Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
By understanding the financial statements of a company, one of the first steps considered is the study of the changes in current financial position of the company and the purpose for the changes. We make a try studying these changes and their causes through using the data contained in the summarized comparative balance sheet.
Illustration
Tools India Limited
Balance Sheet as on December 31, 2003
(Rs. in Millions)
As we have study previously that at the beginning of this section, the net change in working capital can be calculated easily by subtracting the net working capital at the ending of the year by the net working capital at the start of the year.
TOOLS INDIA LTD
Change in Working Capital
December 31, 2002 December 31, 2003
Current assets
180.00
232.00
Less: Current Liabilities
80.00
105.00
Working Capital
100.00
127.00
Working capital on December 31, 2003
Working Capital on December 31, 2002
Increase in Working Capital
27.00
The Rs. 27 million rises in working capital of TIL demonstrating the composite changes in the operating assets. It does not tell us much in terms of the business' operations. Such change could be the net result of changes in all the accounts covered through current items. May be there has been qualitative changes resulting by the depletion of liquid items of current assets and raise in non-liquid items as inventory. So as to answer these questions we try to analyze the changes in all of the working capital accounts.
William Potter is a plumber currently operating as a Sole Trader in Levin. William has approached you, a tax accountant, for your advice on certain tax matters. William's brothe
In most situations this will be essential to grant credit to customers. It may be essential either due to competition or because of the custom of trade. Though, when we grant credi
what is classification of cost?
What is cost accouting
Greta Grantor made $1 million of taxable gifts in 2009, the only taxable gifts she made prior to this year. Greta was married on January 2nd of this year to Gerard Gold digger. De
Questions What are your recommendations to Ted Lapres? What aspects should he keep, what should he change, and in what sequence should he make the changes? • Do you think the D
What are the journal entries to recognize each of the below events. a. The firm records bad debt expense of 5% of credit sales, which were $300. The firm uses the Percentage
You work for a firm of accountants as a junior accounts assistant and part of your role is to prepare clients' ledgers accounts from incomplete records. A client of the firm you
The following data pertains to an investment proposal: Required investment $400,000 Annual cost savings $105,700 Projected life of investment 6 years Projected salvage value $0 Req
Fosson Furniture uses a process cost system to account for its chair factory. Beginning inventory consisted of 5,000 units (100% complete as to material, 55% complete as to labor)
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd