Analysis Of Financial Statements And Balance Sheet

Two traditional approaches to fund programs are grants and donations. Grant funding is typically the largest revenue source for a human service organization. Vast arrays of different grants are available for funding purposes. The XYZ Corporation can utilize these funds from government private foundations. The second traditional fundraising method to fund programs is donations. Building a relationship with the community and having a confident CEO that will reach out for donations can impact the amount of donations your organization receives annually. The XYZ Corporation has a large clientele and therefore should be able to gain recognition within the community and gain donations.

Looking back at the statement of financial positon for 2013, 2014 and 2015 shows increases each year in the revenue. Investments over this period have increased by 2 million. Equipment and improvement expenses have gone down. In 2013 the expense was over 300k. 2014 and 2015 were much smaller around 10k. 2016 jumped up to just over 200k. This shows that attention is being paid to improving the office and equipment and staying up to date with technology.

It is easy to forget that pouring money into a problem will not fix it unless revenue flows continue or are increased and expenses are controlled. Some of the easiest computations can be made with information retrieved from balance sheets and income statements provided by accountants. Ratios such as the current ratio, long-term solvency ratio, contribution ratio, programs and expense ratio, general and management expense ratio, fund-raising and expense ratio, and revenue and expense ratio can provide a picture of where a company stands now compared to where it was in past years and what may need to be done in the future.

One of the primary financial results is the increase in net income from fiscal year 2014 to fiscal year 2015. The percentage increased 2% from $337.6 million to $344.2 million, which may be accounted for by a liquidation of assets, due to the sale of the plane as well as an increase in sales. This change is verified and observed by seeing that, according to the Executive Summary, net sales also increased 10% from $6,213.2 million to $6,814 million. This was primarily due to store expansion and same store sales.

This paper describes a financial statement analysis project useful in both preparerbased and user-based introductory courses in financial accounting. The project

1. The percentage analysis of increases and decreases in individual items in comparative financial statements is called

Net income is not a sufficient indicator of the financial health of an entity. It only serves as a basis of allocation of expenses from the revenues that are generated for a certain financial period. It involves “noncash expenses,” specifically “depreciation and amortization of intangible assets” that reduces its value, but have no effect on the net cash flows of the business. It also differs with cash flow under the context of timing of revenue and expense versus the actual “occurrence” of cash flows (Williams, et al.). There are other considerations that must be probed at, such as the procurement of funds from credit facilities, the ability to pay short-term and long-term financial obligations, distribution of annual dividends, cash inflow and outflow from operating, financing and investing activities. Along with the income statement, balance sheet and critical analysis of several factors, the use of cash flow statement of the company serves an important indicator of the financial health and continuous operations of the business.

WWAV current and quick ratios trended downward and remained lower than the industry’s average of 2.33 and 0.75. In 2011, the company’s current ratio was 1.58 but dropped to 1.19 in 2012 indicating an increase of current liabilities year over year. While WWAV current liabilities are increasing, their current assets rising only slightly. The company’s quick ratio in 2011 was 1.04 and trended down to its current 0.73 standing, which is slightly lower than the median quartile.

Wal-Mart has reported its accounting period for fiscal year 2013; accounting period ends on January 31st of each year. Wal-Mart’s current total of assets as of fiscal year 2013 is $203,105,000.00. Wal-Mart continues to grow in consecutive years with an average increase in assets of $10,000,000 dollars a year for the past five years. The earnings per share have increased 10.6 percent increasing their shares to $5.02. The company has made earnings in addition of $22 billion make it a $ 466 billion dollar corporation. It is with no doubt that the success of the corporation continues on the rise. The corporation owns 4,000 locations in the United States alone adding $10

Negative cash flow was generated continuously for the three years. The large inventory increase may be the main reason. The rapid negative growth of the free cash flow available to debt and equity is noticeable.

* Current assets increased year 12 to 13 from $738,690 to $880,950, an increase of $142,260 (19.3%). It decreased year 13 to 14 from $880,950 to $740,155, a decrease of $140,795 (16.0%). This is a strength for the company as it was able to increase its current assets and operating cash flow year 12 to 14, increasing funds available for loan payments.

(2012). Business analysis valuation: Using financial statements (5e ed.).] This model can give a actual probability on firm being bankruptcy finally, and it is the most intuitive way.

| Below is an excerpt from the cash flow statement of a firm for fiscal year 2003: Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization Amortization of software Tax benefits of employee stock plans Special charges (Gains)/losses on investments Change in operating assets and liabilities: Receivables Inventories Pension assets Other assets Accounts payable Pension liabilities Other liabilities Net cash provided by operating activities Cash flows from investing activities: Payments for plant and other property Proceeds from disposition of plant and other property Investment in software

Financial statement analysis assists a business entity, business shareholders and other people interested, to analyze the figures in financial statements to present them with superior information about such most important factors for decision making and ultimate business survival. As exemplified by Gibson (2001), income statement, balance sheet, and cash flow statements project the financial performance a company at the present and probably the future. According to the annual report 2014, Woolworth’s revenue is projected to rise by 4.09% annually. The group’s financial performance for the past four years is shown below.

I have selected Gokaldas Exports Ltd. From the above 5 firms that I considered to compare with the main firm. The first factor that I considered was Gokaldas Exports Ltd’s Sales is near to the main Firm when compared to the other firms. However I was not compromised to their profit percentage so I also considered their pervious performers comparing with S.Kumars Nationwide Ltd. for past 5 years to justify my selection. Please find the comparison in next page.