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!
BFD Co has occurrence rapid growth in turnover since its formation three years ago but it has been unable to maintain net profit margin which has fallen from 19% in 2002 to 12% in 2004. On an optimistic note our net profit margin is higher than the sector average but this may as well indicate that a further decrease may arise.
Our growth in turnover hasn't been matched by growth in long-term finance. Separately from the original equity investment made by the founder directors growth in long term finance has been through retained earnings alone. Our company has more and more relied on short-term finance and over the three-year period the overdraft has grown from $50000 to $1167000. From a monetary risk point of view gearing has increased from 4% to 54% and interest cover has declined from 165 times to nine times. Both ratios are at present worse than the comparable sector average. An average period of time in which we settle with trade payables has grown from 69 days to 90 days compared to a sector average of 70 days.
The average sum of credit extended by the sector is 75 days but our receivables' ratio has grown from 56 days to 98 days. This has raised the amount of working capital finance we need as has the growth in inventory days from 104 days to 116 days compared to a sector average of 85 days. Finances which are tied up in inventory and receivables decrease profitability.
There is additional bad news in the area of working capital management since both our current ratio and quick ratio are less than the current sector average having declined in each of the past two years.
Q. Show the Management Report? Management's Report - Management is essential to include in its annual report its assessment of the effectiveness of the company's internal contr
ACCUMULATION ACCOUNTS FOR MINORS (a) Income accumulations : When property is left in trust for minors, the income earned for the period will be divided equally or according t
It is the month of april for rand company a producer of gold and silver commemorative medallions. Rand company has one job, job A a special minting of 1000 gold medallions which st
Assets 2011 2010 Non Current Assets
Hi! Here are the case: Acquisition of Assets: The cost method of accounting is used for the initial recording of all acquisitions of assets controlled by the authority. Cost is
LCI Cable Company grants 1.4 million performance stock options to key executives at January 1, 2013. The options entitle executives to receive 1.4 million of LCI $1 par common shar
Copper Suppliers, Inc. (CS), is a distributor of commercial grade copper. CS purchases copper directly from copper mines and then after refining it, sells the refined copper to in
Appointment of Liquidator The liquidator is appointed by the court after the above meetings have been held: if the meetings do not agree, the court must settle the issue: if no a
difference between carriage inwards and carriage out wards
Prepare a cash budget The following information appeared on the balance sheet of XYZ Ltd at 30 June 2012: Accounts receivable
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd