to Holland (1998), the break even analysis is one of the most common tools used by management to evaluate the feasibility of a new product or enterprise. The next piece of accounting information is the manufacturer’s balance sheet. The balance sheet informs management of the business’s assets, liabilities and owner’s equity. Stated by Huey (n.d.), the balance sheet is a report that provides the financial position of the business. The manufacturer’s income is a report that describes the earnings of the company either on a monthly basis or a yearly basis. An income statement is also referred to as a profit and loss statement. The income statement per Entrepreneur.com (2011), draws information...
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...Financial Analysis Phillips 66 Toccara Smalls Atlanta intercontinental university BUSN 125- Business Math September 3, 2015 Abstract This paper is an analysis of the financial statement of Phillips 66. The researcher will present horizontal and vertical analysis of the income statement and balance sheet among other things. Introduction This paper presents an analysis of Phillips 66 financial statement. Specifically discussed in this document will be the following: Preparation of Financial Statement, Business Problem Solving, Recovery Methods, Indebtedness, Horizontal Analysis, Vertical Analysis, and Ratios and Percentages. The document will conclude with a summary of this discussion. Preparation of Financial Statement Financial statements will give you a clear and accurate visual of how your business is currently performing, so you have a means of monitoring its progress and identifying opportunities for growth. The type of financial statement that lays out the basis for a fortune 500 company like Phillips 66 include a thrall preparation of the balance sheet, income statement, statement of retained earnings, and statement of cash flows; which are the most important steps in the accounting cycle because it represents the purpose of financial accounting statement (Brook, 2013). Ideally the financial statements are prepared by transferring the account balances on the adjusted trial balance to a set of financial statement templates in order to establish a logistical...
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...bepress Legal Series Year Paper Enron and the Special Purpose Entity. Use or Abuse? The Real Problem - The Real Focus Neal F. Newman Texas Wesleyan Law School This working paper is hosted by The Berkeley Electronic Press (bepress) and may not be commercially reproduced without the permission of the copyright holder. http://law.bepress.com/expresso/eps/1165 Copyright c 2006 by the author. Enron and the Special Purpose Entity. Use or Abuse? The Real Problem - The Real Focus Abstract In December of 2001, Enron Corporation filed for bankruptcy under Chapter 11 of the U.S. Bankruptcy Code; one of the largest corporate bankruptcy filings at that time. When the investigations commenced and the tangled Enron web was unraveled, it was discovered that Enron had perpetrated a very sophisticated form of accounting fraud through its repeated use of what are referred to as Special Purpose Entities (“SPEs”). In their most basic forms, SPEs are business entities formed for the purpose of conducting a well specified activity such as construction of a gas pipeline, or collection of a specific group of accounts receivable. However, because of their complex nature, SPEs can be used to manipulate a corporation’s financial results, which was the primary use for which Enron employed the SPE structure. As a result, the investment and financial community has cast a dark cloud over the special purpose entity, depicting the SPE as an inherently evil structure whose only purpose is to...
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...This essay will explore, explain and evaluate the key different types of budgeting within a business as well as the importance of why businesses must keep their costs under control. Firstly it will examine key types of planning and budgeting along with how they are interconnected. Secondly it will focus upon how a business might prepare its annual master budget, including how budgeted balance sheets, cash budget and budgeted income statements affect the overall master budget. Finally it will examine potential behavioural issues that might arise within a business. When managing a company’s finance the use of planning, control and budgeting are all equally important and interconnected with one another. In effect, when a company keeping a tight rein on cash flow, fixed costs and variable costs through the use of planning and budgeting, it will consequently allow the company to better control its profit margin. When conducting research on the importance of planning and control Kay states: Control and planning are interrelated so closely that they cannot be separated from each other. Without control all the planning is fruitless because control consists of the steps taken to ensure that the performance of the organization conforms to the plans. (Kay, 2012) Kay indicates that what has been previously written about within this essay is correct; additionally it suggests that both are directly interconnected with one another...
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...that Ocean Carriers is a U.S. firm and is subject to 35% taxation. (Please see excel sheets) From our analysis it appears that Ms. Linn should not buy the Capesize vessel. The Net Present Value on the Ocean Carrier is not a positive number, a clear indicator that buying the vessels is not a good idea. The tax rate of 35% makes a lot of difference in determining this NPV. In our calculations we did assume a tax rate on the final sale of the vessel. If it were possible, or known, the tax rate on the salvage it might be more feasible to buy the vessel, and end up with a positive NPV. The effect of taxes on EBIT and thereby NPV is easily seen in our analysis numbers. As taxes remain steady and profits from operations falls, the prudence of the investment becomes apparent. Assume that Ocean Carriers in based in Hong Kong, where owners of Hong Kong ships are not required to pay any tax on profits made overseas and also are exempt from paying any tax on profit made on cargo uplifted from Hong Kong. (Please see excel sheets) If the tax rate were a non-issue it would make sense to buy the vessel. Running our analysis with a zero tax rate gave a positive NPV. This is due to the effects of taxes on EBIT. While it is more realistic to expect a tax rate, draw of having a zero tax rate would make this project more attractive to management, and possible. It may have also been advantage in the analysis we ran to see the effects a change in the discount rate has on the NPV. Couple with...
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...anticipate range of outcomes.” “A set of structured calculations, written in a spreadsheet, used to analyse the operational and financial characteristics of a business and/or its activities.” “Tool(s) used to set and manage a suite of variable assumptions in order to predict the financial outcomes of an opportunity.” “A construct that encodes business rules, assumptions, and calculations enabling information, analysis, and insight to be drawn out and supported by quantitative facts.” “A system of spreadsheets and formulas to achieve the level of record keeping and reporting required to be informed, up-to-date, and able to track finances accurately and plan for the future.” Some philosophical: n “A numerical story.” Some incorrect: n n n “Forecasting wealth by putting money away now/investing.” “It is all about putting data into a nice format.” “It is just a mega huge spreadsheet with fancy formulas that are streamlined to make your life easier.” Some ridiculous: n “Something to do with money and fashion?” 1 2 Some honest: n USING EXCEL FOR BUSINESS ANALYSIS “I really...
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