Analysis on the profitability, Financial Accounting

Assignment Help:

(a) You are working as the CFO of Jeans Co. The company is currently seeking a new supplier for their goods. There are two main suppliers of choice, XYZ Ltd and ABC Ltd. The contract would be worth over $2 million in sales per annum to the successful supplier. You also own a large majority of the shares as shareholder in

XYZ Ltd. The directors have asked you for a recommendation.

Required:

Discuss the ethical issues involved in this situation.

What would be the best course of action by you as manager?

Q.

(a) Comment on the following three (3) ratios and provide analysis on the profitability, asset efficiency and liquidity of the entity:

Ratio

2013

2012

Profit Margin

9%

12%

Days Inventory

100

70

Days Debtors outstanding

65

45

Current Ratio

2.7:1

1.9:1


Related Discussions:- Analysis on the profitability

Effects of the appointment of the receiver-bankruptcy, Effects of the appoi...

Effects of the appointment of the receiver Floating charges: these crystallise on the appointment of a receiver and become fixed on the assets then in the hands of the compan

Termination of appointments-trust laws, TERMINATION OF APPOINTMENTS A tru...

TERMINATION OF APPOINTMENTS A trustee may cease to hold office in the following ways: (a) Disclaimer : At any time before acceptance of the trusts. (b) Retirement : Eith

Us gaap, US GAAP follows the Historical Cost Concept in valuing the cost of...

US GAAP follows the Historical Cost Concept in valuing the cost of Long-Term Assets. Explain this principle and how it compares to the standards used in the reporting of Long-Term

Breakeven, Baseball Products manufactures a single product with the followi...

Baseball Products manufactures a single product with the following full unit costs at a volume of 2,000 units: Direct materials $ 900 Direct labor 360 Manufacturing overhead* 6

Break-even point, am trying to figure out the break-even point in units usi...

am trying to figure out the break-even point in units using the mathmatical equation. the numbers i have are unit selling price $520, the variable costs per unit are $312 and fina

Explain a reduction in expected inflation - prices and wages, Assume that p...

Assume that prices and wages adjust rapidly so that the markets for labor, goods, and assets are always in equilibrium. What are the effects of each of the following on real money

Retirement benefits and why it is shown in annual report, Retirement benefi...

Retirement benefits 1)      Provident fund and family pension: a.       Contribution to PF and PPF are provided for and payments in respect thereof are made to the relevant

Develop portfolio of investments and trades, The family next door just rece...

The family next door just received a $300,000,000 cash payout after winning the lottery. You talked with them and are trying to convince them to let you manage a portfolio of inves

Scope, scope of financial accounting

scope of financial accounting

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd