Milwaukee Surgical Supplies, Inc., sells on terms of 3/10, net 30. Gross sales for the year are $1,200,000 and the collections department estimates that 30% of the customers pay on the tenth day and take discounts, 40% pay on the thirtieth day, and remaining 30% pay, on average, 40 day after the purchase. (Assume 369 days /year.) 1) Calculate the firm’s average collection period. Sol) Firm’s average collection period (ACP) can be calculated using the following formula: ACP = (30% * 10days)
Introduction This report is to compare the financial situations of two companies in the restaurant industry, Darden Restaurants Inc. of Florida and Brinker International Inc. of Texas. The report will provide a detailed analysis and summary of several things including financial analysis, industry history and analysis, both companies history and analysis, vertical and horizontal analysis, and the creditworthiness of each company. These analysis' that we are going to conduct will provide us with
Sprint Financial Analysis Introduction Objective of this report is to carry out financial analysis of Sprint (Sprint Nextel Corporation). The analysis is to evaluate the company financial and stock performances between 2009 and 2011. The evaluation's objective is to determine whether Sprint is the best competitive and favorable deal for HTC (High Technology Corporation). Company Description Sprint Corporation is a global communication company focusing on both business and residential customers
Kohl’s Financial Analysis Introduction Kohl’s Corporation (Kohl’s) is the second largest specialty department store. It sells private la-bels, national brand items, footwear, accessories, beauty and home products. It even has many of their own labels. The company operates 1,162 department stores in 49 states of the U.S. It has a web site www.kohls.com where you can buy the same items they sell in the store or their online exclusives. It also operates a nationwide loyalty program called Yes2You rewards
The Study of the ratio analysis technique to financial statements offers potential in expanding insight into specific strengths and weaknesses of a company financial situation. The primary objective of financial analysis is to provide information useful for decision making. 1.1 INTRODUCTION: RATIO ANALYSIS: There are various methods or techniques used in analyzing financial statements, such as comparative statement, trend analysis, common- size statement, schedule of changes in working capital
assumptions: 1. The company knows with certainty the annual use ( consumption ) of a particular item in stock. Two . The speed at which the company uses the inventory is constant in time. Three . Orders to replenish inventory stocks are exactly at that point in time when inventories reach zero . Order Point: Reorder Point: This is the point at which the order of Stock - mind - equation expressed as: Delivery time on X day everyday . Lead time: Is time normally takes receipt
AND TREND ANALYSIS INTRODUCTION We know business is mainly concerned with the financial activities. In order to ascertain the financial status of the business every enterprise prepares certain statements, known as financial statements. Financial statements are mainly prepared for decision making purpose. But the information as is provided in the financial statements is not adequately helpful in drawing a meaningful conclusion. Thus, an effective analysis and interpretation of financial statements
INTRODUCTION Financial performance is the extent to which the company has achieved its financial goals and objectives. Analysis of the financial performance allows the company to know the growth in monetary terms. It also helps the company to observe trend in its financial growth over the years and the company can also compare its growth with that of its competitors. Profitability plays a vital role in the survival of the company in the competitive market. High profitability helps the company not only
AND COMMENT ON THE FINANCIAL POSITION OF TESCO AND IT’S FUTURE, BASED ON THE FINANCIAL AND BUSINESS INFORMATION. TABLE OF CONTENTS: 1. Introduction 2. Financial statement definition and objectives 3. Basic financial statements; Balance sheet, Income statement, and Statement of cash flows. 4. Tesco financial statements {(a)group income statement, (b) group balance sheet and (c) group cash flow statement} 5. Financial analysis; definition, users, methods & limitations 6. Analysis and interpretation
“Performance Evaluation of Financial Statements by the Use of Ratio” ACC-1221/09 In partial fulfillment of the requirements for the award of BBA (ACCOUNTING) During the period 2008-2011 Chapter one Introduction 1. Background Financial statements are formal records of the financial activities of a business, person and other entities .Financial statements are all relevant financial information that are presented in a structured manner and in a form easy to understand to be used by parties