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.
explain the terms recording,classifying,summarizing and communicating
Binary Coded Decimal BCD stands for Binary Coded Decimal. The information given to the computer is stored temporarily before it is processed. Consider a number 827. The bin
what is non-current asset
The Deficiency Account Purpose of deficiency account : The purpose of the deficiency account is to explain the deficit shown on the statement of affairs. The deficiency acc
You are evaluating a project which costs $720,000, has a four-year life, and no salvage value. Depreciation is straight-line and the half year rule does not apply. Sales are projec
features of branch accounts
Refer to Note 12, Employee Benefit Plans and Other Postretirement Benefits (pp. 86-91) from the Consolidated Financial Statements of Harley-Davidson (hereafter HOG) 2008 Annual Rep
This is a research case. You must complete this assignment INDIVIDUALLY. This means no help from other students. You may consult Dr. Eldridge while you are working on this case.
Company A(lessee) will rent inventory for you for 3 years rather than buying it for the regular price of $240,000. Normally these units, which cost us $120,000 to produce, will las
Limited Liability Company (LLC) - Form of doing business combining limited liability for all owners (known as members) with taxation as a PARTNERSHIP. An LLC is formed by filing AR
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